Independent Insight Provider, Japanese equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Independent Insight Provider, Japanese equities

Hitachi Transport Uncoupled - TSE Prime, Price Popping, And Supply To Come

Hitachi Transport System (9086) - Not a Clear Outcome But Interesting Possibilities

Hitachi Transport Is the Eventy Energizer Bunny

Hitachi Transport System (9086 JP): Uptrend Should Resume

Hitachi Transport & SG Holdings:  Consciously Uncoupling

Seino Holdings (9076) - Delivering Cash Back in BIG BUYBACK, May Be an MBO Candidate

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 Transport System / Equity Bottom-Up

Hitachi Transport System (HTS) has risen by 36% since May 20, when the company announced a cancellation of treasury shares to meet one of the listing criteria for the TSE Prime Market and alleviate concerns about dilution through utilization of treasury shares.Management is guiding for 6% growth in sales in FY Mar-22, but only 2% growth in operating profit. This can be attributed in part to conservative forex assumption and other risk factors built into the forecast. Net profit is forecast to decline by 10%. The potential impact of M&amp;A, extraordinary losses and other non-operating items is unclear at this point, but overall profit guidance looks conservative to us. Long-term growth should be supported by international expansion, M&amp;A and productivity gains derived from "digitalization" - the application of advanced data management technologies to logistics - plus increased automation.  At ¥4,535 (Tuesday, July 6 closing price), the shares are selling at 18.5x management's EPS guidance for FY Mar-22. Buy on pullbacks.

Hitachi Transport System (HTS) has risen by 36% since May 20, when the company announced a cancellation of treasury shares to meet one of the listing criteria for the TSE Prime Market and alleviate concerns about dilution through utilization of treasury shares.Management is guiding for 6% growth in sales in FY Mar-22, but only 2% growth in operating profit. This can be attributed in part to conservative forex assumption and other risk factors built into the forecast. Net profit is forecast to decline by 10%. The potential impact of M&amp;A, extraordinary losses and other non-operating items is unclear at this point, but overall profit guidance looks conservative to us. Long-term growth should be supported by international expansion, M&amp;A and productivity gains derived from "digitalization" - the application of advanced data management technologies to logistics - plus increased automation.  At ¥4,535 (Tuesday, July 6 closing price), the shares are selling at 18.5x management's EPS guidance for FY Mar-22. Buy on pullbacks.

Hitachi Transport System (9086 JP): Up 36% Since Treasury Shares Cancelled