Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Japanese equities rebounded strongly this week, with the Nikkei 225 up 3.3% and TOPIX up 2.4%, nearly reversing the prior week’s sharp losses.</li>
<li>This week's top performer was Toppan Printing due to strong interest in its “Double View Film” for solar panels and a new data-driven customer-experience service, highlighting innovation and growth potential.</li>
<li>A quieter week for Activists. Dalton increased its Anicom stake to 9.5%, signalling confidence in the pet insurer’s stable growth and potential capital returns.</li>
</ul>


Japanese equities rebounded strongly this week, with the Nikkei 225 up 3.3% and TOPIX up 2.4%, nearly reversing the prior week’s sharp losses.
This week's top performer was Toppan Printing due to strong interest in its “Double View Film” for solar panels and a new data-driven customer-experience service, highlighting innovation and growth potential.
A quieter week for Activists. Dalton increased its Anicom stake to 9.5%, signalling confidence in the pet insurer’s stable growth and potential capital returns.


Japan Strategy Weekly | Thanksgiving Rally

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Cross Asset Strategy

<ul>
<li>
<strong>Our</strong> <strong>Q3-2021 All Cap High-Risk screen of stocks produced a market-cap-weighted average price return of 2% and a simple average decline of 0.2%</strong>.</li>
<li>
<strong>Out of the 34 stocks that appeared in our Q3-2021 screen, </strong>15 stocks saw an average share price decline of 11.5%, whilst 19 stocks appreciated on average by 14%. The two biggest declining stock  were down 25% and 19% respectively.</li>
<li><strong>Our Q4 2021 screen, with 38 names (up from 34 seen in Q3 and Q2 2021) delivers an interesting composition this quarter, </strong></li>
<li>
<strong>As in the previous few quarters, we anticipate the possibility of a risk of deteriorating credit metrics during the next few quarters: </strong>Q4 2021’s Altman Z score rests at 1.23, which is just up on Q3 2021’s level of 1.19.</li>
</ul>



Our Q3-2021 All Cap High-Risk screen of stocks produced a market-cap-weighted average price return of 2% and a simple average decline of 0.2%.

Out of the 34 stocks that appeared in our Q3-2021 screen, 15 stocks saw an average share price decline of 11.5%, whilst 19 stocks appreciated on average by 14%. The two biggest declining stock  were down 25% and 19% respectively.
Our Q4 2021 screen, with 38 names (up from 34 seen in Q3 and Q2 2021) delivers an interesting composition this quarter, 

As in the previous few quarters, we anticipate the possibility of a risk of deteriorating credit metrics during the next few quarters: Q4 2021’s Altman Z score rests at 1.23, which is just up on Q3 2021’s level of 1.19.


Screening the Silk Road: Q4 2021 High-Risk Names to Avoid

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

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.

<div><p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p></div><div>
<p style="text-align: left;">Wednesday's best and worst pairing is from the same corporate grouping - <a href="https://www.smartkarma.com/entities/gmo-payment-gateway-inc" target="_blank" data-smartkarma-citation="entities:1492:1" rel="noopener">GMO Payment Gateway (3769 JP)</a> and <a href="https://www.smartkarma.com/entities/gmo-internet-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet (9449 JP)</a> and highlights the risks of investing in the latter to 'access' growth in the former.</p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/170/925/original/2020-11-12_06-02-15.png?1605128549" class="editor-image img-responsive" data-smartkarma-image-id="170925"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/170/926/original/2020-11-12_06-02-54.png?1605128586" class="editor-image img-responsive" data-smartkarma-image-id="170926"></figure></section><div style="text-align: center;"><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div></div>
<hr>
<div style="text-align: center;"><p><strong>DAILY STATS</strong></p></div>
<hr>
<div style="text-align: center;"><p><strong>227 Quarterly Results</strong></p></div>
<div style="text-align: center;"><ul style="list-style-type: disc;">
<li><p style="text-align: left;"><strong>Results Score:</strong> 42% Positive / 11% Neutral / 47% Negative</p></li>
<li><p style="text-align: left;"><strong>Average Results Score Change:</strong> -1.0 points</p></li>
<li><p style="text-align: left;"><strong>Average % Change in Revenue:</strong> -7.6% Quarter YoY / -5.0% Rolling TTM YoY </p></li>
<li><p style="text-align: left;"><strong>Average Operating Profit Margin Change:</strong> -1.3 ppt</p></li>
<li><p style="text-align: left;"><strong>Percentage Making Quarterly Losses:</strong> 20%</p></li>
</ul></div>
<hr>
<div><p style="text-align: center;"><strong>107 Annual • 18 Interim Forecasts/Revisions</strong></p></div>
<div><ul style="list-style-type: disc;">
<li><p><strong>Annual Forecast/Revision Score:</strong> 43% Positive / 9% Neutral / 48% Negative</p></li>
<li><p><strong>Interim Forecast/Revision Score Change:</strong> 50% Positive / 6% Neutral / 44% Negative</p></li>
<li><p><strong>Average Forecast/Revision Score Change:</strong> -1.5 points</p></li>
</ul></div>
</div>

