Equity Analyst, LightStream Research

Farha Sabri

Equity Analyst

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>Shin-Etsu recently announced that it plans to expand silicone production to curb the supply shortages that are prevalent in the industry.</li>
<li>Over the last year, supply shortages worsened when China (the largest producer globally) was affected by the U.S. China trade war and China's tightening environmental regulations.</li>
<li>Capacity expansions at a time like this is likely to provide the company with a strong chance of improving its market share.</li>
<li>With the stock having fallen about 10% in the last two months (TOPIX -3.1%), Shin-Etsu is trading cheaply relative to history at just 14.8x FY1 PE (19.2x historical median) and 8.4x FY1 EV/OP (10.6x historical median). </li>
</ul>


Shin-Etsu recently announced that it plans to expand silicone production to curb the supply shortages that are prevalent in the industry.
Over the last year, supply shortages worsened when China (the largest producer globally) was affected by the U.S. China trade war and China's tightening environmental regulations.
Capacity expansions at a time like this is likely to provide the company with a strong chance of improving its market share.
With the stock having fallen about 10% in the last two months (TOPIX -3.1%), Shin-Etsu is trading cheaply relative to history at just 14.8x FY1 PE (19.2x historical median) and 8.4x FY1 EV/OP (10.6x historical median). 


Silicone Production Capacity Expansion Announced as China’s Production Falters

Shin Etsu Chemical

Silicone Production Capacity Expansion Announced as China’s Production Falters