Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS. Strong close to SPX on Friday +1.4% on the Day; 3.5%WoW; +7.0%QTD; Light Macro calender this week with Job report Key; OPEC+ surprise cut; Tesla Misses 1Q</li>
<li>JAPAN.  NKY Fut +0.7% vs Cash; USDJPY 132.9; At the start of the new fiscal year, strong tailwinds ahead for Japan: BOJ normalization; Shareholder AGMs; Shareholder returns improvements; Bullish !</li>
<li>NUGGET. Labor Mobility Needed for Sustainable Wage Growth in Japan. This is essential to extend the gains made this year, or we risk reverting to the status quo. </li>
</ul>


OVERSEAS. Strong close to SPX on Friday +1.4% on the Day; 3.5%WoW; +7.0%QTD; Light Macro calender this week with Job report Key; OPEC+ surprise cut; Tesla Misses 1Q
JAPAN.  NKY Fut +0.7% vs Cash; USDJPY 132.9; At the start of the new fiscal year, strong tailwinds ahead for Japan: BOJ normalization; Shareholder AGMs; Shareholder returns improvements; Bullish !
NUGGET. Labor Mobility Needed for Sustainable Wage Growth in Japan. This is essential to extend the gains made this year, or we risk reverting to the status quo. 


Good Morning Japan |SPX-Sizzling 1Q Close; NUGGET: Labor Mobility Needed for Sustainable Wage Growth

<ul>
<li>OVERSEAS. SPX carve out gains on relief Bank rally; Energy leads on Oil supply distruptions; Tech lags on profit taking; Crypto in spotlight as US cracks down on Binance/CEO CZ</li>
<li>JAPAN. Nikkei Futs -0.5% vs Cash; USDJPY 131.6;  Diplomatic Row btw Japan-China brewing on arrest of Japanese national for spying; SMFG expands in Vietnam; Bullish Toray MTP</li>
<li>NUGGET. Softbank just cannot catch a break. Son-san ARM IPO to be wildly successful. $70bn IPO Valuation seem a tall ask. Can Son-san pull this one off ?</li>
</ul>


OVERSEAS. SPX carve out gains on relief Bank rally; Energy leads on Oil supply distruptions; Tech lags on profit taking; Crypto in spotlight as US cracks down on Binance/CEO CZ
JAPAN. Nikkei Futs -0.5% vs Cash; USDJPY 131.6;  Diplomatic Row btw Japan-China brewing on arrest of Japanese national for spying; SMFG expands in Vietnam; Bullish Toray MTP
NUGGET. Softbank just cannot catch a break. Son-san ARM IPO to be wildly successful. $70bn IPO Valuation seem a tall ask. Can Son-san pull this one off ?


Good Morning Japan |More Bank Relief as SPX Gains 0.2%; NUGGET: Softbank- Just Can't Catch a Break

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/kansai-paint-co-ltd" target="_blank" data-smartkarma-citation="entities:13340:1" rel="noopener">Kansai Paint (4613 JP)</a> announced a passel of crossholders would sell 26.2mm shares in a Secondary Offer. They also announced a buyback. </li>
<li>The buyback, spending up to ¥12bn to buy back up to 8.2mm shares, starts after the Offering is delivered, and extends until 15 March 2024.</li>
<li>This offering reduces cross-holder "strategic holdings" by a third. This will impact FFW. Complicated index impacts will occur over time.</li>
</ul>


Today after the close, Kansai Paint (4613 JP) announced a passel of crossholders would sell 26.2mm shares in a Secondary Offer. They also announced a buyback. 
The buyback, spending up to ¥12bn to buy back up to 8.2mm shares, starts after the Offering is delivered, and extends until 15 March 2024.
This offering reduces cross-holder "strategic holdings" by a third. This will impact FFW. Complicated index impacts will occur over time.


Kansai Paint (4613 JP) Secondary Offering & Buyback and All the Subsequent Flows

Research on International Stock Ideas, Value Punks

Value Punks

Research on International Stock Ideas

Value Punks’ mission is to deliver institutional-grade research on international stock ideas in a digestible, reader-friendly format.

