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.

Equity Bottom-Up

<ul>
<li>Ferrotec shares have dropped by a third since last July and are now selling at 8.2x EPS guidance and 0.6x book value.</li>
<li>Sales and operating should start to recover in 2H of FY Mar-24, led by power semiconductor substrates.</li>
<li>Buy for the upturn in the semiconductor cycle and capacity expansion in Japan, China and Malaysia. No significant damage from the Noto Peninsula earthquake has been reported.</li>
</ul>


Ferrotec shares have dropped by a third since last July and are now selling at 8.2x EPS guidance and 0.6x book value.
Sales and operating should start to recover in 2H of FY Mar-24, led by power semiconductor substrates.
Buy for the upturn in the semiconductor cycle and capacity expansion in Japan, China and Malaysia. No significant damage from the Noto Peninsula earthquake has been reported.


Ferrotec (6890 JP): Return to Growth Led by Power Semiconductor Substrates

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

<ul>
<li>JPX's October 7 review adds 35 names and phases out 683 over eight quarterly steps, creating dated passive buying and selling in several AI and semiconductor stocks.</li>
<li>Ferrotec, santec, Seikoh Giken and C.Uyemura get passive buying at the October 29 close; Samco, Tazmo, Torex Semiconductor and Fixstars face eight quarterly passive selling dates.</li>
<li>The October 2027 re-evaluation is an escape hatch: deleted names that regain liquidity stop being cut, making buybacks, cross-shareholding unwinds and float will increase the catalysts to watch.</li>
</ul>


JPX's October 7 review adds 35 names and phases out 683 over eight quarterly steps, creating dated passive buying and selling in several AI and semiconductor stocks.
Ferrotec, santec, Seikoh Giken and C.Uyemura get passive buying at the October 29 close; Samco, Tazmo, Torex Semiconductor and Fixstars face eight quarterly passive selling dates.
The October 2027 re-evaluation is an escape hatch: deleted names that regain liquidity stop being cut, making buybacks, cross-shareholding unwinds and float will increase the catalysts to watch.


Japan AI Small Caps: Who Topix Funds Must Buy/Sell Following the Oct 30 Index Cull

Japan Specialist

Mark Chadwick

<ul>
<li>Hibiki Path has taken a stake in Fujikura Composites, arguing its high-quality golf-shaft business is undervalued due to conservative capital allocation, and is pushing for reforms to boost shareholder returns.</li>
<li>Asset Value Investors has taken a stake in Foster Electric, pressing for stronger capital returns to address excess cash and low ROE, despite short term tariffs &amp; rare earth risks</li>
<li>Ferrotec faces rising activist pressure as investors target value unlocking through monetising Chinese subsidiaries, simplifying its complex structure, and boosting shareholder returns.</li>
</ul>


Hibiki Path has taken a stake in Fujikura Composites, arguing its high-quality golf-shaft business is undervalued due to conservative capital allocation, and is pushing for reforms to boost shareholder returns.
Asset Value Investors has taken a stake in Foster Electric, pressing for stronger capital returns to address excess cash and low ROE, despite short term tariffs &amp; rare earth risks
Ferrotec faces rising activist pressure as investors target value unlocking through monetising Chinese subsidiaries, simplifying its complex structure, and boosting shareholder returns.


Japan Activist Briefs | Fujikura Composites, Foster Electric, Ferrotec

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Thematic (Sector/Industry)

<ul>
<li>A review of recent events/data impacting our investment themes and outlook</li>
<li>The correction in momentum is done as index moves mask the price action underneath</li>
<li>Will the Bank of Japan finally hike rates again ?</li>
</ul>


A review of recent events/data impacting our investment themes and outlook
The correction in momentum is done as index moves mask the price action underneath
Will the Bank of Japan finally hike rates again ?


<ul>
<li>US stocks fell as tech shares slid, with the Nasdaq down 1.8%, after a report said Oracle’s $10bn data centre project lost backing from Blue Owl Capital, reviving funding concerns.</li>
<li>Asahi Group will acquire 65% of Diageo’s East African business for ¥465bn, entering Kenya, Uganda and Tanzania, with FY25 sales of ¥155bn and completion expected in the 2H26.</li>
<li>Oasis Management disclosed an 8.5% stake in <strong>Ferrotec</strong>, attracted by its semiconductor exposure, low valuations and potential for corp action re-rating</li>
</ul>


US stocks fell as tech shares slid, with the Nasdaq down 1.8%, after a report said Oracle’s $10bn data centre project lost backing from Blue Owl Capital, reviving funding concerns.
Asahi Group will acquire 65% of Diageo’s East African business for ¥465bn, entering Kenya, Uganda and Tanzania, with FY25 sales of ¥155bn and completion expected in the 2H26.
Oasis Management disclosed an 8.5% stake in Ferrotec, attracted by its semiconductor exposure, low valuations and potential for corp action re-rating


Ohayo Japan | Oracle’s AI Build-Out: Who Pays the Bill?

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.

Price Gauge
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Ferrotec Corp (6890 JP)

Ferrotec (6890 JP): Return to Growth Led by Power Semiconductor Substrates

The share price has dropped by 33% since last July while sales and profits have started to recover. Demand for power semiconductor substrates is...

Scott Foster

Japan AI Small Caps: Who Topix Funds Must Buy/Sell Following the Oct 30 Index Cull

Topix funds must buy 6 and sell 15 Japanese AI/semiconductor small caps after the Oct 30 index cull. Names and flow sizes, plus notes on the Oct...

Nico Rosti

Japan Activist Briefs | Fujikura Composites, Foster Electric, Ferrotec

Investors push for reforms and value unlocking at Fujikura Composites, Foster Electric, and Ferrotec to boost shareholder returns.

Mark Chadwick

Overview #61- Back to the Races

A review of recent events/data impacting our investment themes and outlook. We look at the momentum correction and expectations for what happens next

Rikki Malik

Ohayo Japan | Oracle’s AI Build-Out: Who Pays the Bill?

US stocks fell due to tech shares sliding, Nasdaq down 1.8% after Oracle's data center project lost backing, raising funding concerns.

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Ferrotec (6890 JP): Return to Growth Led by Power Semiconductor Substrates

The share price has dropped by 33% since last July while sales and profits have started to recover. Demand for power semiconductor substrates is...

Scott Foster

Japan AI Small Caps: Who Topix Funds Must Buy/Sell Following the Oct 30 Index Cull

Topix funds must buy 6 and sell 15 Japanese AI/semiconductor small caps after the Oct 30 index cull. Names and flow sizes, plus notes on the Oct...

Nico Rosti

Japan Activist Briefs | Fujikura Composites, Foster Electric, Ferrotec

​Investors push for reforms and value unlocking at Fujikura Composites, Foster Electric, and Ferrotec to boost shareholder returns.

Mark Chadwick

Overview #61- Back to the Races

A review of recent events/data impacting our investment themes and outlook. We look at the momentum correction and expectations for what happens next

Rikki Malik

Ohayo Japan | Oracle’s AI Build-Out: Who Pays the Bill?

​US stocks fell due to tech shares sliding, Nasdaq down 1.8% after Oracle's data center project lost backing, raising funding concerns.

Mark Chadwick

Investors push for reforms and value unlocking at Fujikura Composites, Foster Electric, and Ferrotec to boost shareholder returns.

US stocks fell due to tech shares sliding, Nasdaq down 1.8% after Oracle's data center project lost backing, raising funding concerns.