What Worked Asia - 23 Jun 2017 - Overall Dividend Yield did well in Asia

What Worked

Nothing really stood out in both China and Hong Kong this week. However names up last week in China were hurt this week. IMAX China Holdings is down 13% and Tian Ge Interactive is down 8%. In Singapore, high Dividend yield names continued to do well this week. Fortune Real Estate Investment is up 5% and Asian Pay Television Trust is up 6%.

In South Korea there was a slight selloff in high Dividend Yield names and a move into Growth. High growth names that did well were Samsung Electro-Mechanics is up 12% and Samsung SDI is up 12%. In Taiwan, large-cap names did well this week. Eclat Textile is up 9% and Airtac International is up 9%. Indonesia  and Malaysia saw a good selloff in Value and a move into Size. In the Philippines it was the opposite with Value doing well and large-cap names getting hurt this week. Vivant corp is down 10% and Belle Corp is down 6%.

Who Moved

182 names moved on volume this week. The volume spikes look to be well distributed across the different regions and sectors. On the positive side, GreaterChina Professional Services is up 19%, Lai Sun Development is up 12% and Jaiprakash Associates is up 16%. On the other side, SillaJen is down 16%, KEPCO is down 15% and Sapura Energy is down 15%.

Summary

PDF Report available here: Download

 


What Worked Japan - 23 Jun 2017 - Quality worked and really nothing else stood out

What Worked

Low Debt to Equity and high ROIC names did the best this week. Low Debt to Equity names that did well were Murata Manufacturing (6981) up 11%, Zeon Corp (4205) up 10% and Alps Electrics (6770) up 9%. Low Debt to Equity names have only done this well once in the last 2 years. High ROIC names that did well were Yamaha (7951) up 6%, Hitachi Chemical (4217) up 7% and OBIC (4684) is up 7%.

On the other side, there was a slight selloff in low PBR names. Low PBR names have not really done well since the middle of April. Low PBR names that were hurt were Nomura Real Estate Holdings (3231) down 13%, Hokuriku Electric Power (9505) down 5% and Nippon Yusen Kabushiki Kaisha (9101) down 4%. All other factors were pretty much insignificant.

Who Moved

Only 13 named moved on volume this week. On the positive side, Murata Manufacturing (6981) is up 11%, Taiyo Yuden (6976) is up 7% and Aiful Corp (8515) is up 5%. On the other side, there was only one name down on volume this week, Tsumura (4540) down 1%.

Summary

PDF Report available here: Download


What Worked Asia - 16 Jun 2017 - Value worked in Singapore and South Korea

What Worked

Names with high dividend yield dominated in Singapore this week. Hutchinson Port Holdings is up 9% and Ascendas India Trust is up 7%. South Korea was all about Value, particularly low PE, this week. Low PE names that did well were SK Gas up 7% and SKC up 8%. High Beta names also did well in South Korea this week. In China, there was a selloff in short-term momentum and large-cap names. Large-cap names that were hurt were China Evergrande Group down 16% and Want Want China Holdings down 9%.

In Hong Kong, nothing really stood out this week. India was the same with only a slight selloff in large-cap names. In the Philippines, momentum was hurt this week. This is the first-week momentum has not done well since the end of March. Atok-Big Wedge is down 8% and Rizal Commercial Banking is down 8%. Value also did very well in Taiwan this week. Low PBR names that were up were Casetek Holdings up 8% and Tatung Co up 8%.

Who Moved

172 names moved on volume this week. The volume spikes look to be relatively spread evenly across sectors. However, at the country level, South Korea picked up a good number of volume spikes. On the positive side, SillaJen Inc is up 48%, Igarashi Motors India is up 21% and GMR Infrastructure is up 16%. On the other side, Esprit Holdings is down 25%, Global Brands Group is down 22% and Xiabuxiabu Catering Management is down 17%.

Summary

PDF Report available here: Download

 


What Worked Japan - 16 Jun 2017 - Beta and Long-term momentum names were hurt this week

What Worked

Long-term momentum and high Beta names were hurt this week. Long-term momentum names have not done this poorly since the end of March this year. Disco (6146) is down 10%, Furukawa Electric is down 10% and Toyo Tire & Rubber (5105) is down 9%.  High Beta names also did not do well this week. Beta has only worked 1 out of the last 6 weeks. High Beta names that outperformed this week were Maeda (1824) is up 8%, Toshiba (6502) is up 7% and Daiwa House Industry (1925) is up 6%.

