Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>The main thesis for investing in <a href="https://www.smartkarma.com/entities/kanadevia-corporation" target="_blank" data-smartkarma-citation="entities:14969:1" rel="noopener">Kanadevia (7004 JP)</a>has a defensible moat in the green ships repair capabilities and still overlooked by investors. </li>
<li>The ships' retrofit investment outweighs the EU ETS penalty for being dirty ships. </li>
<li>18x PER and 0.9x book value, with around 7x EV/EBITDA, it is trading at a very undemanding valuation with the above mentioned catalyst. </li>
</ul>


The main thesis for investing in Kanadevia (7004 JP)has a defensible moat in the green ships repair capabilities and still overlooked by investors. 
The ships' retrofit investment outweighs the EU ETS penalty for being dirty ships. 
18x PER and 0.9x book value, with around 7x EV/EBITDA, it is trading at a very undemanding valuation with the above mentioned catalyst. 


Kanadevia (7004): Value at High Margin Decarbon Tech

Japan Specialist

Mark Chadwick

<ul>
<li>City Index acquired 5.11% of Nippon Paper, likely targeting undervalued real estate and forestry assets alongside structural reforms and potential asset disposals. </li>
<li>Oasis Management acquired over 5% of Kanadevia, focusing on operational improvements, restructuring weaker businesses, and unlocking value from environmental and WtE operations. </li>
<li>Oasis Management disclosed a 5.39% stake in Ichikoh, potentially seeking governance improvements or encouraging a future buyout by parent company Valeo.</li>
</ul>


City Index acquired 5.11% of Nippon Paper, likely targeting undervalued real estate and forestry assets alongside structural reforms and potential asset disposals. 
Oasis Management acquired over 5% of Kanadevia, focusing on operational improvements, restructuring weaker businesses, and unlocking value from environmental and WtE operations. 
Oasis Management disclosed a 5.39% stake in Ichikoh, potentially seeking governance improvements or encouraging a future buyout by parent company Valeo.


Japan Activist Briefs | Kanadevia, Nippon Paper, Ichikoh

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>The <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> has been trending up for 3 weeks (including this week), our model flagged it as 'overbought'. Wall Street/Tokyo brokerages maintain medium-to-long-term bullish trajectories</li>
<li>Index rebalance will be official from October 1st: added Capcom, Kokusai Electric, and JX Advanced Metals, removing Archion, Konica Minolta, and Kanadevia.</li>
<li>The price-weighted index has been tilted further toward semiconductors, advanced manufacturing, tech growth, driving institutional flows into chip suppliers. Higher yields and potential further rate hikes present persistent headwind risk.</li>
</ul>


The Nikkei 225 (NKY INDEX) has been trending up for 3 weeks (including this week), our model flagged it as 'overbought'. Wall Street/Tokyo brokerages maintain medium-to-long-term bullish trajectories
Index rebalance will be official from October 1st: added Capcom, Kokusai Electric, and JX Advanced Metals, removing Archion, Konica Minolta, and Kanadevia.
The price-weighted index has been tilted further toward semiconductors, advanced manufacturing, tech growth, driving institutional flows into chip suppliers. Higher yields and potential further rate hikes present persistent headwind risk.


Nikkei 225 (NKY INDEX): Tactical Outlook Post Index Rebalance (Pullback Forecast)

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/jx-advanced-metals-corporation" target="_blank" data-smartkarma-citation="entities:44346:1" rel="noopener">JX Advanced Metals (5016)</a>, <a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525)</a> and <a href="https://www.smartkarma.com/entities/capcom-co-ltd" target="_blank" data-smartkarma-citation="entities:1459:1" rel="noopener">Capcom Co Ltd (9697)</a> replace <a href="https://www.smartkarma.com/entities/konica-minolta-inc" target="_blank" data-smartkarma-citation="entities:17287:1" rel="noopener">Konica Minolta (4902)</a>, <a href="https://www.smartkarma.com/entities/archion-corporation" target="_blank" data-smartkarma-citation="entities:47577:1" rel="noopener">Archion (543A)</a> and <a href="https://www.smartkarma.com/entities/kanadevia-corporation" target="_blank" data-smartkarma-citation="entities:14969:1" rel="noopener">Kanadevia (7004)</a> in the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 Index</a>.</li>
<li>With the new methodology, the index committee appears to be focused on adding stocks with high liquidity and restoring sector balance to align the index with the methodology.</li>
<li>With sector imbalance still rife, there could be 3 more changes for the index in March with more inclusions from the Information and Communications sector likely.</li>
</ul>



JX Advanced Metals (5016), Kokusai Electric (6525) and Capcom Co Ltd (9697) replace Konica Minolta (4902), Archion (543A) and Kanadevia (7004) in the Nikkei 225 Index.
With the new methodology, the index committee appears to be focused on adding stocks with high liquidity and restoring sector balance to align the index with the methodology.
With sector imbalance still rife, there could be 3 more changes for the index in March with more inclusions from the Information and Communications sector likely.


Nikkei 225 Index Rebalance: Capcom (9697 JP) Gets a Boss-Level Upgrade

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Huge gains for JP names with EU exposure yesterday looks set to continue as markets rotate out of AI plays.</li>
<li>Sanken Electric went limit up on the news of ON Semi's bid for Allegro, although ALGM trading very wide overnight.</li>
<li>EU mania should be enough to reboot Daikin's heat pump catalyst off stone sold levels.</li>
</ul>


Huge gains for JP names with EU exposure yesterday looks set to continue as markets rotate out of AI plays.
Sanken Electric went limit up on the news of ON Semi's bid for Allegro, although ALGM trading very wide overnight.
EU mania should be enough to reboot Daikin's heat pump catalyst off stone sold levels.


Japan Morning Connection: Tech Out, All Things EU In

Japan

Kanadevia Corporation develops, manufactures, and sells environmental equipment and facilities including garbage incinerators and industrial waste processing facilities, plants, ships, steel structures, and industrial machinery.

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Kanadevia (7004 JP)

Kanadevia (7004): Value at High Margin Decarbon Tech

Kanadevia (7004) has a defensible moat in green ships retrofit that will attract a lot of business in the coming years thanks to strict EU...

Henry Soediarko

Japan Activist Briefs | Kanadevia, Nippon Paper, Ichikoh

Activist firms City Index and Oasis Management target undervalued assets and operational improvements in Japanese companies Nippon Paper,...

Mark Chadwick

Nikkei 225 (NKY INDEX): Tactical Outlook Post Index Rebalance (Pullback Forecast)

The Nikkei 225 rallying on tech gains, but our model indicates a short-term overbought condition. We expect a 1-2 week pullback, details are...

Nico Rosti

Nikkei 225 Index Rebalance: Capcom (9697 JP) Gets a Boss-Level Upgrade

The Nikkei225 Index rebalances at the close today. Positioning has increased in nearly all adds/deletes since announcement of the changes. JX...

Brian Freitas

Japan Morning Connection: Tech Out, All Things EU In

Gains for JP names with EU exposure as markets shift away from AI plays. Sanken Electric limit up on ON Semi's bid for Allegro. Daikin's heat pump...

Andrew Jackson

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