'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

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.

Thematic (Sector/Industry)

<div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/477/original/2020-07-23_10-42-06.png?1595468537" class="editor-image img-responsive" data-smartkarma-image-id="147477"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/478/original/2020-07-23_10-44-59.png?1595468712" class="editor-image img-responsive" data-smartkarma-image-id="147478"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/483/original/2020-07-23_11-31-51.png?1595471532" class="editor-image img-responsive" data-smartkarma-image-id="147483"></figure><div class="content-caption">Source • Japan Analytics</div>
<p><strong><a href="https://www.smartkarma.com/entities/obic-co-ltd" target="_blank" data-smartkarma-citation="entities:1273:1" rel="noopener">OBIC (4684 JP)</a></strong>- OBIC was the largest-cap company to report on Wednesday before the four-day holiday break. Despite a deceleration in the rate of revenue growth, the operating profit margin reached a record level of 58% in the first quarter as both COGS and SG&amp;A continue to decline. The other end of the Income Statement is less impressive. The 17 percentage point gap between the operating and CITC margins is also a new record. OBIC's ability to control its securities investment and returns at unconsolidated subsidiaries is much less impressive. OBIC is now the most Overbought IT Sector company in Japan, although the company's peer-relative earnings and forecast momentum has been declining. At an EV/ TTM OP of 34x times, valuations have only been higher during the 1999/2000 tech bubble and will act a constraint to the upside. With little margin for safety, we would not be buyers at this level.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/485/original/2020-07-23_11-40-21.png?1595472039" class="editor-image img-responsive" data-smartkarma-image-id="147485"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/480/original/2020-07-23_11-19-55.png?1595470809" class="editor-image img-responsive" data-smartkarma-image-id="147480"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/479/original/2020-07-23_10-46-52.png?1595468831" class="editor-image img-responsive" data-smartkarma-image-id="147479"></figure><div class="content-caption">Source • Japan Analytics<hr>
</div>
<p style="text-align: center;"><strong>DAILY STATS</strong></p>
</div><hr><div><p style="text-align: center;"><strong>24 Quarterly Results</strong></p></div><div><ul>
<li>
<strong>Results Score:</strong> 10 Positive / 1 Neutral / 13 Negative</li>
<li>
<strong>Average Results Score Change:</strong> -1.3</li>
<li>
<strong>Average % Change in Revenue:</strong> +1.8% Quarter YoY / +2.9% Rolling TTM YoY<em> (exc. Kosei Secs) </em>
</li>
<li>
<strong>Average Operating Profit Margin Change:</strong> -0.3ppt <em>(exc. Kosei Secs)</em>
</li>
<li>
<strong>Percentage Making Quarterly Losses:</strong> 25%</li>
</ul></div><hr><div><p style="text-align: center;"><br><strong>13 Annual • 11 Interim Forecasts/Revisions</strong></p></div><div><ul>
<li>Annual Forecast/Revision Score: 3 Positive / 2 Neutral / 8 Negative</li>
<li>Interim Forecast/Revision Score Change: 3 Positive / 1 Neutral / 7 Negative</li>
<li>Average Forecast/Revision Score Change: -7.6</li>
</ul></div>


Source • Japan Analytics
OBIC (4684 JP)- OBIC was the largest-cap company to report on Wednesday before the four-day holiday break. Despite a deceleration in the rate of revenue growth, the operating profit margin reached a record level of 58% in the first quarter as both COGS and SG&amp;A continue to decline. The other end of the Income Statement is less impressive. The 17 percentage point gap between the operating and CITC margins is also a new record. OBIC's ability to control its securities investment and returns at unconsolidated subsidiaries is much less impressive. OBIC is now the most Overbought IT Sector company in Japan, although the company's peer-relative earnings and forecast momentum has been declining. At an EV/ TTM OP of 34x times, valuations have only been higher during the 1999/2000 tech bubble and will act a constraint to the upside. With little margin for safety, we would not be buyers at this level.
Source • Japan Analytics

DAILY STATS
24 Quarterly Results

Results Score: 10 Positive / 1 Neutral / 13 Negative

Average Results Score Change: -1.3

Average % Change in Revenue: +1.8% Quarter YoY / +2.9% Rolling TTM YoY (exc. Kosei Secs) 


Average Operating Profit Margin Change: -0.3ppt (exc. Kosei Secs)


Percentage Making Quarterly Losses: 25%
 13 Annual • 11 Interim Forecasts/Revisions
Annual Forecast/Revision Score: 3 Positive / 2 Neutral / 8 Negative
Interim Forecast/Revision Score Change: 3 Positive / 1 Neutral / 7 Negative
Average Forecast/Revision Score Change: -7.6


🇯🇵 JAPAN • Results & Revisions 22nd July - OBIC, CyberAgent, Tokyo Steel & The Deep Freeze

Japan

DAIWA INDUSTRIES LTD. manufactures and sells freezers, refrigerators, and ice-making machines.  The Company produces showcases for mainly liquor stores and fast food markets as well.  Daiwa Industries also provides installation, repair, and maintenance services for industrial machines.

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

Daiwa Industries (6459 JP)

🇯🇵 JAPAN • Results & Revisions 22nd July - OBIC, CyberAgent, Tokyo Steel & The Deep Freeze

OBIC (4684 JP)- OBIC was the largest-cap company to report on Wednesday before the four-day holiday break. Despite a deceleration in the rate of...

Campbell Gunn

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)