Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Japanese and Asian equity long/short strategies

Uzabase

Specialising in Japanese and Asian equity long/short strategies with a focus on rigorous, but targeted quantitative analysis to temper evaluations of company strategy, potential and vision. At Uzabase, our team of analysts provides coverage of industry dynamics with a local Asian flavour on Speeda, our financial information platform. Going forward we are aiming to channel our focus toward thematic research on emerging industries and company research.

Equity Bottom-Up

<p>As noted by <a href="https://www.smartkarma.com/profiles/710" target="_blank" data-smartkarma-citation="accounts:710">Pelham Smithers Associates</a>, <a href="https://www.smartkarma.com/entities/13316" target="_blank" data-smartkarma-citation="entities:13316:1">M3 Inc (2413 JP)</a> trades at roughly 32x EV/OP based on its recently released guidance for FY03/2018 or about 30x based on consensus. The company is undeniably well run, dominates a domestic market which is currently a niche but which has significant potential even excluding overseas prospects and has proven to be a great buy for investors, rising 10x in just over 5 years from early 2011 to mid-2016 before falling roughly 26%. However, warning signs have…</p>

As noted by Pelham Smithers Associates, M3 Inc (2413 JP) trades at roughly 32x EV/OP based on its recently released guidance for FY03/2018 or about 30x based on consensus. The company is undeniably well run, dominates a domestic market which is currently a niche but which has significant potential even excluding overseas prospects and has proven to be a great buy for investors, rising 10x in just over 5 years from early 2011 to mid-2016 before falling roughly 26%. However, warning signs have…

Is M3 Now Forced to Use Its 30x EV/OP Multiple and M&A to Maintain Its 20+% OP Growth Rate?

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

<p>Although it isn't necessarily the case that the earlier a Japanese company reports its earnings, the better run it is, there's no real surprise that it is hyper-competitive firms like <a href="https://www.smartkarma.com/entities/16195" target="_blank" data-smartkarma-citation="entities:16195:1">Tokyo Steel</a>, <a href="https://www.smartkarma.com/entities/7245" target="_blank" data-smartkarma-citation="entities:7245:1">Nidec</a> and <a href="https://www.smartkarma.com/entities/3777" target="_blank" data-smartkarma-citation="entities:3777:1">Shimano</a> that are consistently among the fastest out of the traps. By extension, these companies usually get the results season off to a good start, and by extension there is something of an expectation of this, which starts to get built into valuations. On a forward EV/OP basis, Nidec and…</p>

Although it isn't necessarily the case that the earlier a Japanese company reports its earnings, the better run it is, there's no real surprise that it is hyper-competitive firms like Tokyo Steel, Nidec and Shimano that are consistently among the fastest out of the traps. By extension, these companies usually get the results season off to a good start, and by extension there is something of an expectation of this, which starts to get built into valuations. On a forward EV/OP basis, Nidec and…

Valuations May Prove Key As Early Japanese Results Highlight Sell-Side Optimism

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>Earning Season in Japan starts next week and we wanted to highlight names that need very strong 4Q numbers to get to consensus estimates and names that are well position to beat consensus OP estimates. We put together two screens, the first looks for names that have not done very well in the first 3 quarters of this year.</p><h2>Screen Criteria</h2><ol>
<li>Mkt-cap greater than ¥75bn</li>
<li>Companies that have achieved less than 70% of FY1 consensus Operating Profit</li>
<li>4-year median % achieved in first 3 quarters is greater than…</li>
</ol>

Earning Season in Japan starts next week and we wanted to highlight names that need very strong 4Q numbers to get to consensus estimates and names that are well position to beat consensus OP estimates. We put together two screens, the first looks for names that have not done very well in the first 3 quarters of this year.Screen Criteria
Mkt-cap greater than ¥75bn
Companies that have achieved less than 70% of FY1 consensus Operating Profit
4-year median % achieved in first 3 quarters is greater than…


Japanese Names that Should Easily Beat FY1 Consensus OP and Names that Will Have a Hard Time...

