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Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

Equity Bottom-Up

<ul><li>Sold 16 residential properties. Gains on sale far exceeded our expectations</li><li>Regarding this transaction, the company will book sales of around 17.7bn yen, RP of around 2.5bn yen, and NP of around 1.7bn yen in 4Q</li><li>In 1-3Q FY2/22, the company posted NP of 2.0bn yen. The company appears to be highly confident of achieving its full-year NP guidance of 5.0-8.0bn yen</li></ul>

Sold 16 residential properties. Gains on sale far exceeded our expectationsRegarding this transaction, the company will book sales of around 17.7bn yen, RP of around 2.5bn yen, and NP of around 1.7bn yen in 4QIn 1-3Q FY2/22, the company posted NP of 2.0bn yen. The company appears to be highly confident of achieving its full-year NP guidance of 5.0-8.0bn yen

Ichigo (2337): Property Sales Finally in Full Swing

<ul><li>Ichigo shows confidence in achieving full-year guidance. Signs of hotel market recovery</li><li>On November 12, 2021, the company announced that the delivery date for the sale of 16 residential properties had been changed from November 12, 2021 to the end of January 2022</li><li>The company did not announce any share buybacks at this time. </li></ul>

Ichigo shows confidence in achieving full-year guidance. Signs of hotel market recoveryOn November 12, 2021, the company announced that the delivery date for the sale of 16 residential properties had been changed from November 12, 2021 to the end of January 2022The company did not announce any share buybacks at this time. 

Ichigo (2337): Hopes Rise for Signs of Hotel Market Recovery

<h2>Company profile</h2>
Ichigo focuses on 1) the sustainable real estate business, which creates new value in existing real estate, 2) the asset management business, which manages real estate for REITs and infrastructure funds, and 3) the clean energy business, which includes solar and wind power generation. As of the end of FY2/21, it owned 245.1bn yen of real estate, 306.4bn yen of assets under management, and 120.6MW of power generation output.

Company profile
Ichigo focuses on 1) the sustainable real estate business, which creates new value in existing real estate, 2) the asset management business, which manages real estate for REITs and infrastructure funds, and 3) the clean energy business, which includes solar and wind power generation. As of the end of FY2/21, it owned 245.1bn yen of real estate, 306.4bn yen of assets under management, and 120.6MW of power generation output.

Ichigo (2337): Low Progress in Line with Expectation

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last night, Singapore-based fund Aslead Capital Pte announced that it would launch a Tender Offer on <a href="https://www.smartkarma.com/entities/fuji-kosan-company-ltd" target="_blank" data-smartkarma-citation="entities:17867:1" rel="noopener">Fuji Kosan Company (5009 JP)</a> to take at least a 40% stake and possibly full control after ownership and approaches did not lead to "satisfactory" measures to improve corporate value. 
The shareholder had been acquiring shares since last year. It first went above 5% in August 2020 and until yesterday had most recently reported a 14.83% stake on 4 February. 
The stock has an interesting set of investors, and was for many years in the early to mid-2010s a poster child for tiny cap deep value investment targets. 
As of the announcement, Aslead states that it owns 16.8% which means to get to 40.0%, it needs only 23.2% of shares out - of the 83.2% it does not own. 
The company has been building an 'interesting' set of shareholders and relationships. One activist sold last year to be replaced by another. There is someone infamous from the tabloids. This could be fun to watch. It will certainly trade through terms early. The question then is what next?
There is a behind-the-scenes link to the family office responsible for the single most fun <a href="https://www.smartkarma.com/messages/%20https:/y-n10.com/" target="_blank" rel="noopener">family office website</a> ever made (after you press enter, check on the left side to see the sound is on and if you need to read the text more smoothly switch from angled to vertical just above the sound on/off section).

Last night, Singapore-based fund Aslead Capital Pte announced that it would launch a Tender Offer on Fuji Kosan Company (5009 JP) to take at least a 40% stake and possibly full control after ownership and approaches did not lead to "satisfactory" measures to improve corporate value. 
The shareholder had been acquiring shares since last year. It first went above 5% in August 2020 and until yesterday had most recently reported a 14.83% stake on 4 February. 
The stock has an interesting set of investors, and was for many years in the early to mid-2010s a poster child for tiny cap deep value investment targets. 
As of the announcement, Aslead states that it owns 16.8% which means to get to 40.0%, it needs only 23.2% of shares out - of the 83.2% it does not own. 
The company has been building an 'interesting' set of shareholders and relationships. One activist sold last year to be replaced by another. There is someone infamous from the tabloids. This could be fun to watch. It will certainly trade through terms early. The question then is what next?
There is a behind-the-scenes link to the family office responsible for the single most fun family office website ever made (after you press enter, check on the left side to see the sound is on and if you need to read the text more smoothly switch from angled to vertical just above the sound on/off section). 

