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

Renesas – Auto Chip Shortage Could Drive Further Gains

Renesas – Selloff on Dialog Announcement Opens Up Opportunity

Renesas – Short-Term Gains May Be Exhausted

Renesas Vs. TEL – Watch for a Snapback in This Extremely Stretched Ratio

Renesas: Past the Bottom but Expect an L, Not U-Shaped Recovery

Screen Holdings (7735 JP): Additional Downside Risk as the Economy Weakens

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>Renesas was up 9.6% today after posting solid 1Q results with OP of ¥11.3bn well above consensus at ¥6.9bn and revenue was also slightly higher at ¥178.7bn vs. consensus’ ¥174.6bn. The surprise was on margins where gross margin is rising, SG&amp;A expenses appear to be well under control and automotive segment profitability is starting to look healthy again. The Long Renesas, Short TEL idea we pushed on 14 Apr is now up 14.5% in ratio terms from the 15 Apr close. We suggested at the time that there could be about 25% upside to the ratio and that remains our target which leaves about 10.8% upside left.</p>

Renesas was up 9.6% today after posting solid 1Q results with OP of ¥11.3bn well above consensus at ¥6.9bn and revenue was also slightly higher at ¥178.7bn vs. consensus’ ¥174.6bn. The surprise was on margins where gross margin is rising, SG&amp;A expenses appear to be well under control and automotive segment profitability is starting to look healthy again. The Long Renesas, Short TEL idea we pushed on 14 Apr is now up 14.5% in ratio terms from the 15 Apr close. We suggested at the time that there could be about 25% upside to the ratio and that remains our target which leaves about 10.8% upside left.

Renesas – There Is Juice Left in the Long Renesas Short TEL Pair ST and Long Renesas Has Legs LT

Renesas Electronics

Renesas – There Is Juice Left in the Long Renesas Short TEL Pair ST and Long Renesas Has Legs LT