Japan

In today’s briefing:

Seven & I: Positives All Around But Upside Is Limited
Softbank (9984 JP) – Klarna’s Coming “down Round”
Seven & I (3382) | So What if Walmart Missed
Softbank – Misra Out
Softbank Group – Business as Usual
JAPAN ACTIVISM: Silchester’s Chugoku Bank AGM Ploy Fails – Won’t Be an Activism Target
The Light and Dark Sides of the Creation of the TSE Prime Market Make Us Think Again
Torikizoku Holdings (3193): June SSS Recovered to 85% of Pre-Pandemic Levels
Companies Holding “Continuation Meetings” Will Hold Them on the Days of Concentration of the AGMs

Seven & I: Positives All Around But Upside Is Limited

By Oshadhi Kumarasiri

With OP up by 32.1% YoY, 1QFY23 was the first genuine sign of the realisation of synergies from the Speedway acquisition.
There could be more good news on the horizon as various news outlets have reported that the sale of Sogo Seibu is moving closer.
Yet we are neutral on Seven & I Holdings (3382 JP) in the short-term. We think investors needs to see the true colours of synergies for shares to break ¥6,100.

Softbank (9984 JP) – Klarna’s Coming “down Round”

By Victor Galliano

Press reports indicate that Klarna is seeking a new funding round, after a 1Q22 of big losses and a recent 10% headcount reduction at Klarna
Softbank made its investment in Klarna at its peak valuation in July 2021; the implied new Klarna valuation range is between 30% and 85% down from the peak
We explore the coming “down round”, and we assess Klarna’s potential valuation metrics relative to payment company peers including US listed BNPL company Affirm and the hit to Softbank’s investment

Seven & I (3382) | So What if Walmart Missed

Investors should ignore the news around restructuring….it’s nice but basically irrelevant
The long-term valuation proposition is driven by the core convenience store businesses in the US and Japan
Unlike Walmart, we think 7&I should have a good quarter in the US and beat analyst expectations for Q1

Softbank – Misra Out

It was reported today that Vision Fund CEO Rajeev Misra would step away from his role to establish his own investment fund.
This continues the pattern of turnover of high profile figures within the Softbank Group raising questions about overall management stability.
With Masayoshi Son also now officially taking amore direct role in managing Vision Fund 2 it also underscores the continuing concentration of decision-making ability.

Softbank Group – Business as Usual

Vision Fund head Rajeev Misra will step down from Vision Fund 2 to take a new gig managing money for Midde Eastern partners. His VF1 role is unchanged for now
Structurally, this does not change very much as Son-san has always been the decision maker on investments and we never considered Misra as a candidate for succession
After surviving $47bn in public equity losses over the last year, it surprisingly looks like Misra’s departure is voluntary

JAPAN ACTIVISM: Silchester’s Chugoku Bank AGM Ploy Fails – Won’t Be an Activism Target

Silchester International Investors targeted the AGMs of four Japanese regional banks in which it had held shares for 12-17yrs writing open letters, and asking each for a small special dividend.
One was heavily over-capitalised and significant cross-holding owning Chugoku Bank (8382 JP)
Their Shareholder Proposal flopped badly. The shareholder structure isn’t there to support it, now or in future, and among regional banks, this is on the “less attractive” side valuation-wise.

The Light and Dark Sides of the Creation of the TSE Prime Market Make Us Think Again

I would like to discuss the points on the Nikkei article, “Mercari’s Prime Market Approval Raises Hopes for Growth Market to Include Similar Companies in the Future.”
Mercari’s listing on prime market is a great hope for companies planning to list on prime market, and the inclusion in the TOPIX is also positive for their stock price.
“Transitional measures” companies need to carefully discuss the feasibility of the plan for meeting the listing criteria and whether they should continue to be listed as before.

