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 Daily Roundup - 29th January - 6954▲ 7751► 6701▲ 4751▲ 6645▼6857▼

🇯🇵 JAPAN • Results & Revisions Daily Roundup - 30th January ▲ 8316•6702•8604 ▼ 6770•9064•4661

Fanuc: Recovery Strength or Lack Thereof Is a Risk. 2.6x PB for a Single Digit Roe Is Too

Readthrough to Japanese FA Sector from Capital's SK Hynix Block Sale

SK Hynix:  Fund Positioning Ahead of Results

Capital's Hynix Disposal: Stake Δ Tracking, Profit % Calculation & Question of Timing

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>Fanuc reported weak results after the close with quarterly revenue missing by 4.3% and OP missing by 13.9%. The company also revised down revenue guidance by 3.8% dashing hopes for a u-shaped recovery.</p><p>While the company’s OP guidance was too conservative to begin with and did not need to be revised down from ¥71.3bn to ¥69.1bn (1H OP beat guidance by ¥5.9bn), even on a more reasonable ¥90bn OP (assuming the company’s revenue guidance is accurate), EV/OP would be 43.4x. That is not cheap considering that it is unclear whether there will be a true recovery for its Robodrill Segment.</p>

Fanuc reported weak results after the close with quarterly revenue missing by 4.3% and OP missing by 13.9%. The company also revised down revenue guidance by 3.8% dashing hopes for a u-shaped recovery.While the company’s OP guidance was too conservative to begin with and did not need to be revised down from ¥71.3bn to ¥69.1bn (1H OP beat guidance by ¥5.9bn), even on a more reasonable ¥90bn OP (assuming the company’s revenue guidance is accurate), EV/OP would be 43.4x. That is not cheap considering that it is unclear whether there will be a true recovery for its Robodrill Segment.

Fanuc Corp

Fanuc – No Recovery In Sight