Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Sharp turnaround from FY22–FY24, with revenue rising from ¥1.17 tn to ¥1.63 tn and operating profit swinging from losses to ¥143.5 bn, led by civil aero engines and defense.</li>
<li>The order backlog has grown to ¥1.6 tn (↑¥226 bn YoY), underpinned by defense orders and aftermarket demand, with management guiding continued top-line and margin expansion.</li>
<li> EPS is forecast to grow at a ~7% CAGR through FY27; at ~18x FY27E P/E and ~9x EV/EBITDA, valuations appear reasonable for a capital-efficient aero-led compounder.</li>
</ul>


Sharp turnaround from FY22–FY24, with revenue rising from ¥1.17 tn to ¥1.63 tn and operating profit swinging from losses to ¥143.5 bn, led by civil aero engines and defense.
The order backlog has grown to ¥1.6 tn (↑¥226 bn YoY), underpinned by defense orders and aftermarket demand, with management guiding continued top-line and margin expansion.
 EPS is forecast to grow at a ~7% CAGR through FY27; at ~18x FY27E P/E and ~9x EV/EBITDA, valuations appear reasonable for a capital-efficient aero-led compounder.


IHI Corporation (TSE:7013) – Rebound in Aero Drives Multi-Year Upside

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ihi-corp" target="_blank" data-smartkarma-citation="entities:4819:1" rel="noopener">IHI Corp (7013 JP)</a> has had a monster rally over the last year with the stock price tripling over the period. That could now result in a global index inclusion.</li>
<li>
<a href="https://www.smartkarma.com/entities/ihi-corp" target="_blank" data-smartkarma-citation="entities:4819:1" rel="noopener">IHI Corp (7013 JP)</a> has outperformed its peers over the last year but still trades cheaper than the average and median of its peers on quite a few valuation metrics.</li>
<li>The appears to be a lot of positioning in the stock, but we see a similar pattern in its peers too. There could be some upside over the near term.</li>
</ul>



IHI Corp (7013 JP) has had a monster rally over the last year with the stock price tripling over the period. That could now result in a global index inclusion.

IHI Corp (7013 JP) has outperformed its peers over the last year but still trades cheaper than the average and median of its peers on quite a few valuation metrics.
The appears to be a lot of positioning in the stock, but we see a similar pattern in its peers too. There could be some upside over the near term.


IHI Corp (7013 JP): Global Index Inclusion in May

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Memory names surging after bullish broker upgrades as mkt refuses to sell off into the shutdown.</li>
<li>Boeing taking a break but outlook for CF suppliers such as Toray ahead of the announcement for now Chinese orders looks positive.</li>
<li>Oil takes a sizeable hit with OPEC signalling supply increases on the way.</li>
</ul>


Memory names surging after bullish broker upgrades as mkt refuses to sell off into the shutdown.
Boeing taking a break but outlook for CF suppliers such as Toray ahead of the announcement for now Chinese orders looks positive.
Oil takes a sizeable hit with OPEC signalling supply increases on the way.


Japan Morning Connection: Wolfspeed Out of Chapter 11 as Expected and Stock Rallies 1726%

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of JPX stocks as of Dec 5th. The aggregated net margin trading position is USD19,761m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&amp;S, Mitsubishi UFJ Financial, Disco, Daihen, Nintendo, Carta, Toyoda Gosei, Lasertec, Advantest, Softbank.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Dec 5th. The aggregated net margin trading position is USD19,761m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&amp;S, Mitsubishi UFJ Financial, Disco, Daihen, Nintendo, Carta, Toyoda Gosei, Lasertec, Advantest, Softbank.


JPX Margin Trading Weekly (Dec 5th): Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&S

<ul>
<li>We analyzed the changes in margin trading positions of JPX stocks as of Nov 28th. The aggregated net margin trading position is USD19,551m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in SBI, Advantest, Furukawa Electric, Mizuho Financial, Lasertec, Fujikura, Toyoda Gosei, Mitsubishi Electric, Mitsui E&amp;S, Daihen, Sbi, Advantest, Furukawa Electric, Mizuho Financial.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Nov 28th. The aggregated net margin trading position is USD19,551m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in SBI, Advantest, Furukawa Electric, Mizuho Financial, Lasertec, Fujikura, Toyoda Gosei, Mitsubishi Electric, Mitsui E&amp;S, Daihen, Sbi, Advantest, Furukawa Electric, Mizuho Financial.


JPX Margin Trading Weekly (Nov 28th): SBI, Advantest, Furukawa Electric, Mizuho Financial, Lasertec

Japan

IHI Corporation manufactures heavy machinery. The Company produces aircraft jet engines, rocket propulsion systems, and ships for military and commercial use. Ishikawajima-Harima also constructs petroleum refineries and nuclear power plants.

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

IHI Corp (7013 JP)

IHI Corporation (TSE:7013) – Rebound in Aero Drives Multi-Year Upside

Strong revenue and profit growth expected for aerospace company, driven by civil aero engines and defense orders, with promising outlook for...

Rahul Jain

IHI Corp (7013 JP): Global Index Inclusion in May

IHI is up 24% over the last few weeks and the upcoming index inclusion could give it another bump higher. If you are in, look to exit over the next...

Brian Freitas

Japan Morning Connection: Wolfspeed Out of Chapter 11 as Expected and Stock Rallies 1726%

Markets largely shake off shutdown concerns with memory exploding higher, watch 285A Kioxia. Toray may get a leg higher when China confirms...

Andrew Jackson

JPX Margin Trading Weekly (Dec 5th): Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&S

We analyzed JPX margin trading positions report for the past week and highlighted Carta (3688 JP), Toyoda Gosei (7282 JP), Lasertec (6920 JP),...

Ke Yan, CFA, FRM

JPX Margin Trading Weekly (Nov 28th): SBI, Advantest, Furukawa Electric, Mizuho Financial, Lasertec

We analyzed JPX margin trading positions report for the past week and highlighted SBI (8473 JP), Advantest (6857 JP), Furukawa Electric (5801 JP),...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

IHI Corporation (TSE:7013) – Rebound in Aero Drives Multi-Year Upside

​Strong revenue and profit growth expected for aerospace company, driven by civil aero engines and defense orders, with promising outlook for...

Rahul Jain

IHI Corp (7013 JP): Global Index Inclusion in May

IHI is up 24% over the last few weeks and the upcoming index inclusion could give it another bump higher. If you are in, look to exit over the next...

Brian Freitas

Japan Morning Connection: Wolfspeed Out of Chapter 11 as Expected and Stock Rallies 1726%

Markets largely shake off shutdown concerns with memory exploding higher, watch 285A Kioxia. Toray may get a leg higher when China confirms...

Andrew Jackson

JPX Margin Trading Weekly (Dec 5th): Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&S

We analyzed JPX margin trading positions report for the past week and highlighted Carta (3688 JP), Toyoda Gosei (7282 JP), Lasertec (6920 JP),...

Ke Yan, CFA, FRM

JPX Margin Trading Weekly (Nov 28th): SBI, Advantest, Furukawa Electric, Mizuho Financial, Lasertec

We analyzed JPX margin trading positions report for the past week and highlighted SBI (8473 JP), Advantest (6857 JP), Furukawa Electric (5801 JP),...

Ke Yan, CFA, FRM

Strong revenue and profit growth expected for aerospace company, driven by civil aero engines and defense orders, with promising outlook for...