Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Earnings season may accelerate the rotation from AI momentum into quality compounders with earnings visibility.</li>
<li>Macro headwinds with oil above $100, yen at 40-year lows, BOJ tightening on the horizon</li>
<li>We expect this dynamic to persist through August reporting season.</li>
</ul>


Earnings season may accelerate the rotation from AI momentum into quality compounders with earnings visibility.
Macro headwinds with oil above $100, yen at 40-year lows, BOJ tightening on the horizon
We expect this dynamic to persist through August reporting season.


Japan Strategy Weekly | Bifurcation Season

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<ul>
<li>Alphabet revealed plans to spend aggressively on AI computing capacity, a positive for semi-caps and Japan’s SPE firms.</li>
<li>A mild negative for Harmonic Drive after Musk flagged that scaling Optimus production will be tough to scale.</li>
<li>News that SK Hynix is being considered as a partner to run Intel's Ohio campus is a positive for SPE names in Intel's supply chain and memory-related names.</li>
</ul>


Alphabet revealed plans to spend aggressively on AI computing capacity, a positive for semi-caps and Japan’s SPE firms.
A mild negative for Harmonic Drive after Musk flagged that scaling Optimus production will be tough to scale.
News that SK Hynix is being considered as a partner to run Intel's Ohio campus is a positive for SPE names in Intel's supply chain and memory-related names.


Japan Morning Connection: Intel Supply Chain in Focus as SK Hynix Eyed for Ohio Campus Role

<ul>
<li>US semi-cap peers sold off on TSMC's higher capex outlook.</li>
<li>Space names such as QPS and Astroscale may suffer from AST SpaceMobile -17% and SpaceX's scrubbed Starship test weighing on sentiment.</li>
<li>Despite yesterday's moves starting to look excessive with Kioxia -15%, Ibiden Co Ltd -10%, Kokusai Electric -8.8%, QD Laser -18.6%, its likely we are in for another frigid start.</li>
</ul>


US semi-cap peers sold off on TSMC's higher capex outlook.
Space names such as QPS and Astroscale may suffer from AST SpaceMobile -17% and SpaceX's scrubbed Starship test weighing on sentiment.
Despite yesterday's moves starting to look excessive with Kioxia -15%, Ibiden Co Ltd -10%, Kokusai Electric -8.8%, QD Laser -18.6%, its likely we are in for another frigid start.


Japan Morning Connection: Pressure Builds for Memory Names as Chinese Capacity Concerns Grow

<ul>
<li>SEI and other optical/cable makers set to recover from recent underperformance on Meta news.</li>
<li>Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).</li>
<li>SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.</li>
</ul>


SEI and other optical/cable makers set to recover from recent underperformance on Meta news.
Memory plays and SPE laggards should get a lift on the news that Micron is planning to increase its US capex to $250bn (from $200bn).
SUMCO Corp and Shin Etsu Chemical likely to get a boost after Siltronic upgraded to outperform by BNP.


Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

<ul>
<li>After a selloff yesterday, AI names are set to recover as NVDA's Kyber roadmap fears ease.</li>
<li>Likely we see a break for NEC Corp which has been trading better recently with flows moving out of SPE.</li>
<li>Interesting to see GS upgrade Nitto Boseki to buy on the expectation that the supply-demand balance for T-glass used in chip packaging will remain significantly tighter than previous assumptions.</li>
</ul>


After a selloff yesterday, AI names are set to recover as NVDA's Kyber roadmap fears ease.
Likely we see a break for NEC Corp which has been trading better recently with flows moving out of SPE.
Interesting to see GS upgrade Nitto Boseki to buy on the expectation that the supply-demand balance for T-glass used in chip packaging will remain significantly tighter than previous assumptions.


Japan Morning Connection: TDK Lags as Peers with More MLCC Exposure Capture AI-Driven Gains

Japan

Kokusai Electric Corporation manufactures and distributes semiconductor manufacturing systems. The Company produces batch processing systems, single wafer processing systems, and other systems. Kokusai Electric also operates advanced thermal process technology development, training, and other businesses.

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Kokusai Electric (6525 JP)

Japan Strategy Weekly | Bifurcation Season

Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Mark Chadwick

Japan Morning Connection: Intel Supply Chain in Focus as SK Hynix Eyed for Ohio Campus Role

News that SK Hynix is being considered as a partner to run Intel's Ohio campus is a positive for SPE names in Intel's supply chain and memory...

Andrew Jackson

Japan Morning Connection: Pressure Builds for Memory Names as Chinese Capacity Concerns Grow

While recent drops are starting to look excessive, its likely we are in for another frigid start to the days trading ahead of the long w/e for Japan.

Andrew Jackson

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Japan Morning Connection: TDK Lags as Peers with More MLCC Exposure Capture AI-Driven Gains

AI names set for a relief rally as NVDA roadmap fears ease. MLCC exposed plays Murata and Taiyo Yuden outperform TDK while it is weighed down by...

Andrew Jackson

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Strategy Weekly | Bifurcation Season

​Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Mark Chadwick

Japan Morning Connection: Intel Supply Chain in Focus as SK Hynix Eyed for Ohio Campus Role

News that SK Hynix is being considered as a partner to run Intel's Ohio campus is a positive for SPE names in Intel's supply chain and memory...

Andrew Jackson

Japan Morning Connection: Pressure Builds for Memory Names as Chinese Capacity Concerns Grow

While recent drops are starting to look excessive, its likely we are in for another frigid start to the days trading ahead of the long w/e for Japan.

Andrew Jackson

Japan Morning Connection: SEI Well Placed as META Names It a Direct Supplier for Iris AI Chips

​Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...

Andrew Jackson

Japan Morning Connection: TDK Lags as Peers with More MLCC Exposure Capture AI-Driven Gains

AI names set for a relief rally as NVDA roadmap fears ease. MLCC exposed plays Murata and Taiyo Yuden outperform TDK while it is weighed down by...

Andrew Jackson

Investors may shift from AI momentum to quality compounders amid macro headwinds, with this trend likely continuing through August earnings season.

Optical/cable makers set to recover on Meta news, Micron's increased capex to benefit memory plays, Sumco and Shin Etsu set to follow European...