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

Toshiba Finally Gets Into TOPIX but Beware the Baku  (It's Complicated)

Toshiba – On Track to Hit Imaginary “If Only COVID Hadn’t Happened” Guidance

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs

Gravity Works As WeWork Doesn't; Now Plan B

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Equity Bottom-Up

Toshiba has come up with a future growth strategy that makes sense but that also requires investments in renewable energy and other infrastructure-related businesses amounting to about $10 billion over the next 5 years.This would position Toshiba as a key part of Japan's new green energy plan, saving it from oblivion. Minister of the Environment Shinjiro Koizumi now wants to double the share of renewables in the nation's energy mix to 40% by 2030.Management plans to finance the new investments through bank loans and by selling down its stake in NAND flash memory maker Kioxia. That would make Toshiba a long-term investment in infrastructure, more stable but with an overhead supply of tech investors waiting for an opportunity to exit. Toshiba turned profitable in the three months to September. Management's operating profit guidance for FY Mar-21 looks over-optimistic, but the combination of cost cutting, restructuring and economic recovery should bring margins back to normal next fiscal year. As pointed out by Campbell Gunn in <a href="https://www.smartkarma.com/insights/japan-results-revisions-12th-august-ppi-toshiba-mcdonald-s-eneos" target="_blank" data-smartkarma-citation="insights:42139" rel="noopener"></a><a href="https://www.smartkarma.com/insights/japan-results-revisions-11-11-mitsubishi-estate-toshiba-gmos" target="_blank" data-smartkarma-citation="insights:45202" rel="noopener">🇯🇵 JAPAN • Results &amp; Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs</a> , Toshiba is the most-Oversold trillion yen market cap stock in Japan; however, the large activist weighting in the share register is a disincentive to other investor groups.Mio Kato notes in <a href="https://www.smartkarma.com/insights/toshiba-on-track-to-hit-imaginary-if-only-covid-hadn-t-happened-guidance" target="_blank" data-smartkarma-citation="insights:45193" rel="noopener">Toshiba – On Track to Hit Imaginary “If Only COVID Hadn’t Happened” Guidance</a> , we look at Toshiba as a truly long-term play that has significant value but will require time to realise that.

Toshiba has come up with a future growth strategy that makes sense but that also requires investments in renewable energy and other infrastructure-related businesses amounting to about $10 billion over the next 5 years.This would position Toshiba as a key part of Japan's new green energy plan, saving it from oblivion. Minister of the Environment Shinjiro Koizumi now wants to double the share of renewables in the nation's energy mix to 40% by 2030.Management plans to finance the new investments through bank loans and by selling down its stake in NAND flash memory maker Kioxia. That would make Toshiba a long-term investment in infrastructure, more stable but with an overhead supply of tech investors waiting for an opportunity to exit. Toshiba turned profitable in the three months to September. Management's operating profit guidance for FY Mar-21 looks over-optimistic, but the combination of cost cutting, restructuring and economic recovery should bring margins back to normal next fiscal year. As pointed out by Campbell Gunn in 🇯🇵 JAPAN • Results &amp; Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs , Toshiba is the most-Oversold trillion yen market cap stock in Japan; however, the large activist weighting in the share register is a disincentive to other investor groups.Mio Kato notes in Toshiba – On Track to Hit Imaginary “If Only COVID Hadn’t Happened” Guidance , we look at Toshiba as a truly long-term play that has significant value but will require time to realise that.

Toshiba (6502 JP): New Role in Japan's Green Energy Plan. Oversold.

Toshiba Corp

Toshiba (6502 JP): New Role in Japan's Green Energy Plan. Oversold.