Japan

In today’s briefing:

Japan Lifeline (7575 JP) Throws a Lifeline to Its Share Price
LINE Gift up 330% in 2021
Daiwa Office REIT (8976) Buyback – It Looks Better Than It Probably Is
Rohm (6963 JP): Probably Won’t Buy Toshiba’s Electronic Devices Business
ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

Japan Lifeline (7575 JP) Throws a Lifeline to Its Share Price

Japan Lifeline announced a buyback on Friday after the close.
The stock saw a huge growth spurt in the first half of the last decade but slowed down post 2018. So the stock has significantly underperformed the sector.
The buyback parameters and the stock’s trading history suggest that with the stock near a 5-year low, it is worth looking a little deeper.

LINE Gift up 330% in 2021

LINE Gift is fast becoming the most popular way to send gifts of all kinds, even traditional gifts sent at mid-year and New Year.
This is good news for Z Holdings (4689 JP) and Softbank, as well as LINE, as the gifting platform acts as a unifying point for their disparate e-commerce platforms.
Although the corporate gift market is in decline, personal gift giving remains a growth market, offering further upside.

Daiwa Office REIT (8976) Buyback – It Looks Better Than It Probably Is

Daiwa Office Investment (8976 JP) announced on Thursday an extraordinary but minor income amount from a legal settlement, and a buyback.
This buyback resembles those conducted from February to May 2018 and 2021.
A look at the pattern of buyback execution vs parameters and of Daiwa Office performance vs the sub-sector within prior buybacks is worthwhile.

Rohm (6963 JP): Probably Won’t Buy Toshiba’s Electronic Devices Business

By Scott Foster

Based on following the company for 25 years, I agree with Mio Kato: I do not think Rohm would or should acquire Toshiba’s power semiconductor operations.
It would violate Rohm’s commitment to a sound financial structure and saddle it with an integration problem that might never be solved.
Far better to keep working with the NEDO power device consortium while continuing to expand and improve its own power device business.

ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Life Insurance Corp of India (1248Z IN) and SBI Sumishin Net Bank (7163 JP) are the big listing still on the anvil.
Placement scene continues to remain quiet, with CTOS Digital Bhd (CTOS MK) being the only large one.

Before it’s here, it’s on Smartkarma

Feb 26

Japan: Toshiba Corp, Rakuten Bank, Softbank Group and more

In today’s briefing:

Toshiba – Why Renesas Might Be a Better Option for the Devices Business than an IPO
Rakuten Bank Tearsheet – Japan Largest Internet Bank
Softbank Group – Alibaba Remains the Key Share Price Driver as VF Diversification Stalls

Toshiba – Why Renesas Might Be a Better Option for the Devices Business than an IPO

We have made no secret of the fact that we consider Toshiba’s restructuring plans to be unspectacular.
Initially we saw no reason to separate the infrastructure business and saleable assets but with that issue addressed it is the position of the devices business which concerns us.
This is because we feel it is rather undersized to stand on its own two feet… but we increasingly feel that Renesas could be the ideal home for the unit.

Rakuten Bank Tearsheet – Japan Largest Internet Bank

Rakuten Bank (RB) is the largest internet bank in Japan, by number of accounts. It is a part of the Rakuten Group.
The company is wholly owned by Raktuen and hasn’t taken any external funding.
As per the public disclosures made by Rakuten, it aims to list the business unit within a year as was reported in September 2021.

