Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

Hitachi TOB for Hitachi High Tech (8036) - Valuative, Volitive, Vulnerable?

Hitachi Ltd. To Buy the Remaining Stake of Hitachi High-Technologies

Hitachi Metals- Dressing Up For M&A With Mitsubishi Hitachi Tool Sale?

Fujifilm to Buy Hitachi’s Diagnostic Imaging Business

Showa Denko – Showa Me the Synergies…?

Hitachi Chemical: How Can You Justify an ¥800bn Valuation?

Showa Denko Pays BIG MONEY for Hitachi Chem (4217)

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>In an attempt to reorganise its business, Hitachi has been aggressively selling off non-core assets while simultaneously buying foreign businesses in order to expand its digital businesses.</li>
<li>Hitachi’s new strategy for 2021 focuses on utilising five business sectors to increase social values, environmental values and economic values.  The five business sectors are:</li>
</ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/114/146/original/blobid0.png?1579233084" class="editor-image img-responsive" data-smartkarma-image-id="114146"></figure><div class="content-caption"><em>Source: Company disclosures</em></div><ul>
<li>It is as part of this strategy that in December 2019, Hitachi announced the sale of its 51% stake in Hitachi Chemical (a supplier of materials for semiconductors, displays and lithium-ion batteries) to Showa Denko and its diagnostic imaging business to Fujifilm Holdings Corp.</li>
<li>We feel that Hitachi High-Technologies would be next in line for a potential sale given the company’s products are very similar to that of Hitachi Chemical and Hitachi’s diagnostic imaging business in terms of industry exposure.</li>
<li>Even if the entire business of Hitachi High-Tech is not sold off, we feel that the company’s Analytical and Medical solutions segment along with the Nanotechnology segment are more likely to be sold off as these businesses do not correspond with Hitachi Ltd’s strategy.</li>
<li>In this insight, we take a look at Hitachi High-Technologies’ business, outlook and the valuation for the company.</li>
</ul>


In an attempt to reorganise its business, Hitachi has been aggressively selling off non-core assets while simultaneously buying foreign businesses in order to expand its digital businesses.
Hitachi’s new strategy for 2021 focuses on utilising five business sectors to increase social values, environmental values and economic values.  The five business sectors are:
Source: Company disclosures
It is as part of this strategy that in December 2019, Hitachi announced the sale of its 51% stake in Hitachi Chemical (a supplier of materials for semiconductors, displays and lithium-ion batteries) to Showa Denko and its diagnostic imaging business to Fujifilm Holdings Corp.
We feel that Hitachi High-Technologies would be next in line for a potential sale given the company’s products are very similar to that of Hitachi Chemical and Hitachi’s diagnostic imaging business in terms of industry exposure.
Even if the entire business of Hitachi High-Tech is not sold off, we feel that the company’s Analytical and Medical solutions segment along with the Nanotechnology segment are more likely to be sold off as these businesses do not correspond with Hitachi Ltd’s strategy.
In this insight, we take a look at Hitachi High-Technologies’ business, outlook and the valuation for the company.


日立の次の売却先候補：日立ハイテクノロジーズ