Torikizoku Holdings (3193): June SSS Recovered to 85% of Pre-Pandemic Levels

Same-store sales were 643.8% vs. June 2021 (1648.4% for May), 115.9% vs. June 2020 (684.1% for May), and 84.7% vs. June 2019 (83.2% for May)
Compared to June 2021, the guest count was 601.0% (1591.9% for May), and the average check was 107.1% (103.5% for May)
The number of stores at the end of June was 617 (flat MoM). The number of company-owned stores was 386 (flat MoM)

Companies Holding “Continuation Meetings” Will Hold Them on the Days of Concentration of the AGMs

I would like to discuss the issues on the Nikkei article titled “Over 10 Companies Hold ‘Continuation Meetings’ of Shareholders’ Meetings Due to Improper Accounting, etc.”
Companies that hold “continuation meetings” are divided into 2 groups: inappropriate accounting and China lockdown. However, the companies in both groups plan to hold AGMs on days AGMs are concentrated.
It is too much to ask shareholders for voting without financial results, and many companies seem intent on avoiding dialogue with shareholders by holding AGM on such a concentration day.

Before it’s here, it’s on Smartkarma

Jul 07

Japan: Rakuten Inc, Bank of Kyoto, Kura Sushi Inc and more

In today’s briefing:

Rakuten’s Fortunes Could Change With The Rakuten Bank IPO
JAPAN ACTIVISM: Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
Kura Sushi (2695): Dominates Sushi Market with Sanrio Power

Rakuten’s Fortunes Could Change With The Rakuten Bank IPO

By Oshadhi Kumarasiri

One of Japan’s largest internet companies, Rakuten Inc (4755 JP) applied to list its consolidated subsidiary, Rakuten Bank (EBANKZ JP) on the Tokyo Stock Exchange on the 4th of July.
With steady customer account growth mostly assured through leveraging Rakuten’s eco-system with more than 36.0m monthly active users, Rakuten Bank is likely to be valued at over ¥500bn.
Thus, we think the Rakuten Bank IPO could change Rakuten’s fortunes and help the share price bounce back from a 10-year low level.

JAPAN ACTIVISM: Silchester’s Bank of Kyoto AGM Results – Activism Still Failing

Silchester, after holding Bank of Kyoto (8369 JP) shares 16 years, becoming the largest investor, FINALLY publicly asked the bank to make a gesture to pay out a tiny special div.
The bank rejected them, but they took it to to the AGM. And there Silchester got rejected by the shareholders. Soundly. Hostile activism is not going to be easy here.
But all is not lost. Since December, the bank has raised its payout ratio to 50% and has promised to cut a piece of its cross-holdings in the MTMP.

Kura Sushi (2695): Dominates Sushi Market with Sanrio Power

Same-store sales were 108.6% vs. June 2021 (113.6% for May), 101.5% vs. June 2020 (128.0% for May), and 98.9% vs. June 2019 (102.4% for May)
The company ran a Sanrio Characters campaign in June. The prizes featuring popular characters such as “Cinnamoroll” seem to have been well received by the customers
The number of stores at the end of June was 516 in Japan (+2 MoM), 37 in the U.S. (flat MoM), and 46 in Taiwan (+1 MoM). The total number of stores was 599 (+3 MoM)

Before it’s here, it’s on Smartkarma

Jul 06

Japan: Shionogi & Co, Tokyo Stock Exchange Tokyo Price Index Topix, FUJIFILM Holdings and more

In today’s briefing:

Shionogi & Co (4507 JP): Ready To Cash-In On COVID-Related Efforts; Long-Term Growth Drivers Added
Are Japanese Stocks Undervalued or Is There a Reason for Stagnant Valuations?
Fujifilm (4901) | Bio Pharma Giant Is a Double

Shionogi & Co (4507 JP): Ready To Cash-In On COVID-Related Efforts; Long-Term Growth Drivers Added

By Tina Banerjee

Shionogi & Co (4507 JP), an established global name in infectious diseases, is banking on COVID-related products to achieve accelerated double-digit revenue growth in current fiscal.
Shionogi applied for the domestic marketing of its COVID-19 oral drug and signed a basic agreement with the government, which is expected to purchase 1 million courses immediately after approval.
It has a stable revenue stream from HIV franchise. Apart from infectious diseases, Shionogi has multiple late-stage candidates in psycho-neurological diseases and other new growth areas, including oncology and cardiology.

Are Japanese Stocks Undervalued or Is There a Reason for Stagnant Valuations?

