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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/daiei-kankyo-co-ltd" target="_blank" data-smartkarma-citation="entities:36539:1" rel="noopener">Daiei Kankyo (9336 JP)</a> (DK), a waste management company, aims to raise around US$280m in its Japan IPO.</li>
<li>Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business.</li>
<li>In this note, we talk about the company's past performance.</li>
</ul>



Daiei Kankyo (9336 JP) (DK), a waste management company, aims to raise around US$280m in its Japan IPO.
Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business.
In this note, we talk about the company's past performance.


Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>’s 4QFY22 was yet again a surprise to the upside as revenue grew 23.2% YoY to ¥536.0bn while OP grew 24.3% YoY to ¥26.2bn.</li>
<li>Having rallied close to 60% following an earnings beat in 3QFY22, we were bearish on the company expecting weak guidance for FY23, but the company surprised with optimistic FY23 guidance.</li>
<li>With China struggling to maintain the historical growth momentum and North-America falling short of its medium-term plan, we anticipate downside to Fast Retailing’s FY23 guidance over the next 12 months.</li>
</ul>



Fast Retailing (9983 JP)’s 4QFY22 was yet again a surprise to the upside as revenue grew 23.2% YoY to ¥536.0bn while OP grew 24.3% YoY to ¥26.2bn.
Having rallied close to 60% following an earnings beat in 3QFY22, we were bearish on the company expecting weak guidance for FY23, but the company surprised with optimistic FY23 guidance.
With China struggling to maintain the historical growth momentum and North-America falling short of its medium-term plan, we anticipate downside to Fast Retailing’s FY23 guidance over the next 12 months.


Fast Retailing – The New Medium-Term Plan For Europe Is As Ambitious As The North America Plan

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The Nikkei 225 closed the week +0.2% higher after sharp gains on Friday</li>
<li>The Japanese yen dropped to a 32-year low on Thursday, trading at around 147.65 against the dollar, hitting its weakest point since August 1990</li>
<li>Higher rates and weakening economic growth are proving a stern headwind for tech stocks; Yaskawa cut full year OP guidance</li>
</ul>


The Nikkei 225 closed the week +0.2% higher after sharp gains on Friday
The Japanese yen dropped to a 32-year low on Thursday, trading at around 147.65 against the dollar, hitting its weakest point since August 1990
Higher rates and weakening economic growth are proving a stern headwind for tech stocks; Yaskawa cut full year OP guidance


Japan Weekly | Fast Retailing, Disco, Nidec

<ul>
<li>We were Bearish on Fast Retailing, mainly due to valuation concerns against global peers. That view still stands.</li>
<li>We expected cautious guidance reflecting a harsh macro environment. Fast surprised with bullish guidance. That could be a risk.</li>
<li>We highlight the key slides from the results presentation and re-iterate our view that Fast should not trade at such a premium to its global peers</li>
</ul>


We were Bearish on Fast Retailing, mainly due to valuation concerns against global peers. That view still stands.
We expected cautious guidance reflecting a harsh macro environment. Fast surprised with bullish guidance. That could be a risk.
We highlight the key slides from the results presentation and re-iterate our view that Fast should not trade at such a premium to its global peers


Fast Retailing (9983) | Fantastic Execution at Fantastical Valuation

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Low demand and slightly higher unemployment during the pandemic dampened the rising cost of part-time employees but that short respite is now over. </li>
<li>Hourly wages hit a new high in August and are set to rise further in coming months, renewing pressure on sectors like hospitality, retailing and logistics.</li>
<li>Retailers with high ratios of part-time wages such as the 100 Yen retailers like <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> and apparel retailers, will be hit particularly hard.</li>
</ul>


Low demand and slightly higher unemployment during the pandemic dampened the rising cost of part-time employees but that short respite is now over. 
Hourly wages hit a new high in August and are set to rise further in coming months, renewing pressure on sectors like hospitality, retailing and logistics.
Retailers with high ratios of part-time wages such as the 100 Yen retailers like Seria Co Ltd (2782 JP) and apparel retailers, will be hit particularly hard.


New Highs for Part-Time Wages a Worry for Japan's Retailers

Japan

FAST RETAILING CO., LTD. operates a chain of clothing stores, UNIQLO, throughout Japan and in other markets overseas including UK, China, Hong Kong, South Korea, US, France, Singapore and Russia.  The Company designs, manufactures, and retails its own line of casual clothing.

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Fast Retailing (9983 JP)

Daiei Kankyo Pre-IPO - Steady, at Best

Daiei Kankyo (9336 JP) (DK), a waste management company, aims to raise around US$280m in its Japan IPO. In this note, we look at the company's past...

Sumeet Singh

Fast Retailing – The New Medium-Term Plan For Europe Is As Ambitious As The North America Plan

Having rallied close to 60% following an earnings beat in 3QFY22, we were bearish on the company expecting weak guidance for FY23, but the company...

Oshadhi Kumarasiri

Japan Weekly | Fast Retailing, Disco, Nidec

We highlight the key stocks that moved in the market over the past week. The Nikkei was looking ugly until US stocks rebounded on Thursday. The yen...

Mark Chadwick

Fast Retailing (9983) | Fantastic Execution at Fantastical Valuation

We highlight the key slides from the results presentation and re-iterate our view that Fast should not trade at such a premium to its global peers

Mark Chadwick

New Highs for Part-Time Wages a Worry for Japan's Retailers

Wage growth slowed during the pandemic in Japan but is now relentlessly on the rise again. Retailers in particular are vulnerable, especially those...

Michael Causton

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