Japan

In today’s briefing:

Trial Holdings IPO: Valuation Insights
Iwataya Opens Lounge S – A New Space for the Truly Wealthy

Trial Holdings IPO: Valuation Insights

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
We previously discussed the IPO in Trial Holdings IPO: The Bull Case and Trial Holdings IPO: The Bear Case.
In this note, we discuss valuation. Our analysis suggests that Trial is attractively valued at the IPO reference price of JPY2,000. We would participate in the IPO.

Iwataya Opens Lounge S – A New Space for the Truly Wealthy

By Michael Causton

Like all department stores, Iwataya in Fukuoka is keen to grow services for its wealthiest customers.
It already has special lounges for high spending customers and has now opened a new, invitation-only lounge for its top 300 clients, many of whom are under 40.
Capturing more share of the wealth market is the only real hope department stores have to grow.

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Mar 16

Daily Brief Japan: Toshiba Corp, Anycolor, Japan Post Bank, Samco Inc, Trial Holdings, MonotaRO Co Ltd, Rakuten, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Toshiba (6502) – Funding Possibly Re-Secured, Deal Possibly In Play,
Anycolor (5032 JP) Shows Its Colours – Great Quarter Guys! and TOPIX-Bound
Japan Post Bank (7182) – The Flow Calendar
Samco (6387) | Specialist in Silicon Carbide Equipment for Power Chips
Trial Holdings IPO: The Bear Case
MonotaRo: Hasn’t Been This Cheap For Quite a Long Time
Japan’s E-Commerce Wars: Rakuten Fighting Hard as Amazon Japan Becomes No. 2 Retailer
The Effect of the TSE Requesting an Improvement Plan from a Company with a P/B Below 1x Is….

Toshiba (6502) – Funding Possibly Re-Secured, Deal Possibly In Play,

Bloomberg has an article today after the close saying Toshiba Corp (6502 JP)‘s board will meet tomorrow to discuss the JIP bid, and the Special Committee will give its recommendations.
The article suggests the Board may proceed with a vote. If they do, an announced bid could come as early as the afternoon.
The world is quite volatile now, and funding is probably more precious today than yesterday. But a bid is too. All in all, I see no reason for a position.

Anycolor (5032 JP) Shows Its Colours – Great Quarter Guys! and TOPIX-Bound

Anycolor (5032 JP) reported Q3 results today. 9mo Revenue is now above the lower end of original forecasts for the full-year. 9mo OP is 25% higher than the original mid-range.
The net profit forecast is now up 51% from the original mid-range, and up 128% on the year. The stock has cratered. Badly.
It is now 19x April 2023 earnings for 90% revenue growth and 150% Net Profit growth and 40% OPM in the last quarter. Go figure.

Japan Post Bank (7182) – The Flow Calendar

The near-term Supply/Demand Balance is helped or hurt – depending on how well the deal has been placed to retail, by overseas bank turmoil.
Quality of placement to retail is tough to know from outside. We have near-term offsets with both index demand and dividend looming.
The biggest near-term differentiator in possible supply/demand outcomes is, of course, in the hands of the TSE Index team. And we just don’t know.

Samco (6387) | Specialist in Silicon Carbide Equipment for Power Chips

By Mark Chadwick

Samco is a beneficiary of rising power semiconductor investment for electric vehicles
The company is focused on SPE equipment for the growing silicon carbide power chip market
New investment from the likes of Mitsubishi Electric should drive structural growth for SiC equipment

Trial Holdings IPO: The Bear Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
In Trial Holdings IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on bottom quartile gross and operating margin, mid-tier FCF generation and unusual cash collection cycle.

MonotaRo: Hasn’t Been This Cheap For Quite a Long Time

By Oshadhi Kumarasiri

After surging past 20.0x consensus FY+2 EV/OP multiple in 2012-2013, MonotaRO Co Ltd (3064 JP)’s consensus FY+2 EV/OP has fallen below 20.0x on one very rare occasion.
We see no major change in the fundamentals of MonotaRo aside from a temporary hike in Opex through concurrently running old and new distribution centres for the past 3 quarters.
Currently trading at 22.5x consensus FY+2 OP, we think this is a good opportunity to benefit from the company’s depressed valuation.

