Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

Fujitsu Frontech – An Updated Look at the Valuation and Tender Extension

Fujitsu Frontech – Company Call Confirms Importance of Fujitsu Relationship

Fujitsu TOB For Fujitsu Frontech At a Discount?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<p>In December we discussed prospects for Fujitsu buying out investors in its various listed subsidiaries. At the time we highlighted Fujitsu Frontech and FDK as candidates to be bought out and Fujitsu General and Shinko Electric as candidates to be sold. We also felt Fujitsu Frontech was more attractive than FDK due to its large discount to book and strategic fit with Fujitsu that could open up the path to further acquisitions. On July 30<sup>th</sup> Fujitsu announced a tender offer for Fujitsu Frontech at ¥1,540. This is about 15% above the levels the stock was trading at when we wrote on it but we nevertheless feel the premium is light. Details below.</p>

In December we discussed prospects for Fujitsu buying out investors in its various listed subsidiaries. At the time we highlighted Fujitsu Frontech and FDK as candidates to be bought out and Fujitsu General and Shinko Electric as candidates to be sold. We also felt Fujitsu Frontech was more attractive than FDK due to its large discount to book and strategic fit with Fujitsu that could open up the path to further acquisitions. On July 30th Fujitsu announced a tender offer for Fujitsu Frontech at ¥1,540. This is about 15% above the levels the stock was trading at when we wrote on it but we nevertheless feel the premium is light. Details below.

Fujitsu Frontech – Why Steal an ATM When You Can Steal the ATM Maker