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

Kansai Paint continues to enjoy strong results in India where subsidiary <a href="https://www.smartkarma.com/entities/10169" target="_blank" data-smartkarma-citation="entities:10169:1">Kansai Nerolac Paints Ltd (KNPL IN)</a> has seen revenue double since 2011 and where net income is set to double relative to FY03/15. With Kansai Nerolac's PE approaching 50x, Kansai Paint's 75% stake is now worth JPY327bn or 45% of the company's JPY722bn market cap. While Kansai Paint's Indian operations have seen OP grow at a 31% CAGR since 4QFY03/14 we nevertheless feel that its subsidiary's inflated multiple represents a downside risk as our analysis suggests that Kansai Paint's valuation is directly impacted by the valuation of Kansai Nerolac.The company has faced several headwinds this year as a crackdown on pollution in China has impacted solvent-based coatings and raw materials costs have pressured margins globally and caused losses in Africa. We believe that these issues should be resolved over the medium-term and should open up further opportunities for the company to increase profitability.

Kansai Paint continues to enjoy strong results in India where subsidiary Kansai Nerolac Paints Ltd (KNPL IN) has seen revenue double since 2011 and where net income is set to double relative to FY03/15. With Kansai Nerolac's PE approaching 50x, Kansai Paint's 75% stake is now worth JPY327bn or 45% of the company's JPY722bn market cap. While Kansai Paint's Indian operations have seen OP grow at a 31% CAGR since 4QFY03/14 we nevertheless feel that its subsidiary's inflated multiple represents a downside risk as our analysis suggests that Kansai Paint's valuation is directly impacted by the valuation of Kansai Nerolac.The company has faced several headwinds this year as a crackdown on pollution in China has impacted solvent-based coatings and raw materials costs have pressured margins globally and caused losses in Africa. We believe that these issues should be resolved over the medium-term and should open up further opportunities for the company to increase profitability.

Kansai Paint: India Drives Growth But Kansai Nerolac's 50x PE Is Also a Risk

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

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Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Chartonics flash Tuesday 30 August 2016USD/JPY macro low and position update webcast<div>We have made a USD bull case from JPY 100 or 95 if we broke below 100 with a bull pivot above USD/JPY 101 which was triggered Friday. The bigger test revolves around USD sustainability above 101 and a successful test on the lower 101 pullback zone followed by a move through the second hurdle at 102.70. MT pivot resistance lies at 104 (macro bull targets come in at 110 and 114 with ideal objective at 114/117 in…</div>

Chartonics flash Tuesday 30 August 2016USD/JPY macro low and position update webcastWe have made a USD bull case from JPY 100 or 95 if we broke below 100 with a bull pivot above USD/JPY 101 which was triggered Friday. The bigger test revolves around USD sustainability above 101 and a successful test on the lower 101 pullback zone followed by a move through the second hurdle at 102.70. MT pivot resistance lies at 104 (macro bull targets come in at 110 and 114 with ideal objective at 114/117 in…

USD/JPY Macro Low and Fresh Position Webcast

Japan

KANSAI PAINT CO., LTD. manufactures and sells a wide range of paints and the related products.  The Company's products are used for automobiles, construction, and ships.

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Kansai Paint (4613 JP)

Kansai Paint: India Drives Growth But Kansai Nerolac's 50x PE Is Also a Risk

Kansai Paint continues to enjoy strong results in India where subsidiary Kansai Nerolac Paints Ltd (KNPL IN) has seen revenue double since 2011 and...

Mio Kato

USD/JPY Macro Low and Fresh Position Webcast

Chartonics flash Tuesday 30 August 2016USD/JPY macro low and position update webcastWe have made a USD bull case from JPY 100 or 95 if we broke...

Thomas Schroeder

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52-week Range

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