Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Thematic (Sector/Industry)

<ul>
<li>The Japanese SME segment is filled with its unique structural challenges, which provides opportunities for "pick and shovel" suppliers;</li>
<li>Many of these SME backers (including oRo, which we covered previously) have generated tremendous shareholder value in the past and may continue to do so while addressing clients' key pain points alongside multiple long-term tailwinds.</li>
</ul>


The Japanese SME segment is filled with its unique structural challenges, which provides opportunities for "pick and shovel" suppliers;
Many of these SME backers (including oRo, which we covered previously) have generated tremendous shareholder value in the past and may continue to do so while addressing clients' key pain points alongside multiple long-term tailwinds.


'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/000/143/359/original/2020-06-30_04-46-42.png?1593460016" class="editor-image img-responsive" data-smartkarma-image-id="143359"></figure>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/143/360/original/2020-06-30_04-47-13.png?1593460057" class="editor-image img-responsive" data-smartkarma-image-id="143360"></figure>
<div class="content-caption">Source • Japan Analytics</div>
<p><strong>STAYIN' HOME</strong> - Only two companies saw their Results &amp; Revision Scores improve quarter-on-quarter amongst the thirteen that reported - <a href="https://www.smartkarma.com/entities/dcm-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13042:1" rel="noopener">DCM (3050 JP)</a> and <a href="https://www.smartkarma.com/entities/keiyo-co-ltd" target="_blank" data-smartkarma-citation="entities:14415:1" rel="noopener">Keiyo (8168 JP),</a> both Retail Home Centers. Revenues rose by 9% and 10% and operating margins increases by 0.9 and 4.0 points, respectively. All other retail formats other than grocery stores have suffered as expected, with <a href="https://www.smartkarma.com/entities/shimamura-co-ltd" target="_blank" data-smartkarma-citation="entities:15213:1" rel="noopener">Shimamura (8227 JP)</a>, <a href="https://www.smartkarma.com/entities/asahi-co-ltd" target="_blank" data-smartkarma-citation="entities:16460:1" rel="noopener">Asahi (3333 JP)</a>, and <a href="https://www.smartkarma.com/entities/j-front-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:8947:1" rel="noopener">J Front Retailing (3086 JP)</a> being Monday's examples.</p>
<div>
<hr>
<p style="text-align: center;"><strong>DAILY STATS</strong></p>
</div>
<div>
<p style="text-align: center;"><strong>13 Quarterly Results</strong></p>
</div>
<div>
<ul>
<li>
<strong>Results Score</strong>: 2 Positive / 11 Negative</li>
<li>
<strong>Average Results Score Change</strong>:-6.2</li>
<li>
<strong>Average % Change in Revenue:</strong> -13.5% Quarter YoY / -1.0% Rolling TTM YoY</li>
<li>
<strong>Average Operating Profit Margin Change:</strong> -1.9ppt</li>
</ul>
</div>
<hr>
<div>
<p style="text-align: center;"><strong><br>6 Annual 3 Interim Forecasts/Revisions</strong></p>
</div>
<div>
<ul>
<li>Annual Forecast/Revision Score: 3 Positive / 3 Negative</li>
<li>Interim Forecast/Revision Score Change: 1 Positive / 2 Negative</li>
<li>Average Forecast/Revision Score Change: -0.4</li>
</ul>
</div>



Source • Japan Analytics
STAYIN' HOME - Only two companies saw their Results &amp; Revision Scores improve quarter-on-quarter amongst the thirteen that reported - DCM (3050 JP) and Keiyo (8168 JP), both Retail Home Centers. Revenues rose by 9% and 10% and operating margins increases by 0.9 and 4.0 points, respectively. All other retail formats other than grocery stores have suffered as expected, with Shimamura (8227 JP), Asahi (3333 JP), and J Front Retailing (3086 JP) being Monday's examples.


