Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

🇯🇵 JAPAN • Results & Revisions 3rd August - Capcom, K's, Kikkoman, USS, Eisai

🇯🇵 JAPAN • Results & Revisions 4th August - Sony, CTC, Kakaku.com, Daikin, Yamaha, Tokai Carbon

Capcom – Underlying Profitability Improvement Drives Breakout to All Time Highs

Capcom – 4 Key Titles Next Year Could Drive Guidance Above Consensus

Capcom – Tracking the Remake of RE3 Vs. RE2 and a Likely Beat

Taking Stock of the Almost Excessive Alpha Generation From TOPIX-Nikkei Skew Trades

What Do You Buy if the Softbank Mega-Buyback Drives a Nikkei Squeeze?

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

<p>We had touted the possibility of a significant beat at the OP level for Capcom on account of improvements in the underlying profit structure at the company. Unfortunately, this did not come through and both results (¥22.8bn OP) and guidance (¥25.5bn OP) were just in-line with consensus (¥22.3bn and ¥25.7bn respectively). The company also boosted its final dividend from ¥20 to ¥25 so the impression overall is slightly positive. Nevertheless, we have our suspicions that the company is pushing forward OP into FY21 and profitability trends need to be monitored. We go through our reasoning below.</p>

We had touted the possibility of a significant beat at the OP level for Capcom on account of improvements in the underlying profit structure at the company. Unfortunately, this did not come through and both results (¥22.8bn OP) and guidance (¥25.5bn OP) were just in-line with consensus (¥22.3bn and ¥25.7bn respectively). The company also boosted its final dividend from ¥20 to ¥25 so the impression overall is slightly positive. Nevertheless, we have our suspicions that the company is pushing forward OP into FY21 and profitability trends need to be monitored. We go through our reasoning below.

Capcom – Changes in Seasonality Patterns a Focus

Capcom Co Ltd

Capcom – Changes in Seasonality Patterns a Focus