Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Fanuc's Q3 sales and earnings beat analyst expectations. Sales rose 17% YoY and profit increased by 14%. </li>
<li>The bears will be able to point to the collapse in FA orders in Q3, but this just confirms what the Japan Machine Tool numbers have been signalling.</li>
<li>Robot orders remain strong as Fanuc continues to benefit from de-globalization and the need to modernize global supply chains.</li>
</ul>


Fanuc's Q3 sales and earnings beat analyst expectations. Sales rose 17% YoY and profit increased by 14%. 
The bears will be able to point to the collapse in FA orders in Q3, but this just confirms what the Japan Machine Tool numbers have been signalling.
Robot orders remain strong as Fanuc continues to benefit from de-globalization and the need to modernize global supply chains.


Fanuc (6954) | Forget FA, Robots Are the Future

<ul>
<li>Fanuc is a core structural growth stock that has fallen by -4% over the past year. We turn bullish with 8 days to earnings</li>
<li>We believe that Fanuc is a key beneficiary of continued investment in automation and realignment of supply chains globally</li>
<li>We focus on Fanuc’s core value drivers – revenue, margins, risk and investment – and see 25% upside for long term investors</li>
</ul>


Fanuc is a core structural growth stock that has fallen by -4% over the past year. We turn bullish with 8 days to earnings
We believe that Fanuc is a key beneficiary of continued investment in automation and realignment of supply chains globally
We focus on Fanuc’s core value drivers – revenue, margins, risk and investment – and see 25% upside for long term investors


Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

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.

<ul>
<li>Nidec has become an auto parts and factory automation company and should be valued as such. At 24x EPS guidance for FY Mar-23, the shares do not look particularly cheap.</li>
<li>1H results were good, but heavy up-front investment in e-axle traction motor systems for electric vehicles points to deferred gratification for shareholders. </li>
<li>Recession is starting to bite, the Yen is up and Japanese interest rates have only started to rise. Be careful when buying for long-term growth.</li>
</ul>


Nidec has become an auto parts and factory automation company and should be valued as such. At 24x EPS guidance for FY Mar-23, the shares do not look particularly cheap.
1H results were good, but heavy up-front investment in e-axle traction motor systems for electric vehicles points to deferred gratification for shareholders. 
Recession is starting to bite, the Yen is up and Japanese interest rates have only started to rise. Be careful when buying for long-term growth.


<ul>
<li>Machine Tool Orders in Japan decreased to 141 billion yen in October from 149 billion yen a year ago.</li>
<li>The 5.4% decline marks the start of the third downturn in Machine Tool Orders over the past decade. </li>
<li>We analyse those downturns and believe that Fanuc’s stock price has probably hit bottom, but THIS TIME IS DIFFERENT</li>
</ul>


Machine Tool Orders in Japan decreased to 141 billion yen in October from 149 billion yen a year ago.
The 5.4% decline marks the start of the third downturn in Machine Tool Orders over the past decade. 
We analyse those downturns and believe that Fanuc’s stock price has probably hit bottom, but THIS TIME IS DIFFERENT


Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Private Capital Markets

<ul>
<li>ROKAE Robotics is a Beijing-based supplier of next-generation flexible cobots and lightweight industrial robots backed by Chinese conglomerate New Hope Group and VC investors. </li>
<li>ROKAE Robotics has raised a total of ~CN¥900M in funding over 5 rounds. The last round was a CN¥400M private equity in May-21 that was led by New Hope Group. </li>
<li>The company operates a manufacturing industrial park in Shandong province with an annual output of 50,000+ robots. </li>
</ul>


ROKAE Robotics is a Beijing-based supplier of next-generation flexible cobots and lightweight industrial robots backed by Chinese conglomerate New Hope Group and VC investors. 
ROKAE Robotics has raised a total of ~CN¥900M in funding over 5 rounds. The last round was a CN¥400M private equity in May-21 that was led by New Hope Group. 
The company operates a manufacturing industrial park in Shandong province with an annual output of 50,000+ robots. 


ROKAE Robotics: Founder-Led Supplier of Flexible Cobots and Lightweight Industrial Robots

Japan

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

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

Fanuc Corp (6954 JP)

Fanuc (6954) | Forget FA, Robots Are the Future

Fanuc Q3 results were surprisingly strong, beating analyst expectations. Robot orders remain strong as Fanuc continues to benefit from de...

Mark Chadwick

Fanuc (6954) | Bullish on Robots

Fanuc is a core structural growth stock that has fallen by -4% over the past year. We turn bullish with 8 days to earnings

Mark Chadwick

Nidec (6594 JP): New Valuation Benchmark

It is fashionable to criticize Nidec's business model, but valuation compression is the greater risk. Japanese interest rates have started to rise...

Scott Foster

Fanuc (6954) | This Time Is Different

Japan Machine Tool Orders have entered the third downturn since GFC. Fanuc's valuation has already sunk to downturn levels, but we fear this...

Mark Chadwick

ROKAE Robotics: Founder-Led Supplier of Flexible Cobots and Lightweight Industrial Robots

ROKAE Robotics is one of our top picks in China's industrial robotics segment. Beijing-based robotics firm focuses on flexible cobots, lightweight...

Andrei Zakharov

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)