News that Fanuc (6954 JT) is integrating Nvidia’s (NVDA US) robotic tools into its own software solutions is a reminder that, for all the focus on where large language models like ChatGPT can take us, these solutions remain very much in the virtual realm. The next big breakthrough in AI would come when such models can deliver fully spatially aware, autonomous mobile products, be these self-drive cars or industrial robots, and to do so at a price and quality that is commercially viable. Analysts ...
The Japanese stock market’s take on the surprise victory of Sanae Takaichi in the LDP Presidential race suggested that it wasn’t so much a repeat of the “Koizumi Boom” from 20 years ago, but rather a brand new “Takaichi Boom”, and we saw the Nikkei 225 jump +4.8% to just under 48,000. Pelham Smithers compares and contrasts the impact and flags “Takaichi Stocks”. Importantly, market valuations suggest further upside.
At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
PSA Machinery: Yaskawa Electric (6606 JT) - FY22 Outlook, FX, Cost Control, i-Cube Our base case FY22-23 is for continued yen weakness and an OP of Y77.0bil for FY22, well ahead of cons at Y69.2bil. The company is expecting an improvement in component shortages from Q2 and we see extremely strong demand for their most profitable customers in N. American shale and oil for Yaskawa’s inverters. We also like their shift in emphasis to Robotic systems as opposed to standalone, the value-add yieldin...
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
Yaskawa (TSE: 6506) - Despite a disappointing Q3, the strong recovery in China orders and the improving supply of semiconductor / components should allow Yaskawa to post record level H1 FY22 sales and OP. A large order backlog and the ongoing transition to high-margin next-gen models for A/C servos and Robotics support the near-term outlook. Yaskawa's share price often over-reacts to sudden improvement in earnings and the weak yen is an additional boost. Please see attached report
The independent financial analyst theScreener just downgraded the general evaluation of YASKAWA ELECTRIC (JP), active in the Industrial Machinery industry. As regards its fundamental valuation, the title loses a star(s) and now shows 0 out of 4 stars. Its market behaviour is also negatively reassessed and may be considered as risky. theScreener believes that this double requalification keeps the title under pressure and justifies an overall rating downgrade to Slightly Negative. As of the analys...
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
We saw some positives in today's Yaskawa Robotics conference call, the company's first Robotics update in at least several years. More than medium-term strategy, Yaskawa seems to be focusing on near-term digitalization needs in the customer workplace.
In this note, we aim to highlight the Asia Pacific IPO pipeline for 2021. This list has been compiled on a best effort basis from tracking the company filings and through various media and other sources. For readers who are not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex-Korea and A-shares), including China ADRs. Hence, our pipeline will only include companies that fit these criteria. Feel free to drop us a mes...
2020 marked our second full year of operations as an Independent Research Company, and our fifth year covering Equity Capital Markets (ECM). While the year started off on a precarious note for ECM, it ended with very strong momentum. Even as IPOs have hogged the limelight in 2020, we actually ended up covering more than twice the number of placements as IPOs. We ended 2020 with an accuracy rate of 72.7% across 88 IPOs that we covered and 70.1% across 174 placements. While our placements hit ra...
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