Japan’s E-Commerce Wars: Rakuten Fighting Hard as Amazon Japan Becomes No. 2 Retailer

By Michael Causton

The big online malls continue to grow at higher rates than many branded e-commerce stores, meaning consecutive annual gains in market share.
Amazon’s lead now seems to be widening while Rakuten is also pulling ahead of Z Holdings, which continues to struggle with poor integration of assets, and we see little upside.
Amazon is now Japan’s 2nd biggest retailer but, despite its problems in Mobile, Rakuten is proving a relentless competitor in e-commerce and we remain bullish on its e-commerce prospects.

The Effect of the TSE Requesting an Improvement Plan from a Company with a P/B Below 1x Is….

TSE will require companies with P/Bs below 1x to disclose improvement plans, urging them to shift to management that reflects an awareness of their cost of capital and stock price.
The good thing about this TSE request is that “cost of capital” will be widely recognized by companies. Companies can no longer easily reject shareholder proposals regarding cost of capital.
It should also be an opportunity for management to evaluate its own corporate value and compare it to market value and consider whether it should remain listed or go private.

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Mar 15

Daily Brief Japan: SBI Sumishin Net Bank, Tokyo Broadcasting System, Nikkei 225, Trial Holdings, Sumitomo Pharma, Lasertec Corp and more

In today’s briefing:

SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off
TBS (9401) Selling Cross-Holdings But Don’t Hold Your Breath
Nikkei and Nifty Shorts Hitting Bear Targets
Trial Holdings IPO: The Bull Case
Sumitomo Pharma (4506 JP): Latuda To Drag Near-Term Performance; New Long-Term Growth Driver Added
Lasertec (6920 JP): Negative Potential of Sculpta Not in the Price
Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins

SBI Sumishin Net Bank IPO: An IPO Price Range in the Wake of the Bank Share Sell-Off

SBI Sumishin Net Bank (7163 JP) has introduced a price range of JPY1,200-1,260 per share in the wake of a sell-off in bank shares. Offer shares and timelines are unchanged.
We previously discussed the IPO in SBI Sumishin Net Bank IPO: The Investment Case and SBI Sumishin Net Bank IPO: Valuation Insights. The shares will be listed on 29 March.
Our analysis suggests that SBI Sumishin Net Bank is fairly valued at the new IPO price range. We would participate in the IPO.

TBS (9401) Selling Cross-Holdings But Don’t Hold Your Breath

Three years ago I wrote a piece about the history of activism at Tokyo Broadcasting System (9401 JP), suggesting it was not expensive but activist gains might be hard won.
Yesterday, TBS announced it would sell strategic cross-holdings to raise cash for investment, as per its Medium-Term Management Plan 2023, and its full-year forecast Net Profit would rise 75%.
That tells you what you need to know, and it guides you to the value within.

Nikkei and Nifty Shorts Hitting Bear Targets

By Thomas Schroeder

Japan became a top laggard short bet above 28,000 given our call for a domino roll. Nikkei 26,900 was our initial downside target with a primary target of 26,000.
India’s short from 18,000 is meeting the overshoot target at 17,100 with 16,800 a level to cover if not look for a tradable bounce. 17,700-800 is fresh sell resistance.
SPX weakness was the call from March 6-20 so we may be seeing up for some recovery actvity in Asia after the 20th but will face headwinds come June.

Trial Holdings IPO: The Bull Case

Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$380 million at the IPO reference price of JPY2,000. Pricing on 26 March.
Trial aims to act as a one-stop shopping store where a consumer can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
The key elements of the bull case rest on top quartile revenue growth, encouraging same-store sales growth, solid margin profile and cash generation.