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

<p><em>Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.</em></p><div><h2>Accuracy Rate:</h2></div><p>Our accuracy rate so far this year has been <strong>50% for IPOs and 80% for Placements </strong>with <strong>1 IPO ongoing now (BSE) now.</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/020/127/original/2017-Total-Deals-2017-Accuracy-Rate-_chartbuilder.png?1486094119" class="editor-image img-responsive" data-smartkarma-image-id="20127"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/020/126/original/Total-Deals-Since-Inception-Accuracy-Rate-Since-Inception-_chartbuilder%20%281%29.png?1486094086" class="editor-image img-responsive" data-smartkarma-image-id="20126"></figure><h2><em>Placements:<br><br></em></h2><p><strong>What we wrote on this week:</strong></p><p><strong><a href="https://www.smartkarma.com/insights/m3-inc-placement-q3-results-reiterates-strong-growth-sell-down-likely-to-be-one-off" target="_blank" data-smartkarma-citation="insights:8482">M3 Inc Placement - Q3 Results Reiterates Strong Growth, Sell Down Likely to Be One-Off</a></strong></p><ul>
<li>Q3 results show growth in MR-kun and margin improvement in other segments</li>
<li>Sony's reason for sell-down is to cushion its massive…</li>
</ul>

Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our accuracy rate so far this year has been 50% for IPOs and 80% for Placements with 1 IPO ongoing now (BSE) now.Placements:  What we wrote on this week:M3 Inc Placement - Q3 Results Reiterates Strong Growth, Sell Down Likely to Be One-Off
Q3 results show growth in MR-kun and margin improvement in other segments
Sony's reason for sell-down is to cushion its massive…


Smartkarma - ECM Coverage Weekly Update (4 Feb 2017)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>The Smartkarma community has discussed the <a href="https://www.smartkarma.com/entities/1040" target="_blank" data-smartkarma-citation="entities:1040:1">Lawson Inc (2651 JP)</a> partial tender deal in several insights:</p><table class="table table-striped"><tbody>
<tr>
<td style="width: 88px;">Date</td>
<td style="width: 443px;">Insight Title</td>
<td style="width: 297px;">Comment</td>
</tr>
<tr>
<td style="width: 88px;">15-Sep-16</td>
<td style="width: 443px;"><a href="https://www.smartkarma.com/insights/lawson-mitcorp-tender-coming" target="_blank">Lawson - MitCorp Tender Coming?</a></td>
<td style="width: 297px;">Original</td>
</tr>
<tr>
<td style="width: 88px;">16-Sep-16</td>
<td style="width: 443px;"><a href="https://www.smartkarma.com/insights/lawson-mitcorp-tender-has-arrived" target="_blank">Lawson - MitCorp Tender Has Arrived</a></td>
<td style="width: 297px;">Announcement of intent, arb grids</td>
</tr>
<tr>
<td style="width: 88px;">16-Oct-16</td>
<td style="width: 443px;"><a href="https://www.smartkarma.com/insights/lawson-tender-offer-winnie-the-pooh-has-the-best-words" target="_blank">Lawson Tender Offer - Winnie the Pooh Has the Best Words!</a></td>
<td style="width: 297px;">Analysis of Situation, Proration, Non-Linearity</td>
</tr>
<tr>
<td style="width: 88px;">10-Dec-16</td>
<td style="width: 443px;"><a href="https://www.smartkarma.com/insights/lawson-tender-situation-a-closer-look" target="_blank">Lawson Tender Situation - A Closer Look</a></td>
<td style="width: 297px;">It's Cheap based on the Backend</td>
</tr>
<tr>
<td style="width: 88px;">22-Dec-16</td>
<td style="width: 443px;"><a href="https://www.smartkarma.com/insights/lawson-tender-launches-still-an-interesting-deal-says-pooh-especially" target="_blank">Lawson Tender Launches - Still An Interesting</a></td>
</tr>
</tbody></table>…

