Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.</li>
<li>Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.</li>
<li>Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.</li>
</ul>


Mizuho was out overnight with bullish commentary on the segment and it raised both Advantest Corp  and Shin Etsu Chemical to buy, so this may help mellow the negative sentiment.
Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks and earnings done.
Sumi Forestry could see a squeeze after US homebuilders KB Home, DR Horton and Lennar rallied on the Treasury's bond-buying intervention.


Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

CEO / Founder, Crea8

Kim-Hwa Lim

CEO / Founder

Make an Impact

Crea8

Crea8 blends AI-driven precision, big data scalability, and rigorous quantitative frameworks with seasoned human insight. By extracting actionable intelligence from vast global datasets, we eliminate emotional bias and deliver optimal risk-adjusted returns. Our hybrid approach uncovers hidden market efficiencies and ensures your capital is dynamically positioned across markets.

Cross Asset Strategy

<ul><li>The strategy seeks to invest in companies that provide life’s essential goods and services.</li><li>These companies support our societal well-being and are less likely to be subject to hype.</li><li>By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.</li></ul>

The strategy seeks to invest in companies that provide life’s essential goods and services.These companies support our societal well-being and are less likely to be subject to hype.By adopting a portfolio of stocks instead of individual stocks, the strategy is diversified across countries and industries; and optimised with respect to their expected risks and returns.

Global Life Essential Portfolio (18-Aug-2026)

<ul><li>The strategy seeks to invest in companies with superior sustainability features/initiatives.</li><li>These companies may be: 1) screened by avoiding issuers with negative ESG; 2) uplifted due to their commitment to improve ESG</li><li>3) included as their business models may not only benefit from but also may drive long-term sustainability outcomes; and 4) committed to generating positive, measurable and additional sustainability outcomes.</li></ul>

The strategy seeks to invest in companies with superior sustainability features/initiatives.These companies may be: 1) screened by avoiding issuers with negative ESG; 2) uplifted due to their commitment to improve ESG3) included as their business models may not only benefit from but also may drive long-term sustainability outcomes; and 4) committed to generating positive, measurable and additional sustainability outcomes.

Global Sustainability Portfolio (18-Aug-2026)

Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Semiconductor segment drives structural margin expansion, now contributing over 100% of core profit with record Q3 performance.</li>
<li>Legacy Chemicals and Graphite remain weak, but consolidated EBITDA outlook for FY2026–27 strengthens on improving mix.</li>
<li>Forward valuation supports ¥8,000 target; Resonac trades at a discount to global semiconductor-materials peers despite rising semis exposure.</li>
</ul>


Semiconductor segment drives structural margin expansion, now contributing over 100% of core profit with record Q3 performance.
Legacy Chemicals and Graphite remain weak, but consolidated EBITDA outlook for FY2026–27 strengthens on improving mix.
Forward valuation supports ¥8,000 target; Resonac trades at a discount to global semiconductor-materials peers despite rising semis exposure.


Resonac Holdings – Improving Mix, Expanding Margins, and a Clear Case for Re-Rating

<ul>
<li>MTD laggards may draw continued dip buying. Kioxia remains -32% since the start of the quarter despite yesterday's rebound.</li>
<li>Optical/Photonics caught a bid overnight, so expect interest in the likes of QD Laser, Santec, Samco and Seiko Giken.</li>
<li>Expect moves up for JP Space names after Sidus +17.1%, AST +10.3%, though SpaceX's August 6 lock-up expiry could weigh on sentiment into next month.</li>
</ul>


MTD laggards may draw continued dip buying. Kioxia remains -32% since the start of the quarter despite yesterday's rebound.
Optical/Photonics caught a bid overnight, so expect interest in the likes of QD Laser, Santec, Samco and Seiko Giken.
Expect moves up for JP Space names after Sidus +17.1%, AST +10.3%, though SpaceX's August 6 lock-up expiry could weigh on sentiment into next month.


Japan Morning Connection: SPE and Memory Rebound Set to Build After Strong US Follow Through

Japan

Resonac Holdings Corporation manufactures and distributes chemical products. The Company produces synthetic resins, petrochemical products, inorganics, and other related products. Resonac Holdings also produces ceramics, metals, carbon, electronic materials, and other products.

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Resonac Holdings (4004 JP)

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Global Life Essential Portfolio (18-Aug-2026)

The strategy seeks to invest in companies that provide life’s essential goods and services. These companies support our societal well-being and...

Crea8

Global Sustainability Portfolio (18-Aug-2026)

The strategy seeks to invest in companies with superior sustainability features/initiatives. These companies may be: 1) screened by avoiding...

Crea8

Resonac Holdings – Improving Mix, Expanding Margins, and a Clear Case for Re-Rating

Semiconductor segment boosts core profit, driving margin expansion and strengthening EBITDA outlook for Resonac. Target price of ¥8,000 reflects...

Rahul Jain

Japan Morning Connection: SPE and Memory Rebound Set to Build After Strong US Follow Through

SPE and memory rebound set to kick up a notch in Japan after the strong US follow through overnight, with MTD laggards like Kioxia still down 32%...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Advantest, Shin Etsu Upgraded to Buy Amid Negative AI Sentiment

Japan AI related had a big fall yesterday but may stabilise soon with many stocks back down around their 200-day levels with intact growth outlooks...

Andrew Jackson

Global Life Essential Portfolio (18-Aug-2026)

The strategy seeks to invest in companies that provide life’s essential goods and services. These companies support our societal well-being and...

Crea8

Global Sustainability Portfolio (18-Aug-2026)

The strategy seeks to invest in companies with superior sustainability features/initiatives. These companies may be: 1) screened by avoiding...

Crea8

Resonac Holdings – Improving Mix, Expanding Margins, and a Clear Case for Re-Rating

​Semiconductor segment boosts core profit, driving margin expansion and strengthening EBITDA outlook for Resonac. Target price of ¥8,000 reflects...

Rahul Jain

Japan Morning Connection: SPE and Memory Rebound Set to Build After Strong US Follow Through

SPE and memory rebound set to kick up a notch in Japan after the strong US follow through overnight, with MTD laggards like Kioxia still down 32%...

Andrew Jackson

Semiconductor segment boosts core profit, driving margin expansion and strengthening EBITDA outlook for Resonac. Target price of ¥8,000 reflects...