Sumitomo Pharma (4506 JP): Latuda To Drag Near-Term Performance; New Long-Term Growth Driver Added

By Tina Banerjee

Sumitomo Pharma (4506 JP) completed the acquisition of Myovant Sciences. Myovant’s marketed drugs Orgovyx and Myfembree are on strong growth trajectory and have the potential to become blockbuster drugs.
Sumitomo’s flagship drug Latuda lost patent protection in Feb’23 and has already started seeing revenue erosion. For FY23, Sumitomo has guided for Latuda revenue of $1,565 million, down 14% YoY.
Post Latuda, newly added drugs will not be able to fully offset the effect of Latuda revenue loss. the company is not expected to launch in-house new drug before FY25.

Lasertec (6920 JP): Negative Potential of Sculpta Not in the Price

By Scott Foster

Applied Materials’ new Sculpta pattern-shaping tool could greatly reduce demand for EUV mask inspection on a medium- to long-term view. High-NA EUV is likely to do the same.
Lasertec’s high valuations are predicated on a multi-year high growth trajectory. That trajectory is now being called into question.
We have cut our FY Jun-25 profit forecast by 32%, but the projected P/E ratio is still 40x. More downside ahead.

Trial Holdings Pre-IPO – The Negatives – Wafer-Thin Margins

Trial Holdings (5882 JP) is looking to raise around US$375m in its Japan IPO.
TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
In this note, we will talk about the not-so-positive aspects of the deal.

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Mar 14

Daily Brief Japan: Japan Post Bank, SBI Sumishin Net Bank, Fuji Oil Holdings, Tokyo Stock Exchange Tokyo Price Index Topix, MonotaRO Co Ltd, Trial Holdings and more

In today’s briefing:

Japan Post Bank (7182 JP): Offering Price Decided; Buyback & Passive Flow Coming Up
Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook
SBI Sumishin Net Bank IPO – It Was All Good, till Friday
Fuji Oil: Probably The Last Chance For Itochu to Scoop Up Fuji Oil at a Bargain
What’s Solution for TSE Growth Market, Where IPOs Became the Goal and Lost Growth Due to Burnout?
Monotaro (3064) | Pricing in Downside Risks
Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint

Japan Post Bank (7182 JP): Offering Price Decided; Buyback & Passive Flow Coming Up

By Brian Freitas

Japan Post Bank (7182 JP) has announced that the offering price has been set at JPY 1131/share, a 2.08% discount to the closing price. Settlement is on 20 March.
The buyback will run from 22 March to 12 May and at last prices will mop up 1.85% of shares outstanding or 4.62% of post-offering float.
In the short-term, we expect buying from Topix (TPX INDEX), MSCI and other global trackers to support the stock price.

Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook

Japan Post Bank (7182 JP) priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.
Japan Post Holdings (6178 JP)/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.
The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.

SBI Sumishin Net Bank IPO – It Was All Good, till Friday

SBI Sumishin Net Bank (7163 JP) (SSNB) is looking to raise around US$390m in its second listing attempt.
SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
In this note, we talk about implied valuations in the IPO price range

Fuji Oil: Probably The Last Chance For Itochu to Scoop Up Fuji Oil at a Bargain

By Oshadhi Kumarasiri

Having conducted several acquisitions and reinvested most of the operating cashflows into building its overseas business base, Fuji Oil Holdings (2607 JP) seems ready to unleash its earnings potential.
There could be more than a 100% upside to Fuji Oil shares if ROE returns to the historical median of 9% in the next few years.
Therefore, if Itochu Corp (8001 JP) has plans to takeover Fuji-Oil, the current price and the position in the business-cycle present the best opportunity to buy-out Fuji-Oil at a bargain.

What’s Solution for TSE Growth Market, Where IPOs Became the Goal and Lost Growth Due to Burnout?

Few companies have generally achieved significant growth since listing, and about half of the companies are below their market capitalization at the IPO, which is challenges in TSE Growth Market.
Even if the number of companies subject to such shares is limited, the use of multiple voting shares shouldn’t be ruled out if the dilution of voting rights hinders fundraising.
The key to solving the challenges of TSE Growth Market, where few companies have growth potential and have financing needs, is the ability of management to realize growth potential post-listing.

