Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Coherent, SMCI, Entegris all posting solid gains, while Skyworks priced in its poor outlook for its Apple biz.</li>
<li>Monolithic as much as +19% post market setting a better tone for power/analog semi related. Renesas +12.6% yesterday also.</li>
<li>Tokyo Electron numbers mixed but positive overall and any weakness at the open a good chance for dip buying.</li>
</ul>


Coherent, SMCI, Entegris all posting solid gains, while Skyworks priced in its poor outlook for its Apple biz.
Monolithic as much as +19% post market setting a better tone for power/analog semi related. Renesas +12.6% yesterday also.
Tokyo Electron numbers mixed but positive overall and any weakness at the open a good chance for dip buying.


Japan Morning Connection: Mixed Read from the US but Direction Pointing Higher

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul><li>Taiwan startup secures military contract for anti-drone tech, expanding manufacturing in mobile sector</li><li>Dixon sees phone sales spike, eyes display fab with India semiconductor incentive</li><li>Samsung delays DRAM development, CG Power granted subsidy for OSAT facility, Poland faces US sanctions, Taiwan quake impacts semiconductor production, ByteDance dominates AI chatbot market, Broadcom and Marvell compete in ASIC opportunities</li></ul>

Taiwan startup secures military contract for anti-drone tech, expanding manufacturing in mobile sectorDixon sees phone sales spike, eyes display fab with India semiconductor incentiveSamsung delays DRAM development, CG Power granted subsidy for OSAT facility, Poland faces US sanctions, Taiwan quake impacts semiconductor production, ByteDance dominates AI chatbot market, Broadcom and Marvell compete in ASIC opportunities

Tech Supply Chain Tracker (22-Jan-2025): Taiwan startup wins military deal for anti-drone tech.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>A group of 7 shareholders are looking to sell 61.3m shares in <a href="https://www.smartkarma.com/entities/murata-manufacturing-co-ltd" target="_blank" data-smartkarma-citation="entities:11649:1" rel="noopener">Murata Manufacturing (6981 JP)</a> to raise JPY 143.8bn (US$916m). That is 3.3% of shares outstanding.</li>
<li>The shares are being offered at a price range of JPY 2296-2345.5/share, a discount of 5-7% to the last close of the stock.</li>
<li>With the offering less than 5% of shares outstanding and less than US$1bn in size, there is no immediate passive buying and there could be further weakness in the stock.</li>
</ul>


A group of 7 shareholders are looking to sell 61.3m shares in Murata Manufacturing (6981 JP) to raise JPY 143.8bn (US$916m). That is 3.3% of shares outstanding.
The shares are being offered at a price range of JPY 2296-2345.5/share, a discount of 5-7% to the last close of the stock.
With the offering less than 5% of shares outstanding and less than US$1bn in size, there is no immediate passive buying and there could be further weakness in the stock.


Murata Manufacturing (6981 JP) - No Immediate Passive Buying Could Lead to More Weakness

<ul>
<li>Market looking past new US semi restrictions with semi majors recovering off pre-market lows.</li>
<li>Earnings beat for KB Homes a shot in the arm for embattled Homebuilders... watch Sumitomo Forestry and Sekisui House for upside.</li>
<li>FA major Yaskawa numbers on Friday were a miss, but signs of a bottoming emerging.</li>
</ul>


Market looking past new US semi restrictions with semi majors recovering off pre-market lows.
Earnings beat for KB Homes a shot in the arm for embattled Homebuilders... watch Sumitomo Forestry and Sekisui House for upside.
FA major Yaskawa numbers on Friday were a miss, but signs of a bottoming emerging.


Japan Morning Connection: Persistent US Tech Weakness, but off the Days Lows

<ul>
<li>Yesterday saw a notable rotation out of recent momentum winners in Japan towards oversold quality such as SPE.</li>
<li>EU defence names generally stronger on concerns over Trumps Greenland/Denmark comments may be mild positive for JP heavies.</li>
<li>Power semi weakness in the US at least partially over news Renesas is cutting workforce on weak auto chip sales.</li>
</ul>


Yesterday saw a notable rotation out of recent momentum winners in Japan towards oversold quality such as SPE.
EU defence names generally stronger on concerns over Trumps Greenland/Denmark comments may be mild positive for JP heavies.
Power semi weakness in the US at least partially over news Renesas is cutting workforce on weak auto chip sales.


Japan Morning Connection: Can JP Semi-Cap Names Continue to Buck the US Tech Weakness?

Japan

Renesas Electronics Corporation researches, develops, designs and manufactures electronic components such as semiconductors and integrated devices.

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Renesas Electronics (6723 JP)

Japan Morning Connection: Mixed Read from the US but Direction Pointing Higher

Skyworks priced in poor outlook for its Apple business. Market sets a better tone for power/anolog semi related. Any weakness in Tokyo Electron a...

Andrew Jackson

Tech Supply Chain Tracker (22-Jan-2025): Taiwan startup wins military deal for anti-drone tech.

Taiwan startup wins military contract, Dixon expands phone sales, Samsung delays DRAM development, CG Power receives subsidy in India, Poland faces...

Tech Supply Chain Tracker

Murata Manufacturing (6981 JP) - No Immediate Passive Buying Could Lead to More Weakness

A group of 7 holders are selling US$916m of stock at a 5-7% discount to last. That is 3.3% of shares out and 12.4x ADV. There is no passive buying...

Brian Freitas

Japan Morning Connection: Persistent US Tech Weakness, but off the Days Lows

Semi majors recovering despite new US semi restrictions, KB Homes' earnings positive for homebuilders, Yaskawa numbers miss but has signs of...

Andrew Jackson

Japan Morning Connection: Can JP Semi-Cap Names Continue to Buck the US Tech Weakness?

Rotation from momentum winners into oversold quality such as SPE, EU defense name strength may be positive for JP heavies, US power semi weakness...

Andrew Jackson

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