In today’s briefing:
- Ohayo Japan | Great Progress Made???
- Japan Morning Connection: US-China Talks End on Positive Note Adding to the Bullish Tone to Start
- Auto & Industrial Semi Part1: Background of the Ongoing Crash, Revising Down Lofty Expectations
Ohayo Japan | Great Progress Made???
- Stocks were generally flat and rangebound as investors awaited key U.S.-China trade talks in Switzerland
- Fuji Oil has cancelled its planned production of recycled aviation fuel (SAF) due to soaring construction costs for production facilities and rising prices of waste cooking oil
- Nissan Motor has scrapped plans for its first electric vehicle battery plant in Japan due to poor financial performance, deeming the significant investment unfeasible
Japan Morning Connection: US-China Talks End on Positive Note Adding to the Bullish Tone to Start
- Power/Analog semi names were buoyed by Microchip Tech comments for a downcycle inflection.
- JP Heavies MHI and KHI both failed to impress on Friday, but MHI may see interest on news for possible jet export.
- Trump looking to cut pharma costs by 30-80% will add to the uncertainty for JP pharma with high medicare and medicaid exposure.
Auto & Industrial Semi Part1: Background of the Ongoing Crash, Revising Down Lofty Expectations
- Auto & Industrial Semi long boom / bust cycle started during Covid (peak demand) and is ending soon. Revenues declined by -20%. Operating Profits are depressed, down -50% from peak.
- Industry structure, high fragmentation, low transparency led to a protracted and steep bottom. But inventories remain high. The recovery will take time, probably no YoY revenue growth till 2026.
- Two big restructuring are underway, the sector is rationalizing. Lofty expectations of “structural growth” (EV, ADAS, green energy growth) hit the wall of a disappointing reality amplified by trade wars.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
