Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>US stocks retreated from record highs as the Dow lost over 1%, driven by rising oil prices and trader concerns over a prolonged Middle East conflict impasse.</li>
<li>The US government's Strategic Petroleum Reserve fell to 357mn barrels following an 8mn barrel weekly draw, putting it on pace to hit its lowest level since the early 1980s.</li>
<li>SpaceX is targeting a milestone valuation of $1.75 trillion for its upcoming Nasdaq listing, positioning it immediately among the top ten most valuable public companies in the US</li>
</ul>


US stocks retreated from record highs as the Dow lost over 1%, driven by rising oil prices and trader concerns over a prolonged Middle East conflict impasse.
The US government's Strategic Petroleum Reserve fell to 357mn barrels following an 8mn barrel weekly draw, putting it on pace to hit its lowest level since the early 1980s.
SpaceX is targeting a milestone valuation of $1.75 trillion for its upcoming Nasdaq listing, positioning it immediately among the top ten most valuable public companies in the US


Ohayo Japan | Mideast Escalation Pulls US Stocks From Records

Equity Bottom-Up

FAST RETAILING CO., LTD. operates a chain of clothing stores, UNIQLO, throughout Japan and in other markets overseas including UK, China, Hong Kong, South Korea, US, France, Singapore and Russia.  The Company designs, manufactures, and retails its own line of casual clothing.

<ul>
<li>Inditex's strong 1Q print is constructive for sector sentiment; Fast Retailing's own growth trajectory remains stronger, with eight consecutive quarters of top-line outperformance.</li>
<li>3Q results on 9 July expected to show ~18% revenue growth and ~22% operating profit growth to ¥180bn, extending Fast's lead over Inditex on growth.</li>
<li>Margins moving in the right direction, omnichannel progress underappreciated; AI integration the one area where Fast's external narrative lags the underlying investment.</li>
</ul>


Inditex's strong 1Q print is constructive for sector sentiment; Fast Retailing's own growth trajectory remains stronger, with eight consecutive quarters of top-line outperformance.
3Q results on 9 July expected to show ~18% revenue growth and ~22% operating profit growth to ¥180bn, extending Fast's lead over Inditex on growth.
Margins moving in the right direction, omnichannel progress underappreciated; AI integration the one area where Fast's external narrative lags the underlying investment.


Fast Retailing (9983) | Inditex Q1 Read-Across

<ul>
<li>US equities closed higher on Tuesday, with Utilities and Energy outperforming</li>
<li>Marvell +32% on Nvidia CEO comments regarding its growth potential, while Hewlett Packard Enterprise rallied on strong earnings.</li>
<li>May domestic UniQLO same-store sales +10% YoY and customer traffic +8%; driven by rising temperatures</li>
</ul>


US equities closed higher on Tuesday, with Utilities and Energy outperforming
Marvell +32% on Nvidia CEO comments regarding its growth potential, while Hewlett Packard Enterprise rallied on strong earnings.
May domestic UniQLO same-store sales +10% YoY and customer traffic +8%; driven by rising temperatures


<ul>
<li>
Sanwa: ValueAct adds to its position despite a third off the stock price; at 6x EBITDA, disciplined capital returns make the long-term case.</li>
<li>
Noritz: NAV backs a below-book small-cap with a weak operating outlook; the thesis rests on capital returns, not transformation, at &lt;3x EBITDA.</li>
<li>
Nichirei: Oasis takes a stake in a cost-pressured food and logistics group; hidden real estate assets may be the real target.</li>
</ul>



Sanwa: ValueAct adds to its position despite a third off the stock price; at 6x EBITDA, disciplined capital returns make the long-term case.

Noritz: NAV backs a below-book small-cap with a weak operating outlook; the thesis rests on capital returns, not transformation, at &lt;3x EBITDA.

Nichirei: Oasis takes a stake in a cost-pressured food and logistics group; hidden real estate assets may be the real target.