DAILY STATS


13 Quarterly Results




Results Score: 2 Positive / 11 Negative

Average Results Score Change:-6.2

Average % Change in Revenue: -13.5% Quarter YoY / -1.0% Rolling TTM YoY

Average Operating Profit Margin Change: -1.9ppt




 6 Annual 3 Interim Forecasts/Revisions



Annual Forecast/Revision Score: 3 Positive / 3 Negative
Interim Forecast/Revision Score Change: 1 Positive / 2 Negative
Average Forecast/Revision Score Change: -0.4



🇯🇵 JAPAN • Results & Revisions 29th June -Stayin' Home

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical picture. While there is some room to move higher in the near-term, we are hesitant to get too excited because several major indexes have additional hurdles to jump. We highlight important technical levels across major averages including Europe/UK (STOXX 600), Hong Kong (Hang Seng), Japan (TOPIX), and several EM countries (China, Brazil, Russia, Taiwan, and India).  Finally, we highlight attractive opportunities within the Consumer Discretionary, Heath Care and Services sectors.</p>

Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical picture. While there is some room to move higher in the near-term, we are hesitant to get too excited because several major indexes have additional hurdles to jump. We highlight important technical levels across major averages including Europe/UK (STOXX 600), Hong Kong (Hang Seng), Japan (TOPIX), and several EM countries (China, Brazil, Russia, Taiwan, and India).  Finally, we highlight attractive opportunities within the Consumer Discretionary, Heath Care and Services sectors.

<p>We remain cautious as the number of bearish-leaning developments continue to pile up. As a result we continue to believe global equities are vulnerable to a breakdown. We recap important technical levels across markets and highlight Actionable Themes within Services, Consumer Staples, and Health Care. We also highlight attractive set ups in H&amp;M Hennes &amp; Mauritz AB Class B (HM.B-SE).</p>

We remain cautious as the number of bearish-leaning developments continue to pile up. As a result we continue to believe global equities are vulnerable to a breakdown. We recap important technical levels across markets and highlight Actionable Themes within Services, Consumer Staples, and Health Care. We also highlight attractive set ups in H&amp;M Hennes &amp; Mauritz AB Class B (HM.B-SE).

Global Equity Strategy: Bearish-Leaning Developments Continue; Europe/UK Holding Above Support.

Stoxx Europe Small 200 Price Eur / Technical Analysis

<p>With further consolidation likely for the broad indexes, we want to stick with areas of the market that have shown an ability to outperform despite the broader consolidation. For that we are returning to Technology and Services. Roughly half of today’s individual stock recommendations are domiciled in Japan, while the remainder hail from India and Russia.</p>

With further consolidation likely for the broad indexes, we want to stick with areas of the market that have shown an ability to outperform despite the broader consolidation. For that we are returning to Technology and Services. Roughly half of today’s individual stock recommendations are domiciled in Japan, while the remainder hail from India and Russia.

Global Equity Strategy U.S. Fed Cut, Now What?

Japan

Strike Company, Limited is mainly engaged in M&A intermediary services for various business types.  The Company also offers advisory services.

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Strike (6196 JP)

Top Picks: Two More Japanese SME Backers

The Japanese SME segment is filled with its unique structural challenges, which provides opportunities for "pick and shovel" suppliers.

Steven Chen

🇯🇵 JAPAN • Results & Revisions 29th June -Stayin' Home

STAYIN' HOME - Only two companies saw their Results & Revision Scores improve quarter-on-quarter amongst the thirteen that reported - DCM...

Campbell Gunn

Global Equity Strategy: Guarded Optimism

Global equities (MSCI ACWI) are decisively breaking above 1-month resistance on US-China trade war optimism, incrementally improving the technical...

Vermilion Research

Global Equity Strategy: Bearish-Leaning Developments Continue; Europe/UK Holding Above Support.

We remain cautious as the number of bearish-leaning developments continue to pile up. As a result we continue to believe global equities are...

Vermilion Research

Global Equity Strategy U.S. Fed Cut, Now What?

With further consolidation likely for the broad indexes, we want to stick with areas of the market that have shown an ability to outperform despite...

Vermilion Research

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