Japan Specialist

Mark Chadwick

Equity Bottom-Up

Mitsubishi Heavy Industries / Equity Bottom-Up

<ul>
<li>MHI has a roadmap for becoming carbon neutral by 2040.  The transition to a decarbonized society will be funded by green/transition bonds</li>
<li>MHI has issued its first green/transition bond amounting to 10 billion yen</li>
<li>We remain bullish on MHI and believe it is a key beneficiary of decarbonization trends in Japan</li>
</ul>


MHI has a roadmap for becoming carbon neutral by 2040.  The transition to a decarbonized society will be funded by green/transition bonds
MHI has issued its first green/transition bond amounting to 10 billion yen
We remain bullish on MHI and believe it is a key beneficiary of decarbonization trends in Japan


Mitsubishi Heavy Industries (7011) | Green Transition Bonds

<ul>
<li>The recent correction in the share price offers a good chance for long-term bulls to get into the stock</li>
<li>MHI is the core play on Japan's energy security given its portfolio of gas and nuclear power plant assets</li>
<li>The unseasonably HOT weather and potential power cuts, at the same time as soaring energy costs, could be the catalyst for the government to push for nuclear restarts</li>
</ul>


The recent correction in the share price offers a good chance for long-term bulls to get into the stock
MHI is the core play on Japan's energy security given its portfolio of gas and nuclear power plant assets
The unseasonably HOT weather and potential power cuts, at the same time as soaring energy costs, could be the catalyst for the government to push for nuclear restarts


Mitsubishi Heavy Industries (7011) | Three Reasons to BUY

<ul>
<li>MHI reported a strong 7% growth in the order backlog to ¥5,500 billion</li>
<li>MHI is a beneficiary of the global energy crisis, geared into gas turbine and nuclear supply chains</li>
<li>The stock is trading below book value (10 year average 1x) at a time when the core energy order book is as strong as ever</li>
</ul>


MHI reported a strong 7% growth in the order backlog to ¥5,500 billion
MHI is a beneficiary of the global energy crisis, geared into gas turbine and nuclear supply chains
The stock is trading below book value (10 year average 1x) at a time when the core energy order book is as strong as ever


Mitsubishi Heavy (7011 JP) | Just Getting (Re)Started

<ul>
<li>MHI benefits from the structural themes of energy security and carbon neutrality</li>
<li>MHI's Energy Systems account for over 60% of operating profits</li>
<li>The inevitable push to restart nuclear plants in Japan will be a catalyst for the share price</li>
</ul>


MHI benefits from the structural themes of energy security and carbon neutrality
MHI's Energy Systems account for over 60% of operating profits
The inevitable push to restart nuclear plants in Japan will be a catalyst for the share price


Mitsubishi Heavy (7011) | Helping the World to Transition to a Cleaner and More Secure Energy Future

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We continue to see some encouraging signs that suggest that the lows may have been established for this correction.</li>
<li>We still believe a bottoming process would likely take weeks or potentially months and could come with more tests of the lows -- or even an undercut.</li>
<li>With that said, we continue to see attractive and actionable setups, primarily within cyclical value (Energy, Materials, Manufacturing, Transportation, and Financials).</li>
</ul>


We continue to see some encouraging signs that suggest that the lows may have been established for this correction.
We still believe a bottoming process would likely take weeks or potentially months and could come with more tests of the lows -- or even an undercut.
With that said, we continue to see attractive and actionable setups, primarily within cyclical value (Energy, Materials, Manufacturing, Transportation, and Financials).


Encouraging Signs, But Concerns Still Outweigh; Buying Materials, Energy, Industrials, Health Care

Japan

Mitsubishi Heavy Industries, Ltd. is a comprehensive heavy machinery maker. The Company manufactures machinery, ships, turbines and engines, prime movers, aircrafts, and machine parts for military and commercial use.  Mitsubishi Heavy Industries also researches and develops nuclear power plants.

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Mitsubishi Heavy Industries (7011 JP)

Mitsubishi Heavy Industries (7011) | Green Transition Bonds

We remain bullish on MHI and believe it is a key beneficiary of decarbonization trends in Japan. The issuance of green / transition bonds will fund...

Mark Chadwick

Mitsubishi Heavy Industries (7011) | Three Reasons to BUY

Nuclear restart discussions will inevitably gather steam during the summer as power shortages and potential blackouts take the spotlight. MHI is...

Mark Chadwick

Mitsubishi Heavy (7011 JP) | Just Getting (Re)Started

MHI is a beneficiary of the global energy crisis, geared into gas turbine and nuclear supply chains. The stock is trading below its 10-year...

Mark Chadwick

Mitsubishi Heavy (7011) | Helping the World to Transition to a Cleaner and More Secure Energy Future

MHI (7011) is a key beneficiary of energy security and carbon neutrality. The energy division accounts for over 60% of profits and will benefit...

Mark Chadwick

Encouraging Signs, But Concerns Still Outweigh; Buying Materials, Energy, Industrials, Health Care

We continue to see some encouraging signs that suggest that the lows may have been established for this correction. Still, cyclical value remains...

Vermilion Research

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