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.
NIPPON STEEL (JP), a company active in the Steel industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date January 25,...
Japan's and Toyota's electrification efforts seem to develop in parallel: the Japanese government is increasingly committing to the creation of a domestic BEV market, and Toyota significantly raised its BEV sales target for 2030. Accordingly, we expect to see strong growth in Japanese BEV sales and a more prominent position for Toyota among global players.
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....
Commodities Bullishly Inflecting; Buy Energy, Materials A weight-of-the-evidence approach continues to support our constructive intermediate-term outlook. Below we highlight recent positive developments and areas of the market that are actionable at current levels. · Recent Positive Developments. Recent positive developments include the MSCI ACWI and EAFE (ACWI-US, EFA-US) breaking to new highs while the MSCI ACWI ex-US and EM (ACWX-US, EEM-US) indexes are holding above important suppo...
We lowered our fair value estimate for Nippon Steel, or NS, to JPY 2,000 from JPY 2,300 after factoring in higher raw material prices from our latest commodities price deck, higher net debt and lower investments on its balance sheet. The higher net debt is due to the higher working capital requirements and acquisitions. In addition, the recent change in accounting standards to IFRS also resulted in higher capital expenditure and the change in the scope of consolidation of the newly acquired Sany...
We lowered our fair value estimate for Nippon Steel, or NS, to JPY 2,000 from JPY 2,300 after factoring in higher raw material prices from our latest commodities price deck, higher net debt and lower investments on its balance sheet. The higher net debt is due to the higher working capital requirements and acquisitions. In addition, the recent change in accounting standards to IFRS also resulted in higher capital expenditure and the change in the scope of consolidation of the newly acquired Sany...
We lowered our fair value estimate for Nippon Steel, or NS, to JPY 2,000 from JPY 2,300 after factoring in higher raw material prices from our latest commodities price deck, higher net debt and lower investments on its balance sheet. The higher net debt is due to the higher working capital requirements and acquisitions. In addition, the recent change in accounting standards to IFRS also resulted in higher capital expenditure and the change in the scope of consolidation of the newly acquired Sany...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, third-quarter fiscal 2019 (ending March) pretax profit, or EBT (excluding extraordinary items) increased by 50% year over year to JPY 101.7 billion from JPY 67.8 billion during the same period last year and is in line with our expectations. The outperformance is mainly driven by higher EBT from the steel, chemicals and materials and system solutions divisions mitigated by a slight decline in the engineering and construction division. Management at...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, third-quarter fiscal 2019 (ending March) pretax profit, or EBT (excluding extraordinary items) increased by 50% year over year to JPY 101.7 billion from JPY 67.8 billion during the same period last year and is in line with our expectations. The outperformance is mainly driven by higher EBT from the steel, chemicals and materials and system solutions divisions mitigated by a slight decline in the engineering and construction division. Management at...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, third-quarter fiscal 2019 (ending March) pretax profit, or EBT (excluding extraordinary items) increased by 50% year over year to JPY 101.7 billion from JPY 67.8 billion during the same period last year and is in line with our expectations. The outperformance is mainly driven by higher EBT from the steel, chemicals and materials and system solutions divisions mitigated by a slight decline in the engineering and construction division. Management at...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, second-quarter fiscal 2019 (ending March) pretax profit excluding extraordinary items, or EBT, increased by 28.5% year over year to JPY 63.8 billion from JPY 49.6 billion during the same period last year and is in line with company guidance and our expectations. If we exclude the impact from natural disaster of JPY 27 billion which resulted in lower shipments and higher costs, EBT would have increased by 83% year over year, above its guidance. The...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, second-quarter fiscal 2019 (ending March) pretax profit excluding extraordinary items, or EBT, increased by 28.5% year over year to JPY 63.8 billion from JPY 49.6 billion during the same period last year and is in line with company guidance and our expectations. If we exclude the impact from natural disaster of JPY 27 billion which resulted in lower shipments and higher costs, EBT would have increased by 83% year over year, above its guidance. The...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, second-quarter fiscal 2019 (ending March) pretax profit excluding extraordinary items, or EBT, increased by 28.5% year over year to JPY 63.8 billion from JPY 49.6 billion during the same period last year and is in line with company guidance and our expectations. If we exclude the impact from natural disaster of JPY 27 billion which resulted in lower shipments and higher costs, EBT would have increased by 83% year over year, above its guidance. The...
Nippon Steel & Sumitomo Metal’s, or NSSMC’s, second-quarter fiscal 2019 (ending March) pretax profit excluding extraordinary items, or EBT, increased by 28.5% year over year to JPY 63.8 billion from JPY 49.6 billion during the same period last year and is in line with company guidance and our expectations. If we exclude the impact from natural disaster of JPY 27 billion which resulted in lower shipments and higher costs, EBT would have increased by 83% year over year, above its guidance. The...
China's steel industry has long been affected by overcapacity issues. From 2016 to 2017, the Chinese government began to rationalize the steel industry by shutting down 115 million tonnes of steel production capacity. This is in addition to the shutdown of around 120 million-140 million tonnes of off-the-books induction furnace capacity, which produced substandard steel, or ditiaogang, from melting scrap. This tightened the steel market in China, leading to higher steel prices and profitability ...
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