Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>Yesterday, <a href="https://www.smartkarma.com/entities/yamaha-corp" target="_blank" data-smartkarma-citation="entities:17841:1" rel="noopener">Yamaha Corp (7951 JP)</a> announced Q3 earnings (<a href="https://www.yamaha.com/en/ir/library/flash-report/pdf/frepo-2025-q3.pdf" target="_blank" rel="noopener">results</a>, <a href="https://www.yamaha.com/en/ir/library/presentations/pdf/2025/pres-250205e.pdf" target="_blank" rel="noopener">presentation</a>, <a href="https://www.yamaha.com/en/ir/library/presentations/pdf/2025/outline3q.pdf" target="_blank" rel="noopener">metrics</a>), a <a href="https://www.yamaha.com/en/news_release/files/news/25020502/pdf/2502050201.pdf" target="_blank" rel="noopener">change in full-year guidance</a> (revs unch'd, OP -10.8%, NP -25%), and <a href="https://www.yamaha.com/en/news_release/files/news/25020504/pdf/2502050401.pdf" target="_blank" rel="noopener">a large buyback</a>. </li>
<li>9M Revenue up yoy but China sales slower OP up yoy (audio business, SG&amp;A cuts), but FY revised lower due to restructuring (impairment, retirement expenses). Looks worse than it is.</li>
<li>The buyback is interesting, and large. And investors should be aware of the modalities. </li>
</ul>


Yesterday, Yamaha Corp (7951 JP) announced Q3 earnings (results, presentation, metrics), a change in full-year guidance (revs unch'd, OP -10.8%, NP -25%), and a large buyback. 
9M Revenue up yoy but China sales slower OP up yoy (audio business, SG&amp;A cuts), but FY revised lower due to restructuring (impairment, retirement expenses). Looks worse than it is.
The buyback is interesting, and large. And investors should be aware of the modalities. 


Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

Thematic (Sector/Industry)

<ul>
<li>The median stock in our Dogs of Topix basket outperformed the median stock in the Topix 400 by 4% through Sept 2024.</li>
<li>This is below the average of 7% achieved by such stocks over the past 9 years, but it was a much tougher stretch than it looked. </li>
<li>Do we need to re-think? Much can be learned comparing the outperformers, whose median return was +34%, compared to the underperformers, which declined 23%.</li>
</ul>


The median stock in our Dogs of Topix basket outperformed the median stock in the Topix 400 by 4% through Sept 2024.
This is below the average of 7% achieved by such stocks over the past 9 years, but it was a much tougher stretch than it looked. 
Do we need to re-think? Much can be learned comparing the outperformers, whose median return was +34%, compared to the underperformers, which declined 23%.


Have the Rules for Bottom Fishing Changed?

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>China names will be in focus with yesterdays gains holding overnight in the US.</li>
<li>Worth looking at Japanese names previously bucketed as China plays which could now be squeeze targets with large short interests.</li>
<li>The list is long, but some names which could squeeze on the improved sentiment include Shiseido, Daikin, TOTO, Yamaha Corp and Nabtesco.</li>
</ul>


China names will be in focus with yesterdays gains holding overnight in the US.
Worth looking at Japanese names previously bucketed as China plays which could now be squeeze targets with large short interests.
The list is long, but some names which could squeeze on the improved sentiment include Shiseido, Daikin, TOTO, Yamaha Corp and Nabtesco.


Japan Morning Connection: Improved Sentiment in China Puts the Focus on Squeeze Targets

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>There are 15 stocks in Japan that will be sold by passive trackers at the close on 31 May.</li>
<li>Short interest has been increasing in these stocks over the last few months and there will be covering on implementation date.</li>
<li>Cumulative excess volume on all stocks has risen in the last couple of months though the pace of the increase has varied.</li>
</ul>


There are 15 stocks in Japan that will be sold by passive trackers at the close on 31 May.
Short interest has been increasing in these stocks over the last few months and there will be covering on implementation date.
Cumulative excess volume on all stocks has risen in the last couple of months though the pace of the increase has varied.


Japan - Another Big Round of Passive Selling

Index Rebalance

<ul>
<li>The review period for the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 Index</a> March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.</li>
<li>
<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a> will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.</li>
<li>The recent drop in <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>'s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.</li>
</ul>


The review period for the Nikkei 225 Index March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.

Shift Inc (3697 JP) will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.
The recent drop in Fast Retailing (9983 JP)'s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.


Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

Japan

YAMAHA CORPORATION mainly manufactures musical instruments, audio equipment, and golf equipment.  The Company also produces information & communication equipment and semiconductors.  Yamaha operates recreation business. The Company has many overseas subsidiaries.

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Yamaha Corp (7951 JP)

Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

Yamaha Corp yesterday announced Q3, a downward revision for full year on more restructuring, and a big buyback. Probably meant to cover near-term...

Travis Lundy

Have the Rules for Bottom Fishing Changed?

Increased passive investing and a rising interest rate environment have made the bottom-fishing game more treacherous, but the rules are still the...

Michael Allen

Japan Morning Connection: Improved Sentiment in China Puts the Focus on Squeeze Targets

Investors should keep an eye on potential squeeze targets with large short interests, including Shiseido, Daikin, TOTO, Yamaha Corp, and Nabtesco.

Andrew Jackson

Japan - Another Big Round of Passive Selling

The close tomorrow should see huge volumes trade on these stocks. Shorts will be covered and longs will be selectively put on.

Brian Freitas

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

With 4 days left in the review period, Fast Retailing is now in double capping zone which would require passives to sell 13.3m shares in March. If...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Yamaha Corp (7951) BIG Buyback May Be Followed By More Later

Yamaha Corp yesterday announced Q3, a downward revision for full year on more restructuring, and a big buyback. Probably meant to cover near-term...

Travis Lundy

Have the Rules for Bottom Fishing Changed?

Increased passive investing and a rising interest rate environment have made the bottom-fishing game more treacherous, but the rules are still the...

Michael Allen

Japan Morning Connection: Improved Sentiment in China Puts the Focus on Squeeze Targets

​Investors should keep an eye on potential squeeze targets with large short interests, including Shiseido, Daikin, TOTO, Yamaha Corp, and Nabtesco.

Andrew Jackson

Japan - Another Big Round of Passive Selling

The close tomorrow should see huge volumes trade on these stocks. Shorts will be covered and longs will be selectively put on.

Brian Freitas

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

With 4 days left in the review period, Fast Retailing is now in double capping zone which would require passives to sell 13.3m shares in March. If...

Brian Freitas

Investors should keep an eye on potential squeeze targets with large short interests, including Shiseido, Daikin, TOTO, Yamaha Corp, and Nabtesco.