'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Cross Asset Strategy

- TW3 NORTH ASIA - 
This week in North Asia the Smartkarma team Insights were more Bearish than Bullish. 
<ul>
<li>Close Outs or Sales were recommended on: <a href="https://www.smartkarma.com/entities/15158" target="_blank" data-smartkarma-citation="entities:15158:1">Kosaido (7868 JP)</a>, the Amorepacific Group/Corp pair, the Hyosung TNC/Corp pair, <a href="https://www.smartkarma.com/entities/6841" target="_blank" data-smartkarma-citation="entities:6841:1">Resona Holdings (8308 JP)</a> and the Japanese market overall.</li>
<li>The Hyundai Autoever IPO was covered by two providers as was the Woori Group all with Bullish flags.</li>
<li>Caution was expressed on <a href="https://www.smartkarma.com/entities/27149" target="_blank" data-smartkarma-citation="entities:27149:1">Mercari (4385 JP)</a>, <a href="https://www.smartkarma.com/entities/11370" target="_blank" data-smartkarma-citation="entities:11370:1">Onward (8016 JP)</a>, and <a href="https://www.smartkarma.com/entities/4126" target="_blank" data-smartkarma-citation="entities:4126:1">Lasertec (6920 JP)</a> in Japan as well as the Convenience Store and Consumer Electronics retailers there.  </li>
<li>The upcoming KOSPI 200 re balancing was also covered with a list of potential additions and deletions.   <hr>
</li>
</ul>
 - NORTH ASIAN INSIGHT OF THE WEEK - 
Our Top Insight of the week was <a href="https://www.smartkarma.com/profiles/342" target="_blank" data-smartkarma-citation="accounts:342">Douglas Kim</a> 's interesting note on Korean companies pulling out of China or restructuring their operations in that country. 
As Douglas notes, "The pace of major Korean companies that are discontinuing part or all of their operations in China in the past year has been UNPRECEDENTED in the past two decades. This trend is very concerning since it suggests deteriorating business conditions and reduced employment in China". 
<blockquote>
The main reason why the Korean companies are pulling out of China is primarily due to the difficulty of generating profits under the current, difficult operating conditions.
However, the reasons why it has become more difficult for these Korean companies to generate profits in China is more complex. The difficult operating environment is a combination of: -
<ul>
<li>
lower Chinese consumer demand for products such as smartphones, autos, cosmetics, and other consumer goods</li>
<li>many of the Korean companies' products have become less competitive as compared to the products made by the Chinese companies, and. </li>
<li>
additional regulatory pressures that are placed on these Korean companies operating in China have contributed towards the difficult operating environment</li>
</ul>
</blockquote>
<hr>
 - OTHER INSIGHTS OF THE WEEK - 
<div class="content-highlight">
EVENT DRIVEN: BULLISH
</div>
<a href="https://www.smartkarma.com/insights/linkbal-6046-jp-smallcap-growth-stock-offering-this-morning-topix-inclusion-late-summer-2019" target="_blank" data-smartkarma-citation="insights:28696">Linkbal (6046 JP): Offering &amp; TOPIX Inclusion Late Summer 2019?</a> <a href="https://www.smartkarma.com/insights/murakami-san-goes-hostile-on-kosaido-7868-jp-overbids-bain-s-final-offer" target="_blank" data-smartkarma-citation="insights:28716"></a>
<a href="https://www.smartkarma.com/insights/korean-stubs-spotlight-a-pair-trade-between-ecopro-co-and-ecopro-bm" target="_blank" data-smartkarma-citation="insights:28711">Korean Stubs: A Pair Trade Between Ecopro Co and Ecopro BM</a>
<div style="text-align: center;" class="content-highlight">
EVENT DRIVEN: BEARISH
</div>
<a href="https://www.smartkarma.com/insights/kosaido-7868-jp-reaches-value-you-can-sell" target="_blank" data-smartkarma-citation="insights:28775">Kosaido (7868 JP) Reaches Value You Can Sell</a>
<a href="https://www.smartkarma.com/insights/descente-tamed-itochu-delicacy-required-and-investors-can-probably-wait" target="_blank" data-smartkarma-citation="insights:28648">Descente Tamed, Itochu Delicacy Required And Investors Can Probably Wait</a>
<a href="https://www.smartkarma.com/insights/trade-idea-amorepacific-stub-002790-ks-buyback-helped-close-the-trade" target="_blank" data-smartkarma-citation="insights:28217">TRADE IDEA - Amorepacific Stub (002790 KS): Buyback Helped, Close the Trade</a>
