Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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

<p>The <a href="https://asia.nikkei.com/Business/Technology/Daikin-develops-refrigerant-for-EVs-it-says-lifts-range-by-50" target="_blank" rel="noopener">Nikkei reported today</a> that Daikin had developed a new refrigerant for vehicle HVAC systems that could boost EV range by 50% in certain conditions. The news is interesting both for its potential impact on EV battery requirements and for the potential sales boost Daikin could experience in 2025 when it aims to commercialise the product.</p>

The Nikkei reported today that Daikin had developed a new refrigerant for vehicle HVAC systems that could boost EV range by 50% in certain conditions. The news is interesting both for its potential impact on EV battery requirements and for the potential sales boost Daikin could experience in 2025 when it aims to commercialise the product.

Daikin – Automotive Refrigerant News Is Worth Noting

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

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<h2>About India Channel Insight</h2>
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<p>Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  </p>
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<p>For this insight, we share our takeaways from interaction with two major consumer durable industry professionals. First, is the Co-founder of a well-known consumer brand that outsources and also imports some of the products. The second professional holds a leadership position in the second-largest durable manufacturer supplying to brands like <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas Ltd (VOLT IN)</a> and <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN). </a></p>
<p>These takeaways will be interesting for investors in <a href="https://www.smartkarma.com/entities/havells-india-ltd" target="_blank" data-smartkarma-citation="entities:9158:1" rel="noopener">Havells India (HAVL IN)</a> , <a href="https://www.smartkarma.com/entities/voltas-ltd" target="_blank" data-smartkarma-citation="entities:19924:1" rel="noopener">Voltas Ltd (VOLT IN)</a>, <a href="https://www.smartkarma.com/entities/amber-enterprises-india-ltd" target="_blank" data-smartkarma-citation="entities:32202:1" rel="noopener">Amber Enterprises India (AMBER IN)</a> and <a href="https://www.smartkarma.com/entities/dixon-technologies-india-ltd" target="_blank" data-smartkarma-citation="entities:25486:1" rel="noopener">Dixon Technologies India Ltd (DIXON IN)</a> </p>
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About India Channel Insight



Our objective with India Channel Insight is to share snippets from our channel interactions that are part of our research process. These snippets can potentially be signals for larger themes/ideas emerging out of these interactions.  


For this insight, we share our takeaways from interaction with two major consumer durable industry professionals. First, is the Co-founder of a well-known consumer brand that outsources and also imports some of the products. The second professional holds a leadership position in the second-largest durable manufacturer supplying to brands like Voltas Ltd (VOLT IN) and Havells India (HAVL IN). 
These takeaways will be interesting for investors in Havells India (HAVL IN) , Voltas Ltd (VOLT IN), Amber Enterprises India (AMBER IN) and Dixon Technologies India Ltd (DIXON IN) 



India Channel Insight | Supply Chain Interactions - Havells, Voltas, Amber, Dixon

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Thematic (Sector/Industry)

<p style="text-align: center;"><strong>• THE POST-COVID ROTATION •</strong></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/191/288/original/2021-02-28_08-38-14.png?1614469105" class="editor-image img-responsive" data-smartkarma-image-id="191288"></figure><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/191/290/original/2021-02-28_08-57-32.png?1614470265" class="editor-image img-responsive" data-smartkarma-image-id="191290"></figure></section></section><section class="figure"><div style="text-align: center;" class="content-caption"> Source for all charts &amp; tables: Japan Analytics</div></section><p><strong>THE 2021 ROTATION ACCELERATES</strong> - As we noted in <a href="https://www.smartkarma.com/insights/japan-the-post-covid-rotation-from-growth-to-value-begins-02-05-results-revisions-update" target="_blank" data-smartkarma-citation="insights:47877" rel="noopener">The Post-COVID Rotation from Growth to Value Begins</a>, the Japanese equity market has been led by overvalued and overvalued for most of the last year overbought high-quality growth companies in the <strong>Technology Hardware</strong>, <strong>Electrical Equipment</strong>, <strong>Internet</strong>, and <strong>Healthcare</strong> Sectors. These companies were deemed to be 'COVID-resistant' and were consistently well-bid regardless of price. The stocks leading this 'charge' were <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 (2413 JP),</a><a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126:1" rel="noopener">Lasertec (6920 JP)</a>, <a href="https://www.smartkarma.com/entities/monotaro-co-ltd" target="_blank" data-smartkarma-citation="entities:15441:1" rel="noopener">MonotaRO (3064 JP)</a>, <a href="https://www.smartkarma.com/entities/chugai-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:4489:1" rel="noopener">Chugai Pharmaceutical (4519 JP)</a>, and <a href="https://www.smartkarma.com/entities/nidec-corp" target="_blank" data-smartkarma-citation="entities:7245:1" rel="noopener">Nidec (6594 JP)</a>, while the only cyclical Sector that has seen a major recovery was Energy. Meanwhile, shares in domestically-orientated Sectors and companies heavily exposed to COVID-related delines in business activity languished despite valuations reaching ten or twenty-year lows. </p><p><strong>PEAKED?</strong> - Over the last twenty trading days during which TOPIX reached 1,974.99. The <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> breached 30,000, many of these market leaders have seen a significant correction, while the market has rotated into domestic, cyclical, and financial Sectors - as illustrated by our Sector Relative Price Score timelines in the chart above. In the<strong> DETAIL</strong> Section below, we will review the current market technicals after Friday's 4% N225 decline and look at the leading stocks on both 'sides' of this rotation trade.</p>

