Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Ryobi is a global manufacturer of high-quality aluminum die castings used for transmission cases, engine parts, and other vehicle parts</li>
<li>Ryobi has recently gained market attention following an announcement that the company will produce large electric-vehicle body parts using "gigacasting"</li>
<li>The stock is expected to benefit from EV adoption with improved earnings and increased market recognition</li>
</ul>


Ryobi is a global manufacturer of high-quality aluminum die castings used for transmission cases, engine parts, and other vehicle parts
Ryobi has recently gained market attention following an announcement that the company will produce large electric-vehicle body parts using "gigacasting"
The stock is expected to benefit from EV adoption with improved earnings and increased market recognition


Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Chervon Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (CHL HK)</a> is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.</li>
<li>At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. </li>
<li>However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  </li>
</ul>



Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.
At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. 
However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  


Chervon Holdings IPO Initiation: Not Quite Right

'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)

<div>
<p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/159/736/original/2020-09-18_06-09-24.png?1600376978" class="editor-image img-responsive" data-smartkarma-image-id="159736"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/159/737/original/2020-09-18_06-10-21.png?1600377043" class="editor-image img-responsive" data-smartkarma-image-id="159737"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>
<p>Our 'best' and 'worst' pairing from Thursday's announcements is home centre Alleanza (3546 JP) (formerly Daiyu-LIC) and <a href="https://www.smartkarma.com/entities/ryobi-ltd" target="_blank" data-smartkarma-citation="entities:7600:1" rel="noopener">Ryobi (5851 JP)</a>.  </p>
</div><div class="content-highlight"><p><strong>DAILY STATS - Only one company of the eleven announcements made yesterday has a negative score. All save the lone negative scorer, Ryobi, have a domestic focus.</strong></p></div>


• BEST &amp; WORST •
Source for all charts &amp; tables: Japan Analytics
Our 'best' and 'worst' pairing from Thursday's announcements is home centre Alleanza (3546 JP) (formerly Daiyu-LIC) and Ryobi (5851 JP).  
DAILY STATS - Only one company of the eleven announcements made yesterday has a negative score. All save the lone negative scorer, Ryobi, have a domestic focus.

🇯🇵 JAPAN • Results & Revisions 09/​​​​​​​​​17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

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.

<p>We know that historically there has been a lot of leakage leading into Earnings Season. In a different life, I remember Fuji Photo calling me in and given me a preview of the earnings results 2 weeks before the actual announcement. It may not happen as much now in the large-cap space, so we took a look at the small-cap space with very little coverage to see if there are movements in consensus.</p>

We know that historically there has been a lot of leakage leading into Earnings Season. In a different life, I remember Fuji Photo calling me in and given me a preview of the earnings results 2 weeks before the actual announcement. It may not happen as much now in the large-cap space, so we took a look at the small-cap space with very little coverage to see if there are movements in consensus.

Japanese Small-Cap Names with Consensus Changes Leading into Earning Season....

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>At the end of April, Toyota group parts affiliate <a href="https://www.smartkarma.com/entities/12197" target="_blank" data-smartkarma-citation="entities:12197:1">JTEKT Corp (6473 JP)</a>, its affiliate <a href="https://www.smartkarma.com/entities/20550" target="_blank" data-smartkarma-citation="entities:20550:1">Fuji Kiko Co Ltd (7260 JP)</a>, and <a href="https://www.smartkarma.com/entities/17528" target="_blank" data-smartkarma-citation="entities:17528:1">Tachi S Co Ltd (7239 JP)</a> announced a deal whereby JTEKT would launch a tender offer to take out the 66.6% of shares in Fuji Kiko it does not currently own, and Tachi S would buy the seats business of Fuji Kiko and in return would tender their 24.8% stake in Fuji Kiko to JTEKT. Combined with the corporate crossholdings in Fuji Kiko, that would get JTEKT approximately 63.7% of…</p>

At the end of April, Toyota group parts affiliate JTEKT Corp (6473 JP), its affiliate Fuji Kiko Co Ltd (7260 JP), and Tachi S Co Ltd (7239 JP) announced a deal whereby JTEKT would launch a tender offer to take out the 66.6% of shares in Fuji Kiko it does not currently own, and Tachi S would buy the seats business of Fuji Kiko and in return would tender their 24.8% stake in Fuji Kiko to JTEKT. Combined with the corporate crossholdings in Fuji Kiko, that would get JTEKT approximately 63.7% of…

Fuji Kiko Tender Offer Launch Likely Next Week. Hmmm...

Japan

Ryobi Ltd manufactures die casting for autos.  The Company's products include plastic products, printing presses, office furniture, electric appliances, home equipment, medical instruments, and sport and recreational articles.  The Company also operates in US and Europe.

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Ryobi Ltd (5851 JP)

Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

Mark Chadwick

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

🇯🇵 JAPAN • Results & Revisions 09/17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

• BEST & WORST • Our 'best' and 'worst' pairing from Wednesday's announcements is E-commerce office supplies company Askul (2678...

Campbell Gunn

Japanese Small-Cap Names with Consensus Changes Leading into Earning Season....

We know that historically there has been a lot of leakage leading into Earnings Season. In a different life, I remember Fuji Photo calling me in...

Custom Products Group

Fuji Kiko Tender Offer Launch Likely Next Week. Hmmm...

At the end of April, Toyota group parts affiliate JTEKT Corp (6473 JP), its affiliate Fuji Kiko Co Ltd (7260 JP), and Tachi S Co Ltd (7239 JP)...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

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Ryobi (5851) | Re-Rating as Die-Casting Becomes Gigacasting

​Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

Mark Chadwick

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

🇯🇵 JAPAN • Results & Revisions 09/​​​​​​​​​17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi

• BEST & WORST • Our 'best' and 'worst' pairing from Wednesday's announcements is E-commerce office supplies company Askul (2678...

Campbell Gunn

Japanese Small-Cap Names with Consensus Changes Leading into Earning Season....

We know that historically there has been a lot of leakage leading into Earnings Season. In a different life, I remember Fuji Photo calling me in...

Custom Products Group

Fuji Kiko Tender Offer Launch Likely Next Week. Hmmm...

At the end of April, Toyota group parts affiliate JTEKT Corp (6473 JP), its affiliate Fuji Kiko Co Ltd (7260 JP), and Tachi S Co Ltd (7239 JP)...

Travis Lundy

Ryobi gains market attention as it plans to produce large electric-vehicle body parts using "gigacasting," leading to improved earnings and...

🇯🇵 JAPAN • Results & Revisions 09/17 - Kusuri No Aoki, Alleanza, and Poor Old Ryobi