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

Komatsu: Regional Mining and Construction Trends in Charts

HCM – Developed Market Strength, Emerging Market Weakness

Hitachi – Thoughts on the Honda Group Autoparts Merger

Hitachi to Go with Full Supply Chain: Production-Customers-Second Hand Market in Europe

HCM: 4Q Unlikely to Surprise but We Do Not Expect an Earnings Decline Next Year

Weak HCM Guidance Causes Jitters but We Expect Another Good Year; Favour Komatsu Temporarily

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

Hitachi Construction Machinery / Equity Bottom-Up

<p>We consider the tone of HCM's setsumeikai to have been largely positive. While guidance looked very weak, on a constant currency basis the company expects earnings to grow with strong results in the mining and value chain businesses offsetting <em>potential</em> weakness in China and Europe. While unit sales in China look a little frothy with local manufacturers becoming very aggressive on pricing, on the whole we believe the market has prematurely priced in a downturn while we expect mining demand to support continued strong results.</p>

We consider the tone of HCM's setsumeikai to have been largely positive. While guidance looked very weak, on a constant currency basis the company expects earnings to grow with strong results in the mining and value chain businesses offsetting potential weakness in China and Europe. While unit sales in China look a little frothy with local manufacturers becoming very aggressive on pricing, on the whole we believe the market has prematurely priced in a downturn while we expect mining demand to support continued strong results.

HCM: Setsumeikai Positive and Earnings Should Grow on Constant Currency Basis