Japan

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

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

By Shifara Samsudeen, ACMA, CGMA

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

Recruit Holdings (6098 JP) ’s share price has been down over the last few days following release of job openings data for May 2023 by the US Department of Labour.
The no. of job openings in the US in May 2023 decreased to 9.8m vs 11.3m in May 2022. It has also declined compared to 10.1m reported in April 2023.
Moreover, web traffic on Recruit’s job platforms Indeed and Glassdoor have also decreased in June 2023 compared to May.

Heroz (4382) – Tailoring Business Growth Opportunities

By Astris Advisory Japan

HEROZ is an AI technology company that provides advanced AI development expertise to both B2C and B2B sectors.
With a strategic focus on AI SaaS, it has embarked on a ‘buy-to-build’ strategy to develop profitable recurring revenue streams and accelerate earnings growth.
In September 2022, it consolidated VarioSecure (4494), a subsidiary offering network security services, and in August 2022 acquired Strategit, a SaaS integration development support business.

Honda Motor Co.

By Baptista Research

Honda Motor’s results were a major disappointment as the company failed to meet the revenue expectations as well as the earnings expectations of Wall Street. but, their efforts in cost reduction and improved pricing strategies helped maintain an operating profit margin above 5%.
Additionally, they aim to provide attractive dividends to shareholders, with a significant increase per share and a share buyback program.

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Jul 10

Daily Brief Japan: Socionext, JSR Corp, Plus Alpha Consulting, Z Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Socionext Placement – Valuation More Reasonable but past Secondary Offerings Have a Mixed Record
Merger Arb Mondays (10 Jul) – JSR, Yachiyo, InvoCare, Costa, Musgrave, Metro Pacific, Healthway
Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific
Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling
Z Holdings: Yahoo Shopping Falling Further Behind Amazon and Rakuten
Capital Efficiency Is the Topic of the June AGM, While What Is Happening to Passive Fund Voting?

Socionext Placement – Valuation More Reasonable but past Secondary Offerings Have a Mixed Record

Three shareholders of Socionext (6526 JP) aim to raise around US$1.4bn via selling all of their shares in Socionext.
We have covered the background of the deal in our earlier note, Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains.
In this note, we talk about the updates and look at the performance of some of the past Japan deals.

Merger Arb Mondays (10 Jul) – JSR, Yachiyo, InvoCare, Costa, Musgrave, Metro Pacific, Healthway

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads 111 Inc (YI US), ENM Holdings (128 HK), Chindata Group (CD US), Estia Health (EHE AU), Poly Culture Group Corp H (3636 HK), Costa Group Holdings (CGC AU).
Lowest spreads – Healius (HLS AU), Hailan Holdings (2278 HK), Liontown Resources (LTR AU), Toyo Construction (1890 JP), Oishi Group PCL (OISHI TB), Yachiyo Industry (7298 JP), Penguin.

Weekly Deals Digest (09 Jul) – Socionext, Tryt, Costa, Musgrave, United Malt, Yachiyo, Metro Pacific

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 – Costa Group Holdings (CGC AU), Musgrave Minerals (MGV AU), Yachiyo Industry (7298 JP), Metro Pacific Investments Co (MPI PM), Healthway Medical Corp (HMED SP).

Plus Alpha Consulting Placement – Pulling Out All Stops for Deal Success as Insiders Are Selling

Three shareholders of Plus Alpha Consulting (4071 JP) (PAC) aim to raise around US$230m via selling over 26% of the company.
PAC was listed in 2021 and after a somewhat tepid initial performance it has been doing well over the past year.
In this note, we talk about the deal dynamics and run the deal through our ECM framework

Z Holdings: Yahoo Shopping Falling Further Behind Amazon and Rakuten

By Michael Causton

Last year was pivotal for Yahoo Japan: despite record group performance, GTVs in e-commerce actually fell despite continued strong growth in the sector
In a recent survey, Amazon was the most frequently used e-commerce mall at 49.6%, followed by Rakuten (32%), but Yahoo was far, far below at just 9.8%.
Yahoo Shopping is now not only less popular with consumers, even merchants are dissatisfied – which is saying something when the service is essentially free.

