Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The Nasdaq gained 0.8%, driven by Broadcom’s 4% rise on AI chip collaboration news, while the S&amp;P 500 edged up 0.2%</li>
<li>Google parent Alphabet reported better-than-expected Q3 earnings, with earnings per share of $2.12 on $88.27 billion in revenue</li>
<li>AMD's stock fell 7% after reporting earnings on Tuesday, as its AI revenue outlook failed to surpass expectations.</li>
</ul>


The Nasdaq gained 0.8%, driven by Broadcom’s 4% rise on AI chip collaboration news, while the S&amp;P 500 edged up 0.2%
Google parent Alphabet reported better-than-expected Q3 earnings, with earnings per share of $2.12 on $88.27 billion in revenue
AMD's stock fell 7% after reporting earnings on Tuesday, as its AI revenue outlook failed to surpass expectations.


Equity Bottom-Up

SHIMANO INC. manufactures and sells products for bicycling, snowboarding, and fishing.  The Company's products include running gears and brake parts for bicycles and rods, reels, and tackles for fishing.  The Company manufactures golf related products as well.  Shimano mainly exports to Asia, Europe, and the United States.

<ul>
<li>Bike Sales Recovery: Shimano’s bike component sales grew 8% year-on-year in Q3, confirming the market has stabilized after six quarters of decline.2. 3. </li>
<li>China Drives Growth: China’s share of Shimano’s bike sales surged to 31% in 1H24, with management projecting strong growth of 30% YoY in 2H.</li>
<li>Improving Profitability: The bike segment’s operating margin rose to 18.6% in Q3, reflecting a strong recovery from last year's lows, with potential for further improvement.</li>
</ul>


Bike Sales Recovery: Shimano’s bike component sales grew 8% year-on-year in Q3, confirming the market has stabilized after six quarters of decline.2. 3. 
China Drives Growth: China’s share of Shimano’s bike sales surged to 31% in 1H24, with management projecting strong growth of 30% YoY in 2H.
Improving Profitability: The bike segment’s operating margin rose to 18.6% in Q3, reflecting a strong recovery from last year's lows, with potential for further improvement.


Shimano (7309) | Bike Sales Rebound as China Fuels Growth

<ul>
<li>US stocks rose on Monday, starting a crucial week with Big Tech earnings, inflation data, and the monthly jobs report in focus. </li>
<li>Nippon Paint Holdings is acquiring the US chemical company AOC for 630 billion yen</li>
<li>Olympus CEO Stefan Kaufmann has been dismissed following allegations of illegal drug purchases. Kaufmann, who became CEO in April 2023, resigned at the board's request after an investigation</li>
</ul>


US stocks rose on Monday, starting a crucial week with Big Tech earnings, inflation data, and the monthly jobs report in focus. 
Nippon Paint Holdings is acquiring the US chemical company AOC for 630 billion yen
Olympus CEO Stefan Kaufmann has been dismissed following allegations of illegal drug purchases. Kaufmann, who became CEO in April 2023, resigned at the board's request after an investigation


Ohayo Japan | Stocks Rise Ahead of Big Tech Earnings

<ul>
<li>U.S. stocks closed mixed on Friday as rising Treasury yields weighed on markets, leading to weekly losses amid uncertainty surrounding the Federal Reserve's next move</li>
<li>Japan's ruling coalition, led by the Liberal Democratic Party (LDP) and Komeito, lost its majority in the lower house for the first time since 2009</li>
<li>Shin-Etsu Chemical reported a 2% year-on-year decline in net profit to 294 billion yen for April-September 2024, despite a 6% increase in net sales and operating profit</li>
</ul>


U.S. stocks closed mixed on Friday as rising Treasury yields weighed on markets, leading to weekly losses amid uncertainty surrounding the Federal Reserve's next move
Japan's ruling coalition, led by the Liberal Democratic Party (LDP) and Komeito, lost its majority in the lower house for the first time since 2009
Shin-Etsu Chemical reported a 2% year-on-year decline in net profit to 294 billion yen for April-September 2024, despite a 6% increase in net sales and operating profit


