Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Sanken benefits from the structural growth in EVs, which should underpin revenue growth and margin accretion. </li>
<li>DCF valuation suggests the stock is slightly undervalued. However, better-than-expected revenue trends could easily drive significant upside. </li>
<li>Almost 30% of shares are held by activist investors - there is an attractive 57% upside to a SOTP valuation that could be realised over time.</li>
</ul>


Sanken benefits from the structural growth in EVs, which should underpin revenue growth and margin accretion. 
DCF valuation suggests the stock is slightly undervalued. However, better-than-expected revenue trends could easily drive significant upside. 
Almost 30% of shares are held by activist investors - there is an attractive 57% upside to a SOTP valuation that could be realised over time.


Sanken (6707)| Attractive for Activists and Growth Investors

Ortus Advisors

Andrew Jackson

Independent Insight Provider

Thematic (Sector/Industry)

<ul>
<li>Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.</li>
<li>Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.</li>
<li>Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays</li>
</ul>


Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.
Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.
Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays


Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

<ul>
<li>Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.</li>
<li>Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.</li>
<li>Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.</li>
</ul>


Some more minor data points and highlights: KLIC (ball bonders) says that utilization is 75-80%, which is a good read on China despite the negative industrial headwind.
Allegro Microsystems is definitely scraping the bottom, and while Sanken (its distributor) is still increasing its inventory, I like the setup there.
Arrow Electronics (Distributor) says things are improving, which is a big counterpoint to everything else.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The revised/final True Wind Tender Offer for up to 19% of <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a> ends this week. With the "excitement" the last two weeks, the SunCorp/CLBT ratio is higher.</li>
<li>The minimum threshold is relatively low. The Tender will most likely succeed with very high pro-ration. </li>
<li>For those on the edge, I discuss possibilities on the back end. It will be less liquid, but that may not be bad.</li>
</ul>


The revised/final True Wind Tender Offer for up to 19% of Sun Corp (6736 JP) ends this week. With the "excitement" the last two weeks, the SunCorp/CLBT ratio is higher.
The minimum threshold is relatively low. The Tender will most likely succeed with very high pro-ration. 
For those on the edge, I discuss possibilities on the back end. It will be less liquid, but that may not be bad.


To Tender Or Not - Gauging The Future of Sun Corp (6736)

<ul>
<li>ARM +11% after a broker upgrade yesterday will see <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> rebound sharply off heavily sold levels yesterday, despite its surprise Y500bn buyback.</li>
<li>Tech wide relief rally in the US sets the tone for a very strong day in Japan, helped by strong earnings by the likes of <a href="https://www.smartkarma.com/entities/tokyo-electron-ltd" target="_blank" data-smartkarma-citation="entities:280:1" rel="noopener">TEL (8035)</a> and <a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai (6525).</a>
</li>
<li>Jobs data saw leisure and powersports names in the US rally which should help the likes of <a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP)</a> and <a href="https://www.smartkarma.com/entities/kawasaki-heavy-industries" target="_blank" data-smartkarma-citation="entities:8790:1" rel="noopener">KHI (7012 JP)</a> rebound sharply also.</li>
</ul>


ARM +11% after a broker upgrade yesterday will see Softbank Group (9984 JP) rebound sharply off heavily sold levels yesterday, despite its surprise Y500bn buyback.
Tech wide relief rally in the US sets the tone for a very strong day in Japan, helped by strong earnings by the likes of TEL (8035) and Kokusai (6525).

Jobs data saw leisure and powersports names in the US rally which should help the likes of Yamaha Motor (7272 JP) and KHI (7012 JP) rebound sharply also.


Japan Morning Connection: 9984 JP, 8035 JP, 6525 JP

Japan

Sanken Electric Co., Ltd. manufactures and sells discrete semiconductors such as diodes and transistors, and analog integrated circuits.  The Company also manufactures various kinds of adapters and surge/transient protectors.

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Sanken Electric (6707 JP)

Sanken (6707)| Attractive for Activists and Growth Investors

Sanken is an attractive investment for activists and growth investors alike. There is an attractive 57% upside to a SOTP valuation that could be...

Mark Chadwick

Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Earnings: ALGM, LRCX, TOLEY, NVMI, ONTO

Hello, this is a slightly more relaxed week of earnings. I’m going to focus a lot on Allegro and then mention some high-level reads. I’ll keep...

Fabricated Knowledge

To Tender Or Not - Gauging The Future of Sun Corp (6736)

The Sun Corp Tender close nears (15 Aug). TWC is aiming to buy at least 5% but up to 19%. After recent volatility, 5% is an easier ask. But if you...

Travis Lundy

Japan Morning Connection: 9984 JP, 8035 JP, 6525 JP

ARM stock surges after broker upgrade, Softbank Group rebounds, tech rally in US boosts Japan market, leisure and powersports names rally in US...

Andrew Jackson

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52-week Range

Market Cap (USDm)

P/E

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Sanken (6707)| Attractive for Activists and Growth Investors

Sanken is an attractive investment for activists and growth investors alike. There is an attractive 57% upside to a SOTP valuation that could be...

Mark Chadwick

Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

​US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Earnings: ALGM, LRCX, TOLEY, NVMI, ONTO

Hello, this is a slightly more relaxed week of earnings. I’m going to focus a lot on Allegro and then mention some high-level reads. I’ll keep...

Fabricated Knowledge

To Tender Or Not - Gauging The Future of Sun Corp (6736)

The Sun Corp Tender close nears (15 Aug). TWC is aiming to buy at least 5% but up to 19%. After recent volatility, 5% is an easier ask. But if you...

Travis Lundy

Japan Morning Connection: 9984 JP, 8035 JP, 6525 JP

​ARM stock surges after broker upgrade, Softbank Group rebounds, tech rally in US boosts Japan market, leisure and powersports names rally in US...

Andrew Jackson

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

ARM stock surges after broker upgrade, Softbank Group rebounds, tech rally in US boosts Japan market, leisure and powersports names rally in US...