Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

Shimamura Hoping for Profit Revival but Don't Hold Your Breath

ZOZO: No More Thank Yous and Less Profit Too

ZOZO's Competitors: A Review of Japanese Online Malls Selling Fashion

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

<p>After losing 67% of its value between Jul and Feb <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1">ZOZO Inc (3092 JP)</a> has stabilised by changing direction on its Zozo Arigatou program and scaling back plans for its money losing private brand business. While the stock has stabilised and QoQ OP growth could reassure investors and convince some that the stock is cheap, we believe that looking at underlying trends in the company's operating metrics reveals a much more worrying long-term picture and that saturation is already upon the company. We go through the details, chart by chart, below.</p>

After losing 67% of its value between Jul and Feb ZOZO Inc (3092 JP) has stabilised by changing direction on its Zozo Arigatou program and scaling back plans for its money losing private brand business. While the stock has stabilised and QoQ OP growth could reassure investors and convince some that the stock is cheap, we believe that looking at underlying trends in the company's operating metrics reveals a much more worrying long-term picture and that saturation is already upon the company. We go through the details, chart by chart, below.

Zozo: The Underlying Operating Metrics Worry Us