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

Terra Drone (278A JP): Ukrainian Subsidiaries in the Line of Fire

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>"Full scale" entry into the defense equipment market with investment in Amazing Drones of Ukraine and joint production of interceptor drone "Terra AI."</li>
<li>Gross margin close to 50%, but management guiding for a larger operating loss and a substantial net loss in the year to January 2027.</li>
<li>Could reach breakeven by 2030 if sales double on military-related demand as we expect.</li>
</ul>


"Full scale" entry into the defense equipment market with investment in Amazing Drones of Ukraine and joint production of interceptor drone "Terra AI."
Gross margin close to 50%, but management guiding for a larger operating loss and a substantial net loss in the year to January 2027.
Could reach breakeven by 2030 if sales double on military-related demand as we expect.


Terra Drone (278A JP): Alliance with Ukraine's Amazing Drones