Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  EUR STOXX600 -1% as hikes, recession fears, overbought markets sap risk;  US-China Tensions Eases after Blinken China Trip; Ford Chairman Says US still can't Compete with China on EVs</li>
<li>JAPAN. NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off;  Interest in investing in Japan spreading to start-ups; Uniqlo headwinds-China, China</li>
<li>NUGGET. Nikkei reported that Japanese Retail (Mrs Watanabe) fx traders turned momentum in FX; Watch for when that happens in Equities...</li>
</ul>


OVERSEAS.  EUR STOXX600 -1% as hikes, recession fears, overbought markets sap risk;  US-China Tensions Eases after Blinken China Trip; Ford Chairman Says US still can't Compete with China on EVs
JAPAN. NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off;  Interest in investing in Japan spreading to start-ups; Uniqlo headwinds-China, China
NUGGET. Nikkei reported that Japanese Retail (Mrs Watanabe) fx traders turned momentum in FX; Watch for when that happens in Equities...


Ohayo Japan| Europe Sells Off; NUGGET: Mrs Watanabe-Now Momentum FX; Watch for Retail Equity Shift

Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Independent Insight Provider, Japanese equities

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

<ul>
<li>Share price performance has been strong in spite of pressure on margins from heavy investment in power semiconductors for electric vehicles. </li>
<li>Management's medium-term targets are ambitious, but could be achieved in a reasonably favorable economic environment.</li>
<li>Projected valuations compare favorably with historical ranges. The primary risk to investors appears to be  over-optimism. </li>
</ul>


Share price performance has been strong in spite of pressure on margins from heavy investment in power semiconductors for electric vehicles. 
Management's medium-term targets are ambitious, but could be achieved in a reasonably favorable economic environment.
Projected valuations compare favorably with historical ranges. The primary risk to investors appears to be  over-optimism. 


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Nikkei 225 Sep 2023 review has 2 months left of data collection. That means the rankings are quasi-fixed. So then the question is what to do with them.</li>
<li>There is a <a href="https://indexes.nikkei.co.jp/en/nkave/governance" target="_blank" rel="noopener">consultation</a> in progress. You still have one week to respond, but that doesn't change the names. </li>
<li>The top inclusion is the big one in dollar terms but low in liquidity. The next two are likely to be consumer names, and much more impactful. </li>
</ul>


The Nikkei 225 Sep 2023 review has 2 months left of data collection. That means the rankings are quasi-fixed. So then the question is what to do with them.
There is a consultation in progress. You still have one week to respond, but that doesn't change the names. 
The top inclusion is the big one in dollar terms but low in liquidity. The next two are likely to be consumer names, and much more impactful. 


Nikkei 225 Sep 2023 Review - Still Fastie, Nitori, Zozo, and Lasertec as Interesting Names

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<ul>
<li>The steep part of the chip collapse has run its course, and prices are now following cost</li>
<li>Revenues will rise once demand growth fully offsets price decreases, probably in the fourth quarter</li>
<li>The market will regain profitability only after a new shortage develops, which may be the middle of 2024</li>
</ul>


The steep part of the chip collapse has run its course, and prices are now following cost
Revenues will rise once demand growth fully offsets price decreases, probably in the fourth quarter
The market will regain profitability only after a new shortage develops, which may be the middle of 2024


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>Nikkei has started a market consultation on amendments to the methodology of the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> focusing on the stepwise addition of lower liquidity stocks and on technical listings.</li>
<li>Stocks that have relatively low ADTV compared to the expected index weight will be added at half the originally planned PAF with the full PAF implemented at the next review.</li>
<li>If the proposed changes are implemented, some of the potential inclusions in September will be added at half their PAF with the increase to full PAF coming in March 2024.</li>
</ul>


Nikkei has started a market consultation on amendments to the methodology of the Nikkei 225 (NKY INDEX) focusing on the stepwise addition of lower liquidity stocks and on technical listings.
Stocks that have relatively low ADTV compared to the expected index weight will be added at half the originally planned PAF with the full PAF implemented at the next review.
If the proposed changes are implemented, some of the potential inclusions in September will be added at half their PAF with the increase to full PAF coming in March 2024.


Nikkei 225 Market Consultation: Stepwise Additions & Technical Listings

Japan

SUMCO Corporation manufactures silicon wafers for the semiconductor industry. The Company produces silicon wafers used to produce solar batteries as well as ultra-high purity quartz used to produce vessels for silicon manufacturing process. SUMCO markets its products worldwide.

SHINKO ELECTRIC INDUSTRIES CO., LTD. designs, manufactures, and markets advanced electronic materials, such as semiconductor packages, including leadframes, and PLP(Plastics Laminated Packages).  The Company markets its products worldwide through a network of sales offices in such places as the Philippines, Germany, and Hong Kong.

SCREEN Holdings Co Ltd.  manufactures and sell semiconductors, FPD devices, commercial printing and printed circuit boards(PCB). The company also provides additional services for its products.