<a href="https://www.smartkarma.com/insights/korean-stubs-spotlight-close-out-the-pair-trade-between-hyosung-tnc-hyosung-corp" target="_blank" data-smartkarma-citation="insights:28737">Korean Stubs: Close Out the Pair Trade Between Hyosung TNC &amp; Hyosung Corp</a> 
<div style="text-align: center;" class="content-highlight">
IPOs &amp; PLACEMENTS: BULLISH
</div>
<a href="https://www.smartkarma.com/insights/a-trading-strategy-for-hyundai-autoever-post-ipo" target="_blank" data-smartkarma-citation="insights:28668">A Trading Strategy for Hyundai Autoever Post IPO</a>
<a href="https://www.smartkarma.com/insights/hyundai-autoever-ipo-bookbuilding-surprising-results-local-street-bets-on-autoever-glovis-merger" target="_blank" data-smartkarma-citation="insights:28676">Hyundai Autoever IPO Bookbuilding: Street Bets on Autoever/Glovis Merger</a>
<a href="https://www.smartkarma.com/insights/woori-finacials-placement-one-overhang-gone-in-a-well-flagged-deal-another-remains" target="_blank" data-smartkarma-citation="insights:28739">Woori Financials - One Overhang Gone in a Well Flagged Deal, Another Remains</a>
<div style="text-align: center;" class="content-highlight">
EQUITY BOTTOM UP: BULLISH
</div>
<a href="https://www.smartkarma.com/insights/woori-bank-overhang-versus-valuation" target="_blank" data-smartkarma-citation="insights:28662">Woori Bank: Overhang Versus Valuation</a>
<a href="https://www.smartkarma.com/insights/hankyu-invests-1-75-billion-in-hankyu-men-s-tokyo" target="_blank" data-smartkarma-citation="insights:28744">Hankyu Invests ¥1.75 Billion in Hankyu Men’s Tokyo</a>
<div style="text-align: center;" class="content-highlight">
EQUITY BOTTOM UP: BEARISH
</div>
<a href="https://www.smartkarma.com/insights/mercari-4385-a-great-business-but-over-priced" target="_blank" data-smartkarma-citation="insights:28728">Mercari (4385) A Great Business but Over-Priced</a>
<a href="https://www.smartkarma.com/insights/after-zozo-onward-sets-sights-on-digital-renaissance" target="_blank" data-smartkarma-citation="insights:28742">After Zozo: Onward Sets Sights on Digital Renaissance</a>
<a href="https://www.smartkarma.com/insights/lasertec-6920-jp-pricing-in-long-term-growth" target="_blank" data-smartkarma-citation="insights:28180">Lasertec (6920 JP): Pricing in Long-Term Growth</a>
<div style="text-align: center;" class="content-highlight">
THEMATIC &amp; STRATEGY: BULLISH
</div>
<a href="https://www.smartkarma.com/insights/kospi-200-june-2019-rebalancing-list-of-addition-deletion-candidates" target="_blank" data-smartkarma-citation="insights:28754">KOSPI 200 June 2019 Rebalancing: List of Addition/Deletion Candidates</a>
<a href="https://www.smartkarma.com/insights/uniqlo-japan-s-most-valuable-retail-brand" target="_blank" data-smartkarma-citation="insights:28743">Uniqlo Japan’s Most Valuable Retail Brand</a>
<div class="content-highlight">
THEMATIC &amp; STRATEGY: BEARISH
</div>
<a href="https://www.smartkarma.com/insights/a-list-of-major-korean-companies-shutting-down-or-restructuring-their-operations-in-china" target="_blank" data-smartkarma-citation="insights:28745">Major Korean Companies Shutting Down or Restructuring Operations in China</a> 
<a href="https://www.smartkarma.com/insights/japanese-convenience-stores-shorter-hours" target="_blank" data-smartkarma-citation="insights:28746">Japanese Convenience Stores: Shorter Hours</a>
<a href="https://www.smartkarma.com/insights/consumer-electronics-chains-set-for-major-boost-this-year-but-it-will-be-temporary" target="_blank" data-smartkarma-citation="insights:28767">Consumer Electronics Chains Set for Major Boost This Year – But It Will Be Temporary</a>
<a href="https://www.smartkarma.com/insights/japan-moving-average-outliers-market-sell-signal-generated-6920-8036-6758-2326-3064" target="_blank" data-smartkarma-citation="insights:28778">🇯🇵 Japan: Moving Average Outliers - Market Sell Signal Generated</a>
<div style="text-align: center;" class="content-highlight">
TECHNICAL: BEARISH
</div>
<a href="https://www.smartkarma.com/insights/resona-holding-faces-further-pressure-after-corrective-bounce-terminates" target="_blank" data-smartkarma-citation="insights:28683">Resona Holding Faces Further Pressure After Corrective Bounce Terminates</a>