Capital Efficiency Is the Topic of the June AGM, While What Is Happening to Passive Fund Voting?

Companies that accept reductions in policy shareholdings tend to repurchase their own shares. Pressure to reduce policy shareholdings will increase further this year when share prices are rising.
In order to verify whether institutional investors’ voting criteria and voting behavior are consistent, the reasons for supporting/opposing individual proposals should be disclosed in more detail.
Investors are expected to base decisions on performance, as voting advisers returned to policy of recommending voting against top management in companies with lower-than-standard ROEs due to recovery from COVID-19.

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Jul 09

Daily Brief Japan: Socionext and more

In today’s briefing:

ECM Weekly (9th July 2023) – Socionext, Yongtai, Tryt, Redox, S.F. Holding, Lalatech, Fadu, Amman

ECM Weekly (9th July 2023) – Socionext, Yongtai, Tryt, Redox, S.F. Holding, Lalatech, Fadu, Amman

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, Tryt Inc (9164 JP) announced a somewhat reasonable pricing range, while Fadu (440110 KS) looks to open up the Korean market for larger IPOs again.
On the placement front, Socionext (6526 JP) found itself in the eye of a storm after its stupendous 6x increase since listing.

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Jul 08

Daily Brief Japan: Eisai Co Ltd, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Eisai Co Ltd (4523 JP): Becomes the Best Alzheimer’s Disease Play After Full FDA Nod
Although It Is Commendable that Voting Behavior of Some Domestic Institutional Investors Has Changed

Eisai Co Ltd (4523 JP): Becomes the Best Alzheimer’s Disease Play After Full FDA Nod

By Tina Banerjee

Eisai Co Ltd (4523 JP) has received FDA traditional approval for Leqembi injection for the treatment of Alzheimer’s Disease. Following the approval, CMS confirmed broader Medicare coverage for Leqembi.
Leqembi is the first and only approved treatment shown to reduce the rate of disease progression and to slow cognitive and functional decline in adults with Alzheimer’s Disease.
Eisai pegged peak sales of Leqembi at $7.3 billion in 2030. The projection is based on the company’s estimate that about 2.5M people will be eligible for treatment by 2030.

Although It Is Commendable that Voting Behavior of Some Domestic Institutional Investors Has Changed

It remains to be seen whether domestic institutional investors will support shareholder proposals on shareholder returns, which had low approval rate among domestic institutional investors at the previous year’s AGM.
If domestic institutional investors are voting in favor of shareholder proposals, it wouldn’t be surprising if more companies passed them. It’s doubtful that passive funds have the same voting practices.
There is concern about critical tone regarding the legally binding nature of the resolution of AGMs, which appears to come from companies feeling threatened by declining shareholdings by banks/business partners.

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Jul 07

Daily Brief Japan: Rakuten Group , Nikkei 225, Tryt Inc and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Rakuten Securities IPO: Promising Business with Valuation Caveats
Lead Shorts, Where to Cover and Re Set Longs.
TRYT IPO: Peer Comparison and Valuation

Rakuten Securities IPO: Promising Business with Valuation Caveats

By Oshadhi Kumarasiri

Yesterday, Rakuten Group (4755 JP) announced that its consolidated subsidiary, Rakuten Securities, has applied for a listing on the Tokyo Stock Exchange.
Rakuten Securities has long-term growth potential through leveraging Rakuten’s ecosystem for steady securities account growth and exploring cross-selling opportunities for related services.
While the business seems promising, there may be concerns regarding its valuation, given its previous high trailing PE of 43.0x.

Lead Shorts, Where to Cover and Re Set Longs.