The Smartkarma community has discussed the Lawson Inc (2651 JP) partial tender deal in several insights:

Date
Insight Title
Comment


15-Sep-16
Lawson - MitCorp Tender Coming?
Original


16-Sep-16
Lawson - MitCorp Tender Has Arrived
Announcement of intent, arb grids


16-Oct-16
Lawson Tender Offer - Winnie the Pooh Has the Best Words!
Analysis of Situation, Proration, Non-Linearity


10-Dec-16
Lawson Tender Situation - A Closer Look
It's Cheap based on the Backend


22-Dec-16
Lawson Tender Launches - Still An Interesting

…

Japan

JMDC Inc. offers information services. The Company provides medical data statistics, life insurance data statistics, health data platform management, and other services. JMDC provides its services throughout Japan.

Software Service, Inc. develops and sells medical information software for hospital uses.  The products include electronic medical carte and order entry system.  The Company also provides training and maintenance services.

Findex Inc plans, develops and maintains software products specialized in healthcare.  The Company also builds and provides medical net-work system for medical industry.

Medical Data Vision Co.,Ltd. was founded in 2003. The company's line of business includes developing integrated medical information systems, analysis of medical information, and business consulting for medical institutions.

ASAHI INTECC CO., LTD. manufactures medical tools as well as both medical and industrial-use stainless wire rope.  The Company's main products include catheters, guidewires, and miniature coils for endoscopic devices.

MEDIPAL HOLDINGS CORPORATION manufactures and sells medical tools and equipment, nursing equipment, and wholesales pharmaceuticals.

SYSMEX CORPORATION manufactures reagents and equipment for clinical tests including hematologic (blood) and immune tests. The Company also develops, manufactures, and trades particle analyzers such as blood coagulation analyzer and related software. Manufacturing and sales outside Japan include the United States, EMEA, China and Asia Pacific regions.

JEOL Ltd. manufactures electron optics instruments and analytical instruments including electron microscope, X-ray diffractometer and spectrometer and thermographs.  The Company also makes semiconductor manufacturing equipment, medical equipment and industrial equipment.

NIHON KOHDEN CORPORATION develops, manufactures, and sells medical equipment, transformers, and power switches and devices.  The Company's products include testing equipment for cerebral nerve such as electroencephalographs, circulatory systems, diagnostic equipment, catheters, biogenic monitoring systems such as electrocardiographs used into patient monitoring systems.

Alfresa Holdings Corporation is a holding company established through the merger of Azwell Inc. and Fukujin Co., Ltd.  The Company's subsidiaries mainly wholesale and manufacture medical related products including medicines, reagents, and medical tools and equipment.

Pro Medicus Limited develops and supplies proprietary software and IT solutions for large medical corporations and individual medical group practices.  The Group's services include billing and management systems for diagnostic imaging providers, clinical reporting systems, and appointment booking services.  Pro Medicus' e-mail system delivers encrypted diagnostic reports to group doctors.

Evolent Health, Inc. provides a purpose-built platform, powered by our technology, proprietary processes and integrated services, enables providers to migrate their economic orientation from fee-for-service, or FFS, reimbursement to payment models that reward high-quality and cost-effective care, or value-based payment models.

Winning Health Technology Group Co., Ltd. develops and sells medical software, and provides technology supporting services and comprehensive information technology solutions to the health care industry.

Winning Health Technology Group Co., Ltd. A (300253 CH)

Winning Health Technology Group Co., Ltd. A

NextGen Healthcare, Inc. develops and markets healthcare information systems. The Company's systems automate medical group practices, physical hospitals, management service organizations, community health centers, and dental schools. NextGen Healthcare offers its services throughout the United States.

Omnicell, Inc. provides an integrated suite of clinical infrastructure and workflow automation solutions for healthcare facilities.  The Company's solutions include pharmacy and supply systems, clinical reference tools, an Internet-based procurement application, and decision support tools.  Omnicell sells and leases its products and services to a range of healthcare facilities.

