Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Keisei Electric Railway Co / Event-Driven

<ul>
<li>The CSRC has announced five capital market cooperation measures for the Hong Kong Southbound Connect programs including  RMB dual counters and REITs. </li>
<li>
<a href="https://www.smartkarma.com/entities/jardine-cycle-carriage-ltd" target="_blank" data-smartkarma-citation="entities:347:1" rel="noopener">Jardine Cycle &amp; Carriage (JCNC SP)</a>'s current implied stub value and simple ratio are both highly elevated.</li>
<li>A simple <a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP)</a>model says "this doesn't present me with enough upside to warrant it unless I am also really bullish <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 JP)</a>."</li>
</ul>


The CSRC has announced five capital market cooperation measures for the Hong Kong Southbound Connect programs including  RMB dual counters and REITs. 

Jardine Cycle &amp; Carriage (JCNC SP)'s current implied stub value and simple ratio are both highly elevated.
A simple Keisei Electric Railway Co (9009 JP)model says "this doesn't present me with enough upside to warrant it unless I am also really bullish Oriental Land (4661 JP)."


Last Week in Event SPACE: HK Southbound, Jardine Cycle, Keisei/Oriental Land, BHP/Anglo American

<ul>
<li>Tally 50 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>One new deals was discussed on Smartkarma this week, being <a href="https://www.smartkarma.com/entities/mimasu-semiconductor-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:5531:1" rel="noopener">Mimasu Semiconductor Industry (8155 JP)</a>'s Tender Offer. There's also <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group (BHP AU)</a>'s unsolicited Offer for <a href="https://www.smartkarma.com/entities/anglo-american-plc-04f6cda9-c726-4c33-8544-c5046bc74b29" target="_blank" data-smartkarma-citation="entities:28603:1" rel="noopener">Anglo American (NGLOY US)</a>.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/tietto-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28006:1" rel="noopener">Tietto Minerals Ltd (TIE AU)</a>, <a href="https://www.smartkarma.com/entities/csr-ltd" target="_blank" data-smartkarma-citation="entities:17380:1" rel="noopener">CSR Ltd (CSR AU)</a>, <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>, <a href="https://www.smartkarma.com/entities/roland-dg-corp" target="_blank" data-smartkarma-citation="entities:10653:1" rel="noopener">Roland DG Corp (6789 JP)</a>, and <a href="https://www.smartkarma.com/entities/iclick-interactive-asia-group-limited" target="_blank" data-smartkarma-citation="entities:27314:1" rel="noopener">iClick Interactive Asia Group (ICLK US)</a>.</li>
</ul>


Tally 50 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week, being Mimasu Semiconductor Industry (8155 JP)'s Tender Offer. There's also BHP Group (BHP AU)'s unsolicited Offer for Anglo American (NGLOY US).
Key updates took place on: Tietto Minerals Ltd (TIE AU), CSR Ltd (CSR AU), CPMC Holdings (906 HK), Roland DG Corp (6789 JP), and iClick Interactive Asia Group (ICLK US).


(Mostly) Asia-Pac M&A: Mimasu Semi, Tietto Minerals, CSR, CPMC, Roland DG, IClick Interactive

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

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)

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/161/859/original/2020-09-27_06-54-19.png?1601157286" class="editor-image img-responsive" data-smartkarma-image-id="161859"></figure><div class="content-caption">Source for all charts &amp; Tables: Japan Analytics</div>BOTTOMING OUT? - The Japanese markets were only open for three days this week, however, of the manufacturing companies that reported several, such as <a href="https://www.smartkarma.com/entities/hirose-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:13513:1" rel="noopener">Hirose Electric (6806 JP)</a> and <a href="https://www.smartkarma.com/entities/ngk-insulators-ltd" target="_blank" data-smartkarma-citation="entities:12580:1" rel="noopener">NGK Insulators (5333 JP)</a> showed signs of a bottoming out in earnings momentum. While some domestic consumer-facing companies are seeing 'boomtown' conditions (see <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori (9843 JP)</a> below) a broader recovery is dependent on the manufacturing sectors of the economy. Although it is early in the reporting cycle, our three metrics that track results and revisions have improved in the last seven days. As the retail-dominated Febru0ry/May/August/November year-end cohort report over the next two week, we shall see further upticks.     • BEST &amp; WORST •Our best and worst pair from Friday's announcements is home furnishing retailer <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori (9843 JP)</a> and the leisure and travel company <a href="https://www.smartkarma.com/entities/h-i-s-co-ltd" target="_blank" data-smartkarma-citation="entities:19311:1" rel="noopener">H.I.S. (9603 JP)</a> with a maximum-negative-scoring full-year forecast operating loss of ¥37 billion.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/161/862/original/2020-09-27_07-19-01.png?1601158772" class="editor-image img-responsive" data-smartkarma-image-id="161862"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/161/863/original/2020-09-27_07-20-58.png?1601158948" class="editor-image img-responsive" data-smartkarma-image-id="161863"></figure><hr>DAILY STATS<hr><div>9 Quarterly Results</div><div><ul style="list-style-type: disc;">
<li>
Results Score: 33% Positive / 0% Neutral / 67% Negative</li>
<li>
Average Results Score Change: -3.4 points</li>
<li>
Average % Change in Revenue: -24.6% Quarter YoY / -12.6% Rolling TTM YoY </li>
<li>
Average Operating Profit Margin Change: -5.0ppt</li>
<li>
Percentage Making Quarterly Losses: 67%</li>
</ul></div><hr><div>17 Annual • 7 Interim Forecasts/Revisions</div><div><ul style="list-style-type: disc;">
<li>
Annual Forecast/Revision Score: 55% Positive / 0% Neutral / 45% Negative</li>
<li>
Interim Forecast/Revision Score Change: 53% Positive / 12% Neutral / 35% Negative</li>
<li>
Average Forecast/Revision Score Change: +0.5 points</li>
</ul></div>

