Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

<ul><li>Revenue: JPY3.9bn (-4.1% YoY); Operating loss: JPY133mn; Recurring loss: JPY39mn; Net loss: JPY759mn.</li><li>Revenue by product type: Adult diaper machinery JPY887mn (-48.8% YoY), Sanitary napkin machinery JPY1.1bn (+82.7% YoY).</li><li>Gross profit margin rose to 18.0% from 12.9%; Net income improved due to JPY534mn gain on sale of securities.</li></ul>

Revenue: JPY3.9bn (-4.1% YoY); Operating loss: JPY133mn; Recurring loss: JPY39mn; Net loss: JPY759mn.Revenue by product type: Adult diaper machinery JPY887mn (-48.8% YoY), Sanitary napkin machinery JPY1.1bn (+82.7% YoY).Gross profit margin rose to 18.0% from 12.9%; Net income improved due to JPY534mn gain on sale of securities.

Zuiko Corp (6279 JP): Q1 FY02/25 flash update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Diaper-Making machine maker <a href="https://www.smartkarma.com/entities/zuiko-corp" target="_blank" data-smartkarma-citation="entities:5568:1" rel="noopener">Zuiko Corp (6279 JP)</a> late last year introduced a shareholder benefit coupon program, and the stock has flown. Earnings improved from the trough too. </li>
<li>Now that the market cap is high enough, the company has applied to, and is now approved, to join TSE Prime, which means a TOPIX inclusion at end-June 2023.</li>
<li>With 30 days of 6mo ADV, and much more of longer average ADV, this looks like a win, but there are.... considerations. Shareholder structure matters. Yet again. </li>
</ul>


Diaper-Making machine maker Zuiko Corp (6279 JP) late last year introduced a shareholder benefit coupon program, and the stock has flown. Earnings improved from the trough too. 
Now that the market cap is high enough, the company has applied to, and is now approved, to join TSE Prime, which means a TOPIX inclusion at end-June 2023.
With 30 days of 6mo ADV, and much more of longer average ADV, this looks like a win, but there are.... considerations. Shareholder structure matters. Yet again. 


ZUIKO (6279 JP) Move to TSE Prime and TOPIX - Again, Shareholder Structure Matters

David Blennerhassett

<ul>
<li>
<a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>'s Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.</li>
<li>Given <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">CR Power (836 HK)</a>'s clean energy unit's profitably, a listing should be a significant event, attracting a wide audience, and probably a premium to other listed green energy plays.</li>
<li>
<a href="https://www.smartkarma.com/entities/chindata-group-holdings-adr" target="_blank" data-smartkarma-citation="entities:29274:1" rel="noopener">Chindata Group (CD US)</a> is unquestionably cheap. But Bain's indicative Offer is not the answer to long-suffering shareholders.</li>
</ul>



Toshiba Corp (6502 JP)'s Board has a Revised Opinion. It has recommended the Offer for reasons which smack of resignation rather than appropriate deliberation. Investors beware.
Given CR Power (836 HK)'s clean energy unit's profitably, a listing should be a significant event, attracting a wide audience, and probably a premium to other listed green energy plays.

Chindata Group (CD US) is unquestionably cheap. But Bain's indicative Offer is not the answer to long-suffering shareholders.


Last Week in Event SPACE: Toshiba, China Resources Power, Chindata, Tian An China

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>
<a href="https://www.smartkarma.com/entities/zuiko-corp" target="_blank" data-smartkarma-citation="entities:5568:1" rel="noopener">Zuiko Corp (6279 JP)</a>, <a href="https://www.smartkarma.com/entities/anycolor-inc" target="_blank" data-smartkarma-citation="entities:36618:1" rel="noopener">Anycolor (5032 JP)</a>, and <a href="https://www.smartkarma.com/entities/lifedrink-co-inc" target="_blank" data-smartkarma-citation="entities:39842:1" rel="noopener">Lifedrink (2585 JP)</a> will have TOPIX Inclusion events at the end of June (Zuiko) or July 2023 (the other two).</li>
<li>One of our pre-event TOPIX Inclusion candidates <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> has experienced sharp price moves over the last few weeks.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.

Zuiko Corp (6279 JP), Anycolor (5032 JP), and Lifedrink (2585 JP) will have TOPIX Inclusion events at the end of June (Zuiko) or July 2023 (the other two).
One of our pre-event TOPIX Inclusion candidates CELSYS (3663 JP) has experienced sharp price moves over the last few weeks.


TOPIX Inclusions: Who Is Ready (Jun 2023)

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>
<a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> (formerly known as "Artspark") is a name we have been Bullish on in the last few months as it was a high-probability TOPIX Inclusion candidate.</li>
<li>In the last couple of trading days, the stock has popped more than 30%. In this insight, we take a closer look at this situation.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.

CELSYS (3663 JP) (formerly known as "Artspark") is a name we have been Bullish on in the last few months as it was a high-probability TOPIX Inclusion candidate.
In the last couple of trading days, the stock has popped more than 30%. In this insight, we take a closer look at this situation.