Japan Activism Briefs | Sanwa, Noritz, Nichirei

<ul>
<li>Technology found support from Nvidia (+6%) and Microsoft (+2%) following the unveiling of a new Windows AI superchip</li>
<li>Software names posted notable gains, with Salesforce (+9%), ServiceNow (+9%), and Snowflake (+9%)</li>
<li>Anthropic (ANTH): Filed confidential paperwork with the SEC for an initial public offering; the specific number of shares and pricing remain unset, with the timing dependent upon market conditions.</li>
</ul>


Technology found support from Nvidia (+6%) and Microsoft (+2%) following the unveiling of a new Windows AI superchip
Software names posted notable gains, with Salesforce (+9%), ServiceNow (+9%), and Snowflake (+9%)
Anthropic (ANTH): Filed confidential paperwork with the SEC for an initial public offering; the specific number of shares and pricing remain unset, with the timing dependent upon market conditions.


Ohayo Japan | NVIDIA's AI Laptop Chip Lifts Shares

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Mark Chadwick
Japan Specialist

Ohayo Japan | Mideast Escalation Pulls US Stocks From Records

US stocks fall as Dow loses over 1% due to rising oil prices and concerns over Middle East conflict, while US Strategic Petroleum Reserve hits...

Mark Chadwick

Fast Retailing (9983) | Inditex Q1 Read-Across

Inditex's 1Q performance positive for sector sentiment, but Fast Retailing's growth trajectory stronger with 8 quarters of outperformance.

Mark Chadwick

Ohayo Japan | Stocks Nudge Higher

US equities rose on Tuesday, led by Utilities and Energy sectors. Marvell surged on Nvidia CEO's growth comments, while Hewlett Packard Enterprise...

Mark Chadwick

Japan Activism Briefs | Sanwa, Noritz, Nichirei

ValueAct adds to Sanwa position despite stock price drop; disciplined capital returns at 6x EBITDA make long-term case. Nichirei and Noritz also...

Mark Chadwick

Ohayo Japan | NVIDIA's AI Laptop Chip Lifts Shares

New Windows AI superchip boosts tech stocks like Nvidia and Microsoft, while software names like Salesforce and ServiceNow also see gains....

Mark Chadwick

Ohayo Japan | Mideast Escalation Pulls US Stocks From Records

​US stocks fall as Dow loses over 1% due to rising oil prices and concerns over Middle East conflict, while US Strategic Petroleum Reserve hits...

Mark Chadwick

Fast Retailing (9983) | Inditex Q1 Read-Across

​Inditex's 1Q performance positive for sector sentiment, but Fast Retailing's growth trajectory stronger with 8 quarters of outperformance.

Mark Chadwick

Ohayo Japan | Stocks Nudge Higher

​US equities rose on Tuesday, led by Utilities and Energy sectors. Marvell surged on Nvidia CEO's growth comments, while Hewlett Packard Enterprise...

Mark Chadwick

Japan Activism Briefs | Sanwa, Noritz, Nichirei

​ValueAct adds to Sanwa position despite stock price drop; disciplined capital returns at 6x EBITDA make long-term case. Nichirei and Noritz also...

Mark Chadwick

Ohayo Japan | NVIDIA's AI Laptop Chip Lifts Shares

​New Windows AI superchip boosts tech stocks like Nvidia and Microsoft, while software names like Salesforce and ServiceNow also see gains....

Mark Chadwick

US stocks fall as Dow loses over 1% due to rising oil prices and concerns over Middle East conflict, while US Strategic Petroleum Reserve hits...

Inditex's 1Q performance positive for sector sentiment, but Fast Retailing's growth trajectory stronger with 8 quarters of outperformance.

US equities rose on Tuesday, led by Utilities and Energy sectors. Marvell surged on Nvidia CEO's growth comments, while Hewlett Packard Enterprise...

ValueAct adds to Sanwa position despite stock price drop; disciplined capital returns at 6x EBITDA make long-term case. Nichirei and Noritz also...

New Windows AI superchip boosts tech stocks like Nvidia and Microsoft, while software names like Salesforce and ServiceNow also see gains....