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

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

<ul>
<li>Starting in 2024, Shimadzu plans to produce high-end analytical instruments and medical systems in China. It must do this in order to maintain market access. </li>
<li>China is the company's largest and fastest growing market outside Japan. Concerns about IP protection notwithstanding, we regard this as a positive development.</li>
<li>The shares are down 10% from its 52-week high and selling at 23x this fiscal year's EPS guidance, which looks conservative. Buy for the long term.</li>
</ul>


Starting in 2024, Shimadzu plans to produce high-end analytical instruments and medical systems in China. It must do this in order to maintain market access. 
China is the company's largest and fastest growing market outside Japan. Concerns about IP protection notwithstanding, we regard this as a positive development.
The shares are down 10% from its 52-week high and selling at 23x this fiscal year's EPS guidance, which looks conservative. Buy for the long term.


Shimadzu (7701): Planing to Make High-End Products in China

Shimadzu Corp

Shimadzu (7701): Planing to Make High-End Products in China