Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Essilor’s investment underscores Nikon’s undervalued potential, spotlighting its advanced optical technologies as strategic growth drivers in emerging high-tech sectors like AR.</li>
<li>Nikon’s established expertise in precision optics is highly adaptable for AR applications, positioning the company to capitalize on rising demand for wearable and immersive technology.</li>
<li>Increased collaboration with EssilorLuxottica may enhance Nikon’s R&amp;D capabilities, promising new innovations and potential revenue streams, which could strengthen Nikon’s profitability and share value long-term.</li>
</ul>


Essilor’s investment underscores Nikon’s undervalued potential, spotlighting its advanced optical technologies as strategic growth drivers in emerging high-tech sectors like AR.
Nikon’s established expertise in precision optics is highly adaptable for AR applications, positioning the company to capitalize on rising demand for wearable and immersive technology.
Increased collaboration with EssilorLuxottica may enhance Nikon’s R&amp;D capabilities, promising new innovations and potential revenue streams, which could strengthen Nikon’s profitability and share value long-term.


Nikon (7731) | Eyeing the Future? Nikon and Essilor's Partnership in AR

<ul>
<li>Sanwa Holdings revised its first-half (1H) forecasts, increasing sales estimates from ¥293 billion to ¥313 billion, and operating profit (OP) from ¥25.6 billion to ¥32 billion</li>
<li>Essilor's growing investment in Nikon, with the optical giant increasing its stake from 5.1% to 7.38% in just a few weeks, underscores our bullish view on the name.</li>
<li>Nihon Kohden recently revised its first-half (1H24) guidance, raising sales expectations by ¥700 million to ¥102.7 billion and operating profit by ¥2 billion to ¥5 billion. </li>
</ul>


Sanwa Holdings revised its first-half (1H) forecasts, increasing sales estimates from ¥293 billion to ¥313 billion, and operating profit (OP) from ¥25.6 billion to ¥32 billion
Essilor's growing investment in Nikon, with the optical giant increasing its stake from 5.1% to 7.38% in just a few weeks, underscores our bullish view on the name.
Nihon Kohden recently revised its first-half (1H24) guidance, raising sales expectations by ¥700 million to ¥102.7 billion and operating profit by ¥2 billion to ¥5 billion. 


Japan Value | Sanwa, Nikon, Nihon Kohden, Maruichi Steel

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Yesterday, post-close, Bloomberg reported a headline "<strong>*SILCHESTER REPORTS NIKON STAKE; MAY SEEK CAPITAL POLICY CHANGES</strong>"</li>
<li>That was exciting. It was in all caps. It was activist-ish-y. Today the stock rose 10.3% and we got another article saying it was up because of Silchester's filing.</li>
<li>Beware the Bloomberg headline. Nuance is sometimes lost. They aren't always designed to help investors invest. Often, the main purpose is clickbait.</li>
</ul>


Yesterday, post-close, Bloomberg reported a headline "*SILCHESTER REPORTS NIKON STAKE; MAY SEEK CAPITAL POLICY CHANGES"
That was exciting. It was in all caps. It was activist-ish-y. Today the stock rose 10.3% and we got another article saying it was up because of Silchester's filing.
Beware the Bloomberg headline. Nuance is sometimes lost. They aren't always designed to help investors invest. Often, the main purpose is clickbait.


Nikon (7731) - Beware The Bloomberg Headline But There's Value Here

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>TSMC and ASML reported 1Q24 results last week; both stocks have fallen post results, impacted by global concerns despite a strong outlook for these two leaders into 2025E.</li>
<li>TSMC guided for strong growth not just in 2024E, but if one digs into management's comments, they actually provided strong visibility into their 2028E internal revenue expectations.</li>
<li>For ASML, its EUV product business is the key indicator to watch. We believe TSMC shares will continue to re-rate even through a period of global economic softness.</li>
</ul>


TSMC and ASML reported 1Q24 results last week; both stocks have fallen post results, impacted by global concerns despite a strong outlook for these two leaders into 2025E.
TSMC guided for strong growth not just in 2024E, but if one digs into management's comments, they actually provided strong visibility into their 2028E internal revenue expectations.
For ASML, its EUV product business is the key indicator to watch. We believe TSMC shares will continue to re-rate even through a period of global economic softness.


TSMC Just Provided Substantial Visibility into Their Long-Term Growth Estimate; ASML Adds Color

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

<ul>
<li>FY'23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.</li>
<li>Broad-Based recovery is now looking more like a H1'24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter</li>
<li>System sales to China increased from 8% of revenues in Q1'23 to 24% in Q2'23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. </li>
</ul>


FY'23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.
Broad-Based recovery is now looking more like a H1'24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter
System sales to China increased from 8% of revenues in Q1'23 to 24% in Q2'23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. 


Japan

NIKON CORPORATION manufactures and sells cameras, lenses, semiconductor-related equipment, eyeglasses, microscopes, and measuring instruments.

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Nikon Corp (7731 JP)

Nikon (7731) | Eyeing the Future? Nikon and Essilor's Partnership in AR

Essilor's investment in Nikon highlights its potential in advanced optical technologies for emerging sectors like AR, with collaboration...

Mark Chadwick

Japan Value | Sanwa, Nikon, Nihon Kohden, Maruichi Steel

Sanwa Holdings, Essilor, and Nihon Kohden all revise their first-half forecasts, showing increased sales estimates and operating profits.

Mark Chadwick

Nikon (7731) - Beware The Bloomberg Headline But There's Value Here

Nikon is a cheap company with dual personalities, which keeps its multiple low. It has cash and securities too. Silchester bought 5% and Bloomberg...

Travis Lundy

TSMC Just Provided Substantial Visibility into Their Long-Term Growth Estimate; ASML Adds Color

If you dig into the details, TSMC provided substantial insight into the company's internal estimates for long-term revenue. For ASML, we discuss...

Vincent Fernando, CFA

ASML. Sanctions? Moi?

FY'23 growth forecast increased despite push outs in the EUV order book and lower IBB revenues. Semi recovery now a H1'24 scenario with uncertainty...

William Keating

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nikon (7731) | Eyeing the Future? Nikon and Essilor's Partnership in AR

​Essilor's investment in Nikon highlights its potential in advanced optical technologies for emerging sectors like AR, with collaboration...

Mark Chadwick

Japan Value | Sanwa, Nikon, Nihon Kohden, Maruichi Steel

​Sanwa Holdings, Essilor, and Nihon Kohden all revise their first-half forecasts, showing increased sales estimates and operating profits.

Mark Chadwick

Nikon (7731) - Beware The Bloomberg Headline But There's Value Here

Nikon is a cheap company with dual personalities, which keeps its multiple low. It has cash and securities too. Silchester bought 5% and Bloomberg...

Travis Lundy

TSMC Just Provided Substantial Visibility into Their Long-Term Growth Estimate; ASML Adds Color

If you dig into the details, TSMC provided substantial insight into the company's internal estimates for long-term revenue. For ASML, we discuss...

Vincent Fernando, CFA

ASML. Sanctions? Moi?

FY'23 growth forecast increased despite push outs in the EUV order book and lower IBB revenues. Semi recovery now a H1'24 scenario with uncertainty...

William Keating

Essilor's investment in Nikon highlights its potential in advanced optical technologies for emerging sectors like AR, with collaboration...

Sanwa Holdings, Essilor, and Nihon Kohden all revise their first-half forecasts, showing increased sales estimates and operating profits.