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

Screen Holdings (7735 JP): Aiming at 2nm Process Technology

Tokyo Electron (8035 JP): Getting Ahead of Itself

Disco (6146 JP): 5-To-8 Month Lead Times in the Price

Screen Holdings (7735 JP): A Highly-Geared Laggard to Tokyo Electron

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

New orders significantly exceeded management's expectations in the three months to December and were also greater than we had expected. The large increase in capital spending recently announced by TSMC and the current shortage of semiconductors should help maintain a strong order flow.Consolidated sales were down 5.3% year-on-year in 3Q, but efficiency gains led to an increase in operating profit of nearly 60%. Management raised FY Mar-21 operating profit guidance by 17% while raising sales guidance by only 2%Looking out to FY Mar-23, we now expect profits to approach their previous cyclical peaks. This suggests 44% potential upside to ¥12,000.

New orders significantly exceeded management's expectations in the three months to December and were also greater than we had expected. The large increase in capital spending recently announced by TSMC and the current shortage of semiconductors should help maintain a strong order flow.Consolidated sales were down 5.3% year-on-year in 3Q, but efficiency gains led to an increase in operating profit of nearly 60%. Management raised FY Mar-21 operating profit guidance by 17% while raising sales guidance by only 2%Looking out to FY Mar-23, we now expect profits to approach their previous cyclical peaks. This suggests 44% potential upside to ¥12,000.

Screen Holdings (7735 JP): New Orders and Efficiency Gains Greater than Expected

SCREEN Holdings

Screen Holdings (7735 JP): New Orders and Efficiency Gains Greater than Expected