Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>In 2022, JPY depreciated against USD to the lowest level in more than 30 years. This benefitted healthcare companies in Japan, which earn significant portion of revenues from the U.S.</li>
<li>This year, Yen has started reversing its course and began to strengthen. With benefit of favorable Forex gradually fading, investors need to be selective in picking healthcare bets in Japan.</li>
<li>We have discussed about five top picks from Japan healthcare sector. Domestic focused business, favorable industry tailwinds, and COVID recovery are the main investment thesis for the top picks.</li>
</ul>


In 2022, JPY depreciated against USD to the lowest level in more than 30 years. This benefitted healthcare companies in Japan, which earn significant portion of revenues from the U.S.
This year, Yen has started reversing its course and began to strengthen. With benefit of favorable Forex gradually fading, investors need to be selective in picking healthcare bets in Japan.
We have discussed about five top picks from Japan healthcare sector. Domestic focused business, favorable industry tailwinds, and COVID recovery are the main investment thesis for the top picks.


Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

<ul>
<li>As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.</li>
<li>Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.</li>
<li>For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.</li>
</ul>


As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.
Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.
For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.


2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/299/original/2020-09-06_14-17-48.png?1599369500" class="editor-image img-responsive" data-smartkarma-image-id="157299"></figure>
<div class="content-caption">Source for all charts: Japan Analytics</div>
<p><strong>(It's a) </strong><a href="https://www.smartkarma.com/entities/tea-life-co-ltd" target="_blank" data-smartkarma-citation="entities:6199:1" rel="noopener"><strong>Tea Life  (3172 JP)</strong></a> - Micro-cap Tea Life combines two of the hottest market themes - online retailing and health food and has seen its shares rise 62% over the last month. Fourth-quarter operating margins fell year-on-year, and the initial forecasts for the current year are cautious. The market-implied growth rate of zero is too low; however, the company has yet to see any significant incremental returns for the debt-funded 160% increase in Net Operating Assets over the last four years. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/301/original/2020-09-06_14-22-10.png?1599369747" class="editor-image img-responsive" data-smartkarma-image-id="157301"></figure>
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<div>
<p style="text-align: center;"><strong>DAILY STATS</strong></p>
</div>
<hr>
<div>
<p><strong>PERCENTAGES </strong>-<strong> 65%</strong> of quarterly results,<strong> 71%</strong> of annual forecasts/revisions and<strong> 57%</strong> of interim forecasts have negative Scores. <strong>43%</strong> of companies reporting lost money for the quarter.</p>
</div>
<hr>
<div>
<p style="text-align: center;"><strong>23 Quarterly Results</strong></p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<strong>Results Score:</strong> 30% Positive / 4% Neutral / 65% Negative</li>
<li>
<strong>Average Results Score Change:</strong> -2.7 points</li>
<li>
<strong>Average % Change in Revenue:</strong> -15.7% Quarter YoY / -6.8% Rolling TTM YoY </li>
<li>
<strong>Average Operating Profit Margin Change:</strong> -1.9 ppt <strong><em>(ex tella)</em></strong>
</li>
<li>
<strong>Percentage Making Quarterly Losse</strong>s: 43%</li>
</ul>
</div>
<hr>
<div>
<p style="text-align: center;"><strong>17 Annual • 7 Interim Forecasts/Revisions</strong></p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<strong>Annual Forecast/Revision Score:</strong> 29% Positive / 0% Neutral / 71% Negative</li>
<li>
<strong>Interim Forecast/Revision Score Change:</strong> 43% Positive / 0% Neutral / 57% Negative</li>
<li>
<strong>Average Forecast/Revision Score Change: </strong>-6.3 points</li>
</ul>
</div>


Source for all charts: Japan Analytics
(It's a) Tea Life  (3172 JP) - Micro-cap Tea Life combines two of the hottest market themes - online retailing and health food and has seen its shares rise 62% over the last month. Fourth-quarter operating margins fell year-on-year, and the initial forecasts for the current year are cautious. The market-implied growth rate of zero is too low; however, the company has yet to see any significant incremental returns for the debt-funded 160% increase in Net Operating Assets over the last four years. 



DAILY STATS



PERCENTAGES - 65% of quarterly results, 71% of annual forecasts/revisions and 57% of interim forecasts have negative Scores. 43% of companies reporting lost money for the quarter.



