IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Nikkei <a href="https://asia.nikkei.com/Business/Business-deals/Japan-state-backed-fund-looks-to-buy-top-photoresist-maker-JSR" target="_blank" rel="noopener">reports</a> that Japan Investment Corporation (JIC) is in talks to acquire <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a> for around JPY1 trillion (US$7 billion) through a tender offer.</li>
<li>JSR responded, "No decision has been made at this moment, although JSR is considering this matter.” The Board will discuss the proposal on Monday.</li>
<li>Minorities will be supportive as the JPY1 trillion valuation implies a tender price of JPY4,850 per share, a 50% premium to the last close and an all-time share price high.   </li>
</ul>


Nikkei reports that Japan Investment Corporation (JIC) is in talks to acquire JSR Corp (4185 JP) for around JPY1 trillion (US$7 billion) through a tender offer.
JSR responded, "No decision has been made at this moment, although JSR is considering this matter.” The Board will discuss the proposal on Monday.
Minorities will be supportive as the JPY1 trillion valuation implies a tender price of JPY4,850 per share, a 50% premium to the last close and an all-time share price high.   


JSR Corporation (4185 JP): JIC’s Tender Offer Looming?

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Equity Bottom-Up

<ul>
<li>Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ</li>
<li>FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.</li>
<li>Electronic Materials set to grow from ¥180 billion in '22 to ¥500 billion by '30</li>
</ul>


Q1’23 revenues of ¥764 billion, up 15% YoY and 2.6% QoQ
FY2022, revenues grew by 13.2% to ¥2,859 while net income grew by 3.9% to ¥219.4.
Electronic Materials set to grow from ¥180 billion in '22 to ¥500 billion by '30


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shin-etsu-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:4481:1" rel="noopener">Shin Etsu Chemical (4063 JP)</a> reported Q1 earnings after the close on 27 July, and they blew the lights out. Higher margins and 10-year record high Q1 progression ratios.</li>
<li>The company also announced guidance which was pretty healthy, but progression ratios suggest it is conservative.</li>
<li>The company announced its second ¥100bn buyback in three months. This one lasts 6 months so impact will be lower, but it will have some impact.</li>
</ul>



Shin Etsu Chemical (4063 JP) reported Q1 earnings after the close on 27 July, and they blew the lights out. Higher margins and 10-year record high Q1 progression ratios.
The company also announced guidance which was pretty healthy, but progression ratios suggest it is conservative.
The company announced its second ¥100bn buyback in three months. This one lasts 6 months so impact will be lower, but it will have some impact.


Shin-Etsu Chemical (4063 JP) Salutary Earnings, Conservative Forecasts, and Another Buyback

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.

Thematic (Sector/Industry)

<h3>What’s Original?</h3>
In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.

What’s Original?
In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.

Kishida as Prime Minister: The Path Ahead

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

JSR's share price has dropped back 12% from its recent 52-week high, providing investors with an opportunity to review the company's new technology acquisition and consider a long-term investment. JSR recently announced plans to make Inpria Corporation of the U.S. a nearly wholly-owned subsidiary. Inpria specializes in metal-oxide photoresists developed specifically for EUV lithography. EUV enables the production of leading-edge semiconductor products with 5-nm and smaller design rules.Until recently, semiconductor photoresists have been made from poIymers. Inpria is the first and so far the only photoresist maker in the world that uses inorganic materials. Its main product, which is composed primarily of tin oxide, has achieved the world's highest resolution using EUV exposure systems.Over the next 10 years, JSR expects the semiconductor photoresist market to roughly double in size, with demand for previous generation ArF photoresists rising at a CAGR of 9% and demand for EUV photoresists rising at a CAGR of 40% through 2026. By then, the leading-edge design rule should reach 1-nm.Inpria’s metal-oxide resists are also expected to meet the technical challenges beyond 1-nm toward the end of the decade. In terms of final product, this is part of the roadmap to autonomous vehicles, neuro-morphic devices and quantum computing. At 31x EPS guidance for FY Mar-21, the shares are not obviously cheap on a short-term basis, but guidance looks conservative.

JSR's share price has dropped back 12% from its recent 52-week high, providing investors with an opportunity to review the company's new technology acquisition and consider a long-term investment. JSR recently announced plans to make Inpria Corporation of the U.S. a nearly wholly-owned subsidiary. Inpria specializes in metal-oxide photoresists developed specifically for EUV lithography. EUV enables the production of leading-edge semiconductor products with 5-nm and smaller design rules.Until recently, semiconductor photoresists have been made from poIymers. Inpria is the first and so far the only photoresist maker in the world that uses inorganic materials. Its main product, which is composed primarily of tin oxide, has achieved the world's highest resolution using EUV exposure systems.Over the next 10 years, JSR expects the semiconductor photoresist market to roughly double in size, with demand for previous generation ArF photoresists rising at a CAGR of 9% and demand for EUV photoresists rising at a CAGR of 40% through 2026. By then, the leading-edge design rule should reach 1-nm.Inpria’s metal-oxide resists are also expected to meet the technical challenges beyond 1-nm toward the end of the decade. In terms of final product, this is part of the roadmap to autonomous vehicles, neuro-morphic devices and quantum computing. At 31x EPS guidance for FY Mar-21, the shares are not obviously cheap on a short-term basis, but guidance looks conservative.

JSR (4185 JP): Inpria Acquisition Lays Out 10-Year Photoresist Roadmap

Japan

JSR Corporation manufactures synthetic rubber and synthetic resins.  The Company's rubber products are used mainly for auto tires.  JSR Corporation also manufactures LCD-related materials and photo-resists.

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JSR Corp (4185 JP)

JSR Corporation (4185 JP): JIC’s Tender Offer Looming?

Nikkei reports the JIC is in talks to acquire JSR for around JPY1 trillion. The rumoured offer implies a 50% premium to the last close and an all...

Arun George

FUJIFILM (4901.T) Loving The Setup Here

Q1’23 revenues of ¥764 billion, +15% YoY & 2.6% QoQ. FY2022, revenues +13.2% to ¥2,859, net income +3.9% to ¥219.4. TTM P/E ~16 reflects past, not...

William Keating

Shin-Etsu Chemical (4063 JP) Salutary Earnings, Conservative Forecasts, and Another Buyback

Shin Etsu Chem (4063) is cheapest in a decade to peers on an EV/forward EBIT and forward PER basis. Blowout Q1 earnings and another big buyback. ex...

Travis Lundy

Kishida as Prime Minister: The Path Ahead

In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these...

Mio Kato

JSR (4185 JP): Inpria Acquisition Lays Out 10-Year Photoresist Roadmap

The acquisition of Inpria gives JSR a technological advantage that should drive sales and profit growth for the next several years as the...

Scott Foster

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