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

Yokogawa Electric (6841 JP): High Energy Prices Point to Further Upside

Yokogawa Electric (6841 JP): Carbon-Neutral Industrial Park & Green Hydrogen

Yokogawa Electric (6841 JP): A Less Risky Investment in LNG Engineering

Chiyoda – COVID Uncertainty Continues to Dog Qatar Order

Chiyoda – Earnings Structure Improves but Qatar Delayed

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

With oil prices above ¥70/bbl, economies recovering from the pandemic, and Yokogawa Electric down 38% from its 52-week high, it seems like a good time to have another look at Japan's world-class supplier of control equipment for the oil &amp; gas, petrochemical and other industries.Profits are likely to be weak again in FY Mar-22 but after years of under-investment in its main user industries, the stage is set for a rebound at Yokogawa. New orders began to pick up two quarters ago and should continue to rise this year and next.On a three-year view, we expect the company's sales and operating profit to regain their previous peaks, creating potential upside for the share price of more than 40%.We also recommend have another look at  <a href="https://www.smartkarma.com/insights/chiyoda-qatar-comes-through" target="_blank" data-smartkarma-citation="insights:47962" rel="noopener">Chiyoda – Qatar Comes Through</a> by Mio Kato for an insight into Chiyoda Corp., one of world's top EPC (Engineering, Procurement &amp; Construction) service providers to the LNG and petroleum industries.

With oil prices above ¥70/bbl, economies recovering from the pandemic, and Yokogawa Electric down 38% from its 52-week high, it seems like a good time to have another look at Japan's world-class supplier of control equipment for the oil &amp; gas, petrochemical and other industries.Profits are likely to be weak again in FY Mar-22 but after years of under-investment in its main user industries, the stage is set for a rebound at Yokogawa. New orders began to pick up two quarters ago and should continue to rise this year and next.On a three-year view, we expect the company's sales and operating profit to regain their previous peaks, creating potential upside for the share price of more than 40%.We also recommend have another look at  Chiyoda – Qatar Comes Through by Mio Kato for an insight into Chiyoda Corp., one of world's top EPC (Engineering, Procurement &amp; Construction) service providers to the LNG and petroleum industries.

Yokogawa Electric 6841 JP): Weak Share Price & Rebounding Oil Prices Create Opportunity