Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Global equites (MSCI ACWI) have pulled back some following the FOMC's hawkish-leaning announcement. Short-term support is at $102 on ACWI-US--last week's breakout level-- while longer-term support remains at $98-$99.</li>
<li>A break below $102 would indicate more consolidation is likely but, if ACWI-US remains above $98, we remain bullish on global equities, and we view pullbacks as buying opportunities.</li>
<li>Europe remains bullish, and we remain overweight Japan and India. Actionable Themes: many stocks highlighted within Consumer Discretionary, Energy, Industrials, Services, and Technology</li>
</ul>


Global equites (MSCI ACWI) have pulled back some following the FOMC's hawkish-leaning announcement. Short-term support is at $102 on ACWI-US--last week's breakout level-- while longer-term support remains at $98-$99.
A break below $102 would indicate more consolidation is likely but, if ACWI-US remains above $98, we remain bullish on global equities, and we view pullbacks as buying opportunities.
Europe remains bullish, and we remain overweight Japan and India. Actionable Themes: many stocks highlighted within Consumer Discretionary, Energy, Industrials, Services, and Technology


MSCI ACWI, EURO STOXX 50, TOPIX Remain Bullish; Buys in Cons Disc, Industrials, Services, Technology

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Fast Retailing’s stock price is overvalued and faces downside risks from its Q3 results (maybe), China outlook (perhaps), and index rebalancing (most likely).</li>
<li>Fast Retailing has enjoyed a premium over its global peers largely due to its higher exposure to China growth. Any wobbles here could be negative catalyst</li>
<li>There is also a technical issue that will likely cap the weighting of Fast Retailing in the Nikkei 225 = index selling pressure</li>
</ul>


Fast Retailing’s stock price is overvalued and faces downside risks from its Q3 results (maybe), China outlook (perhaps), and index rebalancing (most likely).
Fast Retailing has enjoyed a premium over its global peers largely due to its higher exposure to China growth. Any wobbles here could be negative catalyst
There is also a technical issue that will likely cap the weighting of Fast Retailing in the Nikkei 225 = index selling pressure


Fast Retailing (9983) | Is China Still Recovering?

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

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.

<ul>
<li>Japan's strong domestic demand and a rebound in China fuel optimistic growth outlook for <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> in the short term.</li>
<li>Furthermore, the markets such as Europe, North America, South East Asia, India, and Australia present promising long-term growth opportunities.</li>
<li>However, Fast Retailing's valuation is a cause for concern as it currently trades at a consensus FY27 OP of 20.0x.</li>
</ul>


Japan's strong domestic demand and a rebound in China fuel optimistic growth outlook for Fast Retailing (9983 JP) in the short term.
Furthermore, the markets such as Europe, North America, South East Asia, India, and Australia present promising long-term growth opportunities.
However, Fast Retailing's valuation is a cause for concern as it currently trades at a consensus FY27 OP of 20.0x.


Fast Retailing: Opportunities for Long-Term Growth Overshadowed by High Valuation

<ul>
<li>We had thought that Fast Retailing may just miss Q1 numbers due to the warm weather; it beat on strong November and 270bps improvement in gross margin. </li>
<li>Following the slightly better results, we maintain our sales forecast at 3.1 trillion yen, but revise our operating profit estimate from 439 billion yen to 455 billion yen.</li>
<li>Overall, we do not think the market will be overly surprised by the results and we maintain our view that the stock is over priced.</li>
</ul>


We had thought that Fast Retailing may just miss Q1 numbers due to the warm weather; it beat on strong November and 270bps improvement in gross margin. 
Following the slightly better results, we maintain our sales forecast at 3.1 trillion yen, but revise our operating profit estimate from 439 billion yen to 455 billion yen.
Overall, we do not think the market will be overly surprised by the results and we maintain our view that the stock is over priced.


Fast Retailing (9983) | Another Stylish Quarter

<ul>
<li>
<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> announced its 1QFY24 results today, surpassing the consensus OP estimate by approximately 7%.</li>
<li>Notably, Uniqlo International demonstrated robust growth, even from regions (North America &amp; Europe) that were anticipated to underperform in this quarter. </li>
<li>The domestic business OP also managed to top consensus expectations as they managed to improve the gross margin by 2.7% YoY.</li>
</ul>



Fast Retailing (9983 JP) announced its 1QFY24 results today, surpassing the consensus OP estimate by approximately 7%.
Notably, Uniqlo International demonstrated robust growth, even from regions (North America &amp; Europe) that were anticipated to underperform in this quarter. 
The domestic business OP also managed to top consensus expectations as they managed to improve the gross margin by 2.7% YoY.


Japan

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.

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Fast Retailing (9983 JP)

MSCI ACWI, EURO STOXX 50, TOPIX Remain Bullish; Buys in Cons Disc, Industrials, Services, Technology

MSCI ACWI, EURO $STOXX 50, $TOPIX Remain Bullish. $ACWI holding above short-term support at $102 (last week's breakout level), though we remain...

Vermilion Research

Fast Retailing (9983) | Is China Still Recovering?

Fast Retailing’s stock price is overvalued and faces downside risks from its Q3 results (maybe), China outlook (perhaps), and index rebalancing...

Mark Chadwick

Fast Retailing: Opportunities for Long-Term Growth Overshadowed by High Valuation

Markets such as Europe, North America, South East Asia, India, and Australia present promising long-term growth opportunities, but at a consensus...

Oshadhi Kumarasiri

Fast Retailing (9983) | Another Stylish Quarter

Fast Retailing beats Q1 expectations with strong November sales and improved gross margin. Our operating profit estimate revised upwards. Stock...

Mark Chadwick

Fast Retailing: 1QFY24 Earnings

Fast Retailing's Q1 results exceeded expectations, with Uniqlo Int showing strong growth in regions expected to underperform and Uniqlo Japan...

Oshadhi Kumarasiri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

MSCI ACWI, EURO STOXX 50, TOPIX Remain Bullish; Buys in Cons Disc, Industrials, Services, Technology

MSCI ACWI, EURO $STOXX 50, $TOPIX Remain Bullish. $ACWI holding above short-term support at $102 (last week's breakout level), though we remain...

Vermilion Research

Fast Retailing (9983) | Is China Still Recovering?

Fast Retailing’s stock price is overvalued and faces downside risks from its Q3 results (maybe), China outlook (perhaps), and index rebalancing...

Mark Chadwick

Fast Retailing: Opportunities for Long-Term Growth Overshadowed by High Valuation

Markets such as Europe, North America, South East Asia, India, and Australia present promising long-term growth opportunities, but at a consensus...

Oshadhi Kumarasiri

Fast Retailing (9983) | Another Stylish Quarter

​Fast Retailing beats Q1 expectations with strong November sales and improved gross margin. Our operating profit estimate revised upwards. Stock...

Mark Chadwick

Fast Retailing: 1QFY24 Earnings

​Fast Retailing's Q1 results exceeded expectations, with Uniqlo Int showing strong growth in regions expected to underperform and Uniqlo Japan...

Oshadhi Kumarasiri

Fast Retailing beats Q1 expectations with strong November sales and improved gross margin. Our operating profit estimate revised upwards. Stock...

Fast Retailing's Q1 results exceeded expectations, with Uniqlo Int showing strong growth in regions expected to underperform and Uniqlo Japan...