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

<a href="https://www.smartkarma.com/entities/11506" target="_blank" data-smartkarma-citation="entities:11506:1">Hanon Systems (018880 KS)</a> share price has outperformed its peers in the past 12 months and still command a valuation premium to its peers. In this report, we will discuss the following:<ul>
<li>1Q 2019 update</li>
<li>A look into its largest customers to date - <a href="https://www.smartkarma.com/entities/155" target="_blank" data-smartkarma-citation="entities:155:1">Hyundai Motor Co (005380 KS)</a>, how its market share in China has dwindled in the past few years.</li>
<li>
Diversification effort - the company has recently launched a customer diversification effort in its new business</li>
<li>Is it really Overvalued? We'll compare Hanon with its bigger, more profitable and higher inventory peers to see whether overvaluation is justifiable. </li>
</ul>

Hanon Systems (018880 KS) share price has outperformed its peers in the past 12 months and still command a valuation premium to its peers. In this report, we will discuss the following:
1Q 2019 update
A look into its largest customers to date - Hyundai Motor Co (005380 KS), how its market share in China has dwindled in the past few years.

Diversification effort - the company has recently launched a customer diversification effort in its new business
Is it really Overvalued? We'll compare Hanon with its bigger, more profitable and higher inventory peers to see whether overvaluation is justifiable. 


Hanon Systems (018880): Thesis Is Still Valid - Short.

Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

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.

This Insight is following our visit to <a href="https://www.smartkarma.com/entities/15395" target="_blank" data-smartkarma-citation="entities:15395:1">Keihin Corp (7251 JP)</a> last month. Our focus in the meeting was to mainly cover our key areas of concern, which include the reason for expecting a significant decline in FY03/19 OP despite steady results during the recent quarters, its stance on customer diversification beyond Honda, its aims for the key business segments and growth prospects in China.

This Insight is following our visit to Keihin Corp (7251 JP) last month. Our focus in the meeting was to mainly cover our key areas of concern, which include the reason for expecting a significant decline in FY03/19 OP despite steady results during the recent quarters, its stance on customer diversification beyond Honda, its aims for the key business segments and growth prospects in China.

Keihin: Key Takeaways from Our Company Visit

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Quantitative Analysis

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/082/163/original/2019-03-17_07-32-23.png?1552775594" class="editor-image img-responsive" data-smartkarma-image-id="82163"></figure>Source: Japan Analytics
</div>SIDEWAYS - Japanese equities have gove up half of their late-February gains in US dollar terms over the last two weeks. Poised just 1.7% above the fifty-day moving average, last breached to the downside six months ago, the market needs fresh catalysts. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/082/164/original/2019-03-17_07-54-56.png?1552777022" class="editor-image img-responsive" data-smartkarma-image-id="82164"></figure><div class="content-caption">Source: Japan Analytics</div>BOJ IS BACK - After almost a one-month hiatus, the Bank of Japan resumed purchases of exchange-traded funds, intervening four times in the last nine trading days. Further intervention is to be expected as the market adjusts to the continuing stream of weak macro data.  <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/082/165/original/2019-03-17_08-15-44.png?1552778203" class="editor-image img-responsive" data-smartkarma-image-id="82165"></figure><div class="content-caption">Source: Japan Analytics</div>THANK YOU, MIZUHO - <a href="https://www.smartkarma.com/entities/219" target="_blank" data-smartkarma-citation="entities:219:1">Mizuho' s (8411 JP)</a> ¥680b retail branch, software and foreign bond write down, and net profit forecast of ¥80b for FY 2018 has resulted in the market composite forecast for net income falling to ¥43.6t, 5.6% below the November peak. Forecast net income is now 1.2% below the level of one year ago, and seven sectors' forecasts are more than 10% lower than a year ago.   MARKET/SECTOR STRATEGY- We continue to recommend an underweight position in Japan in global portfolios and favour undervalued domestically-orientated companies in the Information Technology, Internet, Media, Transportation, Healthcare and Telecommunications sectors. We would avoid or short the financial sectors Banks, Non-Bank Finance and Multi-Industry. We would underweight the Auto, Machinery, Retail and Other Consumer Products sectors as consumer spending contracts further in the US, Europe, China and Japan. In the DETAIL section below, we will review Sector performance, company results, revisions and stock performance over the previous two weeks, as well as adding some brief comments on the Auto sector,  <a href="https://www.smartkarma.com/entities/1411" target="_blank" data-smartkarma-citation="entities:1411:1">Sumitomo Realty (8830 JP)</a>, <a href="https://www.smartkarma.com/entities/4508" target="_blank" data-smartkarma-citation="entities:4508:1">Sekisui House (1928 JP)</a>, <a href="https://www.smartkarma.com/entities/3294" target="_blank" data-smartkarma-citation="entities:3294:1">Pigeon (7956 JP)</a>, <a href="https://www.smartkarma.com/entities/8723" target="_blank" data-smartkarma-citation="entities:8723:1">Fuji Seal (7864 JP)</a>, and <a href="https://www.smartkarma.com/entities/3548" target="_blank" data-smartkarma-citation="entities:3548:1">Kawasaki Kisen (9107 JP)</a>