I would like to discuss the Nikkei article on “Stock market interest is shifting to undervalued stocks, but analyst coverage of small- and mid-cap stocks is scarce.”
Assuming investors don’t buy a stock because it’s cheap, but because they understand the gap between its intrinsic value and the share price, to make many investors understand the value.
Companies are required to execute capital allocations and communicate with analysts and investors to increase corporate value, and those that were able to do so were able to raise valuations.

Fujifilm (4901) | Bio Pharma Giant Is a Double

It is time to throw off the old valuation models. Fujifilm is no longer a dusty old camera maker
The healthcare business is already the biggest earnings driver and with aggressive capex….
Fujifilm will become the biggest biopharma contract manufacturing company in the world. Valuations don’t reflect that.

Before it’s here, it’s on Smartkarma

Jul 05

Japan: Tokyo Stock Exchange Tokyo Price Index Topix, Pipedo HD Inc, Mercari Inc, KDDI Corp, Skylark Co Ltd, Z Holdings and more

In today’s briefing:

JAPAN PASSIVE – The GPIF in FY2021
PipeDo Holdings (3919) MBO – Advantest Again, This Time It’s a Stitch-Up
GPIF Investment In Startup Funds Marks A Cultural Shift
KDDI (Buy) – Network Outage Is a Bad Look but Concerns Should Fade over Time
Skylark Holdings (3197): Solid Guest Count Recovery Due to Promotions
Z Holdings (4689) | SOTP Reveals Huge Upside

JAPAN PASSIVE – The GPIF in FY2021

The GPIF reported its annual investment results for the FY to March 2022 last Friday. The investment report makes for interesting reading.
The GPIF made 5.42% but alpha was negative 6bp vs time-weighted and money-weighted benchmarks.
The re-allocations amongst asset classes now means more money tracks TOPIX, and it means active managers have their work cut out for them going forward.

PipeDo Holdings (3919) MBO – Advantest Again, This Time It’s a Stitch-Up

Last autumn, Advantage Partners launched an MBO on Pipedo HD Inc (3919 JP) where an activist/y presence threatened to be able to block it. Partway through, shares popped.
The MBO was unsuccessful. Now they are back, at the same price, and now they have arranged a side deal with the activist-y holder. So now it is stitched up.
There could easily be people unhappy with the structure of this deal, especially as book value is up 16%, and projected cashflows 8-10% higher than last time.

GPIF Investment In Startup Funds Marks A Cultural Shift

The Nikkei reported today that the GPIF would be investing in a startup fund for the first time.
The move is significant more for its signalling effect than the actual size of the investment which will do little to address the startup funding shortage in Japan.
Nevertheless it is important as it marks a change in direction and while it may go quietly unnoticed now, the follow-through is likely to be moderate but consistent and lasting.

KDDI (Buy) – Network Outage Is a Bad Look but Concerns Should Fade over Time

KDDI’s entire network was out over the weekend and whilst service has been restored, there are still sporadic complaints
There are near-term risks for higher user churn and lost Q2 revenue, but these are on the margin and downside should be manageable (i.e. no change on company guidance)
Looking past near-term weakness, KDDI remains an attractive defensive play

Skylark Holdings (3197): Solid Guest Count Recovery Due to Promotions

With the recovery of foot traffic, the company stepped up its promotional activities since late May, which had a positive effect on the guest count in June
In June, the company opened no new store. The number of stores at the end of June was 3,085 (-5 MoM)
According to the June 26 Nikkei, Skylark Holdings plans to 1) raise menu prices at its mainstay ” Gusto” restaurants at the end of July, and 2) abolish uniform pricing nationwide and limit price hikes for some products at suburban restaurants

Z Holdings (4689) | SOTP Reveals Huge Upside

Z HD’s stock has been heavily sold with other tech stocks amid a rising interest rate environment
However, we believe that the 3 core business segments are all performing strongly and will continue to gain share
Using global comps, we believe that Z HD has more than 100% upside and is the top pick in the online space in Japan

Before it’s here, it’s on Smartkarma

Jul 04

Japan: Seven & I Holdings, Tokyo Stock Exchange Tokyo Price Index Topix, Inpex Corp, Mani Inc and more