TOPIX Inclusions: Who Is Ready (May 2023)

Japan

Chugai Ro Co., Ltd. manufactures industrial furnaces for steel, copper slabs, aluminum slabs, ceramics, and carbon fibers.  The Company's non-furnace products include oil burners, gas burners, oil/gas burners, and air heaters.  Chugai Ro also manufactures sewage and water treatment systems.

ISEKI & CO., LTD. designs, manufactures, and markets agricultural machinery and equipment.  The Company's products primarily include tractors, grading machines, rice planters, combine harvesters, cultivation machines, engines, chain saws, and replacement parts.

RIX CORPORATION manufactures, markets, and distributes industrial machinery parts and high pressure-applied equipment used in automobiles.  The Company supplies its products to the steel, automobile, electrical machinery, semiconductor, and chemical industries.

NAKANO REFRIGERATORS CO., LTD. manufactures, wholesales, repairs, and maintains commercial freezers and refrigeration showcases.  The Company's products are used to encase foods such as vegetables, fruits, meat, ice cream, and other frozen foods.  Nakano Refrigerators, based in Tokyo, exports freezers and refrigeration showcases to China through its subsidiary.

KOIKE SANSO KOGYO CO., LTD., manufactures machine apparatus, high-pressure gases, and welding machine tools.  The Company's cutting machine tools include gas, plasma, and laser powered types.  Koike Sanso Kogyo processes enzymes, nitrogen, and carbonate gases used in fields such as the semiconductor and medical industries.

Techno Smart Corp manufactures paper and film processors for film, flexible circuit printing boards, masking tapes, magnetic tapes, and thermo sensitive paper. The Company also produces heat exchangers, blowers, printed   circuit bases, ceramic sheets, and auto parts.

ALINCO INCORPORATED manufactures and leases steel and metal products.  The Company's main products are scaffolds and other metal products mainly used at construction sites.  Alinco also produces steps, stepladders, and electronic equipment.

MAEZAWA KYUSO INDUSTRIES CO., LTD. is a manufacturer of water supply equipment and related parts.  The Company markets its products to public water service organizations and provides expertise on public projects.  Maezawa Kyuso Industries also offers water supply engineering services.

HISAKA WORKS, LTD. manufactures industrial equipment such as heat exchangers, evaporators, dryers, welding machines, food sterilizers, and pharmaceutical manufacturing equipment.  The Company also produces dyeing machines for food and textiles, as well as valves for liquids, gases, steam, powders, and particles.

SAKAI HEAVY INDUSTRIES, LTD. is a producer of construction machinery.  The Company specializes in road-paving machinery, namely road rollers.  Sakai Heavy Industries also manufactures vibrating plate compactors, rammers, wheel loaders, and road stabilizers.

Anshan Heavy Duty Mining Machinery Company Limited researches, develops, manufactures and sells industrial and mining use vibrating screens and other related machinery and equipment. The Company's main products include large linear, circular, warm materials, and multi-unit combination vibrating screens.

Anshan Heavy Duty Mining Machinry (002667 CH)

Commercial Vehicle Group, Inc. supplies interior systems, vision safety solutions and other cab-related products for the heavy-duty truck market, the construction market, and other specialized transportation markets.  The products include suspension seat systems, interior trim systems, mirrors, wiper systems, controls and switches specifically designed for applications in cabs.

Xuzhou Kerong Environmental Resources Co Ltd designs and manufactures the boiler ignitions, combustion equipments and control systems. The Company's main products are igniting and burning equipment, combustion testing and control devices.

Xuzhou Kerong Environmntl Resorcs (300152 CH)

Nanning Baling Technology Company Limited develops, produces and sells heat exchangers.  The Company's main products are automotive radiators and car heaters.

NN, Inc., a diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise, to design and manufacture high-precision components and assemblies for a variety of markets on a global basis.

Automobile Corporation of Goa Limited manufactures pressed bus parts and bus bodies for Tata Motors. The Company was jointly promoted by Economic Development Corporation of Goa and Tata Motors.

Dae Dong Industrial Co., Ltd. designs, manufactures, and markets agricultural machinery and equipment.  The Company's primary products include power tillers, tractors, rice planters, binders, combine harvesters, and engines.  Dae Dong provides its products to domestic and overseas markets.

Wellcall Holdings Bhd. manufactures and sells rubber hose.

Kabra Extrusiontechnik Ltd. manufactures plastic extrusion machines.  The Company produces machinery to manufacture pipes, profiles, pipelines, and multilayer blown films.

Hunan Jingfeng Pharmaceutical Co Ltd is engaged in the research and development, manufacturing and sales of pharmaceutical products. The Company's  products are used for cardiovascular, orthopedic, analgesic, anti-viral and allergic asthma treatments. Hunan Jingfeng Pharmaceutical operates within the People's Republic of China.

Hunan Jingfeng Pharmaceutical (000908 CH)

ZUIKO CORPORATION manufactures machinery for producing sanitary supplies such as diapers and napkins.  The Company also manufactures pulp crushing machines and provides consulting services in new product engineering.

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Zuiko Corp (6279 JP)