To a lesser degree, growth names did not do well this week. Sumco (3436) is down 9%, Nippon Paint Holdings (4612) is down 8% and Tokyo Electron (8035) is down 7%.

Who Moved

Only 10 names moved on volume this week. On the positive side, Tsumura (4540) is up 11%, ONO Pharma (4528) is up 9% and Aiful (8515) is up 3%. On the other side, Mabuchi Motors (6592) is down 8%, Nippon Paint Holdings (4612) is down 8% and Softbank Group (9984) is down 4%

Summary

PDF Report available here: Download


What Worked Japan - 02 Jun 2017 - High beta names bounced back as high dividend yield names continued to be hurt

What Worked

After 3 weeks of poor performance, names with high Beta to TOPIX and Beta to the Yen bounced back this week. H2O Retailing (8242) is up 9%, Dowa Holdings (5714) is up 10% and TADANO (6395) is also up 9%. There was a slight sell-off in names with high dividend yield. This is the 5th week in a row that high dividend yield names have not done well. However, with only 51 names down in TOPIX 500 this week it was more about which names did not go up as much. Park24 (4666) is down 6%, FamilyMart (8024) is down 4% and Oracle Corp Japan (4716) is down 4%.

Names with a high percent of Institutional Investors did better this week after doing poorly over the last month. Showa Denko (4004) is up 12% and Tokyo Ohka Kogyo (4186) is up 10%. Long-term momentum names were up while short-term momentum names were hurt this week. Mitsui Mining and Smelting (5706) is up 5% and MinebeaMitsumi (6479) is up7%.

Who Moved

Only 24 names moved on volume this week. On the positive side, Tosoh Corp (4042) is up 8%, Miraca Holdings (4544) is up 7% and Sysmex Corp (6869) is up 6%. On the other side, Oracle Corp (4716) is down 4%, Fuji Media Holdings (4676) is down 2% and Otsuka (4768) is down 1%. All on strong volume.

Summary

PDF Report available here: Download


What Worked Japan - 19 May 2017 - Value and Beta hurt for the second week in a row

What Worked

Value and high Beta names were hurt for the second week in a row. High Beta and low PBR names did poorly this week and the last after 1 month of outperformance. Before that both factors underperformed for 5 weeks straight. Low PBR names that were hurt were Idemitsu Kosan (5019) down 11%, Japan Petroleum Exploration down 10% and Central Glass (4044) down 10%.

High Beta names that went down were NTN Corp (6472) down 14%, Mitsubishi UFJ Lease & Finance (8593) down 9% and NSK (6471) down 9%. Names with a high ROE and to a lesser degree names with a high percent of Retail Investors benefited from the selloff in Value. Leopalace21 (8848) is up 9%, Toyo Tire & Rubber is up 9% and Toda Corp (1860) is up 7%.

Who Moved

101 names moved on volume this week. All the volume spikes look to be spread relatively evenly across all sectors. On the positive side, Nomura Real Estate (3231) is up 20%, Miura (6005) is up 10% and Shiseido (4911) is up 9%. On the other side, including the names mentioned above Isuzu Motors (7202) is down 11%, Japan Steel Works (5631) is down 10% and Hitachi Zosen (7004) is also down 9%.

Summary

PDF Report available here: Download


What Worked Asia - 12 May 2017 - Good move into Large-cap names in most of the region

What Worked

China and Hong Kong both saw a good move into large-cap names this week. In China, Datang International Power Generatation is up 16% and Zhou Hei Ya International is up 13%. In Hong Kong, China Minsheng Financial is up 20% and SEA Holdings is up 10%. No other factors really stood out in both markets.

In Thailand there was a good selloff in Value and high Beta names and a move into Large cap. Thai Retail Investment is up 7% and Srisawad Power is up 7%. Low PE names and to a lesser degree large-cap names did well in Singapore this week. Wilmar International is up 10% and First Resources is up 6%. In Taiwan, names up over the last 3 months continued to go up this week. General Interface Solution is up 17% and GlobalWafers is up 15%

Who Moved

148 names moved on volume this week. Almost half of the volume spikes came in India and Taiwan. At the Sector level, the Financial and Producer Manufacturing sectors pick up a good number of volume spikes. On the positive side, China Touyun Tech Group is up 21%, Hanmi Pharma is up 20% and Emerson Pacific is up 14%. On the other side, Taokaenoi Food & Marketing is down 15%, Ginko International is down 11% and Universal Robina is down 11%.

