Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/benesse-holdings-inc" target="_blank" data-smartkarma-citation="entities:12877:1" rel="noopener">Benesse Holdings (9783 JP)</a> share price has fallen 18% annually since 4 years ago with PER going from 55x to 14x</li>
<li>The structural decline in the main business remains although the smaller business has shown some improvement.</li>
<li>Japan has received a lot of investors interest recently and Benesse could pick up some investor interest too. </li>
</ul>



Benesse Holdings (9783 JP) share price has fallen 18% annually since 4 years ago with PER going from 55x to 14x
The structural decline in the main business remains although the smaller business has shown some improvement.
Japan has received a lot of investors interest recently and Benesse could pick up some investor interest too. 


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In early February 2022, Silchester International Investors (according to its website) sent letters to four low-ROE-earning Japanese regional banks proposing a new dividend policy.</li>
<li>The management and boards of each bank rejected the policy proposal though two of the four had upped their proposed dividend or changed policy prior, and two upped it afterwards.</li>
<li>While Bank of Kyoto is the biggest equity portfolio, <a href="https://www.smartkarma.com/entities/chugoku-bank-ltd" target="_blank" data-smartkarma-citation="entities:11177:1" rel="noopener">Chugoku Bank (8382 JP)</a> is a relatively large, provincial, regional bank, with middling equity portfolio. Different shape. Different situation.</li>
</ul>


In early February 2022, Silchester International Investors (according to its website) sent letters to four low-ROE-earning Japanese regional banks proposing a new dividend policy.
The management and boards of each bank rejected the policy proposal though two of the four had upped their proposed dividend or changed policy prior, and two upped it afterwards.
While Bank of Kyoto is the biggest equity portfolio, Chugoku Bank (8382 JP) is a relatively large, provincial, regional bank, with middling equity portfolio. Different shape. Different situation.


JAPAN ACTIVISM: Silchester Goes After Chugoku Bank

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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.

Thematic (Sector/Industry)

<h3>What’s Original?</h3>
<p>In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.</p>

What’s Original?
In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these policies and companies that are likely to benefit.

Kishida as Prime Minister: The Path Ahead

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Equity Capital Markets

Poppins Holdings Inc / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/poppins-holdings-inc" target="_blank" data-smartkarma-citation="entities:31056:1" rel="noopener">Poppins Holdings Inc (7358 JP)</a> , the provider of child and elderly care services in Japan has filed for an IPO to list its shares on the Tokyo Exchange. The company will be issuing 1.1m new shares at the IPO while existing shareholders will issue 2.15m shares, and at the midpoint of the IPO pricing of JPY2,750 per share, the company will raise gross proceeds of JPY8.9bn (US$85.8m).</p><p>In our previous insight on the company’s IPO, we examined the company’s business model, segments and financials. In this insight, we discuss the company’s valuation.</p><p>Read our previous insight on the company's IPO:</p><p><a href="https://www.smartkarma.com/insights/poppins-ipo-well-positioned-to-benefit-from-japanese-demographic-trends" target="_blank" data-smartkarma-citation="insights:46156" rel="noopener">Poppins IPO: Well Positioned to Benefit from Japanese Demographic Trends</a> </p>

Poppins Holdings Inc (7358 JP) , the provider of child and elderly care services in Japan has filed for an IPO to list its shares on the Tokyo Exchange. The company will be issuing 1.1m new shares at the IPO while existing shareholders will issue 2.15m shares, and at the midpoint of the IPO pricing of JPY2,750 per share, the company will raise gross proceeds of JPY8.9bn (US$85.8m).In our previous insight on the company’s IPO, we examined the company’s business model, segments and financials. In this insight, we discuss the company’s valuation.Read our previous insight on the company's IPO:Poppins IPO: Well Positioned to Benefit from Japanese Demographic Trends 