• BEST &amp; WORST •
Wednesday's best and worst pairing is from the same corporate grouping - GMO Payment Gateway (3769 JP) and GMO Internet (9449 JP) and highlights the risks of investing in the latter to 'access' growth in the former.
Source for all charts &amp; tables: Japan Analytics

DAILY STATS

227 Quarterly Results

Results Score: 42% Positive / 11% Neutral / 47% Negative
Average Results Score Change: -1.0 points
Average % Change in Revenue: -7.6% Quarter YoY / -5.0% Rolling TTM YoY 
Average Operating Profit Margin Change: -1.3 ppt
Percentage Making Quarterly Losses: 20%


107 Annual • 18 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 43% Positive / 9% Neutral / 48% Negative
Interim Forecast/Revision Score Change: 50% Positive / 6% Neutral / 44% Negative
Average Forecast/Revision Score Change: -1.5 points



🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight"><p><a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US) </a>made a major <a href="https://edition.cnn.com/2020/10/21/investing/paypal-bitcoin-cryptocurrencies/index.html" target="_blank" rel="noopener">announcement</a> yesterday, launching its own cryptocurrency service that will allow its users to buy, hold, and sell digital currencies such as Bitcoin and Ethereum on its site and applications. For now, PayPal's service will provide customers with the ability to hold and exchange cryptocurrencies. For PayPal's US customers, they will be able to pay for products and services using cryptocurrencies starting in early 2021. Other international users of PayPal will be able to use this service starting sometime in 1H 2021. </p></div><h3>Top 5 AsiaPac Crypto-Sensitive Names to Play</h3><ul>
<li><strong>SBI Holdings</strong></li>
<li><strong>Kakao Corp</strong></li>
<li><strong>Kingsoft Cloud</strong></li>
<li><strong>TSMC</strong></li>
<li><strong>LINE</strong></li>
</ul>

Paypal Holdings (PYPL US) made a major announcement yesterday, launching its own cryptocurrency service that will allow its users to buy, hold, and sell digital currencies such as Bitcoin and Ethereum on its site and applications. For now, PayPal's service will provide customers with the ability to hold and exchange cryptocurrencies. For PayPal's US customers, they will be able to pay for products and services using cryptocurrencies starting in early 2021. Other international users of PayPal will be able to use this service starting sometime in 1H 2021. Top 5 AsiaPac Crypto-Sensitive Names to Play
SBI Holdings
Kakao Corp
Kingsoft Cloud
TSMC
LINE


PayPal Allows Transactions in Cryptos: Top 5 AsiaPac Crypto-Sensitive Names to Play

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/133/055/original/2020-05-13_05-37-45.png?1589315906" class="editor-image img-responsive" data-smartkarma-image-id="133055"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>CASCADE</strong> - As expected, with many more of the larger listed companies reporting, our three Scores are falling in unison and at the fastest rate since 2008/9. With still over two-thirds of companies yet to report, there is more 'pain' ahead in this elongated 'season' of announcements. </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/133/056/original/2020-05-13_06-21-24.png?1589318495" class="editor-image img-responsive" data-smartkarma-image-id="133056"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/133/057/original/2020-05-13_06-22-14.png?1589318598" class="editor-image img-responsive" data-smartkarma-image-id="133057"></figure><div class="content-caption">Source • Japan Analytics</div><p>In the <strong>DETAIL</strong> below, we shall review the results, revisions and initial forecast announcements made by larger-cap (¥75b+) companies yesterday:-</p><div><ul>
<li>The balance between positive/neutral/negative of the<strong> 269</strong> results announcements was <strong>117:23:129</strong>. The average change in Results Score was<strong> -0.8</strong>.</li>
<li>For the <strong>129</strong> revisions/initial forecasts, the split was <strong>39:7:83</strong>, and the average Revision Score was <strong>-4.6</strong>. Of the <strong>213</strong> companies declaring full-year results, <strong>46%</strong> made forecasts for the current year.</li>
<li>
<strong>313</strong> companies will announce on today, the largest of which by market capitalisation will be <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony (6758 JP)</a>, <a href="https://www.smartkarma.com/entities/takeda-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:11747:1" rel="noopener">Takeda Pharmaceutical (4502 JP)</a>,  and <a href="https://www.smartkarma.com/entities/eisai-co-ltd" target="_blank" data-smartkarma-citation="entities:21001:1" rel="noopener">Eisai (4523 JP)</a>. </li>
<li>Tuesday's 'best' and 'worst' scoring results were from  <a href="https://www.smartkarma.com/entities/gmo-internet-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet (9449 JP)</a>  and <a href="https://www.smartkarma.com/entities/nissin-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:18567:1" rel="noopener">Nissin Electric (6641 JP)</a>, respectively. </li>
</ul></div>