Aslead Capital Hostile Offer for Fuji Kosan (5009)

<a href="https://www.smartkarma.com/entities/shinoken-group-co-ltd" target="_blank" data-smartkarma-citation="entities:17040:1" rel="noopener">Shinoken Group (8909 JP)</a> - short for Shinohara Kensetsu - was founded 30 years ago by Hideaki Shinohara who set up the company as a 25-year old after starting a few years earlier at a real estate company. The company has grown from something small to something relatively large and the company has been aggressive. It makes most of its money through real estate sales and service, and some money through self-contracting. There are other businesses which are quite decent and could get better - add-ons to the real estate service business which has been a real winner. Over the years, the company has grown through both organic growth and M&amp;A. About 55% of net sales and 50% of Operating Income is through organic businesses. And the growth shown indicates that the company has been able to integrate some of these businesses quite successfully. Since 2017, the plan has been to move a great deal of the business away from real estate sales and more towards real estate service. They've done that pretty well (real estate sales was 77% of revenues in 2017, 48% last year)The New News on the 12th of February was that the company reported full-year profits and a <a href="https://www.shinoken.co.jp/presses/get_img/521/file1_path/20210212_521.pdf" target="_blank" rel="noopener">forecast</a> for 2021 where revenue was set to grow 10% but OP and NP were set to grow 0.2% and 0.8%, respectively.

Shinoken Group (8909 JP) - short for Shinohara Kensetsu - was founded 30 years ago by Hideaki Shinohara who set up the company as a 25-year old after starting a few years earlier at a real estate company. The company has grown from something small to something relatively large and the company has been aggressive. It makes most of its money through real estate sales and service, and some money through self-contracting. There are other businesses which are quite decent and could get better - add-ons to the real estate service business which has been a real winner. Over the years, the company has grown through both organic growth and M&amp;A. About 55% of net sales and 50% of Operating Income is through organic businesses. And the growth shown indicates that the company has been able to integrate some of these businesses quite successfully. Since 2017, the plan has been to move a great deal of the business away from real estate sales and more towards real estate service. They've done that pretty well (real estate sales was 77% of revenues in 2017, 48% last year)The New News on the 12th of February was that the company reported full-year profits and a forecast for 2021 where revenue was set to grow 10% but OP and NP were set to grow 0.2% and 0.8%, respectively. 

Shinoken (8909) - Cheap Stock, Growth Lag, Governance Hiccup: "Gift" To Foundation Unlikely to Pass

Japan

Ichigo Inc. is a value-add real estate company. The Company's three key businesses are Value-Add, in which Ichigo acquires and improves mid-sized, prime location real estate, Asset Management including the Ichigo Office REIT (8975), and Clean Energy, in which Ichigo builds and operates solar power plants  on disused land nationwide.

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Ichigo Inc (2337 JP)

Ichigo (2337): Property Sales Finally in Full Swing

Sold 16 residential properties. Gains on sale far exceeded our expectations. Regarding this transaction, the company will book sales of around...

Mita Securities

Ichigo (2337): Hopes Rise for Signs of Hotel Market Recovery

Ichigo shows confidence in achieving full-year guidance. Signs of hotel market recovery. On November 12, 2021, the company announced that the...

Mita Securities

Ichigo (2337): Low Progress in Line with Expectation

Ichigo focuses on 1) the sustainable real estate business, which creates new value in existing real estate, 2) the asset management business...

Mita Securities

Aslead Capital Hostile Offer for Fuji Kosan (5009)

Fuji Kosan (5009) is the lastest smallcap value name to attract a hostile bidder putting a shot across the bow of recalcitrant management. A wake...

Travis Lundy

Shinoken (8909) - Cheap Stock, Growth Lag, Governance Hiccup: "Gift" To Foundation Unlikely to Pass

Shinoken Group (8909) is a well put-together small real estate developer moving to more RE service. It's expanding, transforming, and cheap. There...

Travis Lundy

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