By Thomas Schroeder

Update on our top shorts as we get closer to our cover targets with some overlap.
SPX and NDX secondary short cover levels and where to add back to longs.
Minor new chart highs in store into mid-July with target adjustments.

TRYT IPO: Peer Comparison and Valuation

TRYT Group is engaged in job placement and temporary staffing, specialising in the medical and welfare and construction fields. The company has set the pricing for its Tokyo IPO.
Existing shareholders of the company will offer 40m shares at an indicative price range of ¥1,100-1,300 per share, raising around US$305-360m from the IPO.
We think Tryt Inc (9164 JP) ’s IPO is overvalued at the above price range compared to Japanese recruitment peers and would recommend staying on the sidelines.

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Jul 06

Daily Brief Japan: Socionext, Yachiyo Industry, Tryt Inc, Lawson Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Socionext (6526 JP) – Pre-IPO Lockup Expiry Offering Will Double Real World Float
Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains
And Now For Something Truly Offensive – Honda Pays <0.5x Book for Yachiyo
Socionext (6526 JP): US$1.9bn Secondary Placement
Tryt IPO – Valuation Seems Digestible at the Bottom End, but the Firm Still Needs to Get a Lot Right
TRYT IPO: Revised IPO Price Range Remains Unattractive
Lawson (2651) | Dividend Grower
The Key Is to Be Able to Use Cash on Hand Effectively in the Future

Socionext (6526 JP) – Pre-IPO Lockup Expiry Offering Will Double Real World Float

Today after the close, SoC and market darling Socionext (6526 JP) announced that DBJ, Fujitsu, and Panasonic would offer the remaining shares they in a US$1.8bn secondary offering.
Pshaw…. that’s only 2.5 days of 20-day ADV… Not a lot. But in fact, that is a LOT of stock.
I harp on understanding shareholder structure. I think it worthwhile. Here it matters too.

Socionext Placement – A US$1.8bn Cleanup, Will Have to Give up Some of Its 6x Listing Gains

Three shareholders of Socionext (6526 JP) aim to raise around US$1.8bn via selling all of their shares in Socionext.
Socionext was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup expired in Apr 2023. Its shares are up 6x since listing.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

And Now For Something Truly Offensive – Honda Pays <0.5x Book for Yachiyo

Every now and then, you get a tender offer proposal which is truly offensive. This is one.
Yes, existing ICE-related autoparts makers are under the cosh as they face down obsolesence induced by competition from EVs. Fuel tank makers like Yachiyo are at risk.
But this bid started at <0.3x book, and ended at <0.5x book, despite significant net financial assets and lots of unrecognised DTAs.

Socionext (6526 JP): US$1.9bn Secondary Placement

Socionext (6526 JP) announced a pure secondary offering of 12.6 million or 37.50% of outstanding shares. At the last close, the placement is worth JPY277 billion (US$1.9 billion)
The selling shareholders’ primary motivation for exiting their shareholding is to capitalise on the extraordinary share price. Socionext shares are up 6x from the IPO price of JPY3,650 per share.
We think looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 11 to 13 July (likely 11 July).

Tryt IPO – Valuation Seems Digestible at the Bottom End, but the Firm Still Needs to Get a Lot Right

By Clarence Chu

Tryt Inc (9164 JP) is looking to raise up to US$360m in its Japan IPO.
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 revisit our earnings assumptions and share our thoughts on valuation at the final price range.

TRYT IPO: Revised IPO Price Range Remains Unattractive

Tryt Inc (9164 JP) has disclosed a revised IPO price range of JPY1,100-1,300 per share, which is -32% to -20% below the IPO reference price of JPY1,620 per share.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case and TRYT IPO: Valuation Insights.
Our analysis suggests that Tryt remains unattractively valued at the revised IPO price range. Also, market sentiment on the sector has weakened. We would pass on the IPO.