23 Quarterly Results




Results Score: 30% Positive / 4% Neutral / 65% Negative

Average Results Score Change: -2.7 points

Average % Change in Revenue: -15.7% Quarter YoY / -6.8% Rolling TTM YoY 

Average Operating Profit Margin Change: -1.9 ppt (ex tella)


Percentage Making Quarterly Losses: 43%




17 Annual • 7 Interim Forecasts/Revisions




Annual Forecast/Revision Score: 29% Positive / 0% Neutral / 71% Negative

Interim Forecast/Revision Score Change: 43% Positive / 0% Neutral / 57% Negative

Average Forecast/Revision Score Change: -6.3 points



🇯🇵 JAPAN • Results & Revisions 09/​​04 - (It's A) Tea Life, Kanamoto(& Nagawa), HI-LEX, SoftServ

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

<p>The suggestion of government orchestration against <a href="https://www.smartkarma.com/entities/8979" target="_blank" data-smartkarma-citation="entities:8979:1">Ono</a>’s immunotherapy treatment Opdivo (nivolumab) has moved a stage further with a report in the Nikkei that the Japanese Health Ministry is considering setting rules on new drug usage during this fiscal year, starting with <a href="https://www.smartkarma.com/entities/8979" target="_blank" data-smartkarma-citation="entities:8979:1">Ono</a>’s Opdivo and <a href="https://www.smartkarma.com/entities/6091" target="_blank" data-smartkarma-citation="entities:6091">Astellas</a>’s Repatha. Patients may be limited to those who can see certain impact from the treatment, which in turn would mean the drug could only be prescribed at those institutions with the facilities to check…</p>

The suggestion of government orchestration against Ono’s immunotherapy treatment Opdivo (nivolumab) has moved a stage further with a report in the Nikkei that the Japanese Health Ministry is considering setting rules on new drug usage during this fiscal year, starting with Ono’s Opdivo and Astellas’s Repatha. Patients may be limited to those who can see certain impact from the treatment, which in turn would mean the drug could only be prescribed at those institutions with the facilities to check…

Opdivo Singled Out in Government Rule Change

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 Mar 19th. The aggregated net margin trading position is USD23,664m.</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 Nintendo, Lasertec, Fujikura, JX Advanced Metals, Modec, SoftBank, Sumitomo Electric Industries, Nippon Steel, West Japan Railway Company, Japan Electronic Materials.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Mar 19th. The aggregated net margin trading position is USD23,664m.
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 Nintendo, Lasertec, Fujikura, JX Advanced Metals, Modec, SoftBank, Sumitomo Electric Industries, Nippon Steel, West Japan Railway Company, Japan Electronic Materials.


JPX Margin Trading Weekly (Mar 19th): Nintendo, Lasertec, Fujikura, JX Advanced Metals, Modec

Japan

Software Service, Inc. develops and sells medical information software for hospital uses.  The products include electronic medical carte and order entry system.  The Company also provides training and maintenance services.

Price Gauge
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Software Service (3733 JP)

Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

As Yen is recovering from its multi-year lows against Dollar this year, export-oriented healthcare companies are expected to significantly...

Tina Banerjee

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

🇯🇵 JAPAN • Results & Revisions 09/04 - (It's A) Tea Life, Kanamoto(& Nagawa), HI-LEX, SoftServ

(It's a) Tea Life (3172 JP) - Micro-cap Tea Life combines two of the hottest market themes - online retailing and health food and has seen its...

Campbell Gunn

Opdivo Singled Out in Government Rule Change

The suggestion of government orchestration against Ono’s immunotherapy treatment Opdivo (nivolumab) has moved a stage further with a report in the...

Pelham Smithers Associates

JPX Margin Trading Weekly (Mar 19th): Nintendo, Lasertec, Fujikura, JX Advanced Metals, Modec

We analyzed JPX margin trading positions report for the past week and highlighted Nintendo (7974 JP), Lasertec (6920 JP), Fujikura (5803 JP), JX...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

As Yen is recovering from its multi-year lows against Dollar this year, export-oriented healthcare companies are expected to significantly...

Tina Banerjee

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

🇯🇵 JAPAN • Results & Revisions 09/​​04 - (It's A) Tea Life, Kanamoto(& Nagawa), HI-LEX, SoftServ

(It's a) Tea Life (3172 JP) - Micro-cap Tea Life combines two of the hottest market themes - online retailing and health food and has seen its...

Campbell Gunn

Opdivo Singled Out in Government Rule Change

The suggestion of government orchestration against Ono’s immunotherapy treatment Opdivo (nivolumab) has moved a stage further with a report in the...

Pelham Smithers Associates

JPX Margin Trading Weekly (Mar 19th): Nintendo, Lasertec, Fujikura, JX Advanced Metals, Modec

We analyzed JPX margin trading positions report for the past week and highlighted Nintendo (7974 JP), Lasertec (6920 JP), Fujikura (5803 JP), JX...

Ke Yan, CFA, FRM

🇯🇵 JAPAN • Results & Revisions 09/04 - (It's A) Tea Life, Kanamoto(& Nagawa), HI-LEX, SoftServ