- TW3 NORTH ASIA - 
This week in North Asia the Smartkarma team Insights were more Bearish than Bullish. 

Close Outs or Sales were recommended on: Kosaido (7868 JP), the Amorepacific Group/Corp pair, the Hyosung TNC/Corp pair, Resona Holdings (8308 JP) and the Japanese market overall.
The Hyundai Autoever IPO was covered by two providers as was the Woori Group all with Bullish flags.
Caution was expressed on Mercari (4385 JP), Onward (8016 JP), and Lasertec (6920 JP) in Japan as well as the Convenience Store and Consumer Electronics retailers there.  
The upcoming KOSPI 200 re balancing was also covered with a list of potential additions and deletions.   


 - NORTH ASIAN INSIGHT OF THE WEEK - 
Our Top Insight of the week was Douglas Kim 's interesting note on Korean companies pulling out of China or restructuring their operations in that country. 
As Douglas notes, "The pace of major Korean companies that are discontinuing part or all of their operations in China in the past year has been UNPRECEDENTED in the past two decades. This trend is very concerning since it suggests deteriorating business conditions and reduced employment in China". 

The main reason why the Korean companies are pulling out of China is primarily due to the difficulty of generating profits under the current, difficult operating conditions.
However, the reasons why it has become more difficult for these Korean companies to generate profits in China is more complex. The difficult operating environment is a combination of: -


lower Chinese consumer demand for products such as smartphones, autos, cosmetics, and other consumer goods
many of the Korean companies' products have become less competitive as compared to the products made by the Chinese companies, and. 

additional regulatory pressures that are placed on these Korean companies operating in China have contributed towards the difficult operating environment



 - OTHER INSIGHTS OF THE WEEK - 

EVENT DRIVEN: BULLISH

Linkbal (6046 JP): Offering &amp; TOPIX Inclusion Late Summer 2019? 
Korean Stubs: A Pair Trade Between Ecopro Co and Ecopro BM

EVENT DRIVEN: BEARISH

Kosaido (7868 JP) Reaches Value You Can Sell
Descente Tamed, Itochu Delicacy Required And Investors Can Probably Wait
TRADE IDEA - Amorepacific Stub (002790 KS): Buyback Helped, Close the Trade
Korean Stubs: Close Out the Pair Trade Between Hyosung TNC &amp; Hyosung Corp 

IPOs &amp; PLACEMENTS: BULLISH

A Trading Strategy for Hyundai Autoever Post IPO
Hyundai Autoever IPO Bookbuilding: Street Bets on Autoever/Glovis Merger
Woori Financials - One Overhang Gone in a Well Flagged Deal, Another Remains

EQUITY BOTTOM UP: BULLISH

Woori Bank: Overhang Versus Valuation
Hankyu Invests ¥1.75 Billion in Hankyu Men’s Tokyo

EQUITY BOTTOM UP: BEARISH

Mercari (4385) A Great Business but Over-Priced
After Zozo: Onward Sets Sights on Digital Renaissance
Lasertec (6920 JP): Pricing in Long-Term Growth

THEMATIC &amp; STRATEGY: BULLISH

KOSPI 200 June 2019 Rebalancing: List of Addition/Deletion Candidates
Uniqlo Japan’s Most Valuable Retail Brand

THEMATIC &amp; STRATEGY: BEARISH

Major Korean Companies Shutting Down or Restructuring Operations in China 
Japanese Convenience Stores: Shorter Hours
Consumer Electronics Chains Set for Major Boost This Year – But It Will Be Temporary
🇯🇵 Japan: Moving Average Outliers - Market Sell Signal Generated

TECHNICAL: BEARISH

Resona Holding Faces Further Pressure After Corrective Bounce Terminates

🇰🇷 🇯🇵 Smartkarma North Asia • That Was The Week That Was - 18th-24th March 2019

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

Today almost all the 50,000 stores run by the big three convenience store chains operate 24-hours a day, but franchise owners everywhere are struggling to find enough staff.
Last month, the owners’ union of the biggest chain, Seven Eleven, issued a demand that each store be allowed to set its own hours.
This move has implications for a retail industry struggling with labour shortages and higher part-time wages.

Today almost all the 50,000 stores run by the big three convenience store chains operate 24-hours a day, but franchise owners everywhere are struggling to find enough staff.
Last month, the owners’ union of the biggest chain, Seven Eleven, issued a demand that each store be allowed to set its own hours.
This move has implications for a retail industry struggling with labour shortages and higher part-time wages.

Japanese Convenience Stores: Shorter Hours

Japan

ROYAL HOLDINGS Co., Ltd. operates a restaurant chain known as Royal Host and Sizzler.  The Company operates bakery known as Cafe Croissant.  Royal Holdings also provides food for airline companies.

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Royal Holdings (8179 JP)

🇰🇷 🇯🇵 Smartkarma North Asia • That Was The Week That Was - 18th-24th March 2019

- TW3 NORTH ASIA - This week in North Asia the Smartkarma team Insights were more Bearish than Bullish. Close Outs or Sales were recommended on:...

Campbell Gunn

Japanese Convenience Stores: Shorter Hours

Today almost all the 50,000 stores run by the big three convenience store chains operate 24-hours a day, but franchise owners everywhere are...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)