• THE POST-COVID ROTATION • Source for all charts &amp; tables: Japan AnalyticsTHE 2021 ROTATION ACCELERATES - As we noted in The Post-COVID Rotation from Growth to Value Begins, the Japanese equity market has been led by overvalued and overvalued for most of the last year overbought high-quality growth companies in the Technology Hardware, Electrical Equipment, Internet, and Healthcare Sectors. These companies were deemed to be 'COVID-resistant' and were consistently well-bid regardless of price. The stocks leading this 'charge' were M3 (2413 JP),Lasertec (6920 JP), MonotaRO (3064 JP), Chugai Pharmaceutical (4519 JP), and Nidec (6594 JP), while the only cyclical Sector that has seen a major recovery was Energy. Meanwhile, shares in domestically-orientated Sectors and companies heavily exposed to COVID-related delines in business activity languished despite valuations reaching ten or twenty-year lows. PEAKED? - Over the last twenty trading days during which TOPIX reached 1,974.99. The Nikkei 225 (NKY INDEX) breached 30,000, many of these market leaders have seen a significant correction, while the market has rotated into domestic, cyclical, and financial Sectors - as illustrated by our Sector Relative Price Score timelines in the chart above. In the DETAIL Section below, we will review the current market technicals after Friday's 4% N225 decline and look at the leading stocks on both 'sides' of this rotation trade.

🇯🇵 JAPAN • The Post-COVID Rotation Accelerates

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Alibaba Group Holding  / Equity Bottom-Up

<p>Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.</p>
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<a href="https://www.smartkarma.com/entities/tata-group" target="_blank" data-smartkarma-citation="entities:25998:1" rel="noopener">Tata Group (1396Z IN)</a> is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> backed BigBasket</li>
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<a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> re-gains its top slot in global smartphones thanks to market share gains in India</li>
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<a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. </li>
<li>India bans import of AC units, but we see no major market share gains for top players. </li>
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Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies.


Tata Group (1396Z IN) is aiming to become a serious contender in the Indian E-Commerce race with a potential stake in Alibaba Group (BABA US) backed BigBasket

Samsung Electronics (005930 KS) re-gains its top slot in global smartphones thanks to market share gains in India

Facebook Inc A (FB US) backed Whatsapp Pay gets its act together in the already competitive Indian Payments Market, expected to roll out soon. 
India bans import of AC units, but we see no major market share gains for top players. 


India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

<div><p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p></div><div>
<p>Our best and worst pair from Monday's announcements is <a href="https://www.smartkarma.com/entities/weathernews-inc" target="_blank" data-smartkarma-citation="entities:16991:1" rel="noopener">Weathernews (4825 JP)</a> and <a href="https://www.smartkarma.com/entities/coca-cola-bottlers-japan" target="_blank" data-smartkarma-citation="entities:20051:1" rel="noopener">Coca Cola Bottlers Japan (2579 JP)</a>. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/163/489/original/2020-10-06_05-34-42.png?1601930214" class="editor-image img-responsive" data-smartkarma-image-id="163489"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/163/490/original/2020-10-06_05-35-26.png?1601930263" class="editor-image img-responsive" data-smartkarma-image-id="163490"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>
<div><p>DAILY STATS</p></div>
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<div><p style="text-align: center;"><strong>12 Quarterly Results</strong></p></div>
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<li><p><strong>Results Score:</strong> 33% Positive / 8% Neutral / 58% Negative</p></li>
<li><p><strong>Average Results Score Change:</strong> -2.0 points</p></li>
<li><p><strong>Average % Change in Revenue:</strong> -12.5% Quarter YoY / -5.1% Rolling TTM YoY </p></li>
<li><p><strong>Average Operating Profit Margin Change:</strong> -3.3ppt</p></li>
<li><p><strong>Percentage Making Quarterly Losses:</strong> 25%</p></li>
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<div><p style="text-align: center;"><strong>10 Annual • 5 Interim Forecasts/Revisions</strong></p></div>
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<li><p><strong>Annual Forecast/Revision Score:</strong> 50% Positive /20% Neutral / 30% Negative</p></li>
<li><p><strong>Interim Forecast/Revision Score Change:</strong> 20% Positive / 0% Neutral / 80% Negative</p></li>
<li><p><strong>Average Forecast/Revision Score Change:</strong> -5.1 point</p></li>
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• BEST &amp; WORST •
Our best and worst pair from Monday's announcements is Weathernews (4825 JP) and Coca Cola Bottlers Japan (2579 JP). 
Source for all charts &amp; tables: Japan Analytics
DAILY STATS