In today’s briefing:

Seven & I Sale of Sogo Seibu Moves Closer
Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed
INPEX (1605) | The Cheapest Oil Stock in the World
Mani Inc (7730 JP): Q2 Result Exceeds Expectation Aided by Demand Recovery; FY22 Guidance Reiterated

Seven & I Sale of Sogo Seibu Moves Closer

By Michael Causton

Initial reports suggest that Fortress Investment, part of the Softbank group of funds, is now the frontrunner in negotiations to acquire Sogo Seibu department stores from Seven & I.
Reports suggest Fortress is already in discussions with privately owned retailer Yodobashi Camera to take over management of the chain’s better stores, beginning with Seibu Ikebukuro.
The loss of ¥500 billion or so in turnover won’t be missed not will the ¥8.8 billion losses but activist investors won’t stop there.

Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed

While we want to believe that “increased awareness of corporate governance has led to downward trend in the concentration of AGM dates,” in reality they were spread over 3 days.
The use of the platform for electronic exercise of voting rights has made progress since it was included in the listing criteria for the prime market.
The provision of convocation notices in English has not made much progress since it was not specifically stated in the Corporate Governance Code, which was included in the listing criteria.

INPEX (1605) | The Cheapest Oil Stock in the World

Oil prices have had a good run, and so have oil stocks, but INPEX can still double from here
High oil prices and rising production will generate strong operating cash flow growth
Total shareholder returns will be close to 10% this year, meanwhile the valuation languishes at 0.6x P/B, way below global peers

Mani Inc (7730 JP): Q2 Result Exceeds Expectation Aided by Demand Recovery; FY22 Guidance Reiterated

By Tina Banerjee

Mani Inc (7730 JP) reported Q2FY22 revenue ahead of guidance, mainly driven by demand recovery in the surgical segment and positive effect of foreign exchange. However, profitability declined year-over-year.
Despite revenue beat in H1FY22, management reiterated FY22 guidance due to geographical risk. Outlook seems to be uncertain for China and India, which together contribute 33% of total revenue.
Mani shares plunged 20% since I published bearish note on the company in January 2022. Investors should avoid Mani due to its uncertain revenue outlook and deteriorating profitability in short-term.

Before it’s here, it’s on Smartkarma

Jul 03

Japan: Toshiba Corp and more

In today’s briefing:

Asia-Pac Weekly Risk Arb Wrap: Tassal, Toshiba, Link Admin, Link Net

Asia-Pac Weekly Risk Arb Wrap: Tassal, Toshiba, Link Admin, Link Net

By David Blennerhassett

There are 46 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals this week: Cooke’s rejected Offer for Tasmanian salmon producer Tassal (TGR AU)
Key updates took place for: Link Administration (LNK AU), Link Net (LINK IJ), and Toshiba Corp (6502 JP)

Before it’s here, it’s on Smartkarma

Jul 02

Japan: Kirin Holdings, J Front Retailing, Softbank Group, Askul Corp, Ohsho Food Service, Shimadzu Corp and more

In today’s briefing:

Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus
J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out
Softbank Group – First Look at Q1 22 Performance
Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light
Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June
Shimadzu (7701 JP): Weak Yen Supports Guidance

Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus

By Oshadhi Kumarasiri

Kirin Holdings (2503 JP) announced yesterday that it will transfer its stake in the Myanmar business (51% of share capital) to its JV partner MEHL, via a share buyback of ¥22.4bn.
Having disposed most of the other underperforming assets during 2018-21, the Myanmar business was the main issue holding back Kirin’s share price performance.
With the Myanmar issue resolved better than anticipated, it seems like the right time for Kirin to get a move on.

