Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

Equity Bottom-Up

<ul>
<li>Toyota is up 52% in just over a year, posting impressive performance for a company of its size. </li>
<li>Its displacement of GM as the number one automaker in the US has made headlines but results in China and Europe have also been impressive. </li>
<li>Hybrid penetration is now also over 25% in all major regions and we expect this to continue to be a driver.</li>
</ul>


Toyota is up 52% in just over a year, posting impressive performance for a company of its size. 
Its displacement of GM as the number one automaker in the US has made headlines but results in China and Europe have also been impressive. 
Hybrid penetration is now also over 25% in all major regions and we expect this to continue to be a driver.


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today the TSE announced its long-awaited segmentation of the 3,777 stocks listed on the five major venues, and where they will move on 4 April 2022. </li>
<li>TSE1 represented just under 98% of Japan's float market cap as of today's close. As some TSE1 members will move to TSE Standard, TSE Prime will represent 97+%. </li>
<li>There are tiny changes to TOPIX because of the moves - roughly 3bp of flow per quarter starting Oct 2022. The FFW Model Revision will be <em>far</em> more interesting.</li>
</ul>


Today the TSE announced its long-awaited segmentation of the 3,777 stocks listed on the five major venues, and where they will move on 4 April 2022. 
TSE1 represented just under 98% of Japan's float market cap as of today's close. As some TSE1 members will move to TSE Standard, TSE Prime will represent 97+%. 
There are tiny changes to TOPIX because of the moves - roughly 3bp of flow per quarter starting Oct 2022. The FFW Model Revision will be far more interesting.


TSE Announces Market Structure Revisions: Still Much Ado About Nothing

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Nippon Paint Holdings / Equity Capital Markets

<ul>
<li>A group of shareholders of Nippon Paint Holdings, plan to raise around US$1.4bn via selling nearly 6% of the stock.</li>
<li>The shares haven’t done much this year and despite having corrected by around 40% since the start of 2021, they are trading just about inline with analyst average target price.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


A group of shareholders of Nippon Paint Holdings, plan to raise around US$1.4bn via selling nearly 6% of the stock.
The shares haven’t done much this year and despite having corrected by around 40% since the start of 2021, they are trading just about inline with analyst average target price.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Nippon Paint Holdings Placement - Nothing Particularly Exciting, Needs to Correct

<ul>
<li>We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.</li>
<li>Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. </li>
<li>Given that, we quite like the risk-reward skew on offer here.</li>
</ul>


We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.
Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. 
Given that, we quite like the risk-reward skew on offer here.


We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

<ul>
<li>We spoke to Aisin on Friday to discuss the impact of Toyota’s EV strategy announcement, the new Tundra and semi shortages. </li>
<li>Overall, our impression was positive, and we expect strong performance from the company next year. </li>
<li>While there are still various reports on semi shortages we expect the market to look through production stoppages from now on.</li>
</ul>


We spoke to Aisin on Friday to discuss the impact of Toyota’s EV strategy announcement, the new Tundra and semi shortages. 
Overall, our impression was positive, and we expect strong performance from the company next year. 
While there are still various reports on semi shortages we expect the market to look through production stoppages from now on.


Japan

Toyota Motor Corporation manufactures, sells, leases, and repairs passenger cars, trucks, buses, and their related parts worldwide. The Company also operates financing services through their subsidiaries. Toyota Motor builds homes, produces pleasure boats, and develops intelligent transportation systems including radar cruise control and electronic toll collection systems.

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Toyota Motor (7203 JP)

Toyota – Records Across the Board

Toyota is up 52% in just over a year, posting impressive performance for a company of its size. Hybrid penetration is now over 25% in all major...

Mio Kato

TSE Announces Market Structure Revisions: Still Much Ado About Nothing

The TSE today set the allocation of companies to the new TSE market structure segments. There are few surprises. Lots of noise, little change....

Travis Lundy

Nippon Paint Holdings Placement - Nothing Particularly Exciting, Needs to Correct

A group of shareholders of Nippon Paint Holdings, plan to raise around US$1.4bn via selling nearly 6% of the stock. In this note, we will talk...

Sumeet Singh

We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. Given...

Mio Kato

Aisin – Positive Chat With the Company

We spoke to Aisin on Friday to discuss the impact of Toyota’s EV strategy announcement, the new Tundra and semi shortages. Our impression was...

Mio Kato

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