Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Machine Tool Orders in Japan decreased to 141 billion yen in October from 149 billion yen a year ago.</li>
<li>The 5.4% decline marks the start of the third downturn in Machine Tool Orders over the past decade. </li>
<li>We analyse those downturns and believe that Fanuc’s stock price has probably hit bottom, but THIS TIME IS DIFFERENT</li>
</ul>


Machine Tool Orders in Japan decreased to 141 billion yen in October from 149 billion yen a year ago.
The 5.4% decline marks the start of the third downturn in Machine Tool Orders over the past decade. 
We analyse those downturns and believe that Fanuc’s stock price has probably hit bottom, but THIS TIME IS DIFFERENT


Thematic (Sector/Industry)

<ul>
<li>
<strong>Good Morning Japan:</strong> We strive to provide the best macro, stock and thematic overnight news that will impact the trading day in Japan. Like this ?  Feedback appreciated !</li>
<li>BUY EVERY RALLY:  Equities, USD, Yen - market now priced in peak CPI and Fed Pivot. Still, we have a ways to go.</li>
<li>NKY to up 1.8% vs cash; Yen now 141 handle - not positive for all companies; Buybacks continue at a torried pace; Machine Tools -YoY. Negative Fanuc</li>
</ul>



Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that will impact the trading day in Japan. Like this ?  Feedback appreciated !
BUY EVERY RALLY:  Equities, USD, Yen - market now priced in peak CPI and Fed Pivot. Still, we have a ways to go.
NKY to up 1.8% vs cash; Yen now 141 handle - not positive for all companies; Buybacks continue at a torried pace; Machine Tools -YoY. Negative Fanuc


Good Morning Japan | Inflation Slain? = Buy Everything Rally

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Private Capital Markets

<ul>
<li>ROKAE Robotics is a Beijing-based supplier of next-generation flexible cobots and lightweight industrial robots backed by Chinese conglomerate New Hope Group and VC investors. </li>
<li>ROKAE Robotics has raised a total of ~CN¥900M in funding over 5 rounds. The last round was a CN¥400M private equity in May-21 that was led by New Hope Group. </li>
<li>The company operates a manufacturing industrial park in Shandong province with an annual output of 50,000+ robots. </li>
</ul>


ROKAE Robotics is a Beijing-based supplier of next-generation flexible cobots and lightweight industrial robots backed by Chinese conglomerate New Hope Group and VC investors. 
ROKAE Robotics has raised a total of ~CN¥900M in funding over 5 rounds. The last round was a CN¥400M private equity in May-21 that was led by New Hope Group. 
The company operates a manufacturing industrial park in Shandong province with an annual output of 50,000+ robots. 


ROKAE Robotics: Founder-Led Supplier of Flexible Cobots and Lightweight Industrial Robots

<ul>
<li>NKY +0.80%WoW;  TOPIX +0.91%WoW;  TSE Mothers +3.0%WoW.  3 days up; 2 days down this week as small caps; high valuation and tech stocks rallied</li>
<li>PM Kishida orders additional fiscal stimulus of ¥29.1 trillion.  Including other private sector investment and funding, the total stimulus size to exceed ¥71 trillion.</li>
<li>Bank of Japan maintains their ultra looks monetary policy in place at the end of their 2-day policy meeting</li>
</ul>


NKY +0.80%WoW;  TOPIX +0.91%WoW;  TSE Mothers +3.0%WoW.  3 days up; 2 days down this week as small caps; high valuation and tech stocks rallied
PM Kishida orders additional fiscal stimulus of ¥29.1 trillion.  Including other private sector investment and funding, the total stimulus size to exceed ¥71 trillion.
Bank of Japan maintains their ultra looks monetary policy in place at the end of their 2-day policy meeting


<ul>
<li>Machine tool orders have recorded 20 consecutive months of growth – we expect a turn in cycle and remain bearish </li>
<li>Expectations for gradual recovery as China recovers from lockdowns, but power-saving measures are a new risk</li>
<li>Weak end demand for mobile, PC, and consumer electronics are likely to foreshadow capex cuts in 2023 </li>
</ul>


Machine tool orders have recorded 20 consecutive months of growth – we expect a turn in cycle and remain bearish 
Expectations for gradual recovery as China recovers from lockdowns, but power-saving measures are a new risk
Weak end demand for mobile, PC, and consumer electronics are likely to foreshadow capex cuts in 2023 


Japan

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.

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Fanuc Corp (6954 JP)

Fanuc (6954) | This Time Is Different

Japan Machine Tool Orders have entered the third downturn since GFC. Fanuc's valuation has already sunk to downturn levels, but we fear this...

Mark Chadwick

Good Morning Japan | Inflation Slain? = Buy Everything Rally

Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that will impact the trading day in Japan. Like this ? ...

Mark Chadwick

ROKAE Robotics: Founder-Led Supplier of Flexible Cobots and Lightweight Industrial Robots

ROKAE Robotics is one of our top picks in China's industrial robotics segment. Beijing-based robotics firm focuses on flexible cobots, lightweight...

Andrei Zakharov

Japan Weekly | Ibiden, Fanuc, Canon

An overveiw of the week in Japan. In addtion to key stock movements, we highlight the key market/macro news in Japan this week. We also highlight...

Mark Chadwick

Fanuc (6954 JP) | Lights Out in China

Machine tool orders have recorded 20 consecutive months of growth – we expect a turn in cycle and remain bearish We see additional risks in China...

Mark Chadwick

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