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): Alliance with Ukraine's Amazing Drones

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>Terra Drone has invested in its two Ukrainian partners, turning them into consolidated subsidiaries. It can now be regarded as an active participant in the Ukraine war.</li>
<li>The company remains in the red, but the bonds with warrants issue made in July should cover capital spending through January 2030. By then, it should break even. </li>
<li>At ¥14,050, the shares are approaching their May high. As a result of the financing, the PBR has dropped from 29X to 7X,</li>
</ul>


Terra Drone has invested in its two Ukrainian partners, turning them into consolidated subsidiaries. It can now be regarded as an active participant in the Ukraine war.
The company remains in the red, but the bonds with warrants issue made in July should cover capital spending through January 2030. By then, it should break even. 
At ¥14,050, the shares are approaching their May high. As a result of the financing, the PBR has dropped from 29X to 7X,


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