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In today’s briefing:
- Softbank Group – Didi Relief and ZME Pain Highlight Multiple Potential Outcomes
- Parent-Subsidiary Listing Investment Strategy Update (5)
- Record Sales for Pal Group Driven by 300 Yen Chain
- Torikizoku Holdings (3193): May SSS Recovered to 83% of Pre-Pandemic Levels
Softbank Group – Didi Relief and ZME Pain Highlight Multiple Potential Outcomes
- Didi shares jumped 24% on reports regulatory relief was at hand. That is good news for Softbank although the halo effect boosting Alibaba had more of a valuation impact
- Less noticed but also relevant as a potential outcome is the de-listing of Zhangmen Education which fell 50% Monday and is down 97% for VF in total
- Softbank shares trade at a 43% discount to fair value and remain range-bound. Tech market sentiment remains the primary driver and we continue to be cautious
Parent-Subsidiary Listing Investment Strategy Update (5)
- This article updates NTT DATA by referring my earlier article although Hopes of NTT Data becoming a wholly owned subsidiary are far from fulfilled after the May 9th news conference.
- My previous article stated reorganization with NTT’s overseas operations is priority to strengthen NTT Data’s overseas business. NTT Data’s stock price is highly valued while NTT Data’s profitability is lacking.
- The timing of NTT Data becoming a wholly owned subsidiary will depend solely on how quickly the company can raise its profitability while it focuses more on domestic business.
Record Sales for Pal Group Driven by 300 Yen Chain
- Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.
- Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.
- Its success is one more example of the growth in discount chains.
Torikizoku Holdings (3193): May SSS Recovered to 83% of Pre-Pandemic Levels
- Same-store sales were 1648.4% vs. May 2021 (208.7% for April), 684.1% vs. May 2020 (1979.9% for April), and 83.2% vs. May 2019 (77.2% for April)
- Note that both May 2021 and May 2020 were significantly affected by the emergency measures
- The number of holidays (weekends and holidays) was one day less than in May 2021 and May 2020, and two more than in May 2019
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