Scorpion Capital’s recent investigative report has shed light on some disturbing allegations against Lasertec Corp (TYO:6920), one of Japan’s most actively traded stocks. The report accuses Lasertec of engaging in fraudulent activities by inflating revenue, margins, and earnings through a textbook accounting scheme. This lack of transparency in financial reporting raises serious concerns about the overall credibility of the company.
According to the report, Lasertec’s flagship ACTIS EUV inspection machine has been portrayed as a groundbreaking product in the semiconductor industry. However, Scorpion Capital claims that the ACTIS system is actually defective, with a flawed EUV light source and other unresolved issues. This alleged cover-up of product deficiencies raises doubts about the company’s commitment to innovation and quality control.
Scorpion Capital also criticizes Lasertec for its excessive level of inventory, which is described as the highest among all semiconductor tools suppliers globally. This dubious practice of inflating inventory levels suggests a deliberate attempt to manipulate financial data for deceptive purposes. Additionally, the report dismisses Lasertec’s announcement of the ACTIS A300 as a mere distraction to divert attention from flaws in its previous A150 EUV tool. The continuous stream of unsubstantiated claims and misleading information further erodes investor trust in the company.
Furthermore, investigators from Scorpion Capital visited Lasertec’s new Innovation Park in Yokohama multiple times over a span of several months. Their findings revealed a deserted facility with no visible signs of R&D or production activities, contradicting the company’s official statements. This discrepancy between the company’s claims and the actual operational practices raises serious red flags about the integrity of Lasertec’s management team.
The allegations made by Scorpion Capital against Lasertec Corp (TYO:6920) paint a grim picture of a company embroiled in fraudulent activities and deceptive practices. The lack of transparency in financial reporting, questionable product quality, misleading information, and questionable operational practices all point to a company that may be on the verge of a major scandal. Investors should take these allegations seriously and conduct thorough due diligence before making any investment decisions related to Lasertec Corp.