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  "docSlug": "f982379e2e48",
  "documentTitle": "Lasertec Corporation (6920)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
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  "presentationDate": "2024-06-05 00:00:00",
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  "pageNumber": 72,
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  "notes": "The slide highlights a specific anomaly in Lasertec's financial reporting following the launch of the ACTIS EUV line.",
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      "text": "But therein lies to the key to the fraud – while Lasertec claims to have the highest profitability, its cash conversion is the lowest – a striking anomaly at the center of the largest corporate frauds in history.",
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      "kind": "metric",
      "text": "Operating Cash Flow To Net Income: 65%",
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      "kind": "paragraph",
      "text": "With margins far higher than the five largest semicap companies, one would expect Lasertec's net income – the earnings reported on an accrual basis on its income statement – to convert to copious amounts of operating cash flow – and at a higher rate given its higher margins. But therein lies to the key to the fraud – while Lasertec claims to have the highest profitability, its cash conversion is the lowest – a striking anomaly at the center of the largest corporate frauds in history. As shown below, cash conversion has plummeted since the launch of its ACTIS EUV line in 2019/2020 – over the last 5 years, one dollar of earnings has produced only 65 cents of cash, in contrast to its peers which have extraordinary cash conversion, such as ASML with 130-180% conversion despite margins far lower than the ones Lasertec claims; and KLA at >100% in all but one of the last 5 years.",
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      "kind": "source-note",
      "text": "Source: Scorpion Capital analysis and estimates; Capital IQ data",
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      "text": "Operating Cash Flow To Net Income table comparing ASML, Applied Materials, Lam, Tokyo Electron, KLA, and Lasertec across years 2019-2023, LTM, and 5-year average.",
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      "kind": "title",
      "text": "Lasertec operating cash flow divided by net income versus largest semicap players",
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