Monotaro (3064) | Pricing in Downside Risks

By Mark Chadwick

We reassess our long-term financial model for Monotaro following 2 consecutive months of weak monthly data
Just two months into the new fiscal year, but YTD sales growth of 13% is far short of the full year target
Our DCF valuation highlights further 21% downside assuming 10y CAGR of 10.5%

Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint

Trial Holdings (5882 JP)‘s is looking to raise around US$375m in its Japan IPO.
TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
In this note, we will talk about the positive aspects of the deal.

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Mar 13

Daily Brief Japan: Japan Post Bank and more

In today’s briefing:

Japan Post Bank – Estimating Foreign Ownership and Deal Flowback
Japan Post Bank Placement – Still Misbehaving – Post-Pricing Performance of Some More Deals
Weekly Deals Digest (12 Mar) – Japan Post Bank, SBI Sumishin, ASMPT, Oishi, InvoCare, Olam

Japan Post Bank – Estimating Foreign Ownership and Deal Flowback

The word floating around late Friday as books closed was that foreigners had bid strongly. More than the entire Japan Post Bank (7182 JP) offering size in fact.
The offering is an interesting problem, as discussed before. Different people are going to buy it for different reasons.
This insight looks at the breakdown of ratios and the resultant foreign ownership, along with post-offer supply/demand balance.

Japan Post Bank Placement – Still Misbehaving – Post-Pricing Performance of Some More Deals

Japan Post Holdings (6178 JP) aims to sell around US$9bn worth of Japan Post Bank (7182 JP), trimming its stake by a third.
We have looked at the deal in our previous notes, Japan Post Bank Placement – Deal Structure, past Deals, Index, Buyback and Japan Post Bank Placement – Misbehaving.
In this note, we talk about the updates since our last note and have a look at the post pricing performance of a few more deals.

Weekly Deals Digest (12 Mar) – Japan Post Bank, SBI Sumishin, ASMPT, Oishi, InvoCare, Olam

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 – Japan Post Holdings (6178 JP)‘s large offering of Japan Post Bank (7182 JP)‘s shares, SBI Sumishin Net Bank (7163 JP) aims to raise up to US$440 million.
Event-Driven developments – ASM Pacific Technology (522 HK), Yashili International Holdings (1230 HK), Invocare Ltd (IVC AU), Oishi Group PCL (OISHI TB), Olam Group (OLG SP), Halcyon Agri (HACL SP).

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Mar 12

Daily Brief Japan: Jcr Pharmaceuticals, Zojirushi Corp and more

In today’s briefing:

Jcr Pharmaceuticals (4552 JP): Mainstay Drug Revenue Declining; High R&D Cost Worsens Profitability
Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal

Jcr Pharmaceuticals (4552 JP): Mainstay Drug Revenue Declining; High R&D Cost Worsens Profitability

By Tina Banerjee

Jcr Pharmaceuticals (4552 JP)‘s cash cow Growject, recombinant human growth hormone, is reporting decelerating revenue due to insurance price revision. The drug is also facing competition.
JCR’s latest marketed product Izcargo is on a strong growth trajectory. However, the drug is not big enough to compensate for the revenue loss from Growject.
The company’s bottom-line is under pressure due to elevated R&D expenses. Cash position has also deteriorated. No near-term product launch is anticipated.

Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal

Without sufficient sales growth and profitability, including profit margins and ROE, it is understandable that shareholders will demand greater shareholder returns in order to secure a return on their investment.
Since Zojirushi’s foreign shareholder ratio is 19.9%, it was expected that shareholder proposals including takeover defense measures would likely be rejected at the general shareholders meeting.
The likelihood of passage by a company that have low foreign ownership ratio is unlikely to increase without significant change in the attitude of domestic institutional investors toward shareholder proposals.

