Japan

In today’s briefing:

Lasertec (6920) – The State of Things May Be Different Than You Think
Nidec (6594) | Big Revision Down to E-Axle Sales
Rakuten Securities IPO: The Bull Case
Yakult: Yakult 1000 Could Deliver a Surprise Yet Again
Tryt IPO Trading – Subscription Rates Mostly Outdid Recent Large Japan Deals
United Arrows Plans to Double Sales in 10 Years but 2x OPM May Come Sooner

Lasertec (6920) – The State of Things May Be Different Than You Think

Lasertec (6920) is a shoo-in for Nikkei 225 inclusion in September according to the quantitative analysis. The amount to buy is a small multiple of ADV, making the inclusion “unimpressive.”
It is probably worth looking at the details of ownership, of volume, and of relationship to other stocks in the same general sector.
It is also worth thinking about flow channels (stock up or down changes flows) and forward fundamental calculations.

Nidec (6594) | Big Revision Down to E-Axle Sales

By Mark Chadwick

Nidec reported strong Q1 results – operating profit of ¥60.2 billion (+35% YoY), significantly above Street expectations of ¥45 billion
The big positive was a rebound in profitability following successful structural cost cuts last year. The key negative is a cut to unit shipments for key growth driver, E-axles.
We remain bearish for now given valuation of 25x EV/EBIT. We are not sure that the new growth driver in Motion & Energy will offset lowered expectations for EVs.

Rakuten Securities IPO: The Bull Case

By Arun George

Rakuten Securities (RAKUSEC JP), a leading Japanese online brokerage, seeks to raise US$500 million. Rakuten Bank (5838 JP) (80.01%) and Mizuho Financial Group (8411 JP) (19.99%) are its shareholders.
Rakuten Securities has grown its business by pursuing a low-cost, high-volume strategy. It has the largest number of non-consolidated securities accounts among Japanese securities companies.
The key elements of the bull case rest on rapid customer growth, low-cost fees, market share gains, synergies with the Rakuten ecosystem and improving profitability trends.

Yakult: Yakult 1000 Could Deliver a Surprise Yet Again

Market expectations for Yakult’s 1QFY24 earnings seem weak, with consensus looking light, and the share price currently lingering near the lower boundary of the minus 2x trend channel.
Therefore, we believe that even a minor earnings beat next week could potentially drive Yakult Honsha (2267 JP)‘s share price back up to the ¥10,000 level.
We anticipate that Yakult 1000 has the potential to drive that earnings beat, as it is projected to grow by as much as 65% YoY this quarter.

Tryt IPO Trading – Subscription Rates Mostly Outdid Recent Large Japan Deals

By Clarence Chu

Tryt Inc (9164 JP) raised around US$344m in its Japan IPO. The IPO consisted of 100% secondary shares.
Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
In this note we will talk about the trading dynamics.

United Arrows Plans to Double Sales in 10 Years but 2x OPM May Come Sooner

By Michael Causton

United Arrows (7606 JP) is a bellwether retailer for the premium fashion sector.
Its slow initial recovery after the pandemic worried many but the last year saw a solid improvement, even if sales are still well below the peak.
Following rationalisation, the fashion firm has now put in place plans to double sales to ¥250 billion in the next decade and we expect a return to 10% OPM.

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Jul 20

Daily Brief Japan: Invincible Investment, Money Forward, Tokyo Stock Exchange Tokyo Price Index Topix, Rakuten Securities and more

In today’s briefing:

Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution
Money Forward: Non-BO Margin on a Decline and Upcoming Fee Revision to Have Negative Impact
The Format of the AGM Also Reveals a Part of the Company’s Attitude Toward Its Shareholders
Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down

Invincible Investment Corp Placement – Decent Accretion Despite the Large Dilution

By Sumeet Singh

Invincible Investment (8963 JP) plans to raise around US$230m to fund the acquisition of six hotel assets in Japan.
The stock has done well over the past year and so have most of its deals which we have covered in the past.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Money Forward: Non-BO Margin on a Decline and Upcoming Fee Revision to Have Negative Impact

Money Forward (3994 JP) reported 2QFY11/2023 results yesterday. Revenue increased 43.5% YoY to ¥7.3bn (vs consensus ¥7.18bn) while operating losses dropped to ¥1.58bn vs ¥2.15bn in 2QFY11/22 (vs consensus ¥1.65bn).
2Q revenues were within its guidance of ¥7.1-7.4bn and MF has revised its FY11/23E guidance upward based on the progress made during the first half of the year.
MF’s non-BO business margins continue to decline, and the plan to revise price plans for sole proprietors in December should result in attrition and further increase in advertising spend.

