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

[Japan M&A] - Denso Withdraws Rohm (6963) Takeover Proposal - Now It's Just Value

[Japan M&A] Rohm (6963) - Refreshing Rohm's Stake Value in Toshiba, and Thinking About NEWCO

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>After rising by 76% since the beginning of the year, Rohm is selling at 20x our EPS forecast for FY Mar-29. This should discount a reasonably optimistic recovery scenario.</li>
<li>A ¥193.6 billion impairment charge and the withdrawal of Denso's acquisition proposal has opened the way for management to rebuild the business.</li>
<li>Shortages of and high prices for materials, and other economic disruption caused by the war on Iran, have largely been ignored.</li>
</ul>


After rising by 76% since the beginning of the year, Rohm is selling at 20x our EPS forecast for FY Mar-29. This should discount a reasonably optimistic recovery scenario.
A ¥193.6 billion impairment charge and the withdrawal of Denso's acquisition proposal has opened the way for management to rebuild the business.
Shortages of and high prices for materials, and other economic disruption caused by the war on Iran, have largely been ignored.


Rohm (6963 JP): Profit Rebound in the Price

ROHM Co Ltd

Rohm (6963 JP): Profit Rebound in the Price