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

KHI: Not the Most Vulnerable to Chinese Retaliation Against Boeing, Russian MC-21 Is a Wildcard

KHI (7012) Oversold Here, 13x with Some Good Growth Drivers.

Maintained Guidance on Strong 3Q Conservative, 30+% Beat Vs. Consensus on the Cards

Geared High-Bypass Turbofans Key to Aero Engine Efficiency Improvements

KHI: Shinkansen Crack Repair Costs Should Be Manageable

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

Kawasaki Heavy Industries / Equity Bottom-Up

<p>After dropping 15% from its January highs, KHI dropped a further 13% on the news that undercarriages it had supplied to JR Central and JR West around 2007 had parts which failed to meet minimum specifications due to workers incorrectly sanding parts to a point where they became too thin. The move has resulted in valuations dropping to particularly cheap levels with PB hitting 1.26x (despite RoE typically hovering around 10%) and PE hitting 11.9x on FY03/19 consensus.</p><h2><strong>Strong Seasonality of</strong></h2>…

After dropping 15% from its January highs, KHI dropped a further 13% on the news that undercarriages it had supplied to JR Central and JR West around 2007 had parts which failed to meet minimum specifications due to workers incorrectly sanding parts to a point where they became too thin. The move has resulted in valuations dropping to particularly cheap levels with PB hitting 1.26x (despite RoE typically hovering around 10%) and PE hitting 11.9x on FY03/19 consensus.Strong Seasonality of…

KHI: Share Price Cracks 13% on Shinkansen Issue but 20% OP Beat Could Be Coming