Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives</li>
<li>There is a huge TAM, but it can be difficult for equity investors to gain meaningful exposure</li>
<li>We identify 22 Japanese stocks that are engaged in AI. We have two top picks </li>
</ul>


AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives
There is a huge TAM, but it can be difficult for equity investors to gain meaningful exposure
We identify 22 Japanese stocks that are engaged in AI. We have two top picks 


Artificial Intelligence | How to Play the Thematic in Japan

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>
<a href="https://www.smartkarma.com/entities/japan-eyewear-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40217:1" rel="noopener">Japan Eyewear Holdings (5889 JP)</a> continues to be our top pre-event pick for TOPIX Inclusion.</li>
<li>
<a href="https://www.smartkarma.com/entities/core-concept-technologies-inc" target="_blank" data-smartkarma-citation="entities:34323:1" rel="noopener">Core Concept Technologies Inc (4371 JP)</a> is another potential TOPIX Inclusion candidate but it is quite far away from being satisfy the main Section Transfer requirements.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.

Japan Eyewear Holdings (5889 JP) continues to be our top pre-event pick for TOPIX Inclusion.

Core Concept Technologies Inc (4371 JP) is another potential TOPIX Inclusion candidate but it is quite far away from being satisfy the main Section Transfer requirements.


TOPIX Inclusions: Who Is Ready (Jan 2025)

<ul>
<li>The Japanese market ended the week on a mixed note, with the Nikkei 225 Index down 2.2%</li>
<li>Stocks moves were largely dictated by earnings. Furukawa's full year upward revision was a standout, while THK surprised the market with a punchy buyback</li>
<li>
<strong>Watchlist</strong>: ASICS continues to perform well and will upgrade its mid-term outlook this week. Nexon and Appier could be worth a look after recent stock price declines</li>
</ul>


The Japanese market ended the week on a mixed note, with the Nikkei 225 Index down 2.2%
Stocks moves were largely dictated by earnings. Furukawa's full year upward revision was a standout, while THK surprised the market with a punchy buyback

Watchlist: ASICS continues to perform well and will upgrade its mid-term outlook this week. Nexon and Appier could be worth a look after recent stock price declines


Japan Weekly | Mixed Market but Plenty Going On

Equity Bottom-Up

<ul>
<li>In Q3 FY24, Appier achieved record-breaking revenue, reaching JPY 9.1 billion, marking a 28% year-over-year growth.</li>
<li>Operating income for Q3 surged by 2.5 times YoY to JPY 788 million, with the operating margin improving by 4.3 percentage points to 8.7%.</li>
<li>At less than 4x EV/Sales and 16x FY25 EBITDA the stock does not appear expensive.</li>
</ul>


In Q3 FY24, Appier achieved record-breaking revenue, reaching JPY 9.1 billion, marking a 28% year-over-year growth.
Operating income for Q3 surged by 2.5 times YoY to JPY 788 million, with the operating margin improving by 4.3 percentage points to 8.7%.
At less than 4x EV/Sales and 16x FY25 EBITDA the stock does not appear expensive.


<ul>
<li>Appier achieved 32% YoY sales growth in Q2, driven by strong US market performance and balanced revenue from both new and existing customers.</li>
<li>The company's EBITDA margin improved to 13%, reflecting strong operating leverage despite ongoing investments in growth initiatives.</li>
<li>Trading at a 2.9x EV/FY25 revenue multiple, Appier is undervalued relative to peers, with significant upside potential from sustained growth and strategic initiatives.</li>
</ul>


Appier achieved 32% YoY sales growth in Q2, driven by strong US market performance and balanced revenue from both new and existing customers.
The company's EBITDA margin improved to 13%, reflecting strong operating leverage despite ongoing investments in growth initiatives.
Trading at a 2.9x EV/FY25 revenue multiple, Appier is undervalued relative to peers, with significant upside potential from sustained growth and strategic initiatives.


Appier (4180) | The Hidden Gem in AI Marketing

Japan

Appier Group, Inc. provides artificial intelligence software as a service (AISaaS) services based on data-driven decisions. The Company offers data analysis for potential users predicting and acquiring, relationships building and maintaining, purchasing and action motivation, audience intelligence, and more. Appier Group serves clients across Asian.

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Appier Group (4180 JP)

Artificial Intelligence | How to Play the Thematic in Japan

AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives. We identify 22...

Mark Chadwick

TOPIX Inclusions: Who Is Ready (Jan 2025)

There are currently 83 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 90 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

Japan Weekly | Mixed Market but Plenty Going On

Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....

Mark Chadwick

Appier (4180) | Record Quarter

Appier reports record-breaking revenue in Q3 FY24 with a 28% YoY growth, showing strong financial performance and potential for investment.

Mark Chadwick

Appier (4180) | The Hidden Gem in AI Marketing

Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Artificial Intelligence | How to Play the Thematic in Japan

AI is an exciting area of technology that has the potential to change how industries operate and consumers live their lives. We identify 22...

Mark Chadwick

TOPIX Inclusions: Who Is Ready (Jan 2025)

There are currently 83 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 90 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

Japan Weekly | Mixed Market but Plenty Going On

​Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....

Mark Chadwick

Appier (4180) | Record Quarter

​Appier reports record-breaking revenue in Q3 FY24 with a 28% YoY growth, showing strong financial performance and potential for investment.

Mark Chadwick

Appier (4180) | The Hidden Gem in AI Marketing

​Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.

Mark Chadwick

Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....

Appier reports record-breaking revenue in Q3 FY24 with a 28% YoY growth, showing strong financial performance and potential for investment.

Appier reports strong Q2 sales growth driven by US market performance, improved EBITDA margin, and undervalued stock with potential for growth.