<ul>
<li>The Nikkei 225 index dropped by 2.7% this week, closing at 37,913 points, due to political uncertainty ahead of Japan's general election, rising global bond yields, and disappointing economic data</li>
<li>Japan's weakening services and manufacturing sectors, as indicated by declining PMIs and easing inflation, highlight slowing domestic demand and economic uncertainty, raising concerns about future growth prospects.</li>
<li>Konica Minolta (4902): Gained 25% after activist investor, Effissimo Capital, declared a significant 5.8% stake in the company.</li>
</ul>


The Nikkei 225 index dropped by 2.7% this week, closing at 37,913 points, due to political uncertainty ahead of Japan's general election, rising global bond yields, and disappointing economic data
Japan's weakening services and manufacturing sectors, as indicated by declining PMIs and easing inflation, highlight slowing domestic demand and economic uncertainty, raising concerns about future growth prospects.
Konica Minolta (4902): Gained 25% after activist investor, Effissimo Capital, declared a significant 5.8% stake in the company.


Japan Weekly | Nikkei Drops; Political Uncertainty; Weakening Economy

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 | Nasdaq Posts Fresh Records

Tech stocks drive market gains with Nasdaq up 0.8%, Alphabet beats Q3 earnings, AMD disappoints with AI revenue outlook.

Mark Chadwick

Shimano (7309) | Bike Sales Rebound as China Fuels Growth

Shimano's bike sales rebound with 8% growth in Q3, driven by China's surge to 31% share and improved profitability with operating margin at 18.6%.

Mark Chadwick

Ohayo Japan | Stocks Rise Ahead of Big Tech Earnings

US stocks rise as investors focus on Big Tech earnings, inflation data, and jobs report. Nippon Paint Holdings acquires AOC for 630 billion yen....

Mark Chadwick

Ohayo Japan | LDP Loses Majority

U.S. stocks mixed on rising Treasury yields, Japan's ruling coalition loses majority, Shin-Etsu Chemical sees decline in net profit despite sales...

Mark Chadwick

Japan Weekly | Nikkei Drops; Political Uncertainty; Weakening Economy

Nikkei 225 falls 2.7% on political uncertainty, global bond yields, and weak economic data; Konica Minolta gains 25% after activist investor...

Mark Chadwick

Ohayo Japan | Nasdaq Posts Fresh Records

​Tech stocks drive market gains with Nasdaq up 0.8%, Alphabet beats Q3 earnings, AMD disappoints with AI revenue outlook.

Mark Chadwick

Shimano (7309) | Bike Sales Rebound as China Fuels Growth

​Shimano's bike sales rebound with 8% growth in Q3, driven by China's surge to 31% share and improved profitability with operating margin at 18.6%.

Mark Chadwick

Ohayo Japan | Stocks Rise Ahead of Big Tech Earnings

​US stocks rise as investors focus on Big Tech earnings, inflation data, and jobs report. Nippon Paint Holdings acquires AOC for 630 billion yen....

Mark Chadwick

Ohayo Japan | LDP Loses Majority

​U.S. stocks mixed on rising Treasury yields, Japan's ruling coalition loses majority, Shin-Etsu Chemical sees decline in net profit despite sales...

Mark Chadwick

Japan Weekly | Nikkei Drops; Political Uncertainty; Weakening Economy

​Nikkei 225 falls 2.7% on political uncertainty, global bond yields, and weak economic data; Konica Minolta gains 25% after activist investor...

Mark Chadwick

Tech stocks drive market gains with Nasdaq up 0.8%, Alphabet beats Q3 earnings, AMD disappoints with AI revenue outlook.

Shimano's bike sales rebound with 8% growth in Q3, driven by China's surge to 31% share and improved profitability with operating margin at 18.6%.

US stocks rise as investors focus on Big Tech earnings, inflation data, and jobs report. Nippon Paint Holdings acquires AOC for 630 billion yen....

U.S. stocks mixed on rising Treasury yields, Japan's ruling coalition loses majority, Shin-Etsu Chemical sees decline in net profit despite sales...

Nikkei 225 falls 2.7% on political uncertainty, global bond yields, and weak economic data; Konica Minolta gains 25% after activist investor...