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Mar 11

Daily Brief Japan: Dai Nippon Printing, Nippon Yusen Kk, Nippon Steel Trading Corporation and more

In today’s briefing:

Dai Nippon Printing – Gauging The Upside
Nippon Yusen – New MidTermPlan = New Shareholder Return Policy
Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts

Dai Nippon Printing – Gauging The Upside

By Mio Kato

Despite the strong performance from Dai Nippon Printing following the announcement of Elliott’s stake we feel upside remains.
Operating results should benefit from normalisation of the economy and light restructuring potential.
In addition, we do not see much evidence to suggest that valuations are particularly stretched.

Nippon Yusen – New MidTermPlan = New Shareholder Return Policy

Today at lunch, Nippon Yusen Kk (9101 JP) released a New Medium-Term Management Plan Presentation (FY2023 to 2026). “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing.”
It has basic investment plans, including growing scale of ONE container shipping alliance, growing auto logistics, spending on fuel conversions, offshore wind, hydrogen/ammonia, and doing some logistics M&A
They also plan a new Shareholder Return Policy. That raises minimum dividend, expected payout ratio, and involves ¥200bn of buybacks the next two fiscal years. Read on.

Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts

Today, Nippon Steel Corporation (5401 JP) and Mitsui & Co Ltd (8031 JP) announced they would launch the TOB to take over Nippon Steel Trading Corporation (9810 JP) starting Monday.
I wrote about the deal and its parameters in December 2022 in Nippon Steel & Mitsui & Co to Buy Out Nippon Steel Trading (9810) At 87% Premium.
This gets done easily I expect. Boring, but decent very short-term carry on the bid side.

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Mar 10

Daily Brief Japan: Japan Post Bank, Dai Nippon Printing, Lasertec Corp, Hosokawa Micron, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

The March BOJ Meeting, April Handover, the Japan Post Bank (7182) Offering, and Follow-On
Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs
Lasertec Corp (6920 JP) – Bullish ST Momentum Failures – 4 Month Correction May Be Done
Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback
Human Capital Measures Should Not Be a Case Of “Plowing the Field and Forgetting the Seeds”

The March BOJ Meeting, April Handover, the Japan Post Bank (7182) Offering, and Follow-On

Tomorrow is BOJ Governor Kuroda’s last Monetary Policy Meeting, capping a ten year run as one of the most dynamic central bankers in the world.
Tomorrow is also the day BEFORE the first day on which the Japan Post Bank (7182 JP) mega offering could price and the last day of bookbuild indications.
I am not saying this is not coincidence, but it is worth thinking about the interplay.

Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs

Elliott Management was noted several weeks ago to have bought near 5% of Dai Nippon Printing (7912 JP). The stock popped when people found out.
Then the stock popped when the company said they’d announce the outline for their new Mid-Term Management Plan on 9 March, and that would include more capital allocation measures.
Today we got the Outline. There are more capital allocation measures. The numbers look big. Nuance is required to understand the impacts over time.

Lasertec Corp (6920 JP) – Bullish ST Momentum Failures – 4 Month Correction May Be Done

By David Coloretti, CMT

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
The structure of the November / March decline is typical of a counter-trend correction with multiple crossovers and a lack of impulsive price action.
The past 3 weeks have seen declines quickly reversed as bullish ST momentum failures plague these attempted declines. A weekly close above 22299 will confirm a likely MT uptrend renewal.

Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback

Today after the close, Hosokawa Micron (6277 JP) – a company which is all about powders and particles – announced a ToSTNeT-3 buyback of 1.35mm shares (8.26% TSO) tomorrow AM.
Nisshin Seifun Group (2002 JP) and subsidiary Nisshin Engineering said they would offer some shares in. The HM announcement said financial institutions might sell.
Hosokawa Micron is cheap, and this is accretive. Worth a closer look.

Human Capital Measures Should Not Be a Case Of “Plowing the Field and Forgetting the Seeds”

More companies have made progress in the last 6 months as more companies have made only human capital policies. Specific measures will probably not become visible until April or later.
If companies are required to disclose their policies in a hasty manner, they may end up with a list of unrealistic measures in addition to policies that have no substance.
Companies are expected to spend the next year disseminating their human capital policies internally and implementing specific human capital measures to strengthen their own competitiveness.