Lawson (2651) | Dividend Grower

By Mark Chadwick

We are bullish on Lawson and see fair value at Y7,500 per share based on 3% FY2/25 DPS of Y225/share
The domestic convenience store business is recovering post pandemic leading to a possible earnings beat
The market remains sceptical of mid-term growth drivers like Seijo Ishii and China expansion plans

The Key Is to Be Able to Use Cash on Hand Effectively in the Future

Although more companies have recently started to use their cash for shareholder returns, this is still not enough in terms of the dividend payout ratio.
Both sales and profits of companies haven’t increased by that amount for past 10 years. The question for the future is whether the cash on hand can be used effectively.
It is hoped that the quality of listed companies on prime market will improve as a result of M&As involving industry restructuring, the dissolution of parent-subsidiary listings and going private.

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Jul 05

Daily Brief Japan: ARTERIA Networks Corp, Toyo Construction, Rakuten Group , Kao Corp, Yachiyo Industry, Nikkei 225, Tryt Inc and more

In today’s briefing:

Arteria Networks (4423) Tender Launches 5 July.
Toyo Construction (1890) Plans Governance Review, Promises Neutrality on a YFO TOB Proposal Decision
Rakuten: An Attractive Value Opportunity After 80% Value Decline in 8 Years
Kao (4452) | Is It Time to Buy This Dividend Aristocrat?
Yachiyo Industry (7298 JP): Honda’s Pre-Conditional Tender Offer
EQD | Nikkei 225 (NKY) WEEKLY Rising but May Encounter Short-Term Resistance
TRYT IPO: Margins on a Downward Trend

Arteria Networks (4423) Tender Launches 5 July.

Seven weeks ago, Marubeni Corp (8002 JP) and Secom Co Ltd (9735 JP) announced a joint deal to acquire the rest of ARTERIA Networks Corp (4423 JP).
As I wrote in the previous piece, the premium was good, but the price was not great. The Board rejected the price, then agreed when the bidders wouldn’t go further.
Now we have a deal and the Tender Offer starts 5 July. It was cheap to start. It’s still too cheap. But this one is tough to block.

Toyo Construction (1890) Plans Governance Review, Promises Neutrality on a YFO TOB Proposal Decision

The Nikkei has an article today with details of an interview with new Toyo Construction (1890 JP) Chairman Yoshida and President Obayashi. There will be a 2-3 month governance review.
It will review decision-making process, “profit management” (利益管理), and business investment decisions (事業への投資判断). Chairman Yoshida had a quote on neutrality on a YFO proposal. My wording there was carefully chosen.
The President also said they expect ongoing synergies with Infroneer, and will maintain MTMP/Mitsui OSK Partnership management plans. Their words were chosen carefully too.

Rakuten: An Attractive Value Opportunity After 80% Value Decline in 8 Years

By Oshadhi Kumarasiri

Rakuten Group (4755 JP), having experienced an 80% decline in value over the last 8 years, now emerges as an enticing prospect for value investors.
The combined fair value of Rakuten’s Cards, Bank, and Mobile businesses now surpasses 100% of the company’s market capitalization.
Rakuten Ichiba, valued at ¥600bn, appears significantly undervalued when compared to ZOZO Inc (3092 JP) and MonotaRO Co Ltd (3064 JP), which hold approximately 2.0x Rakuten Ichiba’s valuation.

Kao (4452) | Is It Time to Buy This Dividend Aristocrat?

By Mark Chadwick

Kao has the lonest period of consecutive earnings growth in the Nikkei’s new “Consecutive Dividend Growth Stock Index”
With a 2.8% yield and a long history of raising its dividend, Kao should definitely be on the income investor’s radar screen
Despite the recent underperformance of the stock (-4% ytd), Kao does not represent compelling valuations

Yachiyo Industry (7298 JP): Honda’s Pre-Conditional Tender Offer

By Shifara Samsudeen, ACMA, CGMA

Yachiyo Industry (7298 JP) has recommended Honda Motor (7267 JP)’s pre-conditional tender offer of JPY1,390 per share, a 17.5% premium to the undisturbed price.
Post-Completion, Honda will transfer a 81% stake to Samvardhana Motherson Automotive Systems Group BV. The pre-conditions relate to various country approvals (China, the US, Brazil, and India).
The offer is expected to open in October. Achieving the 66.67% minimum ownership ratio requires a 32.6% minority acceptance rate which is doable as the offer is reasonable.

