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

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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

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What Worked Japan - 21 Apr 2017 - Move into High Beta names and slight move away from Large cap

What Worked

With Earnings Season starting next week, there was not a lot that stood out. As with most pre-earning weeks, most of the factors were insignificant. However, there was a move into high Beta names and a slight move away from large-caps.

High Beta names that did well this week were Aiful Corp (8515) up 8%, NOK (7240) up 7% and DeNA (2432) up 7%. Large-cap names that were down this week were Idemitsu Kosan (5019) down 5%, Fujifilm (4901) down 4% and CyberAgent (4751) down 3%. 

Who Moved

Only 15 names moved on volume this week. On the positive side, Kyowa Hakko Kirin (4151) is up 13%, Aiful (8515) is up 8% and Toho (9602) is up 6%. On the other side, Maruha Nichiro (1333) is down 6%, AEON (8905) is down 3% and Japan Post Holdings (6178) is down 1%. 

Summary

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What Worked Asia - 07 Apr 2017 - Value worked in Singapore but was hurt in South Korea

What Worked

Nothing really stood out in China and there was just a slight move into low PBR names in Hong Kong. South China Holdings is up 11%. In Singapore, there was a move into Value names and names with positive EPS revisions. Value names that did well in Singapore were China Aviation Oil up 8% and Yanlord Land Group is up 6%. In South Korea there was selloff in Value and Large-cap names and a move into Growth. Growth names that outperformed were CJ CGV up 10% and Interflex up 9%.

In India, high ROE / ROIC names did not do well and there was a slight rotation into Beta. High ROE names that underperformed were SpiceJet down 7% and United Spirits down 7%. In the Philippines, large-cap names did well this week. Megaworld is up 17% and Metro pacific Investments is up 9%.

Who Moved

122 names moved on volume this week. On the positive side, BBMG Corp is up 42%, Indah Kiat Pulp & Paper is up 26% and Maoye International is up 23%. On the other side, AhnLab is down 11%, Ennoconn is down 9% and CT Environmental Group is down 9%.

Summary

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What Worked Japan - 07 Apr 2017 - Beta hurt hard again after being destroyed two weeks ago

What Worked

High Beta names took another huge hit this week, almost as bad as two weeks ago. However, this week Value was hurt more than it was two weeks ago. High Beta names that were hurt were Toshiba (6502) down 10%, Mitsui Mining and Smelting (5706) down 7% and Taiyo Yuden down 7%. Low PBR names that went down this week were Tokai Rika (6995) down 7%, Dai-Ichi Life (8750) down 7% and Resona Holdings (8308) down 6%.

On the other side, Growth names did well this week and have continued to do well since the beginning of February. However this is the best week for growth names since the rally started. Seven & I Holdings (3382) is up 6%, Shimamura (8227) is up 5% and Ezaki Gilco (2206) is up 6%.

Who Moved

80 names moved on volume this week. This is compared to an average 22 names moving on volume weekly in March.  Volume spikes look to be spread relatively evenly across sectors. On the positive side, Sohgo Securities Services (2331) is up 11%, Nitori Holdings (9843) is up 7% and Shimamura (8227) is up 5%. On the other side, Kewpie Corp (2809) is down 9%, Hitachi Metals (5486) is down 6% and NSK (6471) is down 6%.

Summary

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What Worked Asia - 17 Mar 2017 - Good move into high Beta and Large-cap names

What Worked

In China there was a move into high Beta names. Meitu, Inc was up 42% and Future Land Development Holdings was up 20%. In Hong Kong we also saw a move into high Beta names as well as high ROE names. Two high Beta names in Hong Kong that did well were China Overseas Grand Oceans Group is up 11% and IGG, Inc was up 19%.

In South Korea we saw a move into large-cap names and a move into high Beta names. Hyundai Mipo Dockyard was up 9% and S-Oil Corp was up 11%. Large-cap names also did well in Singapore this week. Jardine Cycle & Carriage was up 5% and City Developments was up 5%. Large cap names in Malaysia and Indonesia did well this week. Bursa Malaysia was up 5% and UMW Holdings were up 6%.

Who Moved

265 names moved on volume this week. A good portion of the volume spikes came in the Financial Sector. On the positive side, Hong Kong International Construction is up 17%, Meitu Inc is up 42% and O-Net Technologies is up 25%. On the other side, Group Lease Public is down 29%, Plaza Indonesia Realty is down 8% and Coal India is down 7%.

Summary

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What Worked Japan - 17 Mar 2017 - Low PBR and High Beta names were hurt this week

What Worked

Pretty good selloff in high Beta names and names with low PBR this week. Value, particularly PBR, has not done well since the second week of February. The same can be said for high Beta names. This week high Beta names that were hurt were Toshiba (6502) down 9%, Concordia Financial Group (7186) down 7% and T&D Holdings (8795) down 5%. Low PBR names that did not do well this week were Nisshin Steel (5413) down 9%, Hiroshima Bank (8379) down 5% and Fukuoka Financial (8354) down 5%.

