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): Buy into the Tech Sell-Off

Rohm (6963): Buy for Auto & COVID Recovery

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

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

Concern over the potential impact of the COVID surge in Southeast Asia on back-end assembly operations proved unfounded as results for the six months for September came in well above guidance, with profits and profit margins rising substantially in 2Q.2Q sales were up 28% year-on-year led by 50% growth in Automotive and 46% growth in other Industrial applications. FY Mar-22 guidance was raised, with management now expecting a 64% increase in operating profit on a 22% increase in sales.On a medium-term view, Rohm's leading position in SiC (silicon carbide) power devices used in electric vehicle inverters should support continued sales growth and margin expansion. At 17x our EPS estimate for FY Mar-24, we see 30% potential upside to a ¥13,500 price target.

Concern over the potential impact of the COVID surge in Southeast Asia on back-end assembly operations proved unfounded as results for the six months for September came in well above guidance, with profits and profit margins rising substantially in 2Q.2Q sales were up 28% year-on-year led by 50% growth in Automotive and 46% growth in other Industrial applications. FY Mar-22 guidance was raised, with management now expecting a 64% increase in operating profit on a 22% increase in sales.On a medium-term view, Rohm's leading position in SiC (silicon carbide) power devices used in electric vehicle inverters should support continued sales growth and margin expansion. At 17x our EPS estimate for FY Mar-24, we see 30% potential upside to a ¥13,500 price target.

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

ROHM Co Ltd

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