Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

The start of the year has been bullish on the Korean and Japanese stock markets. KOSPI is up 4% and Nikkei is up 3% YTD. Some of the most beaten down stocks in the last 3 months of 2018 in Korea and Japan have been rebounding nicely YTD. In the past week, the following reports that are relevant for Japan and Korea have received a lot of interest:<ul>
<li><a href="https://www.smartkarma.com/insights/yaskawa-electric-we-are-probably-now-close-to-the-bottom-for-this-lt-structural-growth-story" target="_blank" data-smartkarma-citation="insights:27287">Yaskawa Electric: We Are Probably Now Close to the Bottom for This LT Structural Growth Story</a></li>
<li><a href="https://www.smartkarma.com/insights/workman-vs-decathlon-the-upcoming-battle-for-japan-s-sports-market" target="_blank" data-smartkarma-citation="insights:27288">Workman Vs. Decathlon: The Upcoming Battle for Japan's Sports Market</a></li>
<li>
<a href="https://www.smartkarma.com/insights/softbank-a-sizeable-and-tactical-tender" target="_blank" data-smartkarma-citation="insights:27313">Softbank - A Sizeable and Tactical Tender?</a> </li>
<li><a href="https://www.smartkarma.com/insights/hitachi-tender-for-yungtay-engineering-launches" target="_blank" data-smartkarma-citation="insights:27308">Hitachi Tender for Yungtay Engineering Launches</a></li>
<li><a href="https://www.smartkarma.com/insights/trade-idea-amorepacific-002790-ks-stub-a-beautiful-opportunity" target="_blank" data-smartkarma-citation="insights:27111">TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity</a></li>
<li><a href="https://www.smartkarma.com/insights/full-list-of-korea-s-single-sub-holdcos-with-current-sigma-quick-thought-on-amorepacific" target="_blank" data-smartkarma-citation="insights:27275">Full List of Korea's Single-Sub Holdcos with Current Sigma % - Quick Thought on Amorepacific</a></li>
</ul>Finally, it was announced that <a href="http://time.com/5508197/trump-north-korean-summit-vietnam/" target="_blank">Trump plans to meet North Korea's Kim Jong-Un in late February in Vietnam</a>. It has been nearly seven months since their last meeting in Singapore and there has been no progress in terms of nuclear weapons inspection or dismantling of its nuclear weapons and ICBM missiles. In April 2009, North Korea reactivated its nuclear facilities, after more than two years of North Korea promising to not to restart its nuclear programs. They lied and got away with it. And it seems like they are replaying this story-line once again.

The start of the year has been bullish on the Korean and Japanese stock markets. KOSPI is up 4% and Nikkei is up 3% YTD. Some of the most beaten down stocks in the last 3 months of 2018 in Korea and Japan have been rebounding nicely YTD. In the past week, the following reports that are relevant for Japan and Korea have received a lot of interest:
Yaskawa Electric: We Are Probably Now Close to the Bottom for This LT Structural Growth Story
Workman Vs. Decathlon: The Upcoming Battle for Japan's Sports Market

Softbank - A Sizeable and Tactical Tender? 
Hitachi Tender for Yungtay Engineering Launches
TRADE IDEA: Amorepacific (002790 KS) Stub: A Beautiful Opportunity
Full List of Korea's Single-Sub Holdcos with Current Sigma % - Quick Thought on Amorepacific
Finally, it was announced that Trump plans to meet North Korea's Kim Jong-Un in late February in Vietnam. It has been nearly seven months since their last meeting in Singapore and there has been no progress in terms of nuclear weapons inspection or dismantling of its nuclear weapons and ICBM missiles. In April 2009, North Korea reactivated its nuclear facilities, after more than two years of North Korea promising to not to restart its nuclear programs. They lied and got away with it. And it seems like they are replaying this story-line once again.

Smartkarma’s Week That Was in JP/​​​​​​KR:  Amorepacific, Hitachi, and Trump's 2nd Meeting With KJU

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

The supermarket sector is the most fragmented and uncompetitive of all retail sectors, a situation encouraged by major suppliers and not ideal for consumers.
Despite some effort from the likes of Aeon, consolidation has failed to materialise beyond a few in-group mergers.
Yet pressure on supermarkets to consolidate has been building due to depopulation in the regions, competitive pressures from other food retailers such as convenience stores and drugstore chains, as well as the emerging online food services.
Change is now coming. The biggest industry consolidation yet was announced last month, a precedent-setting alliance between three major supermarkets, <a href="https://www.smartkarma.com/entities/7580" target="_blank" data-smartkarma-citation="entities:7580:1">Arcs Co Ltd (9948 JP)</a>, <a href="https://www.smartkarma.com/entities/2256" target="_blank" data-smartkarma-citation="entities:2256:1">Valor Holdings (9956 JP)</a> and <a href="https://www.smartkarma.com/entities/7435" target="_blank" data-smartkarma-citation="entities:7435:1">Retail Partners (8167 JP)</a>, carving up a large chunk of the country into three regional fiefdoms.

The supermarket sector is the most fragmented and uncompetitive of all retail sectors, a situation encouraged by major suppliers and not ideal for consumers.
Despite some effort from the likes of Aeon, consolidation has failed to materialise beyond a few in-group mergers.
Yet pressure on supermarkets to consolidate has been building due to depopulation in the regions, competitive pressures from other food retailers such as convenience stores and drugstore chains, as well as the emerging online food services.
Change is now coming. The biggest industry consolidation yet was announced last month, a precedent-setting alliance between three major supermarkets, Arcs Co Ltd (9948 JP), Valor Holdings (9956 JP) and Retail Partners (8167 JP), carving up a large chunk of the country into three regional fiefdoms.

Arcs, Valor and Retail Partners Form First Nationwide Supermarket Alliance

Japan

RETAIL PARTNERS CO., LTD. operates regional supermarket chain based in Yamaguchi Prefecture.  The Company also sells household utensils, appliances, and clothing.

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Retail Partners (8167 JP)

Smartkarma’s Week That Was in JP/KR: Amorepacific, Hitachi, and Trump's 2nd Meeting With KJU

The start of the year has been bullish on the Korean and Japanese stock markets. KOSPI is up 4% and Nikkei is up 3% YTD. Some of the most beaten...

Douglas Kim

Arcs, Valor and Retail Partners Form First Nationwide Supermarket Alliance

The supermarket sector is the most fragmented and uncompetitive of all retail sectors, a situation encouraged by major suppliers and not ideal for...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Smartkarma’s Week That Was in JP/​​​​​​KR: Amorepacific, Hitachi, and Trump's 2nd Meeting With KJU

The start of the year has been bullish on the Korean and Japanese stock markets. KOSPI is up 4% and Nikkei is up 3% YTD. Some of the most beaten...

Douglas Kim

Arcs, Valor and Retail Partners Form First Nationwide Supermarket Alliance

The supermarket sector is the most fragmented and uncompetitive of all retail sectors, a situation encouraged by major suppliers and not ideal for...

Michael Causton

Smartkarma’s Week That Was in JP/KR: Amorepacific, Hitachi, and Trump's 2nd Meeting With KJU