Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Tech selloff overnight on NVDA post-earnings weakness was fairly contained, and SPE related in Japan should continue yesterdays rebound off the morning lows.</li>
<li>Big beat for Dell on the strong outlook for its AI servers outweighing the soft consumer PC market sending it +8% in after-market trading.</li>
<li>News that Tepco plans to spend $3.2bn to upgrade its electricity infrastructure to 2030 positive for wire/cable names and related names.</li>
</ul>


Tech selloff overnight on NVDA post-earnings weakness was fairly contained, and SPE related in Japan should continue yesterdays rebound off the morning lows.
Big beat for Dell on the strong outlook for its AI servers outweighing the soft consumer PC market sending it +8% in after-market trading.
News that Tepco plans to spend $3.2bn to upgrade its electricity infrastructure to 2030 positive for wire/cable names and related names.


Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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 Capital Markets

<ul>
<li>Renewable Japan opened weak, down 7.6%, despite pricing at the top end of its range. </li>
<li>After the initial rush of flipping however the stock has recovered to trade up slightly vs. its IPO price. </li>
<li>The company released a presentation today prior to its debut and the LT prospects look attractive.</li>
</ul>


Renewable Japan opened weak, down 7.6%, despite pricing at the top end of its range. 
After the initial rush of flipping however the stock has recovered to trade up slightly vs. its IPO price. 
The company released a presentation today prior to its debut and the LT prospects look attractive.


Renewable Japan IPO – First Day Trading

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. After a dry spell in March and April, two new Section Transfers were announced in May 2021: <a href="https://www.smartkarma.com/entities/anshin-guarantor-service-co" target="_blank" data-smartkarma-citation="entities:33234:1" rel="noopener">Anshin Guarantor Service (7183 JP)</a> and <a href="https://www.smartkarma.com/entities/nomura-micro-science-co-ltd" target="_blank" data-smartkarma-citation="entities:11317:1" rel="noopener">Nomura Micro Science (6254 JP)</a>. On the other hand, we also witnessed some Inclusion Events resulting from TSE1 Direct Listings: <a href="https://www.smartkarma.com/entities/tess-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:32979:1" rel="noopener">Tess Holdings Co Ltd (5074 JP)</a> and <a href="https://www.smartkarma.com/entities/kibun-foods-inc" target="_blank" data-smartkarma-citation="entities:33019:1" rel="noopener">Kibun Foods Inc (2933 JP)</a>. </p><p>Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of May 2021.   </p>

In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. After a dry spell in March and April, two new Section Transfers were announced in May 2021: Anshin Guarantor Service (7183 JP) and Nomura Micro Science (6254 JP). On the other hand, we also witnessed some Inclusion Events resulting from TSE1 Direct Listings: Tess Holdings Co Ltd (5074 JP) and Kibun Foods Inc (2933 JP). Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of May 2021.   

<p>Japanese small-cap renewable energy player <a href="https://www.smartkarma.com/entities/tess-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:32979:1" rel="noopener">Tess Holdings Co Ltd (5074 JP)</a> was listed in the First Section of the Tokyo Stock Exchange (TSE) on 27th April 2021.</p><div><p>When a company gets listed in the First Section of TSE, it subsequently gets included in the TOPIX Index and as a result, TOPIX-tracking funds will have to purchase the stock during an Inclusion Event which presents interesting trading opportunities for active investors to generate sharp market-neutral returns in the space of few trading days. Alternatively, this can also be considered as a key point in time where short-term IPO investors could decide if they wanted to exit their positions by utilizing this liquidity event.</p></div><div><p>Below is a look at the timeline and the parameters of the Inclusion Event and the potential trading opportunities surrounding it. </p></div>

Japanese small-cap renewable energy player Tess Holdings Co Ltd (5074 JP) was listed in the First Section of the Tokyo Stock Exchange (TSE) on 27th April 2021.When a company gets listed in the First Section of TSE, it subsequently gets included in the TOPIX Index and as a result, TOPIX-tracking funds will have to purchase the stock during an Inclusion Event which presents interesting trading opportunities for active investors to generate sharp market-neutral returns in the space of few trading days. Alternatively, this can also be considered as a key point in time where short-term IPO investors could decide if they wanted to exit their positions by utilizing this liquidity event.Below is a look at the timeline and the parameters of the Inclusion Event and the potential trading opportunities surrounding it. 

Tess Holdings Co Ltd / Equity Capital Markets

<p>Tess Holdings opened at ¥2,010, 18.2% above its ¥1,700 IPO price answering our question regarding whether the market would price it on PE or EV/OP with the former. Risk-reward looks relatively balanced here but there should be an index inclusion event soon.</p>

Tess Holdings opened at ¥2,010, 18.2% above its ¥1,700 IPO price answering our question regarding whether the market would price it on PE or EV/OP with the former. Risk-reward looks relatively balanced here but there should be an index inclusion event soon.

Japan

TESS Holdings Co.,Ltd. offers environmental engineering services. The Company provides environmental protection, energy saving systems management, environmental engineering maintenance, and other services. TESS Holdings also offers energy supply, renewable energy generation, and other services.

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Tess Holdings Co Ltd (5074 JP)

Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.

Andrew Jackson

Renewable Japan IPO – First Day Trading

Renewable Japan opened weak, down 7.6% but has recovered after the initial rush of flipping and the LT prospects look attractive.

Mio Kato

TOPIX Inclusion Trade Summary: May 2021

TOPIX Index Changes Review for May 2021. There are a couple of new names, a list of ongoing pre-event trades, a couple of post-event trades. Things...

Janaghan Jeyakumar, CFA

TOPIX Inclusion: Tess Holdings (5074 JP)

The recent Tess Holdings IPO creates a TOPIX inclusion event at the end of May. Overheating looks minimal. Index demand as a % of ADV looks low but...

Janaghan Jeyakumar, CFA

Tess Holdings IPO – First Day Trading

Risk-reward for Tess Holdings looks relatively balanced here after its strong open but there should be an index inclusion event soon.

Mio Kato

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Japan Morning Connection: Tech Set to Rebound as Dell After-Market Print Sets Positive Tone

​Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.

Andrew Jackson

Renewable Japan IPO – First Day Trading

Renewable Japan opened weak, down 7.6% but has recovered after the initial rush of flipping and the LT prospects look attractive.

Mio Kato

TOPIX Inclusion Trade Summary: May 2021

TOPIX Index Changes Review for May 2021. There are a couple of new names, a list of ongoing pre-event trades, a couple of post-event trades. Things...

Janaghan Jeyakumar, CFA

TOPIX Inclusion: Tess Holdings (5074 JP)

The recent Tess Holdings IPO creates a TOPIX inclusion event at the end of May. Overheating looks minimal. Index demand as a % of ADV looks low but...

Janaghan Jeyakumar, CFA

Tess Holdings IPO – First Day Trading

Risk-reward for Tess Holdings looks relatively balanced here after its strong open but there should be an index inclusion event soon.

Mio Kato

Tech selloff contained, Dell beats with strong outlook for AI servers, Tepco's $3.2bn upgrade plan positive for wire/cable names.