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

Rohm (6963 JP): Strong 2Q Led by Automotive

Rohm (6963 JP): Buy into the Tech Sell-Off

Rohm (6963 JP): Probably Won't Buy Toshiba's Electronic Devices Business

Rohm (6963 JP): Looking to Recovery with SiC Technology and a 10% Buyback

2020 High Conviction: ROHM- Potential for Margin Expansion; 5G and CASE Are Key Demand Drivers

Rohm (6963 JP): Strength in SiC Devices Enhances Gearing to Auto Electrification

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

Rohm has dropped to the bottom of its recent trading range, presumably on concerns over the impact of COVID-19 on semiconductor assembly &amp; test in Southeast Asia and the ongoing disruption of auto production. However,<ol>
<li>Guidance looks conservative. 1Q operating and net profit were 31% and 34% of FY Mar-22 full-year guidance, respectively.</li>
<li>COVID infections in Southeast Asia have dropped back from recent peaks. </li>
<li>Rohm is a leading producer of Silicon Carbide wafers and power devices for Electric Vehicles. It is geared to both the recovery and technological advance of the auto industry.</li>
</ol>With 38% upside to our ¥13,500 price target, we regard Rohm as a Buy both on a trading basis and as a longer-term investment.

Rohm has dropped to the bottom of its recent trading range, presumably on concerns over the impact of COVID-19 on semiconductor assembly &amp; test in Southeast Asia and the ongoing disruption of auto production. However,
Guidance looks conservative. 1Q operating and net profit were 31% and 34% of FY Mar-22 full-year guidance, respectively.
COVID infections in Southeast Asia have dropped back from recent peaks. 
Rohm is a leading producer of Silicon Carbide wafers and power devices for Electric Vehicles. It is geared to both the recovery and technological advance of the auto industry.
With 38% upside to our ¥13,500 price target, we regard Rohm as a Buy both on a trading basis and as a longer-term investment. 

Rohm (6963): Buy for Auto & COVID Recovery

ROHM Co Ltd

Rohm (6963): Buy for Auto & COVID Recovery