Equity Analyst

Gervin Gayan

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

John Deere Bottomline Impacted by US Tax ReformsJohn Deere recorded a considerable increase in revenue to USD17,634m (27%YoY) in 1HFY18. This was mainly a result of growth in the Construction and Forestry segment (73%YoY), and the Agriculture and Turf segment which grew by 20%YoY (USD1,900m). Meanwhile, operating profit also recorded a result of USD2,130m (25%YoY) in line with revenue growth. However, net Income was not reflected in the top-line growth shown in 1HFY18, and this was due to the impact of provisional adjustments to the provision for income taxes due to the enactment of the U.S. tax reform legislation. The second-quarter results recorded a favourable net adjustment to income taxes of USD174m, while 2QFY18 reflected an unfavourable net provisional income tax expense of USD977m.Net Sales Regional Breakdown – FY2017<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/055/453/original/d1.PNG?1529385892" class="editor-image img-responsive" data-smartkarma-image-id="55453"></figure><div class="content-remarks">                                       Source: Company DisclosuresSource: U.S. Department of Agriculture</div>

John Deere Bottomline Impacted by US Tax ReformsJohn Deere recorded a considerable increase in revenue to USD17,634m (27%YoY) in 1HFY18. This was mainly a result of growth in the Construction and Forestry segment (73%YoY), and the Agriculture and Turf segment which grew by 20%YoY (USD1,900m). Meanwhile, operating profit also recorded a result of USD2,130m (25%YoY) in line with revenue growth. However, net Income was not reflected in the top-line growth shown in 1HFY18, and this was due to the impact of provisional adjustments to the provision for income taxes due to the enactment of the U.S. tax reform legislation. The second-quarter results recorded a favourable net adjustment to income taxes of USD174m, while 2QFY18 reflected an unfavourable net provisional income tax expense of USD977m.Net Sales Regional Breakdown – FY2017                                       Source: Company DisclosuresSource: U.S. Department of Agriculture

Investors Are Wary About Trump’s Trade Policy

Deere & Co

Investors Are Wary About Trump’s Trade Policy