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

The <a href="https://www.wsj.com/articles/western-digital-in-advanced-talks-to-merge-with-kioxia-in-20-billion-plus-deal-11629914820?mod=hp_lead_pos3" target="_blank" rel="noopener">WSJ reported</a> that Kioxia and Western Digital had been continuing their previously rumoured talks and that discussions appear to be heating up. Details included a potential mid-September timeline, $20bn valuation and the deal being for shares rather than cash which would make sense given WDC’s market cap and leverage.

The WSJ reported that Kioxia and Western Digital had been continuing their previously rumoured talks and that discussions appear to be heating up. Details included a potential mid-September timeline, $20bn valuation and the deal being for shares rather than cash which would make sense given WDC’s market cap and leverage.

Toshiba – Possibility of a Kioxia-Western Digital Deal

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Equity Bottom-Up

In its most recent earnings call WDC reported higher HDD revenues than its flash revenues.  Is this a long-term trend?  This Insight explains why flash revenues are likely to regain first place, and gives an indication of how that might impact total revenues in the future.

In its most recent earnings call WDC reported higher HDD revenues than its flash revenues.  Is this a long-term trend?  This Insight explains why flash revenues are likely to regain first place, and gives an indication of how that might impact total revenues in the future. 

SK hynix held its second quarter earnings call on Tuesday, July 27, reporting a 22% sequential revenue increase and significant improvements in profits.  The company's outlook for the remainder of the year is very bullish.

SK hynix held its second quarter earnings call on Tuesday, July 27, reporting a 22% sequential revenue increase and significant improvements in profits.  The company's outlook for the remainder of the year is very bullish.

SK Hynix Expects Good Year to Get Even Better!

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> is the second-largest Dynamic Random-Access Memory (DRAM) semiconductor Integrated Device Manufacturer (IDM) in the world and is set to become a major player in the global NAND industry following the acquisition of <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a>’s NAND business. Based on the compelling demand outlook for the industry, the significant increase in spot memory prices this year, and the expected revenue uplift in 2022 from the closure of the Intel NAND acquisition there looks to be room for an upside surprise to current earnings expectations which could sustain the earnings upgrade cycle, for a stock that is trading on valuation multiples that are below historical average levels as well as that of global peers. This insight is also a natural follow up from an idea generated through our, machine learning-driven, proprietary GEM screening model, which takes a three-pronged approach to find the best medium-term long ideas within the top100 largest stocks in the MSCI GEM Index: <a href="https://www.smartkarma.com/insights/screening-for-gems-july-2021" target="_blank" data-smartkarma-citation="insights:53931" rel="noopener">Screening for GEMs: July 2021</a>.

SK Hynix (000660 KS) is the second-largest Dynamic Random-Access Memory (DRAM) semiconductor Integrated Device Manufacturer (IDM) in the world and is set to become a major player in the global NAND industry following the acquisition of Intel Corp (INTC US)’s NAND business. Based on the compelling demand outlook for the industry, the significant increase in spot memory prices this year, and the expected revenue uplift in 2022 from the closure of the Intel NAND acquisition there looks to be room for an upside surprise to current earnings expectations which could sustain the earnings upgrade cycle, for a stock that is trading on valuation multiples that are below historical average levels as well as that of global peers. This insight is also a natural follow up from an idea generated through our, machine learning-driven, proprietary GEM screening model, which takes a three-pronged approach to find the best medium-term long ideas within the top100 largest stocks in the MSCI GEM Index: Screening for GEMs: July 2021.

SK Hynix: Leading DRAM IDM, Trading at Discount Multiples, in a Strong Demand Environment

Micron Technology announced its earnings on June 30, providing a lot of upbeat news while noting a few caveats.  The market is strong, the company is executing well, but tooling and new technologies will prevent margins from rising as high as they could.  Overall, the outlook for the company is good.

Micron Technology announced its earnings on June 30, providing a lot of upbeat news while noting a few caveats.  The market is strong, the company is executing well, but tooling and new technologies will prevent margins from rising as high as they could.  Overall, the outlook for the company is good.

Japan

Kioxia Holdings Corporation manufactures semiconductor memory products. The Company develops, produces, and sells flash memory cards, solid state drives, secure digital memory cards, and other products. Kioxia Holdings also operates group management strategy formulation and management.

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Kioxia Holdings (285A JP)

Toshiba – Possibility of a Kioxia-Western Digital Deal

As Kioxia nears either an IPO or a merger with WDC we believe there is moderate short-term upside for Toshiba though an all share deal by WDC could...

Mio Kato

WDC: An HDD or an SSD Company?

WDC's flash revenues, have slipped below its HDD revenues, but should regain the top spot soon, and to remain there. Why is that, and how will...

Jim Handy

SK Hynix Expects Good Year to Get Even Better!

SK hynix posted a 22% sequential revenue increase with operating profits doubling, but the company expects for the remainder of the year to be even...

Jim Handy

SK Hynix: Leading DRAM IDM, Trading at Discount Multiples, in a Strong Demand Environment

In this insight, we take a closer look at SK Hynix, the 2nd largest DRAM IDM in the world and its potential for re-rating driven by a continuation...

Wium Malan, CFA

Micron 3Q Call: Good News with a Caution

Micron's June 30 quarterly earnings call was not ALL good news, but there was enough good news to make the company very attractive. The outlook is...

Jim Handy

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