The Format of the AGM Also Reveals a Part of the Company’s Attitude Toward Its Shareholders

Even if attendance increases somewhat since 92.1% of AGMs in 2022 had less than 100 attendees, the reluctance to hold an online voting AGM due to technical issues isn’t reasonable.
With 84.8% of companies having Q&A sessions lasting less than 30 minutes, many companies want to end their Q&A sessions in as short a time as possible.
Companies that want to keep Q&A sessions short tend to hold hybrid on-site and online sessions that can prioritize questions from on-site attendees and limit questions from online participants.

Rakuten Securities IPO Early Look – The Negatives – Growth Has Slowed Down

By Sumeet Singh

Rakuten Securities, the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
In this note, we talk about the not-so-positive aspects of the deal.

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Jul 19

Daily Brief Japan: Rakuten Securities and more

In today’s briefing:

Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share

Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share

By Sumeet Singh

Rakuten Securities (RAKUSEC JP), the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
In this note, we talk about the positive aspects of the deal.

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Jul 18

Daily Brief Japan: Takisawa Machine Tool, Keisei Electric Railway Co, Tokyo Stock Exchange Tokyo Price Index Topix, Hisamitsu Pharmaceutical Co, Mitsubishi UFJ Financial (MUFG) ADR and more

In today’s briefing:

Nidec (6594) Goes Hostile On Takisawa Machine Tool (6121) – I’ve Got 🍿🍿
Keisei Electric: Valuation Distortion Set to Unravel with Fantasy Springs’ Opening in Spring 2024
Isn’t Long-Term Human Resource Strategy More Necessary than Immediate Solution to Labor Shortage?
Hisamitsu Pharmaceutical (4530 JP): Strong Result, New Drug Launch, & Share Buyback Brighten Outlook
Mitsubishi UFJ Financial Group Inc.: Initiation of Coverage – Recent Acquisitions & Other Drivers

Nidec (6594) Goes Hostile On Takisawa Machine Tool (6121) – I’ve Got 🍿🍿

Last year Nidec Corp (6594 JP) approached machine tool maker Takisawa Machine Tool (6121 JP) interested in an integration with their sub. Takisawa said “Talk to the hand.”
Now Nidec – a blue chip (from Kyoto no less, which traditionally abhors hostile activity) – has gone hostile on Takisawa bidding 65-100% depending how you see undisturbed.
Lots of moving parts on this one, but in the end, Retail probably decides this.

Keisei Electric: Valuation Distortion Set to Unravel with Fantasy Springs’ Opening in Spring 2024

Since the announcement of the proposed Tokyo Disney Sea expansion in 2015, Keisei Electric Railway Co (9009 JP)‘s price perfromance has significantly diverged from Oriental Land (4661 JP)‘s price performance.
The valuation disparity may result from the Disney Sea expansion’s impact, possibly due to Keisei Electric’s value-oriented investor base.
Fantasy Springs’ opening could resolve the valuation distortion, leading to potential rewards in a Long Keisei Electric and Short Oriental Land trade.

Isn’t Long-Term Human Resource Strategy More Necessary than Immediate Solution to Labor Shortage?

The policy of extending retirement age to 65 is a measure to solve the immediate labor shortage, but it may lack the perspective of a mid-to-long-term human resource utilization strategy.
Since most employees in their 60s are male employees, this may slow down the fading of the traditionally male-centric corporate culture. A more diverse workforce is required.
Although seniors are still a promising market based on demographic composition, from the perspective of creating new value, it’s necessary to have more discussions about creating society that ensures diversity.

Hisamitsu Pharmaceutical (4530 JP): Strong Result, New Drug Launch, & Share Buyback Brighten Outlook

By Tina Banerjee

Hisamitsu Pharmaceutical Co (4530 JP) announced strong Q1FY24 result, with double-digit top-line and triple-digit bottom-line growth, driven by its largest selling OTC product, Salonpas. The company has reiterated FY24 guidance.
In Q1FY24, Hisamitsu has launched Apohide Lotion in Japan for the treatment of primary palmar hyperhidrosis and Xelstrym transdermal system in the U.S. for the treatment of Attention-Deficit/Hyperactivity Disorder (ADHD).
Hisamitsu has announced buyback of up to 2M of its shares (representing 2.57% of issued shares) from July 2023 to February 2024 for ¥10B.

