Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Business: Designs and integrates intralogistics, cleanroom, airport, and automotive automation systems.</li>
<li>Expanding AI-driven logistics and semiconductor cleanroom solutions, with recurring service growth.</li>
<li>Earnings projected to grow mid-teens CAGR to FY27E, with multiples compressing from ~25× P/E / 15× EV/EBITDA to ~20× / 12×, justifying a structural premium.</li>
</ul>


Business: Designs and integrates intralogistics, cleanroom, airport, and automotive automation systems.
Expanding AI-driven logistics and semiconductor cleanroom solutions, with recurring service growth.
Earnings projected to grow mid-teens CAGR to FY27E, with multiples compressing from ~25× P/E / 15× EV/EBITDA to ~20× / 12×, justifying a structural premium.


Daifuku (6383 JP): Global Automation Leader with Structural AI Tailwinds

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.

Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.</li>
<li>Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. </li>
<li>Of these, they have a combined stake of over US$1bn in 23 companies.</li>
</ul>


Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.
Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. 
Of these, they have a combined stake of over US$1bn in 23 companies.


Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Geekplus Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-geekplus-technology-co-ltd-geek" target="_blank" data-smartkarma-citation="entities:35636:1" rel="noopener">Geekplus Technology (2590 HK)</a> is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.</li>
<li>I discussed the investment case in <strong><em><a href="https://www.smartkarma.com/insights/geekplus-technology-ipo-2590-hk-the-investment-case" target="_blank" data-smartkarma-citation="insights:192127" rel="noopener">Geekplus Technology IPO (2590 HK): The Investment Case</a></em></strong>.</li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is unattractive.</li>
</ul>



Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.
I discussed the investment case in Geekplus Technology IPO (2590 HK): The Investment Case.
In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is unattractive.


Geekplus Technology IPO (2590 HK): Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-geekplus-technology-co-ltd-geek" target="_blank" data-smartkarma-citation="entities:35636:1" rel="noopener">Geekplus Technology (2590 HK)</a> is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.     </li>
<li>Geekplus has been the world’s largest warehouse fulfilment AMR solution provider in terms of revenue for the last six consecutive years.</li>
<li>The investment case is bearish due to declining growth, lower contract liabilities, hints of window dressing relating to reducing losses and ongoing cash burn.  </li>
</ul>



Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.     
Geekplus has been the world’s largest warehouse fulfilment AMR solution provider in terms of revenue for the last six consecutive years.
The investment case is bearish due to declining growth, lower contract liabilities, hints of window dressing relating to reducing losses and ongoing cash burn.  


Geekplus Technology IPO (2590 HK): The Investment Case

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

<ul>
<li>Okamura trades at a PBR of 1.0 and a PER of 8.6 despite earning more than 12% return on equity.</li>
<li>Okamura’s new AI-driven warehouse automation system is a potential game-changer as it reduces costs and improves decision making for mid-sized enterprises.</li>
<li>Management’s incentives are still poorly aligned with the interests of shareholders, and their performance is well below potential.</li>
</ul>


Okamura trades at a PBR of 1.0 and a PER of 8.6 despite earning more than 12% return on equity.
Okamura’s new AI-driven warehouse automation system is a potential game-changer as it reduces costs and improves decision making for mid-sized enterprises.
Management’s incentives are still poorly aligned with the interests of shareholders, and their performance is well below potential.


Okamura (7994): Why Management Incentives Are So Important

Japan

DAIFUKU CO., LTD. designs, manufactures, and sells material handling equipment such as automated storage systems, conveyors, and automatic sorters.  The Company's products are used for automation in manufacturing and distribution businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Daifuku Co Ltd (6383 JP)

Daifuku (6383 JP): Global Automation Leader with Structural AI Tailwinds

Company expanding AI-driven logistics and semiconductor cleanroom solutions, with projected earnings growth and justified structural premium.

Rahul Jain

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Geekplus Technology IPO (2590 HK): Valuation Insights

Geekplus, a leader in the global autonomous mobile robot (AMR) market, is seeking to raise US$300 million. In this note, I present my forecasts and...

Arun George

Geekplus Technology IPO (2590 HK): The Investment Case

Geekplus, a leader in the global autonomous mobile robot market, is seeking to raise US$300 million. In this note, I discuss the investment case.

Arun George

Okamura (7994): Why Management Incentives Are So Important

Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.

Michael Allen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Daifuku (6383 JP): Global Automation Leader with Structural AI Tailwinds

​Company expanding AI-driven logistics and semiconductor cleanroom solutions, with projected earnings growth and justified structural premium.

Rahul Jain

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Geekplus Technology IPO (2590 HK): Valuation Insights

Geekplus, a leader in the global autonomous mobile robot (AMR) market, is seeking to raise US$300 million. In this note, I present my forecasts and...

Arun George

Geekplus Technology IPO (2590 HK): The Investment Case

Geekplus, a leader in the global autonomous mobile robot market, is seeking to raise US$300 million. In this note, I discuss the investment case.

Arun George

Okamura (7994): Why Management Incentives Are So Important

​Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.

Michael Allen

Company expanding AI-driven logistics and semiconductor cleanroom solutions, with projected earnings growth and justified structural premium.

Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.