Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

🇯🇵 JAPAN • Results & Revisions 03/​​​19 - Hamamatsu Photonics & Oracle Japan

🇯🇵 JAPAN • Results & Revisions 03/​​​​23 - No Relief for Hisamitsu

🇯🇵 JAPAN • Revisions 03/​​​​​24 - Mitsui Mining Keeps the Pot Boiling

Hamamatsu Photonics (6965 JP): Fully Valued but Not Over-Valued

Gravity Works As WeWork Doesn't; Now Plan B

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​09 -Hamamatsu, Secom, Sumitomo Metal Min

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

Hamamatsu Photonics Kk / Equity Bottom-Up

Hamamatsu Photonics has dropped back 11% from the ¥7,050 reached on February 15, but remains expensive at 52.5x our EPS estimate for FY Sep-21 and 39x our estimate for FY Sep-23, both of which are above management's guidance.Operating profit was up 3.4% year-on-year and net profit down slightly on a 5.6% increase in sales in the three months to December - much better than management's COVID-conservative forecast for 1H, but obviously not indicating an improvement in profitability.The expansion of valuation multiples over the past year has been excessive, in our estimation, removing incentive to buy the shares. Take profits or hold on a 5-year view.

Hamamatsu Photonics has dropped back 11% from the ¥7,050 reached on February 15, but remains expensive at 52.5x our EPS estimate for FY Sep-21 and 39x our estimate for FY Sep-23, both of which are above management's guidance.Operating profit was up 3.4% year-on-year and net profit down slightly on a 5.6% increase in sales in the three months to December - much better than management's COVID-conservative forecast for 1H, but obviously not indicating an improvement in profitability.The expansion of valuation multiples over the past year has been excessive, in our estimation, removing incentive to buy the shares. Take profits or hold on a 5-year view.

Hamamatsu Photonics (6965 JP): Likely to Consolidate Recent Gains