Source • Japan AnalyticsCASCADE - As expected, with many more of the larger listed companies reporting, our three Scores are falling in unison and at the fastest rate since 2008/9. With still over two-thirds of companies yet to report, there is more 'pain' ahead in this elongated 'season' of announcements. Source • Japan AnalyticsIn the DETAIL below, we shall review the results, revisions and initial forecast announcements made by larger-cap (¥75b+) companies yesterday:-
The balance between positive/neutral/negative of the 269 results announcements was 117:23:129. The average change in Results Score was -0.8.
For the 129 revisions/initial forecasts, the split was 39:7:83, and the average Revision Score was -4.6. Of the 213 companies declaring full-year results, 46% made forecasts for the current year.

313 companies will announce on today, the largest of which by market capitalisation will be Sony (6758 JP), Takeda Pharmaceutical (4502 JP),  and Eisai (4523 JP). 
Tuesday's 'best' and 'worst' scoring results were from  GMO Internet (9449 JP)  and Nissin Electric (6641 JP), respectively. 


🇯🇵 JAPAN • Results & Revisions 12th May - Secom, Shiseido, Toyota, Sysmex, Mitsui Fudosan

Japan

GMO Internet Group, Inc. provides internet related services to its corporate customers. The company offers domain, server, security and settlement services through its "WEB Infrastructure & EC" business, and assists companies in attracting web users through its "Internet Media" business. GMO Internet Group conducts businesses in Japan.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

GMO Internet Group (9449 JP)

Japan Strategy Weekly | Thanksgiving Rally

Japanese equities rebounded strongly this week, led by Toppan Printing's innovative products and Dalton's confidence in Anicom's growth potential.

Mark Chadwick

Screening the Silk Road: Q4 2021 High-Risk Names to Avoid

As we move through into Q1 2022, we expect to see volatility around highly priced & leveraged names. This screen is a key starting point towards...

David Lepper

🇯🇵 JAPAN • Results & Revisions 11/11 - Mitsubishi Estate, Toshiba, GMOs

Wednesday's best and worst pairing is from the same corporate grouping - GMO PG and GMO Internet and highlights the risks of investing in the...

Campbell Gunn

PayPal Allows Transactions in Cryptos: Top 5 AsiaPac Crypto-Sensitive Names to Play

Paypal recently announced that it will allow the use of cryptocurrencies on its website. In this insight, we discuss the top 5 Asian companies that...

Douglas Kim

🇯🇵 JAPAN • Results & Revisions 12th May - Secom, Shiseido, Toyota, Sysmex, Mitsui Fudosan

CASCADE - As expected, with many more of the larger listed companies reporting, our three Scores are falling in unison and at the fastest rate...

Campbell Gunn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Strategy Weekly | Thanksgiving Rally

​Japanese equities rebounded strongly this week, led by Toppan Printing's innovative products and Dalton's confidence in Anicom's growth potential.

Mark Chadwick

Screening the Silk Road: Q4 2021 High-Risk Names to Avoid

As we move through into Q1 2022, we expect to see volatility around highly priced & leveraged names. This screen is a key starting point towards...

David Lepper

🇯🇵 JAPAN • Results & Revisions 11/​​​​​​​​​​​​​​​​​​​​​​​​​​11 - Mitsubishi Estate, Toshiba, GMOs

Wednesday's best and worst pairing is from the same corporate grouping - GMO PG and GMO Internet and highlights the risks of investing in the...

Campbell Gunn

PayPal Allows Transactions in Cryptos: Top 5 AsiaPac Crypto-Sensitive Names to Play

Paypal recently announced that it will allow the use of cryptocurrencies on its website. In this insight, we discuss the top 5 Asian companies that...

Douglas Kim

🇯🇵 JAPAN • Results & Revisions 12th May - Secom, Shiseido, Toyota, Sysmex, Mitsui Fudosan

CASCADE - As expected, with many more of the larger listed companies reporting, our three Scores are falling in unison and at the fastest rate...

Campbell Gunn

Japanese equities rebounded strongly this week, led by Toppan Printing's innovative products and Dalton's confidence in Anicom's growth potential.

🇯🇵 JAPAN • Results & Revisions 11/11 - Mitsubishi Estate, Toshiba, GMOs