Equity Analyst, LightStream Research

Chacko Jacob

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 Bottom-Up

<h2><strong>Overview</strong></h2>
<p><a href="https://www.smartkarma.com/entities/5718" target="_blank" data-smartkarma-citation="entities:5718:1">Shiseido Co Ltd (4911 JP)</a> is a 145-year-old Japanese company that is estimated to be the fifth largest cosmetics company in the world. Spurred on by strong demand for its products and growing profitability margins, the company’s stock price has surged 2.3x in the last year alone. As part of its mid-term plan, Shiseido aims to grow its topline to JPY 1.2tn by 2020, or a CAGR of 7.5%.</p>
<p>Shiseido currently has a presence in 120 countries including R&amp;D bases in 7 and manufacturing plants in…</p>

Overview
Shiseido Co Ltd (4911 JP) is a 145-year-old Japanese company that is estimated to be the fifth largest cosmetics company in the world. Spurred on by strong demand for its products and growing profitability margins, the company’s stock price has surged 2.3x in the last year alone. As part of its mid-term plan, Shiseido aims to grow its topline to JPY 1.2tn by 2020, or a CAGR of 7.5%.
Shiseido currently has a presence in 120 countries including R&amp;D bases in 7 and manufacturing plants in…

Shiseido: Growth Strategy Focused on East Asian Travellers Liable to Backfire

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Equity Capital Markets

<p><a href="https://www.smartkarma.com/profiles/1542" target="_blank" data-smartkarma-citation="accounts:1542">Chacko Jacob</a> was initially negative on MTG due to a business model with questionable sustainability but eventually recommended subscribing due to the excellent timing of the company's IPO which coincided with the world cup where its advertising centred around Portugese superstar Christiano Ronaldo was featured. Indeed, the stock opened up 21.6% at JPY7,050 and has traded as high as JPY7,580. In his last note Chacko advised that a relatively quick exit was prudent and based on now stretched…</p>

Chacko Jacob was initially negative on MTG due to a business model with questionable sustainability but eventually recommended subscribing due to the excellent timing of the company's IPO which coincided with the world cup where its advertising centred around Portugese superstar Christiano Ronaldo was featured. Indeed, the stock opened up 21.6% at JPY7,050 and has traded as high as JPY7,580. In his last note Chacko advised that a relatively quick exit was prudent and based on now stretched…

MTG: Strong Open, Bullish Market, but Valuations Make Us Inclined to Look for Exit Point

<p>In our earlier report, we covered <a href="https://www.smartkarma.com/entities/27159" target="_blank" data-smartkarma-citation="entities:27159:1">MTG Co Ltd (7806 JP)</a> 's product and geographic segments and arrived at an initial conclusion that the company’s current business model was not a sustainable one in the long-run. In this report, we will focus on the company’s growth prospects for the next two years and its relative valuation based on the offer price range. </p>
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<h2><strong>We Would Subscribe</strong></h2>
<p>Based on our analysis, we think the company could see upside risk in the days' post issue. MTG's brands offer niche…</p>
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In our earlier report, we covered MTG Co Ltd (7806 JP) 's product and geographic segments and arrived at an initial conclusion that the company’s current business model was not a sustainable one in the long-run. In this report, we will focus on the company’s growth prospects for the next two years and its relative valuation based on the offer price range. 

We Would Subscribe
Based on our analysis, we think the company could see upside risk in the days' post issue. MTG's brands offer niche…


MTG IPO Preview II: Powered By Celebrities

Doing bespoke work since 2002....., Custom Products Group

Patrick Hansen

Doing bespoke work since 2002.....

Custom Products Group

Custom Products was started 14 years ago at Lehman Brothers by current co-founder Patrick Hansen, CFA. After 3 years at Lehman, Patrick moved the team to Macquarie Securities where Simon Rigney (co-founder) joined. 3 years ago we took Custom Products independent. 

Our core strength can be summed up three words. 1- Customization - we have very little off the shelf products and most work is done on a one on one bespoke basis. 2- Speed - We pride ourselves in our ability to get requests back to the client very quickly. 3- Confidentiality - We do not redistribute. There is no grace period where we wait a week and then mass blast. Any request stops with that client.

Thematic (Sector/Industry)

<p>It is not just a Japan issue, a lot of US companies also hoard cash. <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> for instance has $67bn sitting on the balance sheet. I do not mind if companies have a lot of cash, that means they must be doing something right. However if a company just sits on the cash and does nothing then it is just a waste. </p><p>When more than half of the company's assets are in cash and that has been the case for more than 10 years, they do not have a profitable use for it. The cash is just sitting…</p>

It is not just a Japan issue, a lot of US companies also hoard cash. Apple Inc (AAPL US) for instance has $67bn sitting on the balance sheet. I do not mind if companies have a lot of cash, that means they must be doing something right. However if a company just sits on the cash and does nothing then it is just a waste. When more than half of the company's assets are in cash and that has been the case for more than 10 years, they do not have a profitable use for it. The cash is just sitting…

Companies that Are Chronic Cash Hoarders....

<p>With full-year Earnings Season basically over, we put together some aggregate numbers to see how Japanese companies did and what is the new outlook. For the overall market, Sales was down 2%, OP was up 1.3% and Net Income was up 11% in FY3/17. The Semiconductors &amp; Semiconductor Equipment sector did well with Sales up 31% and OP up 38%. On the other side, Sales in the Automobiles &amp; Components sector fell 3% and OP was down 12%.</p><p>Looking towards FY3/18,  at the aggregate level companies are…</p>

With full-year Earnings Season basically over, we put together some aggregate numbers to see how Japanese companies did and what is the new outlook. For the overall market, Sales was down 2%, OP was up 1.3% and Net Income was up 11% in FY3/17. The Semiconductors &amp; Semiconductor Equipment sector did well with Sales up 31% and OP up 38%. On the other side, Sales in the Automobiles &amp; Components sector fell 3% and OP was down 12%.Looking towards FY3/18,  at the aggregate level companies are…

Looking Towards FY3/18 - New Overall Japan OP Expected to Grow 8% in the Coming Year....

Japan

FANCL CORPORATION produces and sells additive-free skin care cosmetics for both women and men.  The Company's products include cleansing creams, hair care goods such as shampoos and conditioners, and facial make up products.  Fancl also makes and distributes dietary supplements including royal jelly and various tablets with extracted essence from mushrooms, garlic, ginseng, and soy beans.

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Fancl Corp (4921 JP)

Shiseido: Growth Strategy Focused on East Asian Travellers Liable to Backfire

Overview Shiseido Co Ltd (4911 JP) is a 145-year-old Japanese company that is estimated to be the fifth largest cosmetics company in the world....

Chacko Jacob

MTG: Strong Open, Bullish Market, but Valuations Make Us Inclined to Look for Exit Point

Chacko Jacob was initially negative on MTG due to a business model with questionable sustainability but eventually recommended subscribing due to...

Mio Kato

MTG IPO Preview II: Powered By Celebrities

In our earlier report, we covered MTG Co Ltd (7806 JP) 's product and geographic segments and arrived at an initial conclusion that the company’s...

Chacko Jacob

Companies that Are Chronic Cash Hoarders....

It is not just a Japan issue, a lot of US companies also hoard cash. Apple Inc (AAPL US) for instance has $67bn sitting on the balance sheet. I do...

Custom Products Group

Looking Towards FY3/18 - New Overall Japan OP Expected to Grow 8% in the Coming Year....

With full-year Earnings Season basically over, we put together some aggregate numbers to see how Japanese companies did and what is the new...

Custom Products Group

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