EQD | Nikkei 225 (NKY) WEEKLY Rising but May Encounter Short-Term Resistance

By Nico Rosti

Good probability of reversal (>60%) for the Nikkei 225 (NKY INDEX)if closing this week up and/or if market price reaches => 34033 intra-week (better: => 34255).
Index can go a bit higher but first will probably consolidate/digest the latest rally from April. Expect non-directionality. If WEEKLY rally lasts =>3 weeks, place high-probability SHORT trade.
A pullbackbelow 33189.04 (last WEEKLY Close) seems unlikely this week. In case, buy-the-dips until the price reaches 32586 (Q2 barrier). Past that point the market could sink <= 31750.

TRYT IPO: Margins on a Downward Trend

TRYT Group is engaged in job placement and temporary staffing in the medical and welfare fields. The company has filed for an IPO and plans to raise around $450m.
The company’s top line has continued to expand; however, margins have continued to narrow down over the last 3-4 years.
We remain concerned over the company’s growth prospects and would only recommend subscribing if the IPO is priced attractively.

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Jul 04

Daily Brief Japan: Tryt Inc, Takara Bio Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

TRYT IPO: Valuation Insights
Takara Bio (4974 JP): Corona Cliff Set to Jeopardize FY24 Financial; Formulated FY26 Management Plan
What Changes in the External Environment Are Changing the Mindset of Managers?

TRYT IPO: Valuation Insights

Tryt Inc (9164 JP), a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July.
We previously discussed the IPO in TRYT IPO: The Bull Case and TRYT IPO: The Bear Case.
In this note, we discuss valuation. Our analysis suggests that Tryt is unattractively valued at the IPO reference price of JPY1,620 per share. We would pass on the IPO.

Takara Bio (4974 JP): Corona Cliff Set to Jeopardize FY24 Financial; Formulated FY26 Management Plan

By Tina Banerjee

Takara Bio Inc (4974 JP) is anticipating 32% YoY decline in revenue to ¥53B in FY24. Both operating and net profits are expected to decline more than 60% YoY in FY24.
The company has formulated the medium-term management plan 2026 for the three-year period ending in FY26, with the final-year quantitative targets being operating profit of ¥15 billion and ROE 8%.
Considering Takara Bio’s FY24 operating profit guidance of ¥8B, FY26 target seems to be aggressive and difficult to achieve.

What Changes in the External Environment Are Changing the Mindset of Managers?

Given the history of changes in the external environment that have changed managers’ mindsets all at once, inflation and rising foreign shareholdings are likely to be the catalysts for change.
Given that some companies still do not show capital efficiency as a KPI, it is dangerous to expect much from individual companies’ efforts to improve capital efficiency.
Whether or not to engage in management improvement is a matter for managers, but the catalyst is often an increase in foreign shareholdings. Changes are taking place in some companies.

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Jul 03

Daily Brief Japan: Toyo Construction, JSR Corp, Will Group Inc, Flux and more

In today’s briefing:

Toyo Construction AGM : YFO Wins on Dramatic Foreign Shareholder Discontent
Weekly Deals Digest (02 Jul) – JSR, Dali Foods, NWS, Poly Culture, Yitai, DDH1/Perenti, Tryt
Will Group (6089 Jp) – 4Q Follow-Up
Japanese Startup Flux Bags $32m for No-Code AI Platform

Toyo Construction AGM : YFO Wins on Dramatic Foreign Shareholder Discontent

In my piece Yamauchi Family Office Buys More Toyo; Toyo Claims More Malfeasance, ISS Supports YFO I said I thought YFO would lose, but it would be close.
I thought it hinged on the shape of the register. It turns out it did. And it turns out they won, and it was close. Analysis is presented.
What next? The new board takes its seats and may entertain a new takeover offer. I could see a buyout price a fair bit higher than here.