Source for all charts &amp; Tables: Japan AnalyticsBOTTOMING OUT? - The Japanese markets were only open for three days this week, however, of the manufacturing companies that reported several, such as Hirose Electric (6806 JP) and NGK Insulators (5333 JP) showed signs of a bottoming out in earnings momentum. While some domestic consumer-facing companies are seeing 'boomtown' conditions (see Nitori (9843 JP) below) a broader recovery is dependent on the manufacturing sectors of the economy. Although it is early in the reporting cycle, our three metrics that track results and revisions have improved in the last seven days. As the retail-dominated Febru0ry/May/August/November year-end cohort report over the next two week, we shall see further upticks.     • BEST &amp; WORST •Our best and worst pair from Friday's announcements is home furnishing retailer Nitori (9843 JP) and the leisure and travel company H.I.S. (9603 JP) with a maximum-negative-scoring full-year forecast operating loss of ¥37 billion.DAILY STATS9 Quarterly Results

Results Score: 33% Positive / 0% Neutral / 67% Negative

Average Results Score Change: -3.4 points

Average % Change in Revenue: -24.6% Quarter YoY / -12.6% Rolling TTM YoY 

Average Operating Profit Margin Change: -5.0ppt

Percentage Making Quarterly Losses: 67%
17 Annual • 7 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 55% Positive / 0% Neutral / 45% Negative

Interim Forecast/Revision Score Change: 53% Positive / 12% Neutral / 35% Negative

Average Forecast/Revision Score Change: +0.5 points


🇯🇵 JAPAN • Results & Revisions 09/25 - HIS, Mimasu (& SUMCO), Nitori, SG, & Alps Alpine Revises▲!

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

We highlight attractive and actionable themes within developed international markets, including actionable set-ups across among: Non-bank Financials, Japanese Technology stocks, and within European Discretionary, Industrial, Health Care, and Staples sectors.

We highlight attractive and actionable themes within developed international markets, including actionable set-ups across among: Non-bank Financials, Japanese Technology stocks, and within European Discretionary, Industrial, Health Care, and Staples sectors.

Developed International Equity Strategy: Favor EAFE over EM

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

Equity Bottom-Up

Shinko Electric Industries / Equity Bottom-Up

If you go from the peak of the 1980~82 semiconductor cycle (ie the one that gave us the Commodore 64, the IBM PC [and technically the Apple III]) in July 1981 to now, it is interesting to note that whilst the performance of <a href="https://www.smartkarma.com/entities/280" target="_blank" data-smartkarma-citation="entities:280:1">Tokyo Electron</a> versus <a href="https://www.smartkarma.com/entities/22910" target="_blank" data-smartkarma-citation="entities:22910:1">TOPIX</a> has moved up and down with the various cycles, the two have basically performed in line. (In the last month, TEL has garnered a bit of outperformance.) This is of course what you would expect to see at the peak of cycles, assuming that the…

If you go from the peak of the 1980~82 semiconductor cycle (ie the one that gave us the Commodore 64, the IBM PC [and technically the Apple III]) in July 1981 to now, it is interesting to note that whilst the performance of Tokyo Electron versus TOPIX has moved up and down with the various cycles, the two have basically performed in line. (In the last month, TEL has garnered a bit of outperformance.) This is of course what you would expect to see at the peak of cycles, assuming that the…

Japanese Semiconductor-Related Stocks - Leaders & Laggards as We Go Deep Into the IC Cycle

Japan

MIMASU SEMICONDUCTOR INDUSTRY CO., LTD. processes semiconductor materials such as silicon and gallium.  The Company also designs, manufactures, and sells semiconductor material processing machinery and sells various kinds of measuring and testing devices.

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Mimasu Semiconductor Industry (8155 JP)

Last Week in Event SPACE: HK Southbound, Jardine Cycle, Keisei/Oriental Land, BHP/Anglo American

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

(Mostly) Asia-Pac M&A: Mimasu Semi, Tietto Minerals, CSR, CPMC, Roland DG, IClick Interactive

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

🇯🇵 JAPAN • Results & Revisions 09/25 - HIS, Mimasu (& SUMCO), Nitori, SG, & Alps Alpine Revises▲!

• BEST WORST •

Campbell Gunn

Developed International Equity Strategy: Favor EAFE over EM

We highlight attractive and actionable themes within developed international markets, including actionable set-ups across among: Non-bank...

Vermilion Research

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Last Week in Event SPACE: HK Southbound, Jardine Cycle, Keisei/Oriental Land, BHP/Anglo American

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

(Mostly) Asia-Pac M&A: Mimasu Semi, Tietto Minerals, CSR, CPMC, Roland DG, IClick Interactive

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

🇯🇵 JAPAN • Results & Revisions 09/25 - HIS, Mimasu (& SUMCO), Nitori, SG, & Alps Alpine Revises▲!

• BEST WORST •

Campbell Gunn

Developed International Equity Strategy: Favor EAFE over EM

We highlight attractive and actionable themes within developed international markets, including actionable set-ups across among: Non-bank...

Vermilion Research

Japanese Semiconductor-Related Stocks - Leaders & Laggards as We Go Deep Into the IC Cycle

If you go from the peak of the 1980~82 semiconductor cycle (ie the one that gave us the Commodore 64, the IBM PC [and technically the Apple III])...

Pelham Smithers Associates