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

Fujitsu General – 36% Above December Levels, What’s the Trade Now?

Hitachi Metals – Limited Upside Despite Bain Capital News But Let’s Find the Offshoot Ideas

Hitachi Ltd. (6501 JP): Buys Kyoto Robotics, Plans to Sell Hitachi Metals

Fujitsu General – If Parent Fujitsu Is Selling Its Stake a Strategic Buyer Could Raise Margins

Fujitsu General – Earnings Momentum to Pick Up

Fujitsu - Quick Thoughts on Scenarios for Listed Subsidiaries

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>Fujitsu General reported 3Q results on the 28<sup>th</sup> Jan with revenue of ¥47.8bn beating consensus of ¥46.5bn but the operating loss of ¥899m being worse than consensus’ prediction of a profit of ¥533m. While the stock reacted negatively trading down almost 2% we believe the revenue trend is most significant, particularly because 3Q is seasonally weak and has a minor impact on FY OP.</p>

Fujitsu General reported 3Q results on the 28th Jan with revenue of ¥47.8bn beating consensus of ¥46.5bn but the operating loss of ¥899m being worse than consensus’ prediction of a profit of ¥533m. While the stock reacted negatively trading down almost 2% we believe the revenue trend is most significant, particularly because 3Q is seasonally weak and has a minor impact on FY OP.

Fujitsu General – Consensus Looks Light