Mitsubishi UFJ Financial Group Inc.: Initiation of Coverage – Recent Acquisitions & Other Drivers

By Baptista Research

This is our first report on one of the largest banking and financial partners, Mitsubishi UFJ Financial Group.
The company plans to utilize its group-wide customer base, including Asian partner banks and Morgan Stanley, to navigate the final year of the current Medium-Term Business Plan (MTBP).
We initiate coverage on the stock of Mitsubishi UFJ Financial Group, Inc. with a ‘Hold’ rating.

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Jul 17

Daily Brief Japan: Socionext, Nikkei 225, Shift Inc and more

In today’s briefing:

Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave
EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)
High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside

Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Tryt Inc (9164 JP), Alibaba (ADR) (BABA US)‘s Cainiao & Cloud Intelligence Group, J&T Global Express (1936374D CH) IPOs & Socionext (6526 JP)‘s secondary placement.
Event-Driven developments – Chindata Group (CD US), IMAX China Holding (1970 HK), Shougang Fushan Resources (639 HK), Invocare Ltd (IVC AU), Musgrave Minerals (MGV AU).

EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)

By Nico Rosti

Nikkei 225 (NKY INDEX) has pulled back from its peak. Direction currently unclear but last week’s positive Close was super weak (+0.1%) , may lead to lower prices this week.
If the index falls this week, a -1 or -2 weeks down is the most common pattern, followed by a rebound. Reversal probability is =75% for -2 weeks down.
Valid support levels for buy-the-dips are between 32067 and 31554. If lower, up to -3 weeks down this pattern is still bullish, from -4 weeks it turns bearish.

High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside

Shift reported 3QFY08/2023 results on Friday and the company’s revenues increased 34.2% YoY and OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
Conclusion of unprofitable projects and expansion into upstream services have helped earnings to expand, and we expect full-year earnings to comfortably beat guidance and consensus estimates.
Shift’s share price moved up by 19% following earnings announcement and has been up more than 39% YTD, and we would recommend holding on as there is further upside.

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Jul 16

Daily Brief Japan: Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

Nominating Committee’s main activity is the selection of individual director candidates, and the Nominating Committee tends to be less involved in issues related to top management appointments, including succession planning.
Although most companies have a majority of independent directors as members of the nominating committee, the nominating committee may in fact be a body that approves top management’s proposals.
Companies focus only on prime market listing criteria of “committee establishment and committee member composition” and overlook original intent. The problem is that it’s all about achieving the formal criteria.

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Jul 14

Daily Brief Japan: Canon Inc, Fast Retailing, Seven & I Holdings, Tryt Inc, Genda Inc, Japan Airlines, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Canon (7751) Buyback Almost Done, TPX Selldown to Come = Trade Vs Ricoh or Basket
Fast Retailing UPs Forecasts, Which Creates A Sell/Short Opportunity
Seven & I Merger of FMCG Arms Signals Focus on Food – And Its All Good News
TRYT IPO: Valuation Updates
Fast Retailing (9983) | Exceptional Quarter
Fast Retailing: Strong Performance in China & Korea, But Valuation Could Weigh on Price Performance
Genda IPO – Has Weathered the Pandemic Better, Although Sector Doesn’t Seem to Be Growing Much
JAL Aims for ¥12 Billion from New Online Mall
TSE Should Shift Its Business Model from Growing Number of Listed Companies to Expanding Market Cap

Canon (7751) Buyback Almost Done, TPX Selldown to Come = Trade Vs Ricoh or Basket

Canon Inc (7751 JP) announced a second buyback this fiscal year on 15 June. As discussed here previously, Canon buybacks are short, sharp, and sweet.
The recent one should be done imminently (15 May start ended 13 July). 16 June start? (Note: Canon reports buyback results at 3pm local time, and did not report today).
This time we have a double-setup with buyback ending and a large TOPIX sell on Canon on 28 July.

Fast Retailing UPs Forecasts, Which Creates A Sell/Short Opportunity

Fast Retailing (9983 JP) investors are in a conundrum. The stock is doing well. With one quarter to go, the company just raised its full-year EPS target by 8.3%.
It also raised its H2 dividend by 20+% so the full-year div will be more than 20% higher than previously forecast and up 35+% since last year. All good.
Except for the selling. Potentially lots of selling. And more outperformance begets more selling. Then even more selling in 2024. And 2025? What about 2025? More outperformance begets more selling.

