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

Robotics names have been on an absolute tear this year with our favourite name in the space, <a href="https://www.smartkarma.com/entities/2458" target="_blank" data-smartkarma-citation="entities:2458:1">Yaskawa Electric Corp (6506 JP)</a> up 86%, <a href="https://www.smartkarma.com/entities/10238" target="_blank" data-smartkarma-citation="entities:10238:1">Harmonic Drive Systems Inc (6324 JP)</a> up 65% and <a href="https://www.smartkarma.com/entities/13176" target="_blank" data-smartkarma-citation="entities:13176:1">Nabtesco Corp (6268 JP)</a> up 43% since we first wrote on the names at various points in the latter half of January. <a href="https://www.smartkarma.com/entities/752" target="_blank" data-smartkarma-citation="entities:752:1">Fanuc Corp (6954 JP)</a> , the lone name that we were bearish on is up 8% since early January when we first discussed its potential issues. In particular the ratio on the long Yaskawa, short Fanuc pair that we…

Robotics names have been on an absolute tear this year with our favourite name in the space, Yaskawa Electric Corp (6506 JP) up 86%, Harmonic Drive Systems Inc (6324 JP) up 65% and Nabtesco Corp (6268 JP) up 43% since we first wrote on the names at various points in the latter half of January. Fanuc Corp (6954 JP) , the lone name that we were bearish on is up 8% since early January when we first discussed its potential issues. In particular the ratio on the long Yaskawa, short Fanuc pair that we…

We Like to Think of Ourselves as the Biggest Bulls on Yaskawa But...

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.

An <a href="https://ifr.org/ifr-press-releases/news/robots-china-breaks-historic-records-in-automation" target="_blank">IFR press release</a> has updated statistics for China's robot installations in 2016. Some of the key numbers included:<ul>
<li>27% YoY growth overall to 87,000 units</li>
<li>120% YoY growth for local manufacturers to 27,000 units</li>
<li>75% YoY growth in electrical and electronics industry demand to 30,000 units</li>
</ul>The report further mentioned that overseas manufacturers grew sales to the electrical and electronics industry by 59% and this appears to have accelerated further this year, given orders and results at robot…

An IFR press release has updated statistics for China's robot installations in 2016. Some of the key numbers included:
27% YoY growth overall to 87,000 units
120% YoY growth for local manufacturers to 27,000 units
75% YoY growth in electrical and electronics industry demand to 30,000 units
The report further mentioned that overseas manufacturers grew sales to the electrical and electronics industry by 59% and this appears to have accelerated further this year, given orders and results at robot…

Electronics Industry Overtakes Autos in Chinese Robot Consumption

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

MSCI Emerging Markets Index / Technical Analysis

Bullish technicals continue to support our call to overweight EM. We highlight actionable themes, as well as pullback opportunities in Europe, European luxury/apparel, UK homebuilders, EM chemicals, Japanese chemicals, and Japanese tech stocks.

Bullish technicals continue to support our call to overweight EM. We highlight actionable themes, as well as pullback opportunities in Europe, European luxury/apparel, UK homebuilders, EM chemicals, Japanese chemicals, and Japanese tech stocks.

Int'l Compass: Overweight EM; Actionable Themes in Europe and Japan

MSCI AC Asia Pacific Excluding Japan Index / Technical Analysis

MSCI AC Asia Pacific Excluding Japan Index

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is breaking out from a two-year base. Relative strength (vs. MSCI ACWI ex-US) depicts a similar pattern; after lagging since mid-2015, its RS trend has slowly rounded higher, resulting in the recent breakout. Combined, this warrants an overweight.Today’s report is a country by country review of leadership and actionable themes within the region, including stock recommendations.

Nabtesco released 1Q results with sales up 12.5%, OP up 5.4% and PBT up 47.4% (thanks to strong earnings at Harmonic Drive). Extraordinary profit at Harmonic Drive drove the significant increase in PBT and also led to Nabtesco revising up full year guidance, but only at the PBT and NP levels. The full year plan is for 6.3% sales growth and 10.8% OP growth so OP may look slightly light, but we believe the company is tracking mostly in-line with precision gears, in particular, performing well. The…

Nabtesco released 1Q results with sales up 12.5%, OP up 5.4% and PBT up 47.4% (thanks to strong earnings at Harmonic Drive). Extraordinary profit at Harmonic Drive drove the significant increase in PBT and also led to Nabtesco revising up full year guidance, but only at the PBT and NP levels. The full year plan is for 6.3% sales growth and 10.8% OP growth so OP may look slightly light, but we believe the company is tracking mostly in-line with precision gears, in particular, performing well. The…

Nabtesco 1Q Update: Harmonic Drive Boosts Equity Earnings

Japan

Nabtesco Corporation manufactures Aircraft and Hydraulic products, Precision equipment, and transportation equipment. The Company's products include landing gear system for aircrafts, railroad vehicle brake system, and precision reduction gears for industrial robots.

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Nabtesco (6268 JP)

We Like to Think of Ourselves as the Biggest Bulls on Yaskawa But...

Robotics names have been on an absolute tear this year with our favourite name in the space, Yaskawa Electric Corp (6506 JP) up 86%, Harmonic Drive...

Mio Kato

Electronics Industry Overtakes Autos in Chinese Robot Consumption

An IFR press release has updated statistics for China's robot installations in 2016. Some of the key numbers included: 27% YoY growth overall to...

Mio Kato

Int'l Compass: Overweight EM; Actionable Themes in Europe and Japan

Bullish technicals continue to support our call to overweight EM. We highlight actionable themes, as well as pullback opportunities in Europe,...

Vermilion Research

Asia: Developing Leadership

As all eyes are focused on Europe—the current darling trade—Asia is emerging as a technical leader. The MSCI All-Country Asia Index (below) is...

Vermilion Research

Nabtesco 1Q Update: Harmonic Drive Boosts Equity Earnings

Nabtesco released 1Q results with sales up 12.5%, OP up 5.4% and PBT up 47.4% (thanks to strong earnings at Harmonic Drive). Extraordinary profit...

Mio Kato

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