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Mar 09

Daily Brief Japan: Sosei Group, Japan Post Bank and more

In today’s briefing:

Sosei Group (4565 JP) TSE Prime Promotion and TOPIX Inclusion… Finally
Japan Post Bank (7182 JP): The Current Playbook

Sosei Group (4565 JP) TSE Prime Promotion and TOPIX Inclusion… Finally

Sosei Group (4565 JP) is a Tokyo-based biopharma group which started small, got big and exciting, and hasn’t grown in market cap in years, while it has grown in ambition.
It has strategic relationships with AbbVie, Biohaven, Genentech, GSK, Takeda, Pfizer, AstraZeneca, and Takeda and a market cap near ¥200bn.
It has always had impressive shareholder support. Now after nearly 20 years on TSE Mothers/Growth (the limit was supposed to be 10yrs), it moves to TSE Prime and TOPIX.

Japan Post Bank (7182 JP): The Current Playbook

Since the offer announcement, Japan Post Bank (7182 JP)/JPB’s shares have risen by 4.4%. On 1 March, JPB completed the ToSTNeT-3 buyback by acquiring 59.5 million shares for JPY70 billion.
To understand JPB’s trading pattern, it is instructive to look at Japan Post Insurance (7181 JP)/JPI’s 2019 offering and Japan Post Holdings (6178 JP)/ JPH’s 2021 offering.
JPB’s shares should follow the trading pattern playbook of JPI’s 2019 and JPH’s 2021 offerings and start trading below the pre-offer last trading price during the subscription period.

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Mar 08

Daily Brief Japan: Ana Holdings, CELSYS, Advantest Corp, Calbee Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

ANA and NYK to Trade NCA, So JAL/ANA GTG
TOPIX Inclusions: Who Is Ready (Mar 2023)
Advantest (6857) | Key Beneficiary of AI Tailwinds
Calbee: New CEO Seems Ready To Make Necessary Action
Companies that Adequately Disclose Human Capital Must Be Performing Well on Human Capital Investment

ANA and NYK to Trade NCA, So JAL/ANA GTG

ANA announced their FY23-25 Mid-Term Corporate Strategy last month. In it, a plan to increase cargo.
Today, Ana Holdings (9202 JP) and Nippon Yusen Kk (9101 JP) announced ANA would take over NYK sub Nippon Cargo Airlines 1 October 2023 – price and method TBD.
This would add ~45-50% to ANA’s cargo volume, and more to its capacity. But it means NYK sells cheap OR it means a chunk of ANA cash/stock. Overhang.

TOPIX Inclusions: Who Is Ready (Mar 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.
In February, names which appeared in our “B” list such as Amvis Holdings Inc (7071 JP) and AXXZIA Inc (4936 JP) announced they would be moving to the Prime Market.
In this insight, we take a look at updated lists, the price performance history of those baskets, and other interesting trades in the TOPIX index space.

Advantest (6857) | Key Beneficiary of AI Tailwinds

By Mark Chadwick

Advantest is a market leader in semiconductor testing and will be a major beneficiary of a multi-year AI tailwind
Catalyst: News flow around new AI applications, increased investment dollars flowing into the space and visible acceleration in Nvidia’s data centre GPU growth
Market concern over near-term correction in semiconductor market is giving investors an opportunity to buy Advantest at a 15% discount to its intrinsic value

Calbee: New CEO Seems Ready To Make Necessary Action

By Oshadhi Kumarasiri

After failing to take Calbee Inc (2229 JP) forward for 4+ years, CEO Mr. Shuji Ito is retiring at the end of the next quarter.
He is being replaced by the current COO and the former EVP of Calbee’s Overseas business Mr. Makoto Ehara.
From what he has done since he was appointed the COO and in the Overseas business, we are hopeful that he will turn Calbee’s fortunes around in the medium term.

Companies that Adequately Disclose Human Capital Must Be Performing Well on Human Capital Investment