Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of JPX stocks as of Jul 10th. The aggregated net margin trading position is USD30,748m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in SoftBank, Taiyo Yuden, Fast Retailing, Advantest, Kioxia, Tokyo Electron, Mitsubishi UFJ Financial, Mizuho Financial, Lasertec, Valor.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Jul 10th. The aggregated net margin trading position is USD30,748m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in SoftBank, Taiyo Yuden, Fast Retailing, Advantest, Kioxia, Tokyo Electron, Mitsubishi UFJ Financial, Mizuho Financial, Lasertec, Valor.


JPX Margin Trading Weekly (Jul 10th): SoftBank, Taiyo Yuden, Fast Retailing, Advantest, Kioxia

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Some stock names that look interesting in Japan on weakness or above breakout points. Nintendo, Oriental Land, Toshiba, NTT and McDonalds. Some names are in play due to index deletion/inclusion.The Nikkei is near 30,200 short term resistance and a bit overdone that supports rotation into stocks that have not run or have just cleared key resistance.This webcast runs through buy levels and targets on this group of stocks.

Some stock names that look interesting in Japan on weakness or above breakout points. Nintendo, Oriental Land, Toshiba, NTT and McDonalds. Some names are in play due to index deletion/inclusion.The Nikkei is near 30,200 short term resistance and a bit overdone that supports rotation into stocks that have not run or have just cleared key resistance.This webcast runs through buy levels and targets on this group of stocks.

Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

The telecom sector seems like a notable winner with a change in political leadership.  Pushing through mobile price reductions was one of the few policy successes for the Suga administration and record low approval ratings meant a revival of the issues was never entirely off the table. New leadership without historical ties to the regulator is an improvement. We remain positive on Japanese telecoms with Buy ratings for NTT, KDDI and Softbank.

The telecom sector seems like a notable winner with a change in political leadership.  Pushing through mobile price reductions was one of the few policy successes for the Suga administration and record low approval ratings meant a revival of the issues was never entirely off the table. New leadership without historical ties to the regulator is an improvement. We remain positive on Japanese telecoms with Buy ratings for NTT, KDDI and Softbank.   

Japan Telecoms - Surprise Resignation of the Prime Minister Should Ease Regulatory Pressure

Kyodo News reports that Apple is asking the Ministry of Industry Affairs and Communications (MIC, the regulator) to allow higher subsidies for iPhones to help promote the spread of 5G services. To be clear, it is the mobile operators that would offer these subsidies which were capped last year by the regulator at ¥20,000/device even as handset/service pricing was unbundled. We thought this would be a good opportunity to highlight how Apple has grown in Japan especially compared to the mobile operators.

Kyodo News reports that Apple is asking the Ministry of Industry Affairs and Communications (MIC, the regulator) to allow higher subsidies for iPhones to help promote the spread of 5G services. To be clear, it is the mobile operators that would offer these subsidies which were capped last year by the regulator at ¥20,000/device even as handset/service pricing was unbundled. We thought this would be a good opportunity to highlight how Apple has grown in Japan especially compared to the mobile operators.

Apple (Japan) Is Asking the Regulator to Allow Higher Subsidies for IPhone

The past nine months have been a wild ride. The industry has largely avoided the disruption of Covid-19 but NTT’s ¥4 trillion DoCoMo restructuring and regulatory-driven price reductions have shaken things up whilst competition from Rakuten is likely to heat up as it raises cash and accelerates investment. Mobile revenues will be down but that can be made up in other areas and whilst profitability in FY21 is flat at best and likely down modestly, shareholder returns are stable to growing.  NTT and KDDI are top picks with Softbank offering modest upside whilst we are more cautious on Rakuten after a 46% YTD run which largely captures the upside potential a more competitive mobile service offers.

The past nine months have been a wild ride. The industry has largely avoided the disruption of Covid-19 but NTT’s ¥4 trillion DoCoMo restructuring and regulatory-driven price reductions have shaken things up whilst competition from Rakuten is likely to heat up as it raises cash and accelerates investment. Mobile revenues will be down but that can be made up in other areas and whilst profitability in FY21 is flat at best and likely down modestly, shareholder returns are stable to growing.  NTT and KDDI are top picks with Softbank offering modest upside whilst we are more cautious on Rakuten after a 46% YTD run which largely captures the upside potential a more competitive mobile service offers.

Japan Telecom Sector: FY21 Will Be Tougher and More Competitive but Returns Can Still Rise

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

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NTT (Nippon Telegraph & Telephone) (9432 JP)

JPX Margin Trading Weekly (Jul 10th): SoftBank, Taiyo Yuden, Fast Retailing, Advantest, Kioxia

We analyzed JPX margin trading positions report for the past week and highlighted SoftBank (9984 JP), Taiyo Yuden (6976 JP), Fast Retailing (9983...

Ke Yan, CFA, FRM

Japan Stocks of Interest

Some stock names that look interesting in Japan on weakness or above breakout points. Nintendo, Oriental Land, Toshiba, NTT and McDonalds. A...

Thomas Schroeder

Japan Telecoms - Surprise Resignation of the Prime Minister Should Ease Regulatory Pressure

The telecom sector wins with political change. Mobile price cuts were one of the few policy successes for this PM and record low approval meant a...

Kirk Boodry

Apple (Japan) Is Asking the Regulator to Allow Higher Subsidies for IPhone

Apple Japan is asking the regulator to allow higher smartphone subsidies so it can sell more handsets. That's after 49% growth in Q4 and where it...

Kirk Boodry

Japan Telecom Sector: FY21 Will Be Tougher and More Competitive but Returns Can Still Rise

FY21 will be a tough year for mobile with 5% service revenue erosion but new services provide some offset and returns to shareholders can still...

Kirk Boodry

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)