Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>U.S. stocks climbed on Tuesday, with the S&amp;P 500 and Nasdaq Composite reaching new record highs, driven by a surge in Tesla share</li>
<li>NKY Futures point to a strong open, continuing the strong momentum from yesterday. </li>
<li>Tokio Marine and Sompo maybe planning to sell approximately 500 billion yen ($3.1 billion) worth of Honda shares</li>
</ul>


U.S. stocks climbed on Tuesday, with the S&amp;P 500 and Nasdaq Composite reaching new record highs, driven by a surge in Tesla share
NKY Futures point to a strong open, continuing the strong momentum from yesterday. 
Tokio Marine and Sompo maybe planning to sell approximately 500 billion yen ($3.1 billion) worth of Honda shares


Ohayo Japan | Tesla Surprises Wall Street

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>Domestic Uniqlo SSS (including e-commerce) were +14.9% in June. Positive</li>
<li>Impressive +8.1% increase in customer traffic and +6.3% gain in per-customer spend</li>
<li>I have a bearish view on Fast Retailing due to rich valuations (25x EV/EBIT). However, the share price may perform well in the run up to the Q3 report.</li>
</ul>


Domestic Uniqlo SSS (including e-commerce) were +14.9% in June. Positive
Impressive +8.1% increase in customer traffic and +6.3% gain in per-customer spend
I have a bearish view on Fast Retailing due to rich valuations (25x EV/EBIT). However, the share price may perform well in the run up to the Q3 report.


<ul>
<li>The tech-heavy Nasdaq advanced 0.8% to hit a record high. Tech giants Microsoft and Apple surged 2.2% and 2.9%</li>
<li>Tesla rose more than 6% ahead of quarterly delivery numbers released on Tuesday, expected to show a decline of ~5%</li>
<li>Japan's average land price rose by 2.3% in 2024, the highest annual increase since 2010, driven by economic recovery and rising tourism.</li>
</ul>


The tech-heavy Nasdaq advanced 0.8% to hit a record high. Tech giants Microsoft and Apple surged 2.2% and 2.9%
Tesla rose more than 6% ahead of quarterly delivery numbers released on Tuesday, expected to show a decline of ~5%
Japan's average land price rose by 2.3% in 2024, the highest annual increase since 2010, driven by economic recovery and rising tourism.


Aisin Corporation manufactures and distributes motor vehicle parts. The Company produces drive train, transmissions, clutches, disc brakes, anti-skid brake system, suspensions, oil pumps, power windows, power door locks, and more. Aisin operates sales and production subsidiaries worldwide.

<ul>
<li>Nine months have passed since Aisin announced a transformative MTP. Investors remain sceptical that it will deliver higher returns. </li>
<li>Improving margins on hybrid transmissions, new products for BEVs and better capital allocation could deliver 70% upside for investors.</li>
<li>The key risk is the assumption that operating margins can rise above 8% versus the historical average of 5%. </li>
</ul>


Nine months have passed since Aisin announced a transformative MTP. Investors remain sceptical that it will deliver higher returns. 
Improving margins on hybrid transmissions, new products for BEVs and better capital allocation could deliver 70% upside for investors.
The key risk is the assumption that operating margins can rise above 8% versus the historical average of 5%. 


<ul>
<li>U.S. stocks dipped on Friday as investors processed economic data signaling slowing inflation. Nike down 20%. </li>
<li>Japan's Ministry of Internal Affairs and Communications and KDDI will collaborate on developing generative AI</li>
<li>NTT DATA plans to launch multiple satellites by 2026 to create a space-based observation network, enhancing disaster monitoring and national security</li>
</ul>


U.S. stocks dipped on Friday as investors processed economic data signaling slowing inflation. Nike down 20%. 
Japan's Ministry of Internal Affairs and Communications and KDDI will collaborate on developing generative AI
NTT DATA plans to launch multiple satellites by 2026 to create a space-based observation network, enhancing disaster monitoring and national security


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 | Tesla Surprises Wall Street

U.S. stocks hit record highs fueled by Tesla, NKY Futures indicate strong open, Tokio Marine and Sompo considering selling $3.1 billion Honda shares.

Mark Chadwick

Fast Retailing (9983) | Red Hot Summer

Domestic Uniqlo SSS up 14.9% in June, with strong customer traffic and per-customer spend. Bearish on Fast Retailing due to high valuations, but...

Mark Chadwick

Ohayo Japan | New Nasdaq Record

Tech stocks lead Nasdaq to record high, with Microsoft and Apple surging. Tesla up ahead of delivery numbers. Japan's land prices rise on economic...

Mark Chadwick

Aisin (7259) | Nine Months Ago

Investors skeptical of Aisin's transformative plan, but potential for 70% upside with margin improvements and new products, key risk is achieving...

Mark Chadwick

Ohayo Japan | First Half Done

U.S. stocks dip on slowing inflation data, Nike down 20%; Japan and KDDI collaborate on generative AI; NTT DATA to launch satellites for disaster...

Mark Chadwick

Ohayo Japan | Tesla Surprises Wall Street

​U.S. stocks hit record highs fueled by Tesla, NKY Futures indicate strong open, Tokio Marine and Sompo considering selling $3.1 billion Honda shares.

Mark Chadwick

Fast Retailing (9983) | Red Hot Summer

​Domestic Uniqlo SSS up 14.9% in June, with strong customer traffic and per-customer spend. Bearish on Fast Retailing due to high valuations, but...

Mark Chadwick

Ohayo Japan | New Nasdaq Record

​Tech stocks lead Nasdaq to record high, with Microsoft and Apple surging. Tesla up ahead of delivery numbers. Japan's land prices rise on economic...

Mark Chadwick

Aisin (7259) | Nine Months Ago

​Investors skeptical of Aisin's transformative plan, but potential for 70% upside with margin improvements and new products, key risk is achieving...

Mark Chadwick

Ohayo Japan | First Half Done

​U.S. stocks dip on slowing inflation data, Nike down 20%; Japan and KDDI collaborate on generative AI; NTT DATA to launch satellites for disaster...

Mark Chadwick

U.S. stocks hit record highs fueled by Tesla, NKY Futures indicate strong open, Tokio Marine and Sompo considering selling $3.1 billion Honda shares.

Domestic Uniqlo SSS up 14.9% in June, with strong customer traffic and per-customer spend. Bearish on Fast Retailing due to high valuations, but...

Tech stocks lead Nasdaq to record high, with Microsoft and Apple surging. Tesla up ahead of delivery numbers. Japan's land prices rise on economic...

Investors skeptical of Aisin's transformative plan, but potential for 70% upside with margin improvements and new products, key risk is achieving...

U.S. stocks dip on slowing inflation data, Nike down 20%; Japan and KDDI collaborate on generative AI; NTT DATA to launch satellites for disaster...