Research from Mita Securities, Mita Securities

Mita Securities

Research from Mita Securities

Equity Bottom-Up

<h2>Summary</h2>
<p>Our top pick is S Foods. Points of interest are 1) its strength in meat wholesaling to restaurants, and 2) the US meat packer business benefiting from increased demand for restaurants in the US. We believe that these factors have not been fully factored into the current stock price</p>

Summary
Our top pick is S Foods. Points of interest are 1) its strength in meat wholesaling to restaurants, and 2) the US meat packer business benefiting from increased demand for restaurants in the US. We believe that these factors have not been fully factored into the current stock price

Fast Fitness Japan Inc / Equity Bottom-Up

<h2>Company profile</h2>
<p>FFJ operates the 24-hour machine-focused fitness club Anytime Fitness mainly through a franchise system, with 924 stores and 595,000 members as of June 30, 2021.</p>
<h3>Target price changed to 5,600 yen due to stock split</h3>
<p>Fast Fitness Japan (7092, FFJ, the company) will conduct a 1:1.2 stock split with September 30 as the record date and October 1 as the effective date. As a result, we have revised our assumptions for the number of shares outstanding used in our earnings forecasts and have changed our target price from 6,700 yen to 5,600 yen. The changes to our earnings forecast are limited to changes in per-share indicators (EPS, BPS, DPS). Our view on the company's fundamentals remains unchanged, and we reiterate the Buy rating.</p>

Company profile
FFJ operates the 24-hour machine-focused fitness club Anytime Fitness mainly through a franchise system, with 924 stores and 595,000 members as of June 30, 2021.
Target price changed to 5,600 yen due to stock split
Fast Fitness Japan (7092, FFJ, the company) will conduct a 1:1.2 stock split with September 30 as the record date and October 1 as the effective date. As a result, we have revised our assumptions for the number of shares outstanding used in our earnings forecasts and have changed our target price from 6,700 yen to 5,600 yen. The changes to our earnings forecast are limited to changes in per-share indicators (EPS, BPS, DPS). Our view on the company's fundamentals remains unchanged, and we reiterate the Buy rating.

Fast Fitness Japan (7092): Target Price Changed Due to Stock Split

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Quantitative Analysis

<p>In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. During the month of June, we witnessed <a href="https://www.smartkarma.com/entities/meiko-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:20004:1" rel="noopener">Meiko Electronics (6787 JP)</a>, a stock tracked by Quiddity as a potential TSE Prime candidate, confirm its TSE Prime move. Furthermore, we also witnessed high growth SaaS company <a href="https://www.smartkarma.com/entities/money-forward-inc" target="_blank" data-smartkarma-citation="entities:25919:1" rel="noopener">Money Forward (3994 JP)</a> announce its move to TSE Prime potentially triggering a large inclusion event at the end of July 2021.  </p><p>Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of June 2021.   </p>

In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. During the month of June, we witnessed Meiko Electronics (6787 JP), a stock tracked by Quiddity as a potential TSE Prime candidate, confirm its TSE Prime move. Furthermore, we also witnessed high growth SaaS company Money Forward (3994 JP) announce its move to TSE Prime potentially triggering a large inclusion event at the end of July 2021.  Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of June 2021.   

Event-Driven

<p>In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. After a dry spell in March and April, two new Section Transfers were announced in May 2021: <a href="https://www.smartkarma.com/entities/anshin-guarantor-service-co" target="_blank" data-smartkarma-citation="entities:33234:1" rel="noopener">Anshin Guarantor Service (7183 JP)</a> and <a href="https://www.smartkarma.com/entities/nomura-micro-science-co-ltd" target="_blank" data-smartkarma-citation="entities:11317:1" rel="noopener">Nomura Micro Science (6254 JP)</a>. On the other hand, we also witnessed some Inclusion Events resulting from TSE1 Direct Listings: <a href="https://www.smartkarma.com/entities/tess-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:32979:1" rel="noopener">Tess Holdings Co Ltd (5074 JP)</a> and <a href="https://www.smartkarma.com/entities/kibun-foods-inc" target="_blank" data-smartkarma-citation="entities:33019:1" rel="noopener">Kibun Foods Inc (2933 JP)</a>. </p><p>Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of May 2021.   </p>

In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. After a dry spell in March and April, two new Section Transfers were announced in May 2021: Anshin Guarantor Service (7183 JP) and Nomura Micro Science (6254 JP). On the other hand, we also witnessed some Inclusion Events resulting from TSE1 Direct Listings: Tess Holdings Co Ltd (5074 JP) and Kibun Foods Inc (2933 JP). Below is a discussion of the situations covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of May 2021.   

<p>In January and February 2021 we saw a large wave of TSE1 Section Transfers as many small cap names rushed to get promoted before the new (and more stringent) Section Transfer Requirements were implemented (application deadline November 1, 2020). In contrast, not a single TSE1 Section Transfer was announced in the months of March and April 2021. </p><p>However, during the month of April, we witnessed TSE's Annual Liquidity Factor Review which caused dozens of stocks to enjoy Index Upweights during the April-end Inclusion Event collectively amount to an estimated upweight size of approximately US$1bn. </p><p>Below is a look at the performance of the TOPIX-related event trades covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of April 2021.  </p>

In January and February 2021 we saw a large wave of TSE1 Section Transfers as many small cap names rushed to get promoted before the new (and more stringent) Section Transfer Requirements were implemented (application deadline November 1, 2020). In contrast, not a single TSE1 Section Transfer was announced in the months of March and April 2021. However, during the month of April, we witnessed TSE's Annual Liquidity Factor Review which caused dozens of stocks to enjoy Index Upweights during the April-end Inclusion Event collectively amount to an estimated upweight size of approximately US$1bn. Below is a look at the performance of the TOPIX-related event trades covered by Quiddity in the Pre-event, Live-event, and Post-event categories during the month of April 2021.  

TOPIX Inclusion Trade Summary: April 2021

Japan

Fast Fitness Japan, Inc. owns and operates fitness clubs. The Company offers gym and sports facilities and training. Fast Fitness Japan provides its services throughout Japan.

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Fast Fitness Japan Inc (7092 JP)

List of Covered Stocks (7 October 2021)

Our top pick is S Foods. Points of interest are 1) its strength in meat wholesaling to restaurants, and 2) the US meat packer business benefiting...

Mita Securities

Fast Fitness Japan (7092): Target Price Changed Due to Stock Split

FFJ operates the 24-hour machine-focused fitness club Anytime Fitness mainly through a franchise system, with 924 stores and 595,000 members as of...

Mita Securities

TOPIX Inclusion Trade Summary: June 2021

TOPIX Pre-Event Watchlist Trades, Announced Trades, and ongoing performance. The announcements have performed well (and did well as pre-events...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: May 2021

TOPIX Index Changes Review for May 2021. There are a couple of new names, a list of ongoing pre-event trades, a couple of post-event trades. Things...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: April 2021

April TOPIX Index Events had a great month. Whether it be the single inclusion Rakus (3923), the LF reweight baskets, or the normal TOPIX month-end...

Janaghan Jeyakumar, CFA

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