At Value Punks, we blend our background in traditional value-investing with an openness to embrace a constantly and rapidly evolving investment and business landscape.

Institutional-Grade Research

Equity Bottom-Up

Berkshire Hathaway Inc Cl B / Equity Bottom-Up

This is Part 1 of our exclusive deep dive on “Sogo Shosha”, or Japanese trading companies.We’ve decided to break this deep dive into two parts given its length.Part 1 will build the foundation and covers the business, history, and a discussion of Berkshire’s investment.

This is Part 1 of our exclusive deep dive on “Sogo Shosha”, or Japanese trading companies.We’ve decided to break this deep dive into two parts given its length.Part 1 will build the foundation and covers the business, history, and a discussion of Berkshire’s investment.

Deep Dive: Japanese Trading Companies (Part 1)

Event-Driven

<ul>
<li>On 8 November, major Japanese life insurer <a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a> announced it would buy out leading pet insurer <a href="https://www.smartkarma.com/entities/ipet-holdings-inc" target="_blank" data-smartkarma-citation="entities:36551:1" rel="noopener">ipet Holdings (7339 JP)</a>. Yes, you read that right.</li>
<li>Japanese listed VC/PE firm and incubator <a href="https://www.smartkarma.com/entities/dream-incubator-inc" target="_blank" data-smartkarma-citation="entities:1229:1" rel="noopener">Dream Incubator Inc (4310 JP)</a> owns 55% and agreed to tender. Tender success is dependent on getting 66.7%. </li>
<li>Today the buyer extended for 10 days because it had received approval under Article 271-22 Para 1 of the Insurance Business Act, triggering a requirement to refile/extend.</li>
</ul>


On 8 November, major Japanese life insurer Dai Ichi Life Insurance (8750 JP) announced it would buy out leading pet insurer ipet Holdings (7339 JP). Yes, you read that right.
Japanese listed VC/PE firm and incubator Dream Incubator Inc (4310 JP) owns 55% and agreed to tender. Tender success is dependent on getting 66.7%. 
Today the buyer extended for 10 days because it had received approval under Article 271-22 Para 1 of the Insurance Business Act, triggering a requirement to refile/extend.


IPet Holdings (7339 JP) - Tender Offer Extended But No Biggie

Japan

Sojitz Corporation is a general trading company.  The Company has business divisions such as Machinery & Aerospace, Energy & Mineral Resources, Chemicals & Plastics, Real Estate Development & Forest Products, Consumer Lifestyle Business, and New Business Development Group.  Sojitz was formed through the business integration between Nichimen and Nissho Iwai.

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Sojitz Corp (2768 JP)

Good Morning Japan |SPX-Sizzling 1Q Close; NUGGET: Labor Mobility Needed for Sustainable Wage Growth

US equities close out a solid quarter. For Japan, at the start of the new fiscal year, strong tailwinds ahead: BOJ normalization; Shareholder AGMs;...

Mark Chadwick

Good Morning Japan |More Bank Relief as SPX Gains 0.2%; NUGGET: Softbank- Just Can't Catch a Break

SPX carve out gains on relief Bank rally; Tech lags on profit taking; Crypto in spotlight as US cracks down on Binance/CEO CZ. Japan to follow. ...

Mark Chadwick

Kansai Paint (4613 JP) Secondary Offering & Buyback and All the Subsequent Flows

Kansai Paint is doing the good governance thing by unwinding crossholdings, and encouraging its crossholders to unwind. It has been buying back...

Travis Lundy

Deep Dive: Japanese Trading Companies (Part 1)

This is Part 1 of our exclusive deep dive on “Sogo Shosha”, or Japanese trading companies. We’ve decided to break this deep dive into two parts...

Value Punks

IPet Holdings (7339 JP) - Tender Offer Extended But No Biggie

Dai Ichi Life today extended its TOB for iPet Holdings (7339). Sometimes an extension masks a potential bump to come. In this case I think not....

Travis Lundy

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