Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
 <li>Kubota is a global leader in compact agricultural and construction machinery, with a strong brand reputation for quality and reliability, particularly in North America and Asia.</li>
 <li>The company is well-positioned to capitalize on long-term growth trends, including the mechanization of agriculture in emerging markets, the need for labor-saving automation, and increasing infrastructure investment.</li>
 <li>While facing near-term headwinds from a potential slowdown in demand and currency fluctuations, Kubota's conservative balance sheet and consistent investment in R&amp;D provide a solid foundation for sustainable growth and shareholder returns.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Kubota is a global leader in compact agricultural and construction machinery, with a strong brand reputation for quality and reliability, particularly in North America and Asia.
  The company is well-positioned to capitalize on long-term growth trends, including the mechanization of agriculture in emerging markets, the need for labor-saving automation, and increasing infrastructure investment.
  While facing near-term headwinds from a potential slowdown in demand and currency fluctuations, Kubota's conservative balance sheet and consistent investment in R&amp;D provide a solid foundation for sustainable growth and shareholder returns.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<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

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

<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

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<a href="https://www.smartkarma.com/entities/wakita-co-ltd" target="_blank" data-smartkarma-citation="entities:11924:1" rel="noopener">Wakita &amp; Co Ltd (8125 JP)</a> has been a deep value stock for years. It has had deep value investors owning stakes before.However, the company has pretty low ROE based on truly awful capital allocation policy. A very large portion of the long-term assets in the firm are effectively managed by people with little to no experience in the space, in a sub-optimal capital structure. The company has large amounts of net cash, and securities, and more securities and crossholdings. And the entire company is effectively a leasing business with some add-ons, and it finances itself with almost zero debt. While it is dangerous to call a paradigm change on companies where there is a significant corporate cross-holding and significant family holding and control, there are times when the confluence of events make stocks like Wakita worth a deeper look.This may be such a time.

Wakita &amp; Co Ltd (8125 JP) has been a deep value stock for years. It has had deep value investors owning stakes before.However, the company has pretty low ROE based on truly awful capital allocation policy. A very large portion of the long-term assets in the firm are effectively managed by people with little to no experience in the space, in a sub-optimal capital structure. The company has large amounts of net cash, and securities, and more securities and crossholdings. And the entire company is effectively a leasing business with some add-ons, and it finances itself with almost zero debt. While it is dangerous to call a paradigm change on companies where there is a significant corporate cross-holding and significant family holding and control, there are times when the confluence of events make stocks like Wakita worth a deeper look.This may be such a time.

Japan Activism: A Look into Wakita (8125 JP) Potential Pre-Event

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)

Primer: Kubota Corp (6326 JP) - Sep 2025

Kubota is a global leader in compact agricultural and construction machinery, with a strong brand reputation for quality and reliability,...

αSK

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: 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

Japan Activism: A Look into Wakita (8125 JP) Potential Pre-Event

Wakita (8125) is a serial underperformer, has a corporate governance and crossholder problem, an activist making noise, an inheritance stake to...

Travis Lundy

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52-week Range

Market Cap (USDm)

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Primer: Kubota Corp (6326 JP) - Sep 2025

Kubota is a global leader in compact agricultural and construction machinery, with a strong brand reputation for quality and reliability,...

αSK

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: 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

Japan Activism: A Look into Wakita (8125 JP) Potential Pre-Event

Wakita (8125) is a serial underperformer, has a corporate governance and crossholder problem, an activist making noise, an inheritance stake to...

Travis Lundy

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...

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