Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

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.

Thematic (Sector/Industry)

<p>“Electric cars aren’t green” is one of the most popular arguments these days. EVs supposedly have higher manufacturing emissions than regular vehicles; they also run on electricity which has its own footprint. These factors combined are said to offset the environmental impact of avoiding gasoline use. In this note, we look at the mathematics behind this argument.</p><ul class=""><li>Greenhouse Gas (GHG) savings from an EV are only 5% compared to a regular gasoline vehicle. Operating emissions of an EV are 50% lower than a gasoline vehicle but their manufacturing footprint doubles that of a gasoline vehicle.</li><li>Hybrids and PHEVs offer a GHG saving of over 30% compared to gasoline vehicles and BEVs</li><li>Lower than expected GHG savings make EV incentives counter-intuitive. The US government spends over USD 350 per one metric ton of CO2 emissions saved under the federal income tax credit incentive for EVs, while the value of one metric ton of CO2 savings in the market is around USD 17.</li></ul>

“Electric cars aren’t green” is one of the most popular arguments these days. EVs supposedly have higher manufacturing emissions than regular vehicles; they also run on electricity which has its own footprint. These factors combined are said to offset the environmental impact of avoiding gasoline use. In this note, we look at the mathematics behind this argument.Greenhouse Gas (GHG) savings from an EV are only 5% compared to a regular gasoline vehicle. Operating emissions of an EV are 50% lower than a gasoline vehicle but their manufacturing footprint doubles that of a gasoline vehicle.Hybrids and PHEVs offer a GHG saving of over 30% compared to gasoline vehicles and BEVsLower than expected GHG savings make EV incentives counter-intuitive. The US government spends over USD 350 per one metric ton of CO2 emissions saved under the federal income tax credit incentive for EVs, while the value of one metric ton of CO2 savings in the market is around USD 17.

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We maintain our Buy rating as KTX's valuation metrics suggest that AH is attractive in terms of the current valuation, with strong long-term earnings growth prospects, while the tactical view is neutral.</li><li>The 12M fair value, based on the earnings yield, has been raised to Bt43.22 (vs. Bt39.13 previously), with a required return of 13.0%, down from 14.1% previously.</li><li>AH reported progress on the divestment of all shares in Sakthi Auto Component (SACL), a manufacturer and distributor of automotive parts in India, to ABT Transport Private Limited.</li></ul>

We maintain our Buy rating as KTX's valuation metrics suggest that AH is attractive in terms of the current valuation, with strong long-term earnings growth prospects, while the tactical view is neutral.The 12M fair value, based on the earnings yield, has been raised to Bt43.22 (vs. Bt39.13 previously), with a required return of 13.0%, down from 14.1% previously.AH reported progress on the divestment of all shares in Sakthi Auto Component (SACL), a manufacturer and distributor of automotive parts in India, to ABT Transport Private Limited.

AAPICO HITECH AH: Disposition of Asset in India; Core Profit Growth Intact

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

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

Research Reinvented

<p>For our next Webinar, we are excited to welcome back Insight Provider <a href="https://www.smartkarma.com/profiles/mio-kato" target="_blank" data-smartkarma-citation="accounts:713" rel="noopener">Mio Kato</a> and the LightStream Research team, as they present unique views into approaching the Japanese market. LightStream offers insights gleaned from their expertise on the ground, engaging with company management and bridging business and culture gaps between Japan and western Investors.</p><h3>The webinar will be hosted on Wednesday, 1 September 2021, 17:00 SGT/HKT.</h3><div class="content-highlight"><h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=89011968584" target="_blank" rel="noopener">Register for the Webinar here</a></h2></div><p>Mio Kato has over 15 years of experience looking at Japanese and Asian cyclically driven sectors such as Gaming, Factory Automation and Autos. He was previously with FrontPoint Partners LP, Arrowhawk Capital Partners, and Uzabase before founding LightStream Research.</p><p>LightStream Research conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia. The team supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available. They further refine the accuracy of their 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.</p>

For our next Webinar, we are excited to welcome back Insight Provider Mio Kato and the LightStream Research team, as they present unique views into approaching the Japanese market. LightStream offers insights gleaned from their expertise on the ground, engaging with company management and bridging business and culture gaps between Japan and western Investors.The webinar will be hosted on Wednesday, 1 September 2021, 17:00 SGT/HKT.Register for the Webinar hereMio Kato has over 15 years of experience looking at Japanese and Asian cyclically driven sectors such as Gaming, Factory Automation and Autos. He was previously with FrontPoint Partners LP, Arrowhawk Capital Partners, and Uzabase before founding LightStream Research.LightStream Research conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia. The team supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available. They further refine the accuracy of their 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.

Smartkarma Webinar | Understanding Japanese Companies: Insights from LightStream Research

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Japanese and Asian equity long/short strategies

Uzabase

Specialising in Japanese and Asian equity long/short strategies with a focus on rigorous, but targeted quantitative analysis to temper evaluations of company strategy, potential and vision. At Uzabase, our team of analysts provides coverage of industry dynamics with a local Asian flavour on Speeda, our financial information platform. Going forward we are aiming to channel our focus toward thematic research on emerging industries and company research.