On the other side, there was a rotation into high ROE  and OP Growth names. High ROE names that did well this week were Temp Holdings (2181) up 4%, Sohgo Security Services (2331) up 4% and Nichirei Corp (2871) up also up 4%. High ROE and growth names have down well over the last month

Who Moved

Only 14 names moved on volume this week. On the positive side, Mitsubishi Heavy Industries is up 9%, ITO EN (2593) is up 4% and Yamaha Corp (7951) is up 3%. On the other side, Kyushu Electric Power (9508) is down 6%, Nitto Denko (6988) is down 4% and Maruichi Steel Tube (5463) is down 4%.

Summary

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What Worked Asia - 10 Mar 2017 - Mixed bag with no style really standing out this week

What Worked

High ROE and Sales growth names did well this week in China. Sunac China Holdings is up 13% and China Maple Leaf Educational System is up 13%. In Hong Kong it was more about Value with high dividend yield names doing the best. Shimao Property Holdings is up 15% and Country Garden Holding is up 15%. In India, high ROE names did well and low PBR names were hurt this week. High ROE names that did well were Astral Poly Technik up 10% and Delta Corp up 13%.In Singapore there was slight selloff in high dividend names and a move into low Debt to Equity names. Far East Orchard is up 7% and TalkMed Group is up 7%.  In South Korea, quality names were the strongest this week. Youngone Corp is up 9% and Korea Kolmar is up 6%. In the Philippines there was a slight selloff in large-cap names and a move into high Beta names.

In Singapore there was slight selloff in high dividend names and a move into low Debt to Equity names. Far East Orchard is up 7% and TalkMed Group is up 7%.  In South Korea, quality names were the strongest this week. Youngone Corp is up 9% and Korea Kolmar is up 6%. In the Philippines there was a slight selloff in large-cap names and a move into high Beta names.

Who Moved

216 names moved on volume this week. At the Country level, the spikes look to be well distributed. However, close to a quarter of the spikes were in the Financial Sector. On the positive side, China Overseas Grand Oceans Group is up 28%, Agile Group Holdings is up 19% and China Regenerative Medicine International is up 19%. On the other side, Group Lease Public is down 52%, Macronix International is down 12% and Alibaba Health Information Technology is down 14%.

Summary

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What Worked Japan - 10 Mar 2017 - Only Quality factors slighty stood out this week

What Worked

Low Debt to Equity and high ROIC were the only factors that did well this week. Low Debt to Equity names that outperformed were Cyber Agent (4751) up 9%, COLORP (3668) up 8% and HIROSE ELECTRIC (6806) up 7%. High ROIC names that also did well were Idemitsu Kosan (5019) up 6%, Kissei Pharma (4547) up 6% and Coca-cola East Japan (2580) up 6%. All the other factors were basically significant this week.

Who Moved

Only 15 names moved on volume this week. On the positive side, Temp Holdings (2181) is up 5%, Nipro Corp (8086) is up 5% and Pigeon Corp (7956) is up 4%. On the other side, NEXON (3659) is down 7%, Isetan Mitsukoshi Holdings (3099) is down 6% and Nippon Light Metal Holdings (5703) is down 5%.

Summary

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What Worked Asia - 03 Mar 2017 - Large cap names were hurt in China / India, Value did well in South Korea

What Worked

Pretty good selloff in large-cap names in China this week. China Hongqiao Group is down 11% and China Eastern Airlines is down 7%. In Hong Kong while none of the other factors stood out, high ROIC names did well this week. Luen Wong Group is up 34% and Wang On Properties is up 19%. Value and high Beta names did well in South Korea. Low PBR names that did well this week were Hyundai Mipo Dockyard up 11% and Hyundai Heavy Industries up 8%.

In Singapore there was a slight selloff in high Beta names and a move into high ROE names. Yangzijiang Shipbuilding is up 18% and Jardine Cycle & Carriage is up 9%. High Dividend names did well in the Philippines this week. Belle Corp is up 4% and Semirara Mining % Power is up 4%. Nothing really stood out in India. In Malaysia there was a slight move into large-cap and growth names. My E.G. Services is up 8% and Press Metal is up 9%.

Who Moved

188 names moved on volume this week. A good portion of the volume spikes came in the Process Industries and Financial Sector. At the country level, half of the volume spikes came in China/HK and India. On the positive side, Gallant Venture is up 41%, Sri Rejeki Isman is up 33% and China Zhengtong Auto Service is up 30%. On the other side, Season Pacific Holdings is down 19%, Bharat Petroleum Corp is down 13% and Hindustan Petroleum is down 10%. All moved on volume.

Summary

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