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>We looked at September to see which names pick up the most Analyst upgrades and which names had the most Analyst downgrades.  <a href="https://www.smartkarma.com/entities/751" target="_blank" data-smartkarma-citation="entities:751:1">Fast Retailing Co Ltd (9983 JP)</a> and <a href="https://www.smartkarma.com/entities/8416" target="_blank" data-smartkarma-citation="entities:8416:1">Komatsu Ltd (6301 JP)</a> topped the list, both with 4 upgrades in September. Even with the 4 upgrades, Fast Retailing is still just barely above being considered "Hated by the Street".   </p><h2>Two or more Upgrades in September</h2><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/034/855/original/1.png?1507069255" class="editor-image img-responsive" data-smartkarma-image-id="34855"></figure><div class="content-caption">Source: Custom Products</div><p><a href="https://www.smartkarma.com/entities/320" target="_blank" data-smartkarma-citation="entities:320:1">FamilyMart UNY Holdings Co Ltd (8028 JP)</a> has moved from no BUY recommendations just a short time…</p>

We looked at September to see which names pick up the most Analyst upgrades and which names had the most Analyst downgrades.  Fast Retailing Co Ltd (9983 JP) and Komatsu Ltd (6301 JP) topped the list, both with 4 upgrades in September. Even with the 4 upgrades, Fast Retailing is still just barely above being considered "Hated by the Street".   Two or more Upgrades in SeptemberSource: Custom ProductsFamilyMart UNY Holdings Co Ltd (8028 JP) has moved from no BUY recommendations just a short time…

Popular and Unpopular Names in Japan in September....

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>Fanuc, while relatively well known as an industrial robot manufacturer, is reliant on its CNC business as its crown jewel. It enjoys the top market share in this space globally and is considered a dominant force with significant barriers to entry due to engineers being familiar with its controls and its strong support network. For many years this allowed it to effortlessly lead the market and the company enjoyed stable demand and pricing premiums. However, this is not to say that there were never any problems with its products. While the products enjoyed top market shares, we believe the strength of its network effects due to engineer familiarity and product support masked underlying dissatisfaction with the product. This dissatisfaction is not a particularly new development and rather is a function of Fanuc failing to adapt to a changing environment. Like many Japanese companies, it has been left behind in terms of the simplicity and user-friendliness of its UI and we believe it is now at risk of having its dominance in the space undermined. Worse yet, its historical success could blind management to the need for change and it would not be the first company to fall foul of its previous successes.</p><p>Is a company that is not focused on its UI likely to succeed in the IoT era?</p>

Fanuc, while relatively well known as an industrial robot manufacturer, is reliant on its CNC business as its crown jewel. It enjoys the top market share in this space globally and is considered a dominant force with significant barriers to entry due to engineers being familiar with its controls and its strong support network. For many years this allowed it to effortlessly lead the market and the company enjoyed stable demand and pricing premiums. However, this is not to say that there were never any problems with its products. While the products enjoyed top market shares, we believe the strength of its network effects due to engineer familiarity and product support masked underlying dissatisfaction with the product. This dissatisfaction is not a particularly new development and rather is a function of Fanuc failing to adapt to a changing environment. Like many Japanese companies, it has been left behind in terms of the simplicity and user-friendliness of its UI and we believe it is now at risk of having its dominance in the space undermined. Worse yet, its historical success could blind management to the need for change and it would not be the first company to fall foul of its previous successes.Is a company that is not focused on its UI likely to succeed in the IoT era?

Fanuc's Structural Issues (1): Is the CNC Business Losing Its Edge?

Japan

OKUMA Corporation manufactures machine tools and other industrial machinery. The Company produces computerized numerically controlled (CNC) machine tools including lathes, machining centers (MCs), grinders, and drilling machines.

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Okuma Corp (6103 JP)

Popular and Unpopular Names in Japan in September....

We looked at September to see which names pick up the most Analyst upgrades and which names had the most Analyst downgrades. Fast Retailing Co Ltd...

Custom Products Group

Fanuc's Structural Issues (1): Is the CNC Business Losing Its Edge?

Fanuc, while relatively well known as an industrial robot manufacturer, is reliant on its CNC business as its crown jewel. It enjoys the top market...

Mio Kato

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