J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out

J Front reported strong Q1 numbers with OP recovering to +¥7.5b from red ink a year ago
The company is reaping the benefits of restructuring and better cost control
A recovery in domestic consumption and the opening of borders will drive further appreciation in the share price

Softbank Group – First Look at Q1 22 Performance

Vision Fund’s public portfolio lost $10bn in Q1 marking the third time in four quarters that valuation losses were in the tens of billions
Global tech weaness remains the main challenge as portfolio losses are matched with concerns on the private portfolio, especially ARM
And worries about ARM also feed into leverage concerns as Softbank’s QoQ decline in reported LTV was driven by an ARM upgrade. Meanwhile, CDS prices are near all-time highs

Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light

Askul posted Q4 results that were largely in-line and issued FY23 targets that are robust for revenue growth (+6%) but accompanied by upfront investment
Management also announced it would prepare subsidiary AlphaPurchase for a public listing although the timing has not been determined
The miss on profitability guidance is not ideal but the acceleration of top-line growth is attractive

Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June

Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)
All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.
In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)

Shimadzu (7701 JP): Weak Yen Supports Guidance

By Scott Foster

The weak yen should add several billion to operating profit this fiscal year, helping the company meet or exceed guidance.
Medical Systems, which were once barely profitable, generated a 9.1% operating margin last year due to growing service revenues and a better product mix.
The share price should continue to hold up in a declining market.

Before it’s here, it’s on Smartkarma

Jul 01

Japan: Softbank Group, Shinko Electric Industries, JPY, Tokyo Stock Exchange Tokyo Price Index Topix, Ryohin Keikaku and more

In today’s briefing:

Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation
JPX-Nikkei 400 2022 Rebal: Final Predictions
USDJPY Disconnect
The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step
Ryohin Keikaku (7453) | Oops Something Went Wrong

Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation

Just as the December quarter was flattered by the last minute IPO of SenseTime Group (20 HK), expiration of the lockup six months later has delivered a corresonding valuation hit
Vision Fund is still up on that investment but the public portfolio is flirting with a $10bn loss for the quarter depending on how US shares trade later
The discount has improved modestly to 49% from 51% but remains at the high end of the recent range as worries on tech valuations cast a long shadow

JPX-Nikkei 400 2022 Rebal: Final Predictions

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of stocks listed on the Tokyo Stock Exchange selected based on multiple metrics relating to size, liquidity, financial performance, and corporate governance.
The annual rebalance of the JPX-Nikkei 400 Index takes place in August every year and the cut-off date for the data used for this rebalance is the end of June.
In this insight, we take a look at Quiddity’s final predictions for Potential ADDs/DELs for the August 2022 review.

USDJPY Disconnect

By Shyam Devani

The slip in US yields has lead the US_Japan yield spread to move lower thereby putting USDJPY out of line with it
The danger is that once month end is over, USDJPY may “catch up” by trending down in the short term
In addition we see price action developments on USDJPY itself that reflects weakness in the uptrend

The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step

I would like to discuss the Nikkei article, “Japanese asset management companies have decided to steer against a proposal to elect directors for companies that do not have female directors.
The reason why major Japanese investment managers have been reluctant to take action on diversity and governance is likely due to the sales policies of their parent companies,
Companies with higher percentage of women directors the boards have higher stock prices. I would like to encourage both investment managers and companies to accelerate their efforts in the future.

Ryohin Keikaku (7453) | Oops Something Went Wrong

Ryohin Keikaku (Muji) slashed its earnings guidance for FY8/22 by 32%
The retailer is facing a number of headwinds, only some of which are industry wide
We remain bearish as Muji lacks the pricing power to push through higher input costs

Before it’s here, it’s on Smartkarma

Jun 30

Japan: Toshiba Corp, Mitsubishi Electric, Z Holdings and more

In today’s briefing:

Toshiba (6502) Ownership Structure – “Hostage to Toshiba” Larger Than Real World Float
Toshiba – Headed For A Showdown
Why Do Bigger Companies in Japan Repeat Scandals? – Learning from Mitsubishi Electric –
Z Holdings (4689) | PayPay Key to Fintech Growth

Toshiba (6502) Ownership Structure – “Hostage to Toshiba” Larger Than Real World Float

Every year, the yukashoken hokokusho shows a breakdown of share ownership by owner category. It only happens once a year for most companies.
It is a crucial input to knowing where the shares are and how people are positioned. It also shows who and how big is Real World Float.
This year’s data shows a surprisingly small change year-on-year for Foreign Active Ownership, which is the biggest category. A little musical chairs, but no chairs removed.