Summary

PDF Report available here: Download

 


What Worked Japan - 12 May 2017 - Selloff in low PBR and high Beta names and into Quality

What Worked

There was a selloff in high Beta and Value, particularly low PBR, names this week. Low PBR names that went down this week were Isetan Mitsukoshi (3099) down 10%, Hitachi Zosen (7004) down 11% and Shinsei Bank (8303) down 8%. High Beta names that were also hurt were Subaru (7270) down 8%, Taiyo Nippon Sanso (4091) down 8% and Konica Minolta (4902) down 7%.

Quality names and to a lesser degree large-cap names benefited from the rotation away from Beta and Value. High ROE names that did well this week were COLOPL (3668) up 12%, Zenkoku Hosho (7164) up 11% and Start Today (3092) up 12%.

Who Moved

Strong volume week. 101 names moved on more than 1 standard deviation of volume. The volume spikes look to be spread relatively evenly across all sectors. On the positive side, Benesse Holdings (9783) is up 18%, Mitsubishi Tanabe Pharma (4508) is up 11% and IHI Corp (7013) is up 10% On the other side, Kakaku.com (2371) is down 8%, Meitec Corp is down 7% and Asahi Glass (5201) is down 6%. Isetan Mitsukoshi and Subaru mentioned above also moved on strong volume.

Summary

PDF Report available here: Download


What Worked Japan - 28 Apr 2017 - Low PE and High Beta names continue to do well

What Worked

Only 44 names in TOPIX 500 were down this week. However, there was a clear rotation away from names up over the last month into underperforming names. Izumi (8273) is down 2%, Peptidream (4587) is down 0.4% and Kyowa Hakko Kirin (4151) is up just 1%. Low PE names continue to outperform. This is the third week in a row that low PE names have done well. Showa Denko (4004) is up 22%, Tokuyama Corp (4043) is up 14% and Alps Electric (6770) is up 11%.

High Beta names also have down well in the last 3 weeks after 2 months of underperformance. Daido Steel (5471) is up 20%, Ibiden (4062) is up 16% and IHI Corp (7013) is up 12%. Names with a high % of Institutional Investors also outperformed this week. DMG Mori (6141) is up 11% and Capcom (9697) is up 9%.

Who Moved

32 names moved on volume this week. On the positive side, Showa Denko (4004) is up 22%, Daido Steel (5471) is up 20% and OBIC (4684) is up 12% all on strong volume. On the other side, ITO EN (2593) is down 1.5%, LINE (3938) is down 1% and Park24 (4666) is down 1%.

Summary

PDF Report available here: Download


What Worked Asia - 21 Apr 2017 - Value was hurt in China/Hong Kong but Div Yield names did very well in Singapore

What Worked

Good sell off in low PBR names in China and a strong move into high ROIC names. High ROIC names that did well were AAC Technologies Holdings up 11% and Sunny Optical up 9%. In Hong Kong, there was the same selloff in Value names but there was not a rotation into Quality names. Low PBR names that did poorly this week were Hengdeli Holdings is down 18% and Mason Financial Holdings is down 3%.

In Singapore, high dividend yield names did very well this week. TalkMed Group is up 9% and Asian Pay Television Trust is up 8%. Value and high Beta names were hurt this week in South Korea. High PE names that were down were Interflex down 9% and Leeno Industrial down 4%. High Beta names did incredibly well in Malaysia this week. Malaysia Building Society is up 14% and AirAsia is up 6%.

Who Moved

Only 85 names moved on volume this week. A good portion came in South Korea. At the sector level, the spikes look to well distributed. On the positive side, DoubleUGames is up 39, Indiabulls Real Estate is up 35% and CUB Elecparts is up 27%. On the other side, Japfa Ltd is down 21%, Vivant Corp is down 9% and TMB Bank Public is down 9%.

Summary

PDF Report available here: Download