Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.</li>
<li>Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.</li>
<li>Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays</li>
</ul>


Tech laggards bought in the US showing many in the market scrambling to catch the upside after the rapid snapback from last weeks drop.
Server related strength after Cisco numbers may see sentiment for Nidec finally improving with its cooling modules business emerging as an earnings driver.
Strong numbers for Coherent confirm the positive trends for its optical transceiver business which points to continued upside for AI data center plays


Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.</li>
<li>Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. </li>
<li>Of these, they have a combined stake of over US$1bn in 23 companies.</li>
</ul>


Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.
Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. 
Of these, they have a combined stake of over US$1bn in 23 companies.


Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.</li>
<li>Key KPI: Kubota's ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.</li>
<li>Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.</li>
</ul>


Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.
Key KPI: Kubota's ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.
Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.


Kubota (6302) | From Earnings Momentum to ROE

<ul>
<li>
U.S. stocks fell Friday as technology led declines on AI concerns, Treasury yields steepened ahead of key data, and gold extended gains to around $4,300 an ounce.</li>
<li>
Week Ahead: Bank of Japan’s December 19 meeting, with a widely expected 25bp rate hike supported by persistent inflation and improving domestic data</li>
<li>As investors rotate from AI, undervalued Kubota has lagged peers but shows improving cash flow, with a likely FY2025 beat and focus on returns in February’s mid-term plan.</li>
</ul>



U.S. stocks fell Friday as technology led declines on AI concerns, Treasury yields steepened ahead of key data, and gold extended gains to around $4,300 an ounce.

Week Ahead: Bank of Japan’s December 19 meeting, with a widely expected 25bp rate hike supported by persistent inflation and improving domestic data
As investors rotate from AI, undervalued Kubota has lagged peers but shows improving cash flow, with a likely FY2025 beat and focus on returns in February’s mid-term plan.


Ohayo Japan | Tech Drags as AI Concerns Resurface

<ul>
<li>Sentiment for AI related rising with NVDA de-risked and outlook strong, despite the marginal beat.</li>
<li>Kioxia IPO pricing at $4.84bn supportive for memory ecosystem names.</li>
<li>Deere numbers and outlook for farming lifting AG machinery names - watch Kubota.</li>
</ul>


Sentiment for AI related rising with NVDA de-risked and outlook strong, despite the marginal beat.
Kioxia IPO pricing at $4.84bn supportive for memory ecosystem names.
Deere numbers and outlook for farming lifting AG machinery names - watch Kubota.


Japan Morning Connection: Risk-On for the AI Ecosystem

Japan

KUBOTA CORPORATION manufactures industrial machinery, farm machinery, and fluid piping systems.  The Company's products include ductile iron pipes, engines, tractors, combine harvesters, reaper binders, rice planters, and excavators.  Kubota also produces forged iron products, housing equipment, and environmental control plants.

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Kubota Corp (6326 JP)

Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Kubota (6302) | From Earnings Momentum to ROE

Positive estimate revisions and strong 1Q trends indicate potential upside for Kubota's operating profit in 2Q, with focus on ROE improvement and...

Mark Chadwick

Ohayo Japan | Tech Drags as AI Concerns Resurface

U.S. stocks fall on AI concerns, Treasury yields rise, gold hits $4,300. Bank of Japan expected to hike rates, Kubota shows promise with improving...

Mark Chadwick

Japan Morning Connection: Risk-On for the AI Ecosystem

AI sentiment rising with NVDA de-risked, Kioxia IPO positive for memory ecosystem names, Deere's positive outlook lifts AG machinery names like...

Andrew Jackson

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52-week Range

Market Cap (USDm)

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Japan Morning Connection: Sanken Electric, Nidec, Asahi Intecc

​US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Andrew Jackson

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

Kubota (6302) | From Earnings Momentum to ROE

​Positive estimate revisions and strong 1Q trends indicate potential upside for Kubota's operating profit in 2Q, with focus on ROE improvement and...

Mark Chadwick

Ohayo Japan | Tech Drags as AI Concerns Resurface

​U.S. stocks fall on AI concerns, Treasury yields rise, gold hits $4,300. Bank of Japan expected to hike rates, Kubota shows promise with improving...

Mark Chadwick

Japan Morning Connection: Risk-On for the AI Ecosystem

​AI sentiment rising with NVDA de-risked, Kioxia IPO positive for memory ecosystem names, Deere's positive outlook lifts AG machinery names like...

Andrew Jackson

US tech laggards are now catching up after a rapid rebound, server-related strength boosts Nidec's sentiment, and Coherent's strong numbers...

Positive estimate revisions and strong 1Q trends indicate potential upside for Kubota's operating profit in 2Q, with focus on ROE improvement and...

U.S. stocks fall on AI concerns, Treasury yields rise, gold hits $4,300. Bank of Japan expected to hike rates, Kubota shows promise with improving...

AI sentiment rising with NVDA de-risked, Kioxia IPO positive for memory ecosystem names, Deere's positive outlook lifts AG machinery names like...