IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tokyo-rakutenchi-co-ltd" target="_blank" data-smartkarma-citation="entities:2078:1" rel="noopener">Tokyo Rakutenchi (8842 JP)</a> has recommended <a href="https://www.smartkarma.com/entities/toho-co-ltd" target="_blank" data-smartkarma-citation="entities:7806:1" rel="noopener">Toho Co Ltd (9602 JP)</a>’s tender offer of JPY6,720 per share, a 51.5% premium to the undisturbed (6 December). </li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 24.29% ownership ratio.</li>
<li>Based on the irrevocables, the minimum acceptance condition requires a 30.2% minority acceptance rate. This acceptance rate is doable as the offer represents a ten-year high. </li>
</ul>



Tokyo Rakutenchi (8842 JP) has recommended Toho Co Ltd (9602 JP)’s tender offer of JPY6,720 per share, a 51.5% premium to the undisturbed (6 December). 
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 24.29% ownership ratio.
Based on the irrevocables, the minimum acceptance condition requires a 30.2% minority acceptance rate. This acceptance rate is doable as the offer represents a ten-year high. 


Tokyo Rakutenchi (8842 JP): Toho’s Tender Offer at JPY6,720

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>While big city department stores have only lost 12.8% of sales since 2009, regional stores have lost 45%, emphasising how wide the gap in performance has become. </li>
<li>But Japan is also witnessing the emergence of a new elite group of department stores who are far ahead even of their big city peers.</li>
<li>This elite group have found more traction among the new wealthy and affluent city dwellers and growth is set to continue, with record sales and – especially – profit.</li>
</ul>


While big city department stores have only lost 12.8% of sales since 2009, regional stores have lost 45%, emphasising how wide the gap in performance has become. 
But Japan is also witnessing the emergence of a new elite group of department stores who are far ahead even of their big city peers.
This elite group have found more traction among the new wealthy and affluent city dwellers and growth is set to continue, with record sales and – especially – profit.


Japan's Department Stores: Elitism Rules and There's Profit in It

<ul>
<li>Some Japanese department stores enjoyed record sales in FY2022 but the gap in performance accelerated between city centre stores and the rest. </li>
<li>While numerous regional properties continue to struggle, the best exemplars of urban department store retailing are flourishing as they become true luxury emporiums for the wealthy.</li>
<li>Department stores have rarely provided growth in either sales or OP but there is now a chance that the better chains will emerge as quite profitable entities.</li>
</ul>


Some Japanese department stores enjoyed record sales in FY2022 but the gap in performance accelerated between city centre stores and the rest. 
While numerous regional properties continue to struggle, the best exemplars of urban department store retailing are flourishing as they become true luxury emporiums for the wealthy.
Department stores have rarely provided growth in either sales or OP but there is now a chance that the better chains will emerge as quite profitable entities.


The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

<ul>
<li>Wealthy Japanese staying in Japan, more people acquiring wealth, a return of inbound tourists and better merchandising and store investment. </li>
<li>All combined to help department stores rebound strongly in 2022 but there has been a sharp shift in where department stores make their money.</li>
<li>Further growth is expected but only for some, and in some product categories much more than others.</li>
</ul>


Wealthy Japanese staying in Japan, more people acquiring wealth, a return of inbound tourists and better merchandising and store investment. 
All combined to help department stores rebound strongly in 2022 but there has been a sharp shift in where department stores make their money.
Further growth is expected but only for some, and in some product categories much more than others.


Japan Department Stores: Transformation Amidst a Recovery

<ul>
<li>Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. </li>
<li>Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. </li>
<li>Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.</li>
</ul>


Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. 
Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. 
Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.


Inbound Tourism up 50%, Spending Almost at 2019 Levels

Japan

Hankyu Hanshin Holdings, Inc. is a passenger rail company serving the Kansai area.  The Company also provides passenger bus transportation and logistics services.  In addition, Hankyu Hanshin Holdings operates housing and urban development, athletic facilities, theaters, travel agents, hotels, and other leisure-related services.

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Hankyu Hanshin Holdings (9042 JP)

Tokyo Rakutenchi (8842 JP): Toho’s Tender Offer at JPY6,720

The minimum acceptance condition requires a 30.2% minority acceptance rate. This acceptance rate is doable as the offer represents a ten-year high...

Arun George

Japan's Department Stores: Elitism Rules and There's Profit in It

Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...

Michael Causton

The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

Japan's department stores have rarely provided good returns due to anaemic profit margins. This is changing with Japan's best chains and stores now...

Michael Causton

Japan Department Stores: Transformation Amidst a Recovery

Department stores in Japan have rebounded to close to 2019 levels but the sector as a whole will return to genteel contraction once reached. Within...

Michael Causton

Inbound Tourism up 50%, Spending Almost at 2019 Levels

Of course inbound tourism will rebound in Japan in 2023 but spending per visitor may well exceed 2019 levels due to the weak Yen and full wallets....

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tokyo Rakutenchi (8842 JP): Toho’s Tender Offer at JPY6,720

The minimum acceptance condition requires a 30.2% minority acceptance rate. This acceptance rate is doable as the offer represents a ten-year high...

Arun George

Japan's Department Stores: Elitism Rules and There's Profit in It

​Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...

Michael Causton

The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

Japan's department stores have rarely provided good returns due to anaemic profit margins. This is changing with Japan's best chains and stores now...

Michael Causton

Japan Department Stores: Transformation Amidst a Recovery

Department stores in Japan have rebounded to close to 2019 levels but the sector as a whole will return to genteel contraction once reached. Within...

Michael Causton

Inbound Tourism up 50%, Spending Almost at 2019 Levels

Of course inbound tourism will rebound in Japan in 2023 but spending per visitor may well exceed 2019 levels due to the weak Yen and full wallets....

Michael Causton

Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...