Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Estee Lauder continues to  underwhelm on its China strategy, making names with less country exposure such as Kose look increasingly attractive</li>
<li>While the 7&amp;I deal outcome remains highly  uncertain, NKY225 replacement candidates should see a lift in the short-term</li>
<li>This includes PPIH, which looks oversold after yesterdays negative price reaction to the Founder's 22 year old son being promoted to a non-exec director.</li>
</ul>


Estee Lauder continues to  underwhelm on its China strategy, making names with less country exposure such as Kose look increasingly attractive
While the 7&amp;I deal outcome remains highly  uncertain, NKY225 replacement candidates should see a lift in the short-term
This includes PPIH, which looks oversold after yesterdays negative price reaction to the Founder's 22 year old son being promoted to a non-exec director.


Japan Morning Connection: Kose, 7&I, PPIH

<ul>
<li>Upbeat results briefing from <a href="https://www.smartkarma.com/entities/asahi-intecc-co-ltd" target="_blank" rel="noopener">Asahi Intecc</a> on Friday continues to make this look oversold with GPM bottoming, its MTP 1-year ahead of plan and strong growth outlooks for key markets China and US.</li>
<li>With numbers out for <a href="https://www.smartkarma.com/compose/insight/155896/Pan%20Pacific%20International%20Holdings%20(7532%20JP)" target="_blank" rel="noopener">PPIH</a> on Friday and the outlook reassuringly steady, this may start to get more attention as NKY225 inclusion candidate given it comes from the under-represented consumer goods segment.</li>
<li>AMAT numbers showing a decline in China revenues a red flag for Japanese SPE names overly reliant on China sales?</li>
</ul>


Upbeat results briefing from Asahi Intecc on Friday continues to make this look oversold with GPM bottoming, its MTP 1-year ahead of plan and strong growth outlooks for key markets China and US.
With numbers out for PPIH on Friday and the outlook reassuringly steady, this may start to get more attention as NKY225 inclusion candidate given it comes from the under-represented consumer goods segment.
AMAT numbers showing a decline in China revenues a red flag for Japanese SPE names overly reliant on China sales?


Japan Morning Connection: Asahi Intecc, PPIH

<ul>
<li>Gains for Micron on the potential for DDR5 price hikes should help lift <a href="https://www.smartkarma.com/entities/micronics-japan-co-ltd" target="_blank" rel="noopener">6871 Micronics</a> after yesterdays excessive weakness.</li>
<li>More cheer for US home builders after Smith Douglas number beat, adding to the upside story for Sumi Forestry and Selkisui House.</li>
<li>Defence related plays should remain in the spotlight with Kishida replacement candidates Ishiba and Kono both ex-defence ministers.</li>
</ul>


Gains for Micron on the potential for DDR5 price hikes should help lift 6871 Micronics after yesterdays excessive weakness.
More cheer for US home builders after Smith Douglas number beat, adding to the upside story for Sumi Forestry and Selkisui House.
Defence related plays should remain in the spotlight with Kishida replacement candidates Ishiba and Kono both ex-defence ministers.


Japan Morning Connection: Micronics, Mitsubishi Heavy, Kawasaki Heavy

<ul>
<li>ARM +5.7% will help lift <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" rel="noopener">9984 Softbank</a> which is lagging some of the other high-beta plays in Japan giving it plenty of room to rebound further.</li>
<li>The market is going to like the news that <a href="https://www.smartkarma.com/entities/sapporo-holdings-ltd" target="_blank" rel="noopener">2501 Sapporo</a> is finally listening to activist investors who have been angling for the firm to divest some of its large R/E holdings.</li>
<li>
<a href="https://www.smartkarma.com/entities/kose-corp" target="_blank" rel="noopener">4922 Kose</a> is looking more interesting after it's failure to rebound looks to have been caused by a negative read from 4911 Shiseido’s poor numbers rather than anything company specific.</li>
</ul>


ARM +5.7% will help lift 9984 Softbank which is lagging some of the other high-beta plays in Japan giving it plenty of room to rebound further.
The market is going to like the news that 2501 Sapporo is finally listening to activist investors who have been angling for the firm to divest some of its large R/E holdings.