Seven & I Merger of FMCG Arms Signals Focus on Food – And Its All Good News

By Michael Causton

It will take a couple of years to see financial improvement but recent reforms suggest criticism of Seven & I’s inability to change may be increasingly unfair.
The latest in-group merger further demonstrates Seven & I’s desire to refocus on food and FMCG.It also suggests that Seven & I may double down on divestment from non-food retailing.
The share price may fluctuate but the outlook for domestic fundamentals are better than they have been for years.

TRYT IPO: Valuation Updates

TRYT has priced its IPO at ¥1,200 per share, at the midpoint of the indicative IPO price range, at a market capitalisation and post-money EV of ¥120bn and ¥151.6bn respectively.
In our previous insight, we compared the company’s implied trailing multiples with peer trailing multiples and concluded that TRYT’s IPO is overvalued at the above price range.
In this insight, we have discussed our forecasts for Tryt Inc (9164 JP) and updated our valuation for the company.

Fast Retailing (9983) | Exceptional Quarter

By Mark Chadwick

Another blow out quarter for Fast Retailing – beat and raise
Fears (well, mine) of a miss in China were unfounded
Still, Q3 results do nothing to change the view that this is one expensive stock

Fast Retailing: Strong Performance in China & Korea, But Valuation Could Weigh on Price Performance

Fast Retailing (9983 JP) announced its 3QFY23 results today, surpassing the consensus OP estimate by approximately 10%.
Notably, there was strong revenue growth for Uniqlo, including in recently underperforming markets such as mainland China and South Korea.
Despite the strong set of results, it appears that Fast Retailing is overvalued as the stock is currently trading at a valuation of over 20.0x its medium-term FY27 OP target.

Genda IPO – Has Weathered the Pandemic Better, Although Sector Doesn’t Seem to Be Growing Much

By Clarence Chu

Genda Inc (9166 JP) is looking to raise around US$100m in its Japan IPO.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
In this note, we will undertake a peer comparison, share our earnings assumptions and discuss our thoughts on valuation.

JAL Aims for ¥12 Billion from New Online Mall

By Michael Causton

Shopping may be a tiny fraction of Japan Airlines (9201 JP) business but every little helps.
JAL has long offered a popular mail order catalogue selling premium products but has now converted its catalogues into an online mall.
This means it can offer many more and new types of merchant and product, and create more connection with its customers.

TSE Should Shift Its Business Model from Growing Number of Listed Companies to Expanding Market Cap

TSE, which receives listing fees from listed companies, has no choice but to take a negative attitude toward raising listing criteria that would reduce the number of listed companies.
Behind many companies with stagnant P/Bs is the fact that managers lack stock price consciousness and companies with stock price stagnation for years eliminated and continue to be listing.
In Japan, it is expected that industry restructuring, dissolution of parent-subsidiary listings, and going private will further increase through M&As, leading to a shakeout in the Japanese market.

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Jul 13

Daily Brief Japan: Rakuten Group , Genda Inc, Takeda Pharmaceutical and more

In today’s briefing:

July TOPIX FFW Rebal – Bigger Than Expected
Genda IPO – Dreams of Reviving the Domestic Arcade Industry with a Roadmap of Doing so as Well
Takeda: The Impact of Voluntary Withdrawal of Dengue Vaccine Application in the US Seems Minimal

July TOPIX FFW Rebal – Bigger Than Expected

Last Friday, the FFW changes for the TOPIX July Free Float Weight Review were announced. There have also been other recent announcements creating flows on 30 July.
Some of these other recent announcements represent a possible change in ad hoc methodology.
Total Flow for 30 July is ~$3.3bn a side driven by selling flows (3/4 of the buy flows are reverse funding). $2.1bn of selling is > 3 days ADV.

Genda IPO – Dreams of Reviving the Domestic Arcade Industry with a Roadmap of Doing so as Well

By Clarence Chu

Genda Inc (9166 JP) is looking to raise around US$100m in its Japan IPO.
Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
As of Apr 23, the firm operated 250 amusement facilities domestically and four facilities in Taiwan.

Takeda: The Impact of Voluntary Withdrawal of Dengue Vaccine Application in the US Seems Minimal

Takeda Pharmaceutical (4502 JP) announced yesterday that the company has voluntarily withdrawn the US Biologic License Application for dengue vaccine candidate (QDENGA) citing issues over data collection.
As per Fierce Pharma, the decision to withdraw was due to additional data requested by the FDA which were not captured by Takeda’s Phase 3 TIDES trial.
Takeda’s share price dropped more than 2.0% during today’s trade, however, we would not be too concerned as efficacy and safety profiles of the trial has already been established.

