Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Equity Bottom-Up

One of the punchier forecasts to have appeared in the last Japanese earnings season were those for <a href="https://www.smartkarma.com/entities/283" target="_blank" data-smartkarma-citation="entities:283:1">Applied Materials Inc (AMAT US)</a> supply chain name <a href="https://www.smartkarma.com/entities/4950" target="_blank" data-smartkarma-citation="entities:4950:1">Ferrotec Corp (6890 JP)</a> and it may be worth considering whether it can repeat the performance this time round. Following a 41% YoY gain in OP to ¥5.7bil in FY16, management is forecasting another 27% gain, this year, to ¥7.2bil. We suspect that this figure is going to end up being conservative, but even if it isn't, with enterprise value at just…

One of the punchier forecasts to have appeared in the last Japanese earnings season were those for Applied Materials Inc (AMAT US) supply chain name Ferrotec Corp (6890 JP) and it may be worth considering whether it can repeat the performance this time round. Following a 41% YoY gain in OP to ¥5.7bil in FY16, management is forecasting another 27% gain, this year, to ¥7.2bil. We suspect that this figure is going to end up being conservative, but even if it isn't, with enterprise value at just…

Ferrotec (6890 JP) - Exciting Late Cycle AMAT Supplier

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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<ul><li>Improving asset turnover, high level of cash sales, and good price momentum relative to its sector </li><li>Wafer demand above supply should continue as top 5 players produce over 90% of supply and no one plans to increase capacity before 2019 </li><li>JV with <a href="https://www.smartkarma.com/entities/4950" target="_blank" data-smartkarma-citation="entities:4950:1">Ferrotec Corp (6890 JP)</a> in China to produce up to 450k 8” wafers/month starting from 150k wafers/month, about 20% expansion </li><li>Trades above Asian Info Tech at 17CE* 25.2x PE but earnings have turned and GWC has reduced its gearing substantially </li><li>Risks: Top producers’ capacity increases and new regulations for product certifications</li></ul>* Consensus Estimates

Improving asset turnover, high level of cash sales, and good price momentum relative to its sector Wafer demand above supply should continue as top 5 players produce over 90% of supply and no one plans to increase capacity before 2019 JV with Ferrotec Corp (6890 JP) in China to produce up to 450k 8” wafers/month starting from 150k wafers/month, about 20% expansion Trades above Asian Info Tech at 17CE* 25.2x PE but earnings have turned and GWC has reduced its gearing substantially Risks: Top producers’ capacity increases and new regulations for product certifications* Consensus Estimates

GWC (6488 TT): The World's Third Largest Wafer Producer

Japan

Ferrotec Corporation develops, manufactures, and sells equipment that incorporates magnetic fluid (ferrofluid) technology. The Company manufactures and processes electronics components, manufactures machine tools, and cleans parts used in semiconductor manufacturing equipment as CMS (contract manufacturing service) business in China.

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Ferrotec Corp (6890 JP)

Ferrotec (6890 JP) - Exciting Late Cycle AMAT Supplier

One of the punchier forecasts to have appeared in the last Japanese earnings season were those for Applied Materials Inc (AMAT US) supply chain...

Pelham Smithers Associates

GWC (6488 TT): The World's Third Largest Wafer Producer

Improving asset turnover, high level of cash sales, and good pricemomentum relative to its sector Wafer demand above supply should continue as top...

A. Stotz Investment Research

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