12 Quarterly Results

Results Score: 33% Positive / 8% Neutral / 58% Negative
Average Results Score Change: -2.0 points
Average % Change in Revenue: -12.5% Quarter YoY / -5.1% Rolling TTM YoY 
Average Operating Profit Margin Change: -3.3ppt
Percentage Making Quarterly Losses: 25%


10 Annual • 5 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 50% Positive /20% Neutral / 30% Negative
Interim Forecast/Revision Score Change: 20% Positive / 0% Neutral / 80% Negative
Average Forecast/Revision Score Change: -5.1 point



🇯🇵 JAPAN • Results & Revisions - 10/​​​​​​05 Fuji, Weathernews, Create SD, Daikin, Coca Cola Japan

Japan

DAIKIN INDUSTRIES, LTD. manufactures air conditioning equipment for household and commercial use.  The Company also produces fluorine chemical products such as fluorinated hydrocarbon gas and shells and warheads for defense industry.

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Daikin Industries (6367 JP)

Daikin – Automotive Refrigerant News Is Worth Noting

Daikin aims to commercialise a new automotive HVAC refrigerant in 2025 that could significantly boost EV ranges and Daikin's profits.

Mio Kato

India Channel Insight | Supply Chain Interactions - Havells, Voltas, Amber, Dixon

We share our takeaways from interaction with consumer durable industry professionals. These takeaways will be interesting for investors invested or...

Pranav Bhavsar

🇯🇵 JAPAN • The Post-COVID Rotation Accelerates

Over the last 20 trading days during which TOPIX reached 1,974.99, many market leaders have seen a significant correction, and there has been a...

Campbell Gunn

India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

Tata Group joins the e-commerce race eyeing a stake on BABA backed Bigbasket, India helps Samsung regain its global spot, WhatsApp Pay expected to...

Pranav Bhavsar

🇯🇵 JAPAN • Results & Revisions - 10/05 Fuji, Weathernews, Create SD, Daikin, Coca Cola Japan

• BEST & WORST • Our best and worst pair is home centre Shimachu (8184 JP) for whom a rumoured bid from peer DCM has emerged and diaper...

Campbell Gunn

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Daikin – Automotive Refrigerant News Is Worth Noting

Daikin aims to commercialise a new automotive HVAC refrigerant in 2025 that could significantly boost EV ranges and Daikin's profits.

Mio Kato

India Channel Insight | Supply Chain Interactions - Havells, Voltas, Amber, Dixon

We share our takeaways from interaction with consumer durable industry professionals. These takeaways will be interesting for investors invested or...

Pranav Bhavsar

🇯🇵 JAPAN • The Post-COVID Rotation Accelerates

Over the last 20 trading days during which TOPIX reached 1,974.99, many market leaders have seen a significant correction, and there has been a...

Campbell Gunn

India Internet & Consumer Weekly | Bigbasket, Samsung, Whatsapp Pay, India's AC Ban

Tata Group joins the e-commerce race eyeing a stake on BABA backed Bigbasket, India helps Samsung regain its global spot, WhatsApp Pay expected to...

Pranav Bhavsar

🇯🇵 JAPAN • Results & Revisions - 10/​​​​​​05 Fuji, Weathernews, Create SD, Daikin, Coca Cola Japan

• BEST & WORST • Our best and worst pair is home centre Shimachu (8184 JP) for whom a rumoured bid from peer DCM has emerged and diaper...

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions - 10/05 Fuji, Weathernews, Create SD, Daikin, Coca Cola Japan