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

Rohm (6963): Weak 2Q Before Long-Term Recovery

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​01 - Rohm, Shionogi..

🇯🇵 JAPAN • Results & Revisions ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​02/​​​​​​​​​​​​​​02 - Aisin, MonotaRO

Rohm (6963 JP): Looking to Recovery with SiC Technology and a 10% Buyback

Q1 Semis Up 6.9% Y/Y, but COVID Not Yet Factored In

2020 High Conviction: ROHM- Potential for Margin Expansion; 5G and CASE Are Key Demand Drivers

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>Sales fell short of expectations in FY Mar-20, but operating and net profit were above guidance due to a 16% reduction in R&amp;D expenses. </li>
<li>Red ink was avoided in 4Q, but the company is probably losing money now as the full force of the COVID-19 pandemic undercuts demand for automotive and industrial-use semiconductors. </li>
<li>High gearing to capacity utilization points to a V-shaped recovery when economies reopen and demand for the company's ICs and discrete semiconductors rebounds.</li>
<li>The balance sheet is very strong and management plans to maintain the dividend. We remain positive on Rohm as a long-term investment.</li>
</ul>


Sales fell short of expectations in FY Mar-20, but operating and net profit were above guidance due to a 16% reduction in R&amp;D expenses. 
Red ink was avoided in 4Q, but the company is probably losing money now as the full force of the COVID-19 pandemic undercuts demand for automotive and industrial-use semiconductors. 
High gearing to capacity utilization points to a V-shaped recovery when economies reopen and demand for the company's ICs and discrete semiconductors rebounds.
The balance sheet is very strong and management plans to maintain the dividend. We remain positive on Rohm as a long-term investment.


Rohm (6963 JP): No Guidance but History Points to V-Shaped Recovery

ROHM Co Ltd

Rohm (6963 JP): No Guidance but History Points to V-Shaped Recovery