Weekly Deals Digest (02 Jul) – JSR, Dali Foods, NWS, Poly Culture, Yitai, DDH1/Perenti, Tryt

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), Amman Mineral Internasional (1416286D IJ), Alibaba (ADR) (BABA US)‘s Cainiao & Cloud Intelligence Group, J&T Global Express (1936374D CH) IPOs.
Event-Driven developments – JSR Corp (4185 JP), Dali Foods Group (3799 HK), Nws Holdings (659 HK), Poly Culture Group Corp H (3636 HK), Yitai Coal, DDH1 (DDH AU).

Will Group (6089 Jp) – 4Q Follow-Up

By Sessa Investment Research

The day after the Company announced 4Q FY23/3 results and FY24/3 initial guidance for consolidated revenue flat and OP -21.0%, the share price dropped -6.3% on heavy volume, maintaining a weak trend thereafter relative to a strong underlying market.
SIR believes this is because the new MTP differed from investors‘ growth image.
While the Company would be remiss not to highlight the high base from the post-COVID surge in special demand for permanent placement as a short-term risk for this term, investors may have been sensitive to the slowdown in growth over the coming two years.

Japanese Startup Flux Bags $32m for No-Code AI Platform

By Tech in Asia

Businesses across the world are rushing to adopt AI. Japan-based startup Flux is targeting companies in the country who want to do so at lower cost and higher efficiency.
The firm developed a no-code AI platform called Flux AI. According to Flux, the platform enables businesses to leverage AI technologies such as predictive analytics, natural language processing, and large language models without needing prior coding skills or knowledge.
The startup has just raised US$32 million in a series B round led by DNX Ventures.

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Jul 02

Daily Brief Japan: JSR Corp, Tokyo Stock Exchange Tokyo Price Index Topix, Japan Elevator Service Holdings and more

In today’s briefing:

(Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser
The TSE’s New ‘Better’ Index: JPX Prime 150
Japan Elevator Service Holdings (6544) – Going up to Reach New Heights
Learning Through Engagement Takes a Certain Period of Time to Show Results

(Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser

By David Blennerhassett

There are 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Five new deals this week: DDH1 (DDH AU), NWS Holdings (659 HK), Poly Culture Group Corp H (3636 HK), Mandala Multifinance (MFIN IJ), and JSR Corp (4185 JP).
Key updates took place forSilk Laser Australia (SLA AU) and Challenger Technologies (CHLG SP).

The TSE’s New ‘Better’ Index: JPX Prime 150

In April 2022, after long prep and considerable public comment as to desires and design, the TSE launched its new market segments designed to encourage governance and foreign investment.
At the time, the TSE wanted to showcase Japan’s best blue chips. In March, JPX announced JPX Prime 150, designed to make visible
In March 2023, JPX announced JPX Prime 150, to “make visible the leading Japanese companies that are estimated to create value.” Ambitious? Yes. Fated to fail? Probably. Badly constructed? Definitely.

Japan Elevator Service Holdings (6544) – Going up to Reach New Heights

By Astris Advisory Japan

A successful market disruptor – Japan Elevator Service (JES) has been executing its growth strategy, increasing market share in the domestic elevator maintenance market via organic and acquisitive growth.
Operating in a market dominated by OEMs, it is making solid headway by 1) offering a cost-effective solution, 2) a differentiated service offering technical services and availability of parts on par with the OEMs, and 3) experiencing rapid growth through by establishing a nationwide network providing regionally rooted services.
Pursuing growth opportunities – we highlight two drivers for the company; 1) secular growth as building owners convert to reputable independent providers for cost management, and 2) structural demand from aging elevators requiring modernization.

Learning Through Engagement Takes a Certain Period of Time to Show Results