Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX resumes rally as Powell Speech affirms 5% Peak rates;   Beta dominates as Energy and Tech lead; Oil rebound as EIA sees higher Oil +  Saudis lift prices</li>
<li>JAPAN.  NKY Futs -0.1% (flat) vs Cash;  Inbound headwinds as China excludes Japan from Group tours;  Son skips Softbank brief in wake of Vision fund disaster; Nintendo/Switch - its Over!</li>
<li>DAILY NUGGETS. Nintendo - Game Over. Is our view.  The Switch is getting old and we are past the peak..</li>
</ul>


OVERSEAS.  SPX resumes rally as Powell Speech affirms 5% Peak rates;   Beta dominates as Energy and Tech lead; Oil rebound as EIA sees higher Oil +  Saudis lift prices
JAPAN.  NKY Futs -0.1% (flat) vs Cash;  Inbound headwinds as China excludes Japan from Group tours;  Son skips Softbank brief in wake of Vision fund disaster; Nintendo/Switch - its Over!
DAILY NUGGETS. Nintendo - Game Over. Is our view.  The Switch is getting old and we are past the peak..


Good Morning Japan |Peak Rates Still 5% Post Powell - Beta Roars Back; Inbound-China Excludes Japan

<ul>
<li>The European economy is heading for a recession due to surging energy costs</li>
<li>We believe that equity markets have already discounted this severe situation to a large extent</li>
<li>As governments respond with aggressive fiscal measures, we believe 3 Japanese stocks will be key beneficiaries</li>
</ul>


The European economy is heading for a recession due to surging energy costs
We believe that equity markets have already discounted this severe situation to a large extent
As governments respond with aggressive fiscal measures, we believe 3 Japanese stocks will be key beneficiaries


European Recession - 3 Japanese Stocks to BUY for a Rebound

<ul>
<li>The Nikkei was flat over the past five days, while the yen strengthened from ¥136 to ¥132.5/$ </li>
<li>Sony cuts profit outlook due to weak games sales. Segment OP cut ¥50b (-16%) </li>
<li>Japan and US to enter chip alliance to develop next-generation 2-nm semiconductors </li>
</ul>


The Nikkei was flat over the past five days, while the yen strengthened from ¥136 to ¥132.5/$ 
Sony cuts profit outlook due to weak games sales. Segment OP cut ¥50b (-16%) 
Japan and US to enter chip alliance to develop next-generation 2-nm semiconductors 


Japan Stocks on the Move | M3, BayCurrent, Makita, NEC

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

Chervon Holdings / Equity Capital Markets

<ul>
<li>Chervon Holdings Limited (CHL) raised around US$400m in its Hong Kong IPO.</li>
<li>CHL is the largest China-based global provider of power tools and outdoor power equipment (OPE). </li>
<li>In this note, we will talk about the trading dynamics.</li>
</ul>


Chervon Holdings Limited (CHL) raised around US$400m in its Hong Kong IPO.
CHL is the largest China-based global provider of power tools and outdoor power equipment (OPE). 
In this note, we will talk about the trading dynamics.


Chervon Holdings IPO Trading - Lukewarm Demand

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chevron-holdings-ltd" target="_blank" data-smartkarma-citation="entities:35308:1" rel="noopener">Chevron Holdings (CHV HK)</a> is moving up the ranks in electric outdoor power equipment. It is currently ranked 2nd in terms of revenue compared to 7th in 2018.</li>
<li>We expect an industry wide drop-off in revenue in 2022 after a boost in demand during 2020 and 2021 driven by COVID-19.</li>
<li>Valuation is at a 41% discount to the closest peer. Thus we lean towards subscribing to the Chevron IPO.</li>
</ul>



Chevron Holdings (CHV HK) is moving up the ranks in electric outdoor power equipment. It is currently ranked 2nd in terms of revenue compared to 7th in 2018.
We expect an industry wide drop-off in revenue in 2022 after a boost in demand during 2020 and 2021 driven by COVID-19.
Valuation is at a 41% discount to the closest peer. Thus we lean towards subscribing to the Chevron IPO.


Japan

Makita Corporation manufactures electric power tools, including battery-operated power tools, stationary wood working machines, pneumatic devices, and gardening tools.  The Company also produces power tool attachments and accessories and provides parts replacement and repair services.

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Makita Corp (6586 JP)

Good Morning Japan |Peak Rates Still 5% Post Powell - Beta Roars Back; Inbound-China Excludes Japan

NKY indicated flate; Inbound headwinds as China exludes Japan from Group tours; Son skips Softbank brief in wake of Vision fund disaster; Nintendo...

Mark Chadwick

European Recession - 3 Japanese Stocks to BUY for a Rebound

European stocks have sold off on rising recession risks. We believe that governments will respond with aggressive fiscal measures and Japanese...

Mark Chadwick

Japan Stocks on the Move | M3, BayCurrent, Makita, NEC

As Japan grapples with record Covid cases and marauding monkeys, we highlight the stocks that were winners and losers over the past week

Mark Chadwick

Chervon Holdings IPO Trading - Lukewarm Demand

Chervon Holdings Limited (CHL) raised around US$400m in its Hong Kong IPO. In this note, we talk about the trading dynamics.

Sumeet Singh

Chervon Holdings IPO - Valuation

Even though smaller in size, we don’t think Chevron deserves to trade at a discount to its closest peer Techtronic, especially not as much as 41%,...

Oshadhi Kumarasiri

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