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

Tokyo Electron (8035 JP): Downturn Discounted but Maybe Not Its Duration

Tokyo Electron (8035 JP): Sell into the Bear Market Bounce

Tokyo Electron (8035) | Huge Upside if Management Hit Targets

Tokyo Electron (8035): Semiconductor Supply Chain at Risk of a Downturn

Tokyo Electron (8035 JP): New Medium-Term Plan Vs. Reality

Gravity Works As WeWork Doesn't; Now Plan B

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>A sudden decline in sales led to a 30% sequential decline in operating profit in the three months to June. Year-on-year, operating profit was down 17%.</li>
<li>Nevertheless, management left sales and profit guidance unchanged - despite cutting their semiconductor equipment demand forecast - and R&amp;D and capital spending continue to rise. </li>
<li>FY Mar-23 EPS guidance puts the shares on 13x earnings, but potential downside risk is considerable. Stand back while the economic recession unfolds.</li>
</ul>


A sudden decline in sales led to a 30% sequential decline in operating profit in the three months to June. Year-on-year, operating profit was down 17%.
Nevertheless, management left sales and profit guidance unchanged - despite cutting their semiconductor equipment demand forecast - and R&amp;D and capital spending continue to rise. 
FY Mar-23 EPS guidance puts the shares on 13x earnings, but potential downside risk is considerable. Stand back while the economic recession unfolds.


Tokyo Electron (8035 JP): Caught Out by a Decline in Sales