Toshiba – Headed For A Showdown

Following the resignation of director Mariko Watahiki yesterday, the results for the shareholder votes are in for Toshiba.
Watahiki unsurprisingly had a low approval ratio of 65.87% but activist-linked directors also saw less than stellar approval ratios as did new CEO Taro Shimada.
Toshiba’s path forward looks increasingly murky and lofty valuations bid up on privatisation hopium look increasingly tenuous.

Why Do Bigger Companies in Japan Repeat Scandals? – Learning from Mitsubishi Electric –

Regarding the Nikkei article, “Mitsubishi Electric to Reform Strict Governance to Revamp Organization,” I would like to summarize the points and discussed the issues.
This case proves that we cannot rely on the appearance of board practices alone. We can think of companies with similar organizational structures that have had repeated scandals.
I will focus on the board diversity from the perspective of whether Mitsubishi Electric can seriously change its corporate culture to one that accepts different values and discusses issues head-on.

Z Holdings (4689) | PayPay Key to Fintech Growth

Fintech is the key mid-term earnings driver for Z Holdings
We are focused on the underlying growth drivers and KPIs
PayPay is at the heart of driving the fintech ecosystem and its growth

Before it’s here, it’s on Smartkarma

Jun 29

Japan: Toshiba Corp, Bank of Kyoto, Rakuten Inc, Hogy Medical, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Toshiba – These Are The Days Of Our Lives
Bank of Kyoto – Trading the Holdco Range
Rakuten (Neutral) – A Surprising Win with Goto Although Its Mobile Challenges Remain
Hogy Medical (3593 JP): Reviving Demand for Premium Surgical Kit Products to Drive Future Growth
Challenge Is How to Promote Sustainability in a Japanese Company that Has Inadequate Human Resources

Toshiba – These Are The Days Of Our Lives

At last year’s Toshiba AGM we had an elected director resign because the sitting chairman was rejected.
This year we have another director resigning because two other directors weren’t rejected.
Now all we are really waiting for in this drama is for Kurumatani’s hitherto unknown identical twin, separated at birth, to show up with a plot for revenge or something…

Bank of Kyoto – Trading the Holdco Range

Bank of Kyoto has twice changed/improved its capital governance in the past six months.
Silchester International Investors wants it to do more, asking for a small special dividend at tomorrow’s AGM. I don’t think it will get it.
The holdco is now a better holdco trade than it was 6mos ago, and trading the range is the right way to look at it.

Rakuten (Neutral) – A Surprising Win with Goto Although Its Mobile Challenges Remain

Rakuten’s stake in Goto is worth ¥13bn and the IPO of the latter in April and the subsequent value re-rating could provide some (very) modest offset to operating losses
Our forecasts remain unchanged from our mid-month update although we would flag up potential electricity resale upside for Rakuten and the sector from utility resale
We have lowered our price target to ¥1,000 from ¥1,150 but uncertainty over the timing of a Bank listing, mobile recovery and return to profitability keep us cautious

Hogy Medical (3593 JP): Reviving Demand for Premium Surgical Kit Products to Drive Future Growth

By Tina Banerjee

Hogy Medical (3593 JP) is high-quality idea on Japan re-opening, with surgical kit, especially premium kit being the main growth driver of the company.
With the declining effect of the COVID-19 and resuming elective surgeries in Japan, Hogy expects 5% y/y revenue growth in FY23, driven by an 11% growth in surgical kit products.
Hogy is expanding marketing initiatives in Southeast Asian countries. The company is enhancing production capacity of premium kit products, with partial operation of the new plant to start in July.

Challenge Is How to Promote Sustainability in a Japanese Company that Has Inadequate Human Resources

I would like to discuss the Nikkei article titled “EY Survey Legal Managers on Awareness of Sustainable Society.”
The survey also included responses from Japanese companies, stating that “many legal departments in Japanese companies do not have sufficient systems in place to deal with ESG and other issues.
The question is how seriously management is discussing how to deal with these issues, as many Japanese companies do not have sufficient human resources, not only in their legal departments.

Before it’s here, it’s on Smartkarma