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In today’s briefing:
- Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats
- S Line (9078 JP) TOB/MBO at 0.57x Book – Wrong Price by Far but Only AGGRESSIVE Activism Blocks It
- Nihon Kohden (6849 JP): ¥10B Buyback Plan And Stock Split; Japan and US to Drive Business Growth
- Recruit: As We Said… Weakening Earnings
- What Happens to the Effectiveness of TSE Requests when They Become Effort Obligations?
- Yutori Moves into Cosmetics as Strong Growth Continues
- PPI Succeeds with Uny Using Donki Know-How
- Morning Views Asia: Indofood CBP Sukses, Pakuwon Jati, Rakuten
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Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats
- Today, Japan Post Holdings (6178 JP) announced results (and Mar25 guidance) as did its subsidiaries Japan Post Insurance (7181 JP) and Japan Post Bank (7182 JP).
- There are a number of interesting things in all the announcements/presentations but the most interesting one for JPH holders is a big buyback. Another one.
- The company has announced a ¥350bn buyback. It is larger than last year’s (¥300bn) buyback and has another important difference.
S Line (9078 JP) TOB/MBO at 0.57x Book – Wrong Price by Far but Only AGGRESSIVE Activism Blocks It
- Today, S Line Co Ltd (9078 JP) announced its CEO would conduct a Tender Offer MBO to buy out the ¥50bn-target revenue logistics company, at 0.6x book.
- The company announced results with revenues up. But withdrew its existing MTMP which said revenues would be up 10% from here to March 2025 and ROE would be higher.
- This is the wrong price. It should engender some upset, but active investors own almost nothing it seems.
Nihon Kohden (6849 JP): ¥10B Buyback Plan And Stock Split; Japan and US to Drive Business Growth
- In FY25, Nihon Kohden (6849 JP) guided for domestic revenue of ¥147B, up 3% YoY. The demand for patient monitors and treatment equipment is expected to remain steady.
- Nihon Kohden expects North America business to report a revenue CAGR of 11% (fastest among all the other regions) during FY24–27, outpacing mid-single-digit growth of the market.
- The company announced ¥10B buyback plan to repurchase up to 6M shares, representing 3.57% of total number of issued shares from August 5, 2024, to March 31, 2025.
Recruit: As We Said… Weakening Earnings
- Recruit Holdings (6098 JP) reported 4Q and full-year FY03/2024 results today. Earnings beat own guidance as well as consensus estimates.
- Weakening labour markets have negatively impacted all business segments and new pricing model for Indeed has not really been successful.
- Recruit expects a recovery in 2HFY03/2025, but at the rate at which job openings are going down, we remain cautious.
What Happens to the Effectiveness of TSE Requests when They Become Effort Obligations?
- Code of Corporate Conduct lacks explanation of the role to be played by a listed company and the background. Consequently, there’re cases where the same companies have repeatedly committed misconduct.
- For companies that are good at pretending that they are trying, without any substance to their corporate governance, making the provisions of Corporate Governance Code mandatory effort won’t be effective.
- TSE’s request seems to be an effort obligation. It is good that the substance of the company’s improvement plan, which only made an effort to improve, will be improved.
Yutori Moves into Cosmetics as Strong Growth Continues
- Yutori , the Zozo-controlled online fashion mall, is diversifying into cosmetics and other items, with wholesale distribution to chain stores as well as sales through its own mall.
- The fledgling online mall continues to grow fast, with sales up 74% so far this year.
- It is in essence Zozo 20 years ago given its focus on the teen and youth market but with the difference in that it has Zozo’s experience and advice.
PPI Succeeds with Uny Using Donki Know-How
- There were many sceptics when Don Quijote bought Uny given that no other GMS retailer was performing well.
- Today, Uny is finding new relevance thanks to the adoption of merchandising and marketing from Don Quijote.
- But the real secret ingredient is, as in Donki stores, giving staff the freedom and responsibility they always wanted – including profitability of each store.
Morning Views Asia: Indofood CBP Sukses, Pakuwon Jati, Rakuten
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.