Senior Technology Analyst, 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.

Senior Technology Analyst, Japanese Equities

IHI (7013 JP): Buy Back in for Post-Crash Recovery

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>Japan's rising defense budget and military collaboration with the US and Europe should support a high level of orders for the foreseeable future.</li>
<li>Defense is the growth driver, but other divisions should hold up well due to the ongoing rationalization of operations.</li>
<li>Profits should rebound this year and rise further in FY Mar-26, bringing the P/E down to 9X or less. The weak yen is a large positive. </li>
</ul>


Japan's rising defense budget and military collaboration with the US and Europe should support a high level of orders for the foreseeable future.
Defense is the growth driver, but other divisions should hold up well due to the ongoing rationalization of operations.
Profits should rebound this year and rise further in FY Mar-26, bringing the P/E down to 9X or less. The weak yen is a large positive. 


IHI (7013 JP): 30% Upside Potential as Aerospace and Defense Rebound

IHI Corp

IHI (7013 JP): 30% Upside Potential as Aerospace and Defense Rebound