Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

<ul><li>1H FY 03/25 sales reached JPY139.3bn, a 5.6% YoY increase, surpassing the initial forecast of JPY134bn.</li><li>Operating profit increased 12.8% YoY to JPY14.6bn, driven by BA business growth, despite AA and LA declines.</li><li>Net income decreased 8.3% YoY due to reduced extraordinary gains, despite recurring profit rising 2.5% YoY.</li></ul>

1H FY 03/25 sales reached JPY139.3bn, a 5.6% YoY increase, surpassing the initial forecast of JPY134bn.Operating profit increased 12.8% YoY to JPY14.6bn, driven by BA business growth, despite AA and LA declines.Net income decreased 8.3% YoY due to reduced extraordinary gains, despite recurring profit rising 2.5% YoY.

Azbil Corp (6845 JP): 1H FY03/25 flash update

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>
<a href="https://www.smartkarma.com/entities/fujikura-ltd" target="_blank" data-smartkarma-citation="entities:10768:1" rel="noopener">Fujikura Ltd (5803 JP)</a> could be added to a global index at the end of November and there will be a lot of buying in the stock.</li>
<li>Following the rally in the stock, <a href="https://www.smartkarma.com/entities/fujikura-ltd" target="_blank" data-smartkarma-citation="entities:10768:1" rel="noopener">Fujikura Ltd (5803 JP)</a> trades expensive to the average and median of its peers on most valuation metrics.</li>
<li>The increase in cumulative excess volume in <a href="https://www.smartkarma.com/entities/fujikura-ltd" target="_blank" data-smartkarma-citation="entities:10768:1" rel="noopener">Fujikura Ltd (5803 JP)</a> over the last 3 months far outpaces the increase in its peers.</li>
</ul>



Fujikura Ltd (5803 JP) could be added to a global index at the end of November and there will be a lot of buying in the stock.
Following the rally in the stock, Fujikura Ltd (5803 JP) trades expensive to the average and median of its peers on most valuation metrics.
The increase in cumulative excess volume in Fujikura Ltd (5803 JP) over the last 3 months far outpaces the increase in its peers.


Fujikura (5803 JP): Positioning & Potential Passive Buying

<ul><li>Sales increased to JPY65.5bn (+7.1% YoY), with operating profit at JPY5.8bn (+24.4% YoY) and net income at JPY4.9bn (+31.5% YoY).</li><li>Building Automation segment saw orders rise to JPY56.3bn (+21.1% YoY) and segment profit increase to JPY1.6bn (3.9x YoY).</li><li>Advanced Automation segment experienced a 6.0% YoY decline in orders to JPY24.2bn, but sales rose slightly to JPY25.1bn (+0.9% YoY).</li></ul>

Sales increased to JPY65.5bn (+7.1% YoY), with operating profit at JPY5.8bn (+24.4% YoY) and net income at JPY4.9bn (+31.5% YoY).Building Automation segment saw orders rise to JPY56.3bn (+21.1% YoY) and segment profit increase to JPY1.6bn (3.9x YoY).Advanced Automation segment experienced a 6.0% YoY decline in orders to JPY24.2bn, but sales rose slightly to JPY25.1bn (+0.9% YoY).

Azbil Corp (6845 JP): Q1 FY03/25 flash update

<ul>
<li>There are a bunch of stocks that have underperformed the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> and their peers and could be deleted from global passive portfolios in May.</li>
<li>The deletion from passive portfolios will lead to a liquidity event at the end of May where passive trackers will need to sell multiple days of ADV.</li>
<li>Shorts have been built up on all the stocks over the last few months and the extent of the positioning varies across stocks.</li>
</ul>


There are a bunch of stocks that have underperformed the Nikkei 225 (NKY INDEX) and their peers and could be deleted from global passive portfolios in May.
The deletion from passive portfolios will lead to a liquidity event at the end of May where passive trackers will need to sell multiple days of ADV.
Shorts have been built up on all the stocks over the last few months and the extent of the positioning varies across stocks.


Japan - Increase in Shorts & Potential Passive Selling in May

<ul>
<li>
<a href="https://www.smartkarma.com/entities/azbil-corp" target="_blank" data-smartkarma-citation="entities:8951:1" rel="noopener">Azbil Corp (6845 JP)</a> provides automation services for buildings, factories, and plants and also offers subsistence-related automation services in the lifestyle area.</li>
<li>In FY03/23, sales were JPY278.4bn (+8.5% YoY), operating profit was JPY31.3bn (+10.7% YoY), recurring profit was JPY32.1bn (+8.9% YoY), and net income attributable to owners of the parent was JPY22.6bn.</li>
<li>Azbil in May 2021 announced a new medium-term management plan to cover the four fiscal years from FY03/22 to FY03/25 and new long-term targets for FY03/31.</li>
</ul>



Azbil Corp (6845 JP) provides automation services for buildings, factories, and plants and also offers subsistence-related automation services in the lifestyle area.
In FY03/23, sales were JPY278.4bn (+8.5% YoY), operating profit was JPY31.3bn (+10.7% YoY), recurring profit was JPY32.1bn (+8.9% YoY), and net income attributable to owners of the parent was JPY22.6bn.
Azbil in May 2021 announced a new medium-term management plan to cover the four fiscal years from FY03/22 to FY03/25 and new long-term targets for FY03/31.


Japan

Azbil Corporation develops, manufactures, and markets total automation equipment used in industrial and commercial buildings. The Company's products include sensors, switches, recording meters, security systems, air conditioners, pressure transmitters, and flow meters.

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Azbil Corp (6845 JP)