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Jul 12

Daily Brief Japan: Plus Alpha Consulting, Seven & I Holdings, Rorze Corp, Ohba Co Ltd, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion
Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance
Rorze (6323) | Q1 Miss, Buying Opp
Initiation – OHBA (9765 JP)
How Much Can ‘effort Targets’ Speed up the Narrowing of the Gender Pay Gap?

Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion

Plus Alpha Consulting (4071 JP) listed on TSE Growth at end-June 2021 at ¥2300/share, which was 90x the trailing fiscal year’s earnings. but only about 65x then-current year earnings.
The stock popped 20+% on Day 1 to close ¥2803. Last Friday, two years and 13% higher at ¥3185/share, the company announced a Secondary Offering and move to TSE Prime.
It’s a big offering. It’s a smaller TOPIX inclusion event. Next spring we’ll see more upweights.

Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance

Gasoline retail prices have caught up with declining wholesale prices, and it should lead to around 16-20% QoQ decrease in retail fuel margin to ¥35-37 cents per gallon.
US gas station merchandise sales exhibited weak performance this year, experiencing YoY growth rates of 5%, -2%, -15%, -17%, and -22% during the first five months.
We anticipate around 25% downside for Seven & I Holdings (3382 JP) after earnings, as it may face challenges in achieving its FY24 guidance.

Rorze (6323) | Q1 Miss, Buying Opp

By Mark Chadwick

Rorze’s stock price has risen 35% since we became bullish on the stock in August
Q1 sales and operating profits big miss versus analyst consensus due to slowing semicon capex cycle
We would be buying into any stock weakness with an eye on recovery in 2H23 into 2024

Initiation – OHBA (9765 JP)

By Sessa Investment Research

OHBA is a general construction consulting firm boasting a leading market share in the field of urban development, with potential to reap the benefits of the long- term shift to compact and smart cities in rural areas.
Since its establishment in 1922, the company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory
This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei and Mitsui Trust.

How Much Can ‘effort Targets’ Speed up the Narrowing of the Gender Pay Gap?

Since very few companies disclosed challenges, efforts to resolve them and progress, it’s unlikely that ‘gender pay gap’ will be disclosed in convincing manner, with this being the only exception.
Japan’s Law for the Promotion of Women’s Activities does not prohibit gender discrimination and is not legally binding on gender equality, so the wage gap is only an effort target.
While some proactive companies may accelerate their efforts as disclosures reveal gender pay gap, many are likely to move at modest pace to match the pace of those around them.

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Jul 11

Daily Brief Japan: Socionext, Plus Alpha Consulting, JSR Corp, Recruit Holdings, Heroz Inc, Honda Motor Co Ltd (Adr) and more

In today’s briefing:

Socionext (6526 JP): The Current Playbook
TOPIX Inclusions: Who Is Ready (Jul 2023)
JSR (4185 JP) Takeover – Why So Wide? FUD and Flows
Recruit Holdings: Disappointing Job Data for May; More Downside Ahead
Heroz (4382) – Tailoring Business Growth Opportunities
Honda Motor Co.

Socionext (6526 JP): The Current Playbook

By Arun George

Since the announcement of the US$1.9 billion secondary placement, Socionext (6526 JP)’s shares are down -25.0% from the undisturbed price of JPY21,950 per share (5 July).
So far, Socionext’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.
The offering will likely be priced on 11 July. Due to the steep share price decline, Socionext is trading at an undemanding multiple compared to global SoC peers.

TOPIX Inclusions: Who Is Ready (Jul 2023)

By Janaghan Jeyakumar, CFA

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.
Anycolor (5032 JP) and Lifedrink (2585 JP) have already confirmed their moves to the Prime Market and are expected to have TOPIX Inclusion Events at the end of July 2023.
More recently, Plus Alpha Consulting (4071 JP) announced their move to the Prime Market and are likely to have a TOPIX Inclusion Event at the end of August 2023.

JSR (4185 JP) Takeover – Why So Wide? FUD and Flows

In the last week of June, Japanese government-affiliated Japan Investment Corp (“JIC”) announced it would take over JSR Corp (4185 JP). A “surprise” but perhaps not totally.
It traded tight, then it traded back out. Then worse. Then worse again. There were good reasons for this. There were perhaps less good reasons too.
FUD and Flows mean that it is likely to continue to trade wide for the near future.

Recruit Holdings: Disappointing Job Data for May; More Downside Ahead