Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.</li>
<li>The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech's profitability.</li>
<li>Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.
The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech's profitability.
Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.


Lalatech Refiles for IPO: Further Improvement in Profitability

Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Independent Insight Provider, Japanese equities

Equity Bottom-Up

Lasertec Corporation develops, designs, manufactures and markets photomask inspection systems to make semiconductor devices, confocal scanning laser microscopes and liquid crystal display (LCD) inspection systems.

<ul>
<li>The share price has bounced back on strong 3Q orders and long-term optimism, but weak 4Q guidance calls the growth trajectory into question.</li>
<li>Guidance, which has sales dropping to about half what they were a year earlier, is based on the expected timing of customer acceptance of delivered equipment. It could be conservative.</li>
<li>At 75X EPS guidance for FY Jun-24, a rate of growth not visible in current trends has already been discounted. Current orders should translate into sales in 2026.</li>
</ul>


The share price has bounced back on strong 3Q orders and long-term optimism, but weak 4Q guidance calls the growth trajectory into question.
Guidance, which has sales dropping to about half what they were a year earlier, is based on the expected timing of customer acceptance of delivered equipment. It could be conservative.
At 75X EPS guidance for FY Jun-24, a rate of growth not visible in current trends has already been discounted. Current orders should translate into sales in 2026.


Lasertec (6920 JP): Orders Up, Guidance Down

M3, Inc. supplies medical information services for doctors through the Internet. The Company also supports marketing of pharmaceutical companies and medical equipment manufacturers.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> reported 4Q and Full-year FY03/2024 results. Earnings missed both guidance as well as consensus due to slowdown in Medical Platform and Overseas businesses.</li>
<li>Medical Platform’s earnings declined further in 4Q with spending cuts by pharma companies, and it seems that the segment’s earnings will further decline going forward.</li>
<li>M3’s share price is down 18% YTD, and we do not see many catalysts to drive a rally in the company’s share price.</li>
</ul>



M3 Inc (2413 JP) reported 4Q and Full-year FY03/2024 results. Earnings missed both guidance as well as consensus due to slowdown in Medical Platform and Overseas businesses.
Medical Platform’s earnings declined further in 4Q with spending cuts by pharma companies, and it seems that the segment’s earnings will further decline going forward.
M3’s share price is down 18% YTD, and we do not see many catalysts to drive a rally in the company’s share price.


M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

Oshadhi Kumarasiri

Event-Driven

TOYO SUISAN KAISHA, LTD. purchases, processes, and sells seafood.  The Company also manufactures instant noodles, processed foods, fish paste, and frozen food products under Maru-chan brand.

<ul>
<li>Japanese instant noodle manufacturer <a href="https://www.smartkarma.com/entities/toyo-suisan-kaisha-ltd" target="_blank" data-smartkarma-citation="entities:16752:1" rel="noopener">Toyo Suisan Kaisha (2875 JP)</a> has become the newest target for activist investors in Japan.</li>
<li>Nihon Global Growth Partners Management, Inc argues that Toyo Suisan's investments are overly concentrated in its legacy businesses, despite these ventures yielding low returns.</li>
<li>Therefore, they are recommending that Toyo Suisan exit its legacy businesses, increase the payout ratio to 40%, and use some of its excess cash for a share buyback of ¥20bn.</li>
</ul>


Japanese instant noodle manufacturer Toyo Suisan Kaisha (2875 JP) has become the newest target for activist investors in Japan.
Nihon Global Growth Partners Management, Inc argues that Toyo Suisan's investments are overly concentrated in its legacy businesses, despite these ventures yielding low returns.
Therefore, they are recommending that Toyo Suisan exit its legacy businesses, increase the payout ratio to 40%, and use some of its excess cash for a share buyback of ¥20bn.


Toyo Suisan: Activist Advocates For Legacy Divestiture & More Capital for Global Expansion

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

<ul>
<li>Fanuc was up 4.7% this past week as the market reacted to a slight uptick in orders and transparently conservative guidance.</li>
<li>The book-to-bill ratio remained below 1.0 in 4Q of FY Mar-24, but was up from 3Q, which appears to have been the low point in the cycle.</li>
<li>Inflation and ongoing inventory adjustments indicate a slow recovery, but demand for automation  from traditional markets and new opportunities in aerospace and other industries should support long-term growth.</li>
</ul>


Fanuc was up 4.7% this past week as the market reacted to a slight uptick in orders and transparently conservative guidance.
The book-to-bill ratio remained below 1.0 in 4Q of FY Mar-24, but was up from 3Q, which appears to have been the low point in the cycle.
Inflation and ongoing inventory adjustments indicate a slow recovery, but demand for automation  from traditional markets and new opportunities in aerospace and other industries should support long-term growth.


Fanuc (6954 JP): Guidance Points Down, but the Market Sees Recovery

LightStream Research
Long-Short Analysis on Japan, Asia and the World

Lalatech Refiles for IPO: Further Improvement in Profitability

Lalatech's latest IPO filing shows that the company's earnings have improved significantly, particularly its profitability. Company has managed to...

Shifara Samsudeen, ACMA, CGMA

Lasertec (6920 JP): Orders Up, Guidance Down

Orders up in Q3 to a good but not outstanding level. Q4 guidance for a sharp decline in sales and profit based on expected timing of customer...

Scott Foster

M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

As we expected, m3 missed its own guidance as well as consensus estimates. Medical Platform's earnings growth has decelerated, and the completion...

Shifara Samsudeen, ACMA, CGMA

Toyo Suisan: Activist Advocates For Legacy Divestiture & More Capital for Global Expansion

Nihon Global Growth Partners urges Toyo Suisan to exit low-return legacy businesses, boost payout ratio to 40%, and initiate a ¥20bn share buyback.

Oshadhi Kumarasiri

Fanuc (6954 JP): Guidance Points Down, but the Market Sees Recovery

Fanuc's share price has risen on conservative guidance based on unrealistic exchange rates. Orders appear to have hit bottom while an aerospace...

Scott Foster