4922 Kose is looking more interesting after it's failure to rebound looks to have been caused by a negative read from 4911 Shiseido’s poor numbers rather than anything company specific.


Japan Morning Connection: Softbank, Sapporo, Kose

<ul>
<li>Plenty of names which continue to look oversold in the recent volatility after posting better than expected numbers yesterday including <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563" rel="noopener">Sony Corp (6758 JP)</a> and <a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126" rel="noopener">Lasertec Corp (6920 JP)</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/puma-se" target="_blank" data-smartkarma-citation="entities:21697" rel="noopener">Puma (PUM GR)</a> -12.6% after 2Q numbers and guidance missed, setting a negative tone for sportswear including <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287" rel="noopener">ASICS Corp (7936 JP)</a> which has been in play after strong earnings and recent large share placement.</li>
<li>Numbers for <a href="https://www.smartkarma.com/entities/shiseido-co-ltd" target="_blank" data-smartkarma-citation="entities:5718" rel="noopener">Shiseido Company (4911 JP)</a> and <a href="https://www.smartkarma.com/entities/kose-corp" target="_blank" data-smartkarma-citation="entities:18009" rel="noopener">Kose Corp (4922 JP)</a> point to diverging paths, which looks conducive for the 4922-4911 pair setup.</li>
</ul>


Plenty of names which continue to look oversold in the recent volatility after posting better than expected numbers yesterday including Sony Corp (6758 JP) and Lasertec Corp (6920 JP).

Puma (PUM GR) -12.6% after 2Q numbers and guidance missed, setting a negative tone for sportswear including ASICS Corp (7936 JP) which has been in play after strong earnings and recent large share placement.
Numbers for Shiseido Company (4911 JP) and Kose Corp (4922 JP) point to diverging paths, which looks conducive for the 4922-4911 pair setup.


Japan Morning Connection: 6758 JP, 6920 JP, 7936 JP

Japan

KOSE Corporation manufactures, retails, and exports cosmetics including make up, skin care, and hair care products.  The Company sells its products in Hong Kong, China, Singapore, and Malaysia.

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Kose Corp (4922 JP)

Japan Morning Connection: Kose, 7&I, PPIH

Estee Lauder continues to struggle while those with less China exposure such as Kose look more attractive. Uncertainty over 7&I deal should lift...

Andrew Jackson

Japan Morning Connection: Asahi Intecc, PPIH

Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...

Andrew Jackson

Japan Morning Connection: Micronics, Mitsubishi Heavy, Kawasaki Heavy

Micron's gains from potential DDR5 price hikes could boost Micronics; Defence-related stocks are in focus with Kishida replacement candidates both...

Andrew Jackson

Japan Morning Connection: Softbank, Sapporo, Kose

Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.

Andrew Jackson

Japan Morning Connection: 6758 JP, 6920 JP, 7936 JP

Stocks like Sony and Lasertec look oversold. Puma's poor performance sets a negative tone for sportswear plays. Shiseido and Kose show diverging...

Andrew Jackson

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Kose, 7&I, PPIH

Estee Lauder continues to struggle while those with less China exposure such as Kose look more attractive. Uncertainty over 7&I deal should lift...

Andrew Jackson

Japan Morning Connection: Asahi Intecc, PPIH

​Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...

Andrew Jackson

Japan Morning Connection: Micronics, Mitsubishi Heavy, Kawasaki Heavy

​Micron's gains from potential DDR5 price hikes could boost Micronics; Defence-related stocks are in focus with Kishida replacement candidates both...

Andrew Jackson

Japan Morning Connection: Softbank, Sapporo, Kose

​Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.

Andrew Jackson

Japan Morning Connection: 6758 JP, 6920 JP, 7936 JP

​Stocks like Sony and Lasertec look oversold. Puma's poor performance sets a negative tone for sportswear plays. Shiseido and Kose show diverging...

Andrew Jackson

Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...

Micron's gains from potential DDR5 price hikes could boost Micronics; Defence-related stocks are in focus with Kishida replacement candidates both...

Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.

Stocks like Sony and Lasertec look oversold. Puma's poor performance sets a negative tone for sportswear plays. Shiseido and Kose show diverging...