RORZE CORPORATION manufactures printed circuit board conveyers and wafer handlers for semiconductor manufacturing.  The Company also produces sorters and vacuum chamber robots, as well as controllers and stepping motor drivers used in various automation systems.  Rorze provides parts replacement and repair services for its products.

TOKYO SEIMITSU CO., LTD. manufactures and sells semiconductor manufacturing equipment and measuring instruments.  The Company produces wafer probing machines, wafer dicing machines, electron beam lithography systems, wafer inspection systems, and chemical mechanical planarizers (CMP) systems.

ULVAC, Inc. manufactures vacuum devices for industries such as semiconductor, electronics, chemical, pharmaceutical and food.  The Company's products include pumps, valves, gas analyzers, leak detectors, and surface profile measurement.

MICRONICS JAPAN CO., LTD. designs, manufactures, and markets probe cards, which are used to inspect semiconductors and integrated circuits (ICs).  The Company also makes wafer probers, probe card testers, IC handlers, and inspection devices used for liquid crystal display (LCD) manufacturing.

Mitsui High-tec, Inc. produces integrated circuit leadframes, assembly parts, and related equipment.  The Company also manufactures and sells precision machine tools, such as metal molds for presses and machine tools. Mitsui High-tec also operates a real estate business.

TOWA CORPORATION produces semiconductor manufacturing equipment including mold packaging, IC inspection units, precision molds and dies, and plastic molds. The Company also provides technical consultation.

Japan Material Co., Ltd. mainly provides gas management system services for semiconductor and liquid-crystal factories.  The Company also develops and makes application software products for CAD/CAM and three-dimensional data processing.

Flat Glass Group Co., Ltd is a PV glass manufacturer. The Company also markets float glass, household glass and architectural glass.

Axcelis Technologies, Inc. manufactures components for the semiconductor industry. The Company designs, manufactures and services ion implantation, dry strip, thermal processing and curing equipment used in the fabrication of semiconductor chips. Axcelis Technologies sells their products to semiconductor chip manufacturers worldwide.

eMemory Technology, Inc. develops and provides logic non-volatile memory (LogicNVM) technology. The company licenses its intellectual property to semiconductor foundries, integrated devices manufacturers (IDMs), and fabless design houses around the world.

Diodes Incorporated manufactures and supplies discrete, logic, and analog semiconductor devices to consumers in the electronics, computing, industrial, communications, and automotive markets. The Company's products include diodes, transistors, MOSFETs, single gate logic, LED drivers, and USB switches.

Nanya Technology Corp. manufactures and markets dynamic random access memories (DRAMs).  The Company sells its products in Taiwan and exports worldwide.

Sino-American Silicon Products Inc. supplies silicon-based products, including silicon lapped wafer, silicon diffusion wafer, silicon ingot, silicon diffused diode chip, and automobile rectifier.  The Company sells its products worldwide.

GCL-Poly Energy Holdings Ltd is a Chinese power company that produces solar grade polysilicon and operates cogeneration plants and in China.

Gcl Poly Energy Holdings Limited (3800 HK)

King Yuan Electronics Co., Ltd. provides integrated circuit (IC) testing services to semiconductor manufacturers.  The Company tests the logic, memory, and burn-in functions of ICs.  King Yuan also specializes in IC reeling, packaging, and wafer grinding.

Tianjin Zhonghuan Semiconductor Co., Ltd. manufactures discrete semiconductor devices. The Company's main products are High Voltage Diode, Silicon Rectifier Diode, Silicon Bridge Rectifier, MWO High Voltage Silicon Diode and special High Voltage Silicon Diode .

Tianjin Zhonghuan Semiconductor (002129 CH)

Hua Hong Semiconductor Limited manufactures semiconductors on 200mm wafers for specialty applications. The Company's products are used in the consumer electronic, communication, computing and industrial, and automotive industries.

ROHM COMPANY LIMITED manufactures custom linear integrated circuits and semiconductor devices for use primarily in consumer electronics.  The Company has plants and sales offices worldwide.  Rohm's subsidiaries include Wako Electric and Apollo Electronics.

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ROHM Co Ltd (6963 JP)

Ohayo Japan| Europe Sells Off; NUGGET: Mrs Watanabe-Now Momentum FX; Watch for Retail Equity Shift

Europe DOWN; US out; NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off; Interest in investing in Japan...

Mark Chadwick

Rohm (6963 JP): Taking the Long View

Investing heavily in power semiconductors for EVs, aiming for top market share. Depreciation putting pressure on the operating margin, but cash...

Scott Foster

Nikkei 225 Sep 2023 Review - Still Fastie, Nitori, Zozo, and Lasertec as Interesting Names

The Nikkei 225 September 2023 review has two months left in the data set before it is set. It will be tough to change rankings now near the top....

Travis Lundy

Where Are We in the Semiconductor Cycle?

Will the semiconductor market turn around? Revenues are likely to regain modest growth in the fourth quarter, but profits shouldn't return until...

Jim Handy

Nikkei 225 Market Consultation: Stepwise Additions & Technical Listings

Nikkei has started a consultation on stepwise adds to the index & on treatment of technical listings. The stepwise inclusion could result in...

Brian Freitas

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