Source: Japan Analytics
SIDEWAYS - Japanese equities have gove up half of their late-February gains in US dollar terms over the last two weeks. Poised just 1.7% above the fifty-day moving average, last breached to the downside six months ago, the market needs fresh catalysts. Source: Japan AnalyticsBOJ IS BACK - After almost a one-month hiatus, the Bank of Japan resumed purchases of exchange-traded funds, intervening four times in the last nine trading days. Further intervention is to be expected as the market adjusts to the continuing stream of weak macro data.  Source: Japan AnalyticsTHANK YOU, MIZUHO - Mizuho' s (8411 JP) ¥680b retail branch, software and foreign bond write down, and net profit forecast of ¥80b for FY 2018 has resulted in the market composite forecast for net income falling to ¥43.6t, 5.6% below the November peak. Forecast net income is now 1.2% below the level of one year ago, and seven sectors' forecasts are more than 10% lower than a year ago.   MARKET/SECTOR STRATEGY- We continue to recommend an underweight position in Japan in global portfolios and favour undervalued domestically-orientated companies in the Information Technology, Internet, Media, Transportation, Healthcare and Telecommunications sectors. We would avoid or short the financial sectors Banks, Non-Bank Finance and Multi-Industry. We would underweight the Auto, Machinery, Retail and Other Consumer Products sectors as consumer spending contracts further in the US, Europe, China and Japan. In the DETAIL section below, we will review Sector performance, company results, revisions and stock performance over the previous two weeks, as well as adding some brief comments on the Auto sector,  Sumitomo Realty (8830 JP), Sekisui House (1928 JP), Pigeon (7956 JP), Fuji Seal (7864 JP), and Kawasaki Kisen (9107 JP)

🇯🇵 Japan • Fortnightly Update - Reverse Gear

<a href="https://www.smartkarma.com/entities/15395" target="_blank" data-smartkarma-citation="entities:15395:1">Keihin Corp (7251 JP)</a> posted strong 1Q FY03/19 results on Friday, witnessing revenue increase by 5% YoY while OP increased by 36.2% YoY beating our estimates as well as consensus estimates. Despite the strong growth in earnings this quarter, Keihin kept its guidance unchanged, expecting a 30% decline in OP for FY03/19E. The company does not give a clear reason to support such a significant decline despite the solid 1Q results and we continue to feel that the company is being overly conservative…

Keihin Corp (7251 JP) posted strong 1Q FY03/19 results on Friday, witnessing revenue increase by 5% YoY while OP increased by 36.2% YoY beating our estimates as well as consensus estimates. Despite the strong growth in earnings this quarter, Keihin kept its guidance unchanged, expecting a 30% decline in OP for FY03/19E. The company does not give a clear reason to support such a significant decline despite the solid 1Q results and we continue to feel that the company is being overly conservative…

Keihin 1Q Earnings Results Were Strong: Why Guide for a 30% OP Decline Still?

<a href="https://www.smartkarma.com/entities/15395" target="_blank" data-smartkarma-citation="entities:15395:1">Keihin Corp (7251 JP)</a> posted strong FY03/18 results on Friday, witnessing revenue increase by 8% YoY while OP increased by 23.3% YoY beating our estimates as well as the consensus estimates.  The stock closed 7.1% up on Monday despite opening low at JPY2,154 (previous close: JPY2,270).Revenue Recovers in FY03/18 Beating Consensus and Its Own EstimatesWhile the company had forecasted sales to grow 3.2% YoY, the figure was close to consensus estimates (7% YoY). We expected steady recovery in the…

Keihin Corp (7251 JP) posted strong FY03/18 results on Friday, witnessing revenue increase by 8% YoY while OP increased by 23.3% YoY beating our estimates as well as the consensus estimates.  The stock closed 7.1% up on Monday despite opening low at JPY2,154 (previous close: JPY2,270).Revenue Recovers in FY03/18 Beating Consensus and Its Own EstimatesWhile the company had forecasted sales to grow 3.2% YoY, the figure was close to consensus estimates (7% YoY). We expected steady recovery in the…

Keihin Guides For 30% OP Decline Despite a 23% Rise This Year

Japan

KEIHIN CORPORATION (an affiliate of Honda Motor) manufactures parts for automobiles, motorcycles, ships, and machinery. The Company's products include fuel injection systems, carburetors, electronic control units, and Automotive Air Conditioning Systems. Keihin Corporation sells its products in Japan, the US Taiwan, Thailand,and the UK.

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Keihin Corp (7251 JP)

Hanon Systems (018880): Thesis Is Still Valid - Short.

Hanon Systems (018880 KS) share price has outperformed its peers in the past 12 months and still command a valuation premium to its peers. In this...

Henry Soediarko

Keihin: Key Takeaways from Our Company Visit

This Insight is following our visit to Keihin Corp (7251 JP) last month. Our focus in the meeting was to mainly cover our key areas of concern,...

Aqila Ali

🇯🇵 Japan • Fortnightly Update - Reverse Gear

SIDEWAYS - Japanese equities have gove up half of their late-February gains in US dollar terms over the last two weeks. Poised just 1.7% above the...

Campbell Gunn

Keihin 1Q Earnings Results Were Strong: Why Guide for a 30% OP Decline Still?

Keihin Corp (7251 JP) posted strong 1Q FY03/19 results on Friday, witnessing revenue increase by 5% YoY while OP increased by 36.2% YoY beating our...

Aqila Ali

Keihin Guides For 30% OP Decline Despite a 23% Rise This Year

Keihin Corp (7251 JP) posted strong FY03/18 results on Friday, witnessing revenue increase by 8% YoY while OP increased by 23.3% YoY beating our...

Aqila Ali

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