Poppins IPO Valuation: Attractively Priced for a Growing Company

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

<div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/135/544/original/2020-05-25_05-06-24.png?1590350813" class="editor-image img-responsive" data-smartkarma-image-id="135544"></figure><div class="content-caption">Source • Japan Analytics</div>
</div><p><strong>CLOSURE</strong> - As the fashion amongst Japanese companies is not to make any full-year forecasts, there has been little change in our forecast-based metrics over the last week. Trailing-twelve-month (TTM) profits declined by ¥3 trillion and ¥2.5 trillion at the operating and net levels, respectively, over the week - closing the 'gap' to forecast considerably. There is still some upside to the market multiple from the numerator. For the time being, however, liquidity rules.</p><div><p>In the <strong>DETAIL </strong>section below, we shall review Friday's announcements:-</p></div><div><ul>
<li>The balance between positive/neutral/negative of the 106 results announcements was 52:4:50. The average change in Results Score was -1.2.</li>
<li>For the 49 revisions/initial forecasts, the split was 10:1:38, and the average Forecast/Revision Score was -10.0. Again, only one-third of companies reporting full-year results chose to make current year forecasts. </li>
<li>As this highly-unusual disclosure period slowly winds down (7% of market cap has yet to report almost two months after books closed), 57 companies will announce results on Monday. The largest of these by market cap will be <a href="https://www.smartkarma.com/entities/ajinomoto-co-inc" target="_blank" data-smartkarma-citation="entities:8911:1" rel="noopener">Ajinomoto (2802 JP)</a>, <a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" data-smartkarma-citation="entities:7797:1" rel="noopener">Hitachi (6501 JP)</a>, and <a href="https://www.smartkarma.com/entities/shimizu-corp" target="_blank" data-smartkarma-citation="entities:8530:1" rel="noopener">Shimizu (1803 JP)</a>. <a href="https://www.smartkarma.com/entities/nissan-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:72:1" rel="noopener">Nissan Motor (7201 JP)</a> and <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba (6502 JP)</a> will, hopefully, follow later in the week but may well be the 'sting in the trail'. </li>
</ul></div>


Source • Japan Analytics
CLOSURE - As the fashion amongst Japanese companies is not to make any full-year forecasts, there has been little change in our forecast-based metrics over the last week. Trailing-twelve-month (TTM) profits declined by ¥3 trillion and ¥2.5 trillion at the operating and net levels, respectively, over the week - closing the 'gap' to forecast considerably. There is still some upside to the market multiple from the numerator. For the time being, however, liquidity rules.In the DETAIL section below, we shall review Friday's announcements:-
The balance between positive/neutral/negative of the 106 results announcements was 52:4:50. The average change in Results Score was -1.2.
For the 49 revisions/initial forecasts, the split was 10:1:38, and the average Forecast/Revision Score was -10.0. Again, only one-third of companies reporting full-year results chose to make current year forecasts. 
As this highly-unusual disclosure period slowly winds down (7% of market cap has yet to report almost two months after books closed), 57 companies will announce results on Monday. The largest of these by market cap will be Ajinomoto (2802 JP), Hitachi (6501 JP), and Shimizu (1803 JP). Nissan Motor (7201 JP) and Toshiba (6502 JP) will, hopefully, follow later in the week but may well be the 'sting in the trail'. 


🇯🇵 JAPAN • Results & Revisions 22nd May - FUJIFILM, ASICS, Benesse

Japan

Benesse Holdings, Inc. provides correspondence educational services to a range of age groups from toddlers to high-school students. Benesse HD also operates English language schools and senior care homes.

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Benesse Holdings (9783 JP)

Benesse Holdings (9783): Time to Cover

Benesse Holdings, despite facing a structural decline in the key business, could have some positive catalysts including from the nursing and...

Henry Soediarko

JAPAN ACTIVISM: Silchester Goes After Chugoku Bank

Silchester's letter to Chugoku Bank is similar to the others, but rejection count/order is different. A small ask on a large balance sheet but...

Travis Lundy

Kishida as Prime Minister: The Path Ahead

In this original, we have discussed some of the key aspects highlighted in Kishida’s policy statements along with the current status of these...

Mio Kato

Poppins IPO Valuation: Attractively Priced for a Growing Company

Poppins, the provider of child and elderly care services in Japan has filed for an IPO to list its shares on the Tokyo Exchange. In this insight,...

Shifara Samsudeen, ACMA, CGMA

🇯🇵 JAPAN • Results & Revisions 22nd May - FUJIFILM, ASICS, Benesse

CLOSURE - As the fashion amongst Japanese companies is not to make any full-year forecasts, there has been little change in our forecast-based...

Campbell Gunn

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