Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

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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.

Equity Bottom-Up

<ul>
<li>Continuing a now familiar theme for manufacturers Daikin’s 4QFY22 revenue beat consensus by 9.8% but raw material prices restricted OP to meagre 0.3% beat. </li>
<li>FY23 guidance is also mixed as they expect strong revenue of ¥3,380bn (+5.9% vs. consensus, +8.7% YoY) but weak OP of ¥340bn (-2.9% vs. consensus). </li>
<li>We believe price hikes could be bigger than projected and the weak yen will help but multiples remain elevated.</li>
</ul>


Continuing a now familiar theme for manufacturers Daikin’s 4QFY22 revenue beat consensus by 9.8% but raw material prices restricted OP to meagre 0.3% beat. 
FY23 guidance is also mixed as they expect strong revenue of ¥3,380bn (+5.9% vs. consensus, +8.7% YoY) but weak OP of ¥340bn (-2.9% vs. consensus). 
We believe price hikes could be bigger than projected and the weak yen will help but multiples remain elevated.


Daikin – Steady Volume Growth And Price Hikes But Expensive

Daikin Industries

Daikin – Steady Volume Growth And Price Hikes But Expensive