Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>A 1.5% gain last week lifted the benchmark to 38,403, its highest in four months; Semiconductor stocks surged</li>
<li>Japan’s 10-year government bond yield dipped to 1.39%, while the yen fell 1.1% to ¥145.32 against the dollar - its weakest in three weeks.</li>
<li>Sega Sammy surged 18% this week following a well-received management meeting that emphasized clear strategic direction and strong shareholder engagement.</li>
</ul>


A 1.5% gain last week lifted the benchmark to 38,403, its highest in four months; Semiconductor stocks surged
Japan’s 10-year government bond yield dipped to 1.39%, while the yen fell 1.1% to ¥145.32 against the dollar - its weakest in three weeks.
Sega Sammy surged 18% this week following a well-received management meeting that emphasized clear strategic direction and strong shareholder engagement.


Japan Strategy Weekly | The Nikkei Is Back in Fashion

<ul>
<li>Trump said he will make a decision on whether to launch military strike on Iran "within next two weeks;" otherwise markets quiet - ie. closed</li>
<li>Seven &amp; i Holdings will sell part of its Seven Bank stake, reducing its shareholding to 39.9%, making it an equity-method affiliate</li>
<li>Sony projects 90% of major global automakers will adopt its automotive CMOS sensors by fiscal 2027, aiming for a 43% market share.</li>
</ul>


Trump said he will make a decision on whether to launch military strike on Iran "within next two weeks;" otherwise markets quiet - ie. closed
Seven &amp; i Holdings will sell part of its Seven Bank stake, reducing its shareholding to 39.9%, making it an equity-method affiliate
Sony projects 90% of major global automakers will adopt its automotive CMOS sensors by fiscal 2027, aiming for a 43% market share.


<ul>
<li>US stocks flat after the Federal Reserve kept interest rates unchanged</li>
<li>Marvell (MRVL) +7% on bullish AI guidance. Momentum in U.S. semi names continues to support investor appetite for global tech exposure</li>
<li>Activist investor, Effissimo Capital Management, increased its stake in UACJ</li>
</ul>


US stocks flat after the Federal Reserve kept interest rates unchanged
Marvell (MRVL) +7% on bullish AI guidance. Momentum in U.S. semi names continues to support investor appetite for global tech exposure
Activist investor, Effissimo Capital Management, increased its stake in UACJ


Ohayo Japan | Fed in No Rush to Cut Rates

<ul>
<li>US stocks fell Tuesday as escalating tensions between the US and Iran weighed on sentiment, with President Trump calling for Iran’s “unconditional surrender”</li>
<li>Honda's subsidiary successfully demonstrated a reusable small rocket, launching and landing a 6.3-meter craft in Hokkaido, targeting suborbital space by 2029.</li>
<li>Nissan Motor announced the redesign of its Leaf electric vehicle, the first update in eight years, transforming it into a compact SUV</li>
</ul>


US stocks fell Tuesday as escalating tensions between the US and Iran weighed on sentiment, with President Trump calling for Iran’s “unconditional surrender”
Honda's subsidiary successfully demonstrated a reusable small rocket, launching and landing a 6.3-meter craft in Hokkaido, targeting suborbital space by 2029.
Nissan Motor announced the redesign of its Leaf electric vehicle, the first update in eight years, transforming it into a compact SUV


Equity Bottom-Up

Shiseido Company, Limited manufactures cosmetic and toiletry products. The Company offers an array of makeup and skin-care products, toiletries, beauty salon, pharmaceuticals, foodstuffs, and fine chemicals.

<ul>
<li>Shiseido’s core brand remains strong, but years of weak growth, high costs, and tariff risks have pushed valuations to deeply discounted, near-decade lows.</li>
<li>Early signs from Japan show margin recovery is possible; aggressive cost-cutting could double core operating margins and unlock significant upside if execution holds.</li>
<li>If management fails to deliver, Shiseido’s global brand equity, strategic footprint, and low valuation make it an obvious acquisition target for PE or industry buyers.</li>
</ul>


Shiseido’s core brand remains strong, but years of weak growth, high costs, and tariff risks have pushed valuations to deeply discounted, near-decade lows.
Early signs from Japan show margin recovery is possible; aggressive cost-cutting could double core operating margins and unlock significant upside if execution holds.
If management fails to deliver, Shiseido’s global brand equity, strategic footprint, and low valuation make it an obvious acquisition target for PE or industry buyers.


Shiseido (4911) | Beauty in the Bargain Bin

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 Strategy Weekly | The Nikkei Is Back in Fashion

Stock market benchmarks rise, semiconductor stocks surge; Japan's bond yield dips, yen weakens; Sega Sammy up 18% on strategic direction and...

Mark Chadwick

Ohayo Japan | Two Weeks to Negotiate

Trump considers military strike on Iran, markets quiet; Seven & i Holdings reduces stake in Seven Bank; Sony predicts widespread adoption of...

Mark Chadwick

Ohayo Japan | Fed in No Rush to Cut Rates

US stocks remain steady after the Federal Reserve's decision on interest rates, Marvell sees a boost from AI guidance, and Effissimo Capital...

Mark Chadwick

Ohayo Japan | Unconditional Surrender

US stocks dropped due to US-Iran tensions, Honda's subsidiary tests reusable rocket, Nissan redesigns Leaf into compact SUV.

Mark Chadwick

Shiseido (4911) | Beauty in the Bargain Bin

Shiseido's core brand is strong but faces challenges; potential for margin recovery through cost-cutting, with potential for acquisition if...

Mark Chadwick

Japan Strategy Weekly | The Nikkei Is Back in Fashion

​Stock market benchmarks rise, semiconductor stocks surge; Japan's bond yield dips, yen weakens; Sega Sammy up 18% on strategic direction and...

Mark Chadwick

Ohayo Japan | Two Weeks to Negotiate

​Trump considers military strike on Iran, markets quiet; Seven & i Holdings reduces stake in Seven Bank; Sony predicts widespread adoption of...

Mark Chadwick

Ohayo Japan | Fed in No Rush to Cut Rates

​US stocks remain steady after the Federal Reserve's decision on interest rates, Marvell sees a boost from AI guidance, and Effissimo Capital...

Mark Chadwick

Ohayo Japan | Unconditional Surrender

​US stocks dropped due to US-Iran tensions, Honda's subsidiary tests reusable rocket, Nissan redesigns Leaf into compact SUV.

Mark Chadwick

Shiseido (4911) | Beauty in the Bargain Bin

​Shiseido's core brand is strong but faces challenges; potential for margin recovery through cost-cutting, with potential for acquisition if...

Mark Chadwick

Stock market benchmarks rise, semiconductor stocks surge; Japan's bond yield dips, yen weakens; Sega Sammy up 18% on strategic direction and...

Trump considers military strike on Iran, markets quiet; Seven & i Holdings reduces stake in Seven Bank; Sony predicts widespread adoption of...

US stocks remain steady after the Federal Reserve's decision on interest rates, Marvell sees a boost from AI guidance, and Effissimo Capital...

US stocks dropped due to US-Iran tensions, Honda's subsidiary tests reusable rocket, Nissan redesigns Leaf into compact SUV.

Shiseido's core brand is strong but faces challenges; potential for margin recovery through cost-cutting, with potential for acquisition if...