Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>After reviewing Suzuki's EV Strategy we turn Bearish on the outlook and see downside for the share price. </li>
<li>We believe that Street has missed the rising costs associated with the electrification strategy. We see a period of weaker margins. </li>
<li>Suzuki only targets 20% of sales to come from EVs in India, its largest market. It could be viewed as a laggard. </li>
</ul>


After reviewing Suzuki's EV Strategy we turn Bearish on the outlook and see downside for the share price. 
We believe that Street has missed the rising costs associated with the electrification strategy. We see a period of weaker margins. 
Suzuki only targets 20% of sales to come from EVs in India, its largest market. It could be viewed as a laggard. 


Suzuki (7269) | EV Strategy – A Dead End?

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS. SPX Closed -1.1% as US Debt Default risks rise; Democrats and Republicans still far apart;  STRONG US new home Sales; Boeing says Supply Chain Resolution will take Time</li>
<li>JAPAN. NKY Futs -0.9% vs Cash; Japan likely falls 2nd day ; JP Real Wages Fall most in 8 years; S&amp;P Cuts Softbank's Debt in deeper Junk - Company protests </li>
<li>NUGGET. Japanese Automaker face massive R&amp;D and Capex spend for years to come as they transition to EVs. Free Cash Flow likely turn negative, and profits stagnate.</li>
</ul>


OVERSEAS. SPX Closed -1.1% as US Debt Default risks rise; Democrats and Republicans still far apart;  STRONG US new home Sales; Boeing says Supply Chain Resolution will take Time
JAPAN. NKY Futs -0.9% vs Cash; Japan likely falls 2nd day ; JP Real Wages Fall most in 8 years; S&amp;P Cuts Softbank's Debt in deeper Junk - Company protests 
NUGGET. Japanese Automaker face massive R&amp;D and Capex spend for years to come as they transition to EVs. Free Cash Flow likely turn negative, and profits stagnate.


Ohayo Japan |SPX -1.1% as Equities Start to Heed Debt Risks; NUGGET: JP Autos- Painful EV Transition

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

Tata Technologies / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tata-technologies" target="_blank" data-smartkarma-citation="entities:23700:1" rel="noopener">Tata Technologies (TATATECH IN)</a>  (TT) is looking to raise around US$600m in its upcoming India IPO.</li>
<li>Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. </li>
<li>In this note we talk about the not-so-positive aspects of the deal.</li>
</ul>



Tata Technologies (TATATECH IN)  (TT) is looking to raise around US$600m in its upcoming India IPO.
Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
In this note we talk about the not-so-positive aspects of the deal.


Tata Technologies Pre-IPO - The Negatives - Still Has a Few Issues

<ul>
<li>OVERSEAS. SPX rose +0.4% lead by gains in Energy, which was well bid on OPEC+ surprise cut; ISM Manf  PMI print weaker; Rates retreat as US 2Yr dips below 4%</li>
<li>JAPAN. NKY Futs +0.1% vs Cash; USDJPY 132.4; BOJ Tankan reading points to weaker manufacturing; Potentially complicates BOJ exit; Activist ValueAct Presses Seven &amp; I </li>
<li>NUGGET. Watch FY3/24  Japan Total Payout Ratios - The Heat is On ! as JP Corporate significantly lags in Total Payout Ratios, while also sitting on ¥100 trn of cash.</li>
</ul>


OVERSEAS. SPX rose +0.4% lead by gains in Energy, which was well bid on OPEC+ surprise cut; ISM Manf  PMI print weaker; Rates retreat as US 2Yr dips below 4%
JAPAN. NKY Futs +0.1% vs Cash; USDJPY 132.4; BOJ Tankan reading points to weaker manufacturing; Potentially complicates BOJ exit; Activist ValueAct Presses Seven &amp; I 
NUGGET. Watch FY3/24  Japan Total Payout Ratios - The Heat is On ! as JP Corporate significantly lags in Total Payout Ratios, while also sitting on ¥100 trn of cash.


Good Morning Japan |Energy Leads SPX to Gains; NUGGET: Watch FY3/24 JP Payout Ratios-The Heat Is On!

<ul>
<li>Global markets continued positive momentum on peaking in global inflation and expectations that the rate hike cycle is approaching its end</li>
<li>There is a slew of economic data next week and some major US tech company results announcements. Japanese earnings announcements get into full swing</li>
<li>Suzuki was the start performer last week as investors cheered the company's new mid-term strategy and decarbonization plans</li>
</ul>


Global markets continued positive momentum on peaking in global inflation and expectations that the rate hike cycle is approaching its end
There is a slew of economic data next week and some major US tech company results announcements. Japanese earnings announcements get into full swing
Suzuki was the start performer last week as investors cheered the company's new mid-term strategy and decarbonization plans


Japan Weekly | Bullish Markets, Suzuki, Shin-Etsu

Japan

Suzuki Motor Corporation manufactures automobiles, motorcycles, and their related parts. The Company has production facilities in USA, Japan, Taiwan, India, Pakistan, Indonesia, Thailand, and Hungary.

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Suzuki Motor (7269 JP)

Suzuki (7269) | EV Strategy – A Dead End?

After reviewing Suzuki's EV Strategy we turn Bearish on the outlook and see downside for the share price. We believe the street has underestimated...

Mark Chadwick

Ohayo Japan |SPX -1.1% as Equities Start to Heed Debt Risks; NUGGET: JP Autos- Painful EV Transition

US debt impasse continues - SPX fall -1.1% NKY Futs -0.9% vs Cash; Japan likely falls 2nd day ; JP Real Wages Fall most in 8 years; S&P Cuts...

Mark Chadwick

Tata Technologies Pre-IPO - The Negatives - Still Has a Few Issues

Tata Technologies (TATATECH IN) is looking to raise around US$600m in its upcoming India IPO. In this note we talk about the not-so-positive...

Sumeet Singh

Good Morning Japan |Energy Leads SPX to Gains; NUGGET: Watch FY3/24 JP Payout Ratios-The Heat Is On!

Japan desires inflation, but not the cost input-driven type likely to result from OPEC+'s decision. Tankan manufacturing came in weaker...

Mark Chadwick

Japan Weekly | Bullish Markets, Suzuki, Shin-Etsu

Global stocks remain on an uptrend. Japanese stocks were in the green for the third week running. We highlight the stocks that impacted the market...

Mark Chadwick

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