HealthStream, Inc. offers a Web-based solution to the continuing education and training needs of the healthcare community.  The Company distributes numerous hours of continuing education and training content to doctors, nurses, allied health professionals, and other healthcare workers through its network of distribution partners.

Allscripts Healthcare Solutions, Inc. develops and markets clinical software. The Company's products include electronic health records, electronic prescribing, revenue cycle management, practice management, document management, medication services, hospital care management, emergency department information systems and homecare automation.

Allscripts Healthcare Solutions (MDRX US)

EMIS Group Plc is a healthcare information technology company. The Company computerizes patients' medical records and allows primary, secondary and community healthcare practitioners to view and contribute to a patient's core medical record.

Craneware plc engages in the development, licensing, and ongoing support of computer software for the United States healthcare industry. The company offers access management and strategic pricing products comprising InSight Medical Necessity, which provides medical necessity validation and advance beneficiary notice creation; and Patient Charge Estimator software, which simplifies the process of providing patient bill estimates for inpatient and outpatient services. It also provides charge capture and pricing solutions include Chargemaster Toolkit that automates chargemaster management processes for capturing optimal legitimate reimbursement for hospitals; Physician Revenue Toolkit, a software for managing physician group charges, codes, RVUs, fee schedules, and related information; Pricing Analyzer software that simplifies the price modeling process; Reference Plus, a platform for hospitals to perform chargemaster analysis; Pharmacy ChargeLink, which improves charge capture, pricing, and cost management; and Supplies ChargeLink that optimize reimbursement for codable supplies by identifying missing or invalid charges, as well as offers supporting modules. In addition, the company offers coding integrity solutions consisting of Bill Analyzer, which automates claim and coding reviews to identify missed charges, billing errors, and categorize areas of risk. Further, it provides revenue recovery and retention solutions, including InSight Audit, a Web-based audit management tool to manage claim audits and workflow from one central location; InSight Payment Variance Analyzer, which identifies, tracks, and helps eliminate revenue lost in the form of underpaid claims; and InSight Denials that analyses, tracks, trends, and reports on denial data. Additionally, the company offers companion implementation and consulting services. Craneware plc was founded in 1999 and is headquartered in Edinburgh, the United Kingdom.

Simulations Plus, Inc. develops drug discovery and development simulation software, which is licensed to and used in the conduct of drug research for pharmaceutical companies worldwide.  The Company's other businesses are based on its proprietary software technologies and provide support for the emerging pharmaceutical enterprise.

M3, Inc. supplies medical information services for doctors through the Internet. The Company also supports marketing of pharmaceutical companies and medical equipment manufacturers.

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M3 Inc (2413 JP)

Is M3 Now Forced to Use Its 30x EV/OP Multiple and M&A to Maintain Its 20+% OP Growth Rate?

As noted by Pelham Smithers Associates, M3 Inc (2413 JP) trades at roughly 32x EV/OP based on its recently released guidance for FY03/2018 or about...

Mio Kato

Valuations May Prove Key As Early Japanese Results Highlight Sell-Side Optimism

Although it isn't necessarily the case that the earlier a Japanese company reports its earnings, the better run it is, there's no real surprise...

Pelham Smithers Associates

Japanese Names that Should Easily Beat FY1 Consensus OP and Names that Will Have a Hard Time...

Earning Season in Japan starts next week and we wanted to highlight names that need very strong 4Q numbers to get to consensus estimates and names...

Custom Products Group

Smartkarma - ECM Coverage Weekly Update (4 Feb 2017)

Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.Accuracy Rate:Our accuracy...

Zhen Zhou, Toh

Lawson Tender - 1 Week Left

The Smartkarma community has discussed the Lawson Inc (2651 JP) partial tender deal in several insights:As discussed in the "first Winnie", there...

Travis Lundy

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