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

HCM – Obvious Blowout Is Obvious… Just Not to the Sell Side

Komatsu – Sensible Top Line Guidance But Margins Too Conservative

HCM – Hitachi Partial Stake Sale to Itochu

Hitachi Construction Machinery Deal To Change "Parent" - There's Not Much There There

Japan's Governance: Hitachi Construction Machinery (6305): Extraordinary Briefing Session

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

Hitachi Construction Machinery / Equity Bottom-Up

<ul>
<li>HCM posted a strong set of 3Q results with revenue of ¥246.7bn a touch below our ¥248.5bn estimate and blowing away clueless consensus’ ¥219.2bn. </li>
<li>That the consensus high was just ¥231bn is an illustration of how poor the sell side understanding of HCM is compared to Komatsu. </li>
<li>We expect more of the same going forward… strength from HCM and cluelessness from sell side analysts.</li>
</ul>


HCM posted a strong set of 3Q results with revenue of ¥246.7bn a touch below our ¥248.5bn estimate and blowing away clueless consensus’ ¥219.2bn. 
That the consensus high was just ¥231bn is an illustration of how poor the sell side understanding of HCM is compared to Komatsu. 
We expect more of the same going forward… strength from HCM and cluelessness from sell side analysts.


HCM – Obvious Upgrade Is Obvious… Just Not to the Sell Side