Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

Event-Driven

<ul>
<li>At the beginning of the month, we suggested that setting up trades based on TOPIX outperforming Nikkei looked interesting. </li>
<li>This skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return. </li>
<li>That is despite Nikkei rising 3.8% since we published our initial note.</li>
</ul>


At the beginning of the month, we suggested that setting up trades based on TOPIX outperforming Nikkei looked interesting. 
This skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return. 
That is despite Nikkei rising 3.8% since we published our initial note.


Checking in on the Topix-Nikkei Skew Trade

<ul>
<li>Early last year as COVID was breaking and the BOJ doubled its ETF purchases shifting to TOPIX ETFs from Nikkei ETFs we brought up this trade. </li>
<li>With a long weekend adding to the mix conditions were abnormal but our suggested trades generated 10-12% pure alpha within four trading days. </li>
<li>This trade is starting to look interesting to us again though returns are likely to be less explosive but more persistent this time.</li>
</ul>


Early last year as COVID was breaking and the BOJ doubled its ETF purchases shifting to TOPIX ETFs from Nikkei ETFs we brought up this trade. 
With a long weekend adding to the mix conditions were abnormal but our suggested trades generated 10-12% pure alpha within four trading days. 
This trade is starting to look interesting to us again though returns are likely to be less explosive but more persistent this time.


Equity Bottom-Up

Hoya’s IT segment is well known for offering a variety of industry leading products such as 3.5 inch glass platters for HDDs and EUV mask blanks that generate spectacular margins. With a successful launch of its MiyoSmart glasses in China, Hoya now appears to have that banner product in the Life Care segment as well.

Hoya’s IT segment is well known for offering a variety of industry leading products such as 3.5 inch glass platters for HDDs and EUV mask blanks that generate spectacular margins. With a successful launch of its MiyoSmart glasses in China, Hoya now appears to have that banner product in the Life Care segment as well. 

Hoya – MiyoSmart Extends Industry Leading Premium Product Strategy to Life Care

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

I attended the analyst meeting of HOYA (7741) on Thursday, October 28, and I would like to discuss it in conjunction with the view of the corporate governance.HOYA has always been the top rated company since Metrical began evaluating the corporate governance of listed companies, and as of October 2021, HOYA remains the top rated company in the Metrical universe of 1,717 companies.

I attended the analyst meeting of HOYA (7741) on Thursday, October 28, and I would like to discuss it in conjunction with the view of the corporate governance.HOYA has always been the top rated company since Metrical began evaluating the corporate governance of listed companies, and as of October 2021, HOYA remains the top rated company in the Metrical universe of 1,717 companies.

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/hoya-corp" target="_blank" data-smartkarma-citation="entities:8990:1" rel="noopener">Hoya Corp (7741 JP)</a>  reported its 2Q FY03/2022 results on Thursday (28th October) which saw revenues growing 16% YoY to JPY162.6bn while reported OP for the quarter increased 14% YoY to JPY49.2bn. The company’s revenue and profits were well above its own guidance for 2QFY03/2022 while reported revenue for the quarter beat consensus estimates by 2.8% and OP beat consensus by a huge margin of 53.2%.

Hoya Corp (7741 JP)  reported its 2Q FY03/2022 results on Thursday (28th October) which saw revenues growing 16% YoY to JPY162.6bn while reported OP for the quarter increased 14% YoY to JPY49.2bn. The company’s revenue and profits were well above its own guidance for 2QFY03/2022 while reported revenue for the quarter beat consensus estimates by 2.8% and OP beat consensus by a huge margin of 53.2%.

Hoya: Long-Term Prospects Seem Attractive Though Some Short-Term Weaknesses Exist

Japan

Hoya Corp manufactures electro-optics products such as mask blanks for semiconductors, photomasks for LCD panels, optical glasses, glass memory disks for HDDs, medical flexible endoscopes, eyeglasses, and contact lenses. The Company also provides information system architecture.

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Hoya Corp (7741 JP)

Checking in on the Topix-Nikkei Skew Trade

Our TOPIX-Nikkei skew trade has a slight inherent short bias as Nikkei is more growth skewed but it has nevertheless generated a positive return...

Mio Kato

Revisiting the Topix-Nikkei Skew Trade

Early last year we suggested trading this skew which would have generated 10-12% pure alpha within four trading days. This trade is starting to...

Mio Kato

Hoya – MiyoSmart Extends Industry Leading Premium Product Strategy to Life Care

With a successful launch of its MiyoSmart glasses in China, Hoya now appears to have a banner product in the Life Care segment as well as IT.

Mio Kato

Japan's Governance: HOYA (7741)

I attended the analyst meeting of HOYA (7741) on Thursday, October 28, and I would like to discuss it in conjunction with the view of the corporate...

Metrical Inc

Hoya: Long-Term Prospects Seem Attractive Though Some Short-Term Weaknesses Exist

Semiconductor shortage is negatively impacting Hoya's endoscope business and thin disposable endoscope margins are causing a temporary drop in...

Shifara Samsudeen, FCMA, CGMA

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