Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

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 Bottom-Up

<ul>
<li>The outlook for factory automation is improving with inventory clearance, the upturn in the semiconductor industry and an AI-enhanced response to the labor shortage.</li>
<li>Yaskawa's margins should continue to rise with renewed growth in Robotics, efficiency gains and an upgraded product line. </li>
<li>Valuation stretched at 30x EPS guidance for FY Feb-25, but current weakness looks like a long term buying opportunity.</li>
</ul>


The outlook for factory automation is improving with inventory clearance, the upturn in the semiconductor industry and an AI-enhanced response to the labor shortage.
Yaskawa's margins should continue to rise with renewed growth in Robotics, efficiency gains and an upgraded product line. 
Valuation stretched at 30x EPS guidance for FY Feb-25, but current weakness looks like a long term buying opportunity.


Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The stock market ended on a strong note, with both the Nikkei 225 (+3.4%) and the  Topix (+3.7%) indices posting substantial weekly gains amid ongoing U.S.-Japan trade negotiations</li>
<li>Japanese Economy Minister Ryosei Akazawa's meeting with President Trump on Thursday proved pivotal, with Trump reportedly identifying a deal with Japan as a "top priority."</li>
<li>Auto stocks posted impressive gains Tuesday after reports that Trump was considering pausing his 25% levies on auto imports, with Mazda (+8%) leading the sector for the week.</li>
</ul>


The stock market ended on a strong note, with both the Nikkei 225 (+3.4%) and the  Topix (+3.7%) indices posting substantial weekly gains amid ongoing U.S.-Japan trade negotiations
Japanese Economy Minister Ryosei Akazawa's meeting with President Trump on Thursday proved pivotal, with Trump reportedly identifying a deal with Japan as a "top priority."
Auto stocks posted impressive gains Tuesday after reports that Trump was considering pausing his 25% levies on auto imports, with Mazda (+8%) leading the sector for the week.


Japan Strategy Weekly | Stocks Rally as Trade Tensions Ease and Hopes Rise for Bilateral Deal

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Doosan Robotics  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/doosan-robotics" target="_blank" data-smartkarma-citation="entities:36816:1" rel="noopener">Doosan Robotics (DOOSANROBO KS)</a> is looking to raise up to US$314m in its Korean IPO. </li>
<li>Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. </li>
<li>In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.</li>
</ul>



Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. 
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. 
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.


Doosan Robotics IPO - Thoughts on Valuation - A Punt at Best, a Crash at Worst

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Oversold tech/SPE/AI surging after Trump delayed reciprocal tariffs on all but China, with the SOX up the most of all time.</li>
<li>Expect similar moves with oversold tech beta likely to open &gt;+10%.</li>
<li>Banks and life insurance  should continue to fare well given the persistently high yields, and names with high export ratios to the US.</li>
</ul>


Oversold tech/SPE/AI surging after Trump delayed reciprocal tariffs on all but China, with the SOX up the most of all time.
Expect similar moves with oversold tech beta likely to open &gt;+10%.
Banks and life insurance  should continue to fare well given the persistently high yields, and names with high export ratios to the US.


Japan Morning Connection: Trump Pulls off One of the Greatest Ruses of All Time

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec Corp (6594 JP)</a> has launched its offer for <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a> at an unchanged JPY11,000. The offer is open from 4 April to 21 May.</li>
<li>The offer was launched despite securing all regulatory approvals and the Board's postponement request. The launch could also be an attempt to thwart a competing proposal.</li>
<li>Despite the launch, Nidec’s offer at current terms has a low chance of success, necessitating revised terms. There remains a medium-to-high probability of a competing proposal.</li>
</ul>



Nidec Corp (6594 JP) has launched its offer for Makino Milling Machine Co (6135 JP) at an unchanged JPY11,000. The offer is open from 4 April to 21 May.
The offer was launched despite securing all regulatory approvals and the Board's postponement request. The launch could also be an attempt to thwart a competing proposal.
Despite the launch, Nidec’s offer at current terms has a low chance of success, necessitating revised terms. There remains a medium-to-high probability of a competing proposal.


Makino Milling Machine (6135 JP): Nidec Launches Its Offer

Japan

YASKAWA Electric Corporation manufactures and markets servomotors, controllers, inverters, and industrial robots.  The Company's products include spindle controllers, computerized numerical control (CNC) systems, and system engineering.

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Yaskawa Electric (6506 JP)

Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

Long-term buy with share price down 10% in the past month as orders bottom out. Robotics looking up with inventory cleared and need for automation...

Scott Foster

Japan Strategy Weekly | Stocks Rally as Trade Tensions Ease and Hopes Rise for Bilateral Deal

Stock market in Japan surges as U.S.-Japan trade talks progress, with auto stocks seeing significant gains amid potential tariff pause.

Mark Chadwick

Doosan Robotics IPO - Thoughts on Valuation - A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. comparison. In this note, we talk about valuation.

Ethan Aw

Japan Morning Connection: Trump Pulls off One of the Greatest Ruses of All Time

Oversold Tech surging after delay on reciprocal tariffs, with SOX hitting record highs. Expect gains in oversold tech beta and strong performance...

Andrew Jackson

Makino Milling Machine (6135 JP): Nidec Launches Its Offer

Despite the launch, Nidec’s offer at current terms has a low chance of success, necessitating revised terms. There remains a medium-to-high...

Arun George

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52-week Range

Market Cap (USDm)

P/E

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Yaskawa (6506 JP): Start of a New Factory Automation Growth Cycle

Long-term buy with share price down 10% in the past month as orders bottom out. Robotics looking up with inventory cleared and need for automation...

Scott Foster

Japan Strategy Weekly | Stocks Rally as Trade Tensions Ease and Hopes Rise for Bilateral Deal

​Stock market in Japan surges as U.S.-Japan trade talks progress, with auto stocks seeing significant gains amid potential tariff pause.

Mark Chadwick

Doosan Robotics IPO - Thoughts on Valuation - A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. comparison. In this note, we talk about valuation.

Ethan Aw

Japan Morning Connection: Trump Pulls off One of the Greatest Ruses of All Time

Oversold ​Tech surging after delay on reciprocal tariffs, with SOX hitting record highs. Expect gains in oversold tech beta and strong performance...

Andrew Jackson

Makino Milling Machine (6135 JP): Nidec Launches Its Offer

Despite the launch, Nidec’s offer at current terms has a low chance of success, necessitating revised terms. There remains a medium-to-high...

Arun George

Stock market in Japan surges as U.S.-Japan trade talks progress, with auto stocks seeing significant gains amid potential tariff pause.

Oversold Tech surging after delay on reciprocal tariffs, with SOX hitting record highs. Expect gains in oversold tech beta and strong performance...