<p>Today saw strong performance among Japanese autos with many stocks in the sector up about 1% and <a href="https://www.smartkarma.com/entities/794" target="_blank" data-smartkarma-citation="entities:794:1">Mitsubishi Motors Corp (7211 JP)</a> and <a href="https://www.smartkarma.com/entities/20528" target="_blank" data-smartkarma-citation="entities:20528:1">Mazda Motor Corp (7261 JP)</a> leading, up 4.46% and 5.29% respectively. MMC reported results yesterday which included a 3% YoY rise in revenue and improvement in OPM from 1.1% to 4.7% while Mazda was featured in an earnings preview by Chugoku Newspaper that suggested the company would generate about JPY40bn in OP and JPY30bn in NP in 1Q. For Mazda the figures would…</p>

Today saw strong performance among Japanese autos with many stocks in the sector up about 1% and Mitsubishi Motors Corp (7211 JP) and Mazda Motor Corp (7261 JP) leading, up 4.46% and 5.29% respectively. MMC reported results yesterday which included a 3% YoY rise in revenue and improvement in OPM from 1.1% to 4.7% while Mazda was featured in an earnings preview by Chugoku Newspaper that suggested the company would generate about JPY40bn in OP and JPY30bn in NP in 1Q. For Mazda the figures would…

Auto Sector Read Through From Strong Mitsubishi Results/Mazda Preview

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Event-Driven

<p>Yesterday after the close, the Nikkei <a href="http://indexes.nikkei.co.jp/nkave/archives/news/20160712E_1.pdf" target="_blank">announced</a> some changes to the Nikkei 225 Average.</p><h2>The Nikkei Index/Average Changes:</h2><ul>
<li>
<a href="https://www.smartkarma.com/entities/391" target="_blank" data-smartkarma-citation="entities:391:1">Sharp Corp</a> will be demoted to the TSE Second Section so it will no longer be eligible for inclusion in the Nikkei 225 Average and Nikkei Stock Index 300. It will be deleted August 1 (i.e. out at the close of July 29).</li>
<li>Replacing Sharp in the Nikkei 225 will be <a href="https://www.smartkarma.com/entities/7411" target="_blank" data-smartkarma-citation="entities:7411:1">Yamaha Motor Co Ltd</a> (7272 JP)</li>
<li>Replacing Sharp in the Nikkei Stock Index 300 will be <a href="https://www.smartkarma.com/entities/13316" target="_blank" data-smartkarma-citation="entities:13316:1">M3 Inc</a> (2413 JP)</li>
<li>
<em>Separately, <a href="https://www.smartkarma.com/entities/6421" target="_blank" data-smartkarma-citation="entities:6421:1">Tokyo Dome</a></em>…</li>
</ul>

Yesterday after the close, the Nikkei announced some changes to the Nikkei 225 Average.The Nikkei Index/Average Changes:

Sharp Corp will be demoted to the TSE Second Section so it will no longer be eligible for inclusion in the Nikkei 225 Average and Nikkei Stock Index 300. It will be deleted August 1 (i.e. out at the close of July 29).
Replacing Sharp in the Nikkei 225 will be Yamaha Motor Co Ltd (7272 JP)
Replacing Sharp in the Nikkei Stock Index 300 will be M3 Inc (2413 JP)

Separately, Tokyo Dome…


Yamaha Motors: Nikkei 225 Change Non-Negligible

India

Mazda Limited is an Indian company that manufactures engineering goods such as vacuum products, evaporators, and pollution control equipment, as well as food products like food color, fruit jams, and fruit mix powders. The company sells its products in both domestic and export markets. Mazda Limited was incorporated in 1990 and started operations in 1992, with its registered office in Ahmedabad, Gujarat, India.

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Mazda (MZC IN)

Mathematics of EV Emissions

“Electric cars aren’t green” is one of the most popular arguments these days. EVs supposedly have higher manufacturing emissions than regular...

Supun Walpola

AAPICO HITECH AH: Disposition of Asset in India; Core Profit Growth Intact

We maintain our Buy rating as KTX's valuation metrics suggest that AH is attractive in terms of the current valuation, with strong long-term...

Krungthai XSpring

Smartkarma Webinar | Understanding Japanese Companies: Insights from LightStream Research

On 1 September, 5pm SGT, join us for a Webinar with Mio Kato and the LightStream Research team, as they present unique views into approaching the...

Smartkarma Research

Auto Sector Read Through From Strong Mitsubishi Results/Mazda Preview

Today saw strong performance among Japanese autos with many stocks in the sector up about 1% and Mitsubishi Motors Corp (7211 JP) and Mazda Motor...

Mio Kato

Yamaha Motors: Nikkei 225 Change Non-Negligible

Yesterday after the close, the Nikkei announced some changes to the Nikkei 225 Average.The Nikkei Index/Average Changes: Sharp Corp will be...

Travis Lundy

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