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

Dowa Holdings – Firing on All Cylinders

2022 High Conviction – Solar and Auto Production Play Dowa Holdings Drives Towards the Sunrise

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

Dowa – Time to Get Involved Again on Large Beat and Punchy Guidance

Dowa – Gearing Into Inflation Expectations, Auto Recovery and Solar

Dowa: Zinc TCs and Drop-Out of One-Offs Should Support Strong Growth This FY as the Bottom Is In

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>Dowa Holdings is down 1.3% today despite announcing a 20.7% upward revision to its ordinary profit forecast to ¥35.0bn. We had expected ordinary profit to reach ¥33.5bn vs. guidance of ¥29.0bn and the upward revisions were broadly as we expected on a segment-wise basis with small overshoots across the board. The lack of a strong move upward suggests some concern about next year, but we believe the name remains attractive on a longer-term basis.</p>

Dowa Holdings is down 1.3% today despite announcing a 20.7% upward revision to its ordinary profit forecast to ¥35.0bn. We had expected ordinary profit to reach ¥33.5bn vs. guidance of ¥29.0bn and the upward revisions were broadly as we expected on a segment-wise basis with small overshoots across the board. The lack of a strong move upward suggests some concern about next year, but we believe the name remains attractive on a longer-term basis.

Dowa Holdings – 2.1% Selloff on 20.7% Upward Revision