Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%.</li>
<li>Japan's 10-year government bond yield reached six-month highs, exceeding 0.9%, amidst the BOJ's unchanged interest rates.</li>
<li>Shares of Zeon rose by +17% this week after the company reported 4Q3/24 operating profits of ¥4.5 bn, surpassing analyst estimates</li>
</ul>


For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%.
Japan's 10-year government bond yield reached six-month highs, exceeding 0.9%, amidst the BOJ's unchanged interest rates.
Shares of Zeon rose by +17% this week after the company reported 4Q3/24 operating profits of ¥4.5 bn, surpassing analyst estimates


Japan Weekly | Earnings Reports Dictate Stock Moves

<ul>
<li>Stocks retreated on Thursday following disappointing US GDP data for Q1, with the Nasdaq Composite down 0.6%</li>
<li>The world’s largest technology companies soared after hours as stellar results from Microsoft Corp. and Google’s parent Alphabet Inc. provided some relief  </li>
<li>Toyota to invest $1.4 billion in its Indiana plant to support electrification efforts in the U.S., preparing for the production of a new battery electric SUV</li>
</ul>


Stocks retreated on Thursday following disappointing US GDP data for Q1, with the Nasdaq Composite down 0.6%
The world’s largest technology companies soared after hours as stellar results from Microsoft Corp. and Google’s parent Alphabet Inc. provided some relief  
Toyota to invest $1.4 billion in its Indiana plant to support electrification efforts in the U.S., preparing for the production of a new battery electric SUV


Ohayo Japan | U.S Economy Slows; Inflation Jumps

<ul>
<li>U.S. stocks closed mixed, with the S&amp;P 500 and Nasdaq Composite up for a third consecutive day. The Dow Jones saw its first decline in five sessions.</li>
<li>The Japanese yen declined to its weakest levels against the dollar since 1990, raising concerns about intervention from Japanese authorities</li>
<li>Asahi Kasei plans to invest around 200 billion yen ($1.3 billion) in a new plant in Canada to produce components for electric vehicle batteries</li>
</ul>


U.S. stocks closed mixed, with the S&amp;P 500 and Nasdaq Composite up for a third consecutive day. The Dow Jones saw its first decline in five sessions.
The Japanese yen declined to its weakest levels against the dollar since 1990, raising concerns about intervention from Japanese authorities
Asahi Kasei plans to invest around 200 billion yen ($1.3 billion) in a new plant in Canada to produce components for electric vehicle batteries


Equity Bottom-Up

FANUC CORPORATION manufactures factory automation (FA) systems and equipments, and robots. The Company's products include computerized numerically-controlled (CNC) equipment, servo motors, laser systems, industrial robots, wire-cut electric discharge machines, and CNC drill.  Fanuc participates in a joint venture with General Electric in the FA field.

<ul>
<li>Fanuc reported a -7% decline in revenue for FY3/24 and 26% decline in operating profit. </li>
<li>The market will be disappointed by guidance for a further fall on the top line and 15% decline in profits as margins hit an all time low</li>
<li>The valuation of 30x EV / EBIT suggests the market was hoping for a turnaround in profits this year. That recovery has now been pushed back</li>
</ul>


Fanuc reported a -7% decline in revenue for FY3/24 and 26% decline in operating profit. 
The market will be disappointed by guidance for a further fall on the top line and 15% decline in profits as margins hit an all time low
The valuation of 30x EV / EBIT suggests the market was hoping for a turnaround in profits this year. That recovery has now been pushed back


Fanuc (6954) | Profitability Problems Persist

<ul>
<li>US stocks rallied on Tuesday with the Nasdaq Composite leading, up 1.6% on upbeat earnings. </li>
<li>Speculation swirls on timing of next BOJ rate hike as policymakers gather for two-day meeting starting Thursday.</li>
<li>Mitsui joins a liquefied natural gas (LNG) project in the UAE, investing in a $7 billion venture to produce 10 million tons annually, about 15% of Japan's demand.</li>
</ul>


US stocks rallied on Tuesday with the Nasdaq Composite leading, up 1.6% on upbeat earnings. 
Speculation swirls on timing of next BOJ rate hike as policymakers gather for two-day meeting starting Thursday.
Mitsui joins a liquefied natural gas (LNG) project in the UAE, investing in a $7 billion venture to produce 10 million tons annually, about 15% of Japan's demand.


Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Mark Chadwick
Japan Specialist

Japan Weekly | Earnings Reports Dictate Stock Moves

For the week, the Nikkei ended up 2.34%, while the Topix gained 2.29%. We highlight stocks that performed well during the week.

Mark Chadwick

Ohayo Japan | U.S Economy Slows; Inflation Jumps

Stocks retreated on Thursday following disappointing US GDP data for Q1, with the Nasdaq Composite down 0.6%. However, strong earnings from...

Mark Chadwick

Ohayo Japan | Eyes on Yen

The Japanese yen declined to its weakest levels against the dollar since 1990, raising concerns about intervention from Japanese authorities

Mark Chadwick

Fanuc (6954) | Profitability Problems Persist

The market will be disappointed by guidance for a further fall on the top line and 15% decline in profits as margins hit an all time low

Mark Chadwick

Ohayo Japan | US Stocks Climb

US Stocks closed higher on Tuesday following upbeat earnings announcements. Tesla reported post close; stock jumped +6% in extended trading

Mark Chadwick