Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener"><strong>Digital Garage (4819 JP)</strong></a> is probably too cheap. There is a fair bit of "easy" value there even assuming all the equity affiliate stakes are worth, well, nothing.</li>
<li>
<strong><a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a></strong> (CRP)'s 81.81%-held <strong><a href="https://www.smartkarma.com/entities/china-resources-new-energy-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:50306:1" rel="noopener">China Resources New Energy (001248 CH)</a></strong> xlosed up ~137% on debut, and worth ~350% of CRP's market cap. That's not sustainable.</li>
<li>
<strong><a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a> </strong>sticks to its guns, urging shareholders to hold their stock, signalling IFM can pay more. But realistically, IFM has declared terms best &amp; final.</li>
</ul>



Digital Garage (4819 JP) is probably too cheap. There is a fair bit of "easy" value there even assuming all the equity affiliate stakes are worth, well, nothing.

China Resources Power (836 HK) (CRP)'s 81.81%-held China Resources New Energy (001248 CH) xlosed up ~137% on debut, and worth ~350% of CRP's market cap. That's not sustainable.

Atlas Arteria (ALX AU) sticks to its guns, urging shareholders to hold their stock, signalling IFM can pay more. But realistically, IFM has declared terms best &amp; final.


Last Week In Event SPACE: Digital Garage/Kakaku, Chine Resources Power, Atlas Arteria

'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)

<p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p><p style="text-align: left;">As we move towards the beginning of the disclosure season for the March/June/September/ December cohort of companies, several companies are revising their forecasts upwards. We also had five early-bird micro-cap Q3 reports. Our best and worst pairing from yesterday's announcements is <a href="https://www.smartkarma.com/entities/capcom-co-ltd" target="_blank" data-smartkarma-citation="entities:1459:1" rel="noopener">Capcom (9697 JP)</a> and <a href="https://www.smartkarma.com/entities/biofermin-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:20533:1" rel="noopener">Biofermin Pharmaceutical (4517 JP)</a>.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/183/912/original/2021-01-22_05-48-25.png?1611262158" class="editor-image img-responsive" data-smartkarma-image-id="183912"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/183/913/original/2021-01-22_05-49-43.png?1611262202" class="editor-image img-responsive" data-smartkarma-image-id="183913"></figure></section><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>

• BEST &amp; WORST •As we move towards the beginning of the disclosure season for the March/June/September/ December cohort of companies, several companies are revising their forecasts upwards. We also had five early-bird micro-cap Q3 reports. Our best and worst pairing from yesterday's announcements is Capcom (9697 JP) and Biofermin Pharmaceutical (4517 JP).Source for all charts &amp; tables: Japan Analytics

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​01/​​​​​​​21 Capcom, Infomart, ISI-D

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

<p>Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications</p>

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/146/525/original/2020-07-17_06-19-01.png?1594934496" class="editor-image img-responsive" data-smartkarma-image-id="146525"></figure><div class="content-caption">Source • Japan Analytics</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/146/527/original/2020-07-17_06-37-29.png?1594935664" class="editor-image img-responsive" data-smartkarma-image-id="146527"></figure><div class="content-caption">Source • ZOOM</div><p><strong><a href="https://www.smartkarma.com/entities/zoom-corp" target="_blank" data-smartkarma-citation="entities:28943:1" rel="noopener">ZOOM (6694 JP)</a></strong>- Micro-cap ZOOM, not to be confused with <a href="https://www.smartkarma.com/entities/zoom-technologies-inc" target="_blank" data-smartkarma-citation="entities:28002:1" rel="noopener">ZOOM</a> US, although it appears many did just that in June, makes mobile audio recording equipment (as shown above) and was the only company that reported yesterday. The company has struggled in the wake of COVID-19 with parts shortages in China and the insolvency of two distribution companies in Europe which resulted in a ¥240 million impairment loss. Zoom has recently bought out the minorities in Zoom North America and will book a re-valuation gain which accounts for ¥178 million or two-thirds of the upward revision. Zoom has not generated positive operating cash flow since listing in March 2017 and has invested significantly in inventory and fixed assets for marginal residual returns. Despite yesterday's highly prescient 6.7% gain in Soom shares, we do not expect a second strike of lighting.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/146/528/original/2020-07-17_06-43-09.png?1594936605" class="editor-image img-responsive" data-smartkarma-image-id="146528"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/146/529/original/2020-07-17_06-55-14.png?1594936629" class="editor-image img-responsive" data-smartkarma-image-id="146529"></figure><div style="text-align: center;" class="content-caption">Source • Japan Analytics</div><hr><p></p><p style="text-align: center;"><strong>• COVID-19 •</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/146/536/original/File%202020-07-17%202%2039%2040.jpeg?1594937209" class="editor-image img-responsive" data-smartkarma-image-id="146536"></figure><div class="content-caption">Source • Our World In Data</div><p><strong>IN OTHER NEWS</strong> - Tokyo recorded a new recorded high in daily confirmed cases of COVID-19 yesterday, and Japan overall is back in the red-zone in the chart above with greater than 3% increase in the seven0day rolling average. In the last month, Japan has seen one of the fastest rates in case -count growth globally, and the reimposition of restrictions on social activity will soon be necessary. Such a change in direction is not yet discounted in the stock market. </p><div>
<hr>
<p style="text-align: center;"><strong>DAILY STATS</strong></p>
</div><hr><div><p style="text-align: center;"><br><strong>6 Annual • 2 Interim Forecasts/Revision</strong>s</p></div><div><ul>
<li>
<strong>Annual Forecast/Revision Score:</strong> 1 Positive / 1 Neutral / 4 Negative</li>
<li>
<strong>Interim Forecast/Revision Score Change:</strong> 1 Positive / 0 Neutral / 1 Negative</li>
<li>
<strong>Average Forecast/Revision Score Change:</strong> 0.8</li>
</ul></div>

