In this quarterly strategy report, we look to evaluate where we are with regards the bull market conditions, and where those indicators might be headed, factoring in the downside risks, from Trump tariffs and the US economy, BoJ actions, Japanese earnings and valuations.
Following the recent results season where several leading semiconductor and SPE companies globally produced either disappointing results or guidance, we look at where the semiconductor industry is at present, where it looks to be headed in 2025 and identify opportunities in the Japanese IC / SPE space.
Prime Minister Shigeru Ishiba set out the first plan of his administration, which is to spend ¥10tril through FY30 further revitalizing Japan’s one-time globally dominant chip industry. The move comes after a ¥2tril package was announced last year and is seen as party of a ¥50tril private-public investment in Japanese chipmaking over the next decade. Pelham Smithers discusses beneficiaries.
In our 2010 Japan Perspective, written close to the nadir of the bear market, we discussed what was wrong with Japan, but also what it was starting to do right. Fourteen years on, the Nikkei 225 - though not yet Topix - has hit a new all-time high. This report looks at how Japan built on those things that were going right, while also starting to address what else needed to be done, and looks at whether more is needed to be done if the market rally is to continue from here.
As electric vehicles are set to replace combustion engine cars over time, established automakers need to prove they can remain competitive in this new market. In this context, much attention has been given to battery technology, but the creation of an optimal EV auto platform is just as important. Here, the jury is still out, as we are in the early development days. Analyst Julie Boote discusses how the prefect EV platform should look like and where automakers are currently positioned.
Renesas is due to release its FY23 (Dec yr-end) Q1 results on 27 Apr, making it one of the earliest to report. Based on TSMC’s monthly revenue figures so far this year, Renesas’s sales and OP are likely to fall short of expectations in FY23, but we discuss why earnings should recover sharply thereafter.
A report on Bloomberg about deteriorating sentiment in the Korean memory chip market is the latest piece of tinder to feed to the growing flame of negativity towards semiconductors. While Pelham Smithers sees the overall market as mixed, what stands out is the value in several semiconductor-related plays, with four Japanese companies currently trading on EV/OPs of less than 6x.
RENESAS ELECTRONICS (JP), a company active in the Semiconductors industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date April 5, 2022, the closing price was JPY 1,425.00 and its pot...
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.
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.
It has been nine years since a downturn generated sizable losses for the semiconductor industry and 12 years since the Lehman Crisis led to major structural changes. The length and size of the upcycle has led to worries that the cycle is about to peak and when it does, the downturn could be brutal for both the industry and investors. The current uncertainty is heightened by shortages in many types of semiconductors, with average delivery times pushed out to 20 weeks. Some customers are having to...
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....
Renesas, along with INCJ, aims to raise around US$3.4bn via selling a mix of primary and secondary shares. The current deal would be of somewhat similar size as two of the past deals that we have covered for Renesas: US$2.8bn bn in 2017 Renesas Electronics Placement: Additional Thoughts on Valuation, Flotation, and Ownership US$2.4bn in 2018 Renesas Placement: Tighter Effective Discount and Placement Overhangs but Statistic Supports a Bid In this insight, we'll run the deal through our ECM fr...
Support Levels Holding; Bullish Outlook Intact Broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) were able to shrug off news on Monday of a more contagious Covid variant that popped-up in the UK. The fact that these global indexes as well as major averages in the UK (FTSE 100), Europe (STOXX 50), and Japan (TOPIX & TOPIX Small) all held above important base support levels tells us all we need to know -- that the market does not see it as a problem at this point in time. Additionally, C...
Emerging Markets Breaking Out We see global equities (ACWI-US) going through a consolidation phase between support at $77 and resistance at $84. To reiterate, as long as ACWI-US is above $77 we are constructive and would be buyers. Our work suggests that $77 support is likely to hold based on current market dynamics, and we would flip to bullish on a breakout above $84. · Emerging Markets Breaking Out. One of the many dynamics that supports our constructive outlook is that emerging mar...
Summary Marketline's Microchip Technology Incorporated Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Microchip Technology Incorporated since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehe...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.