Source • Japan AnalyticsSource • ZOOMZOOM (6694 JP)- Micro-cap ZOOM, not to be confused with ZOOM US, although it appears many did just that in June, makes mobile audio recording equipment (as shown above) and was the only company that reported yesterday. The company has struggled in the wake of COVID-19 with parts shortages in China and the insolvency of two distribution companies in Europe which resulted in a ¥240 million impairment loss. Zoom has recently bought out the minorities in Zoom North America and will book a re-valuation gain which accounts for ¥178 million or two-thirds of the upward revision. Zoom has not generated positive operating cash flow since listing in March 2017 and has invested significantly in inventory and fixed assets for marginal residual returns. Despite yesterday's highly prescient 6.7% gain in Soom shares, we do not expect a second strike of lighting.Source • Japan Analytics• COVID-19 •Source • Our World In DataIN OTHER NEWS - Tokyo recorded a new recorded high in daily confirmed cases of COVID-19 yesterday, and Japan overall is back in the red-zone in the chart above with greater than 3% increase in the seven0day rolling average. In the last month, Japan has seen one of the fastest rates in case -count growth globally, and the reimposition of restrictions on social activity will soon be necessary. Such a change in direction is not yet discounted in the stock market. 

DAILY STATS
 6 Annual • 2 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 1 Positive / 1 Neutral / 4 Negative

Interim Forecast/Revision Score Change: 1 Positive / 0 Neutral / 1 Negative

Average Forecast/Revision Score Change: 0.8


🇯🇵 JAPAN • Results & Revisions 16th July - The Other Zoom, ISI-D, Adastria

<p>We continue to see coronavirus concerns as helping correct the excess bullish sentiment across global equity markets in the short-term. Additionally, considering the dearth of breakdowns, we continue to believe this is a bull market until proven otherwise and a “buy the dip” strategy remains warranted. We recap importat technical levels across markets and highlight <span>opportunities within the Services, Technology, Financial Services, and Staples Sectors.</span></p>

We continue to see coronavirus concerns as helping correct the excess bullish sentiment across global equity markets in the short-term. Additionally, considering the dearth of breakdowns, we continue to believe this is a bull market until proven otherwise and a “buy the dip” strategy remains warranted. We recap importat technical levels across markets and highlight opportunities within the Services, Technology, Financial Services, and Staples Sectors.

Global Equity Strategy: Growth Over Value

Japan

Dentsu Soken Inc. offers integrated business solutions. The Company designs, develops, and provides enterprise system integration, think tank, social transformation support, and other solutions. Dentsu Soken serves customers in Japan.

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

Dentsu Soken (4812 JP)

Last Week In Event SPACE: Digital Garage/Kakaku, Chine Resources Power, Atlas Arteria

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

🇯🇵 JAPAN • Results & Revisions 01/21 Capcom, Infomart, ISI-D

As we move towards the beginning of the disclosure season for the March/June/September/ December cohort of companies, several companies are...

Campbell Gunn

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

🇯🇵 JAPAN • Results & Revisions 16th July - The Other Zoom, ISI-D, Adastria

ZOOM (6694 JP)- Micro-cap ZOOM, not to be confused with ZOOM US, although it appears many did just that in June, makes mobile audio recording...

Campbell Gunn

Global Equity Strategy: Growth Over Value

We continue to see coronavirus concerns as helping correct the excess bullish sentiment across global equity markets in the short-term....

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Last Week In Event SPACE: Digital Garage/Kakaku, Chine Resources Power, Atlas Arteria

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​01/​​​​​​​21 Capcom, Infomart, ISI-D

As we move towards the beginning of the disclosure season for the March/June/September/ December cohort of companies, several companies are...

Campbell Gunn

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

🇯🇵 JAPAN • Results & Revisions 16th July - The Other Zoom, ISI-D, Adastria

ZOOM (6694 JP)- Micro-cap ZOOM, not to be confused with ZOOM US, although it appears many did just that in June, makes mobile audio recording...

Campbell Gunn

Global Equity Strategy: Growth Over Value

We continue to see coronavirus concerns as helping correct the excess bullish sentiment across global equity markets in the short-term....

Vermilion Research

🇯🇵 JAPAN • Results & Revisions 01/21 Capcom, Infomart, ISI-D