Softbank Group – Alibaba Remains the Key Share Price Driver as VF Diversification Stalls

By Kirk Boodry

Softbank Group (9984 JP) shares have fallen 46% since 31 March v a 52% decline for Alibaba Group (9988 HK) with little daylight between the two since August
That reflects fading influence from Vision Fund which is shed $12bn in value Q4 to date and c. $30bn this fiscal year.
The discount remains in the 50% range as tailwinds from the share buyback depend on a successful IPO of ARM, where the magnitude and timing remain uncertain

Before it’s here, it’s on Smartkarma

Feb 25

Japan: Iwatani Corp, Lawson Inc, Marui Group, Hitachi Ltd, Tokyo Stock Exchange Tokyo Price Index Topix, Skylark Co Ltd and more

In today’s briefing:

Iwatani – Hydrogen Getting Interesting Again and This Is the Best Play
Lawson Expands into Takeaways
Marui: 70% of Tenants to Be Non-Merchandise
Hitachi Ltd. (6501 JP): Assessing Exposure to Ukraine – Buy into the Sell-Off
Japan’s Governance: Parent-Subsidiary Listing Investment Strategy Update (4)
Skylark Holdings (3197): Earnings Forecast Update. Challenges in Handling Inflation

Iwatani – Hydrogen Getting Interesting Again and This Is the Best Play

Japan continues to move forward with preparing for the shift to a hydrogen economy with new developments in both rail and hydrogen production.
The efforts to produce hydrogen through artificial photosynthesis are particularly interesting given the potential to reduce hydrogen costs drastically.
While Toyota is of course involved in the efforts, the key beneficiary for the hydrogen economy remains Iwatani.

Lawson Expands into Takeaways

Lawson will begin offering made-on-demand meals direct from its convenience stores.
Suitable stores are being renovated to include in-store kitchens, with 100 planned for this time next year and 1,000 by 2025, with delivery handled by companies like Uber Eats.
Most other chains offering made-to-order meals are small, so Lawson could well take a large share of this growing market.

Marui: 70% of Tenants to Be Non-Merchandise

Marui Group (8252 JP) is increasingly ethereal, shifting further away from selling merchandise through tenants.
While seen as a shop building operator, Marui is still true to its service origins as a consumer finance business.
Now even its shop buildings are increasingly devoted to non-stuff with the company aiming for 70% of tenancies to be selling things other than merchandise by 2025.

Hitachi Ltd. (6501 JP): Assessing Exposure to Ukraine – Buy into the Sell-Off

By Scott Foster

Hitachi is evacuating more than 7,000 GlobalLogic employees from Ukraine to other countries, but IT workers are mobile and these may have more work due to cyber attacks.
Hitachi Construction Machinery and other Hitachi Group divisions do some business in Ukraine, but we expect the impact of the crisis to be manageable and temporary.
Hitachi Ltd shares are down 25% since November and the P/E ratio is near the bottom of its historical range.

Japan’s Governance: Parent-Subsidiary Listing Investment Strategy Update (4)

Using latest data on the impact of major shareholder interests on corporate governance and stock price performance, we also consider this issue from the perspective of parent-subsidiary listings.
The results of the correlation analysis for 3 groups of companies in % of ownerships showed that the major shareholder factor has a significant impact on corporate governance practices.
Regarding board practices, companies with shareholders holding more than 50% (listed subsidiaries) are generally less conscious of improving their practices, while the results for key actions are mixed across criteria.

Skylark Holdings (3197): Earnings Forecast Update. Challenges in Handling Inflation

By Mita Securities

Maintaining TP of 1,600 yen and a Hold rating. We are updating our earnings forecast for Skylark Holdings (3197, the company)
On February 14, the company announced full-year IFRS OP of 18.2bn yen (vs. -23.0bn yen loss in FY12/20)
Our new forecast for FY12/22 is for sales of 311.9bn yen (+17.9% YoY; previous forecast 311.8bn yen) and OP of 8.8bn yen (-51.5% YoY; previous forecast 10.4bn yen)

Before it’s here, it’s on Smartkarma

Feb 24

Japan: Japan Post Bank, Sony Corp, Rakuten Inc, Welcia Holdings, FamilyMart Co Ltd, Toyota Motor, Harmonic Drive Systems, Torii Pharmaceutical and more

In today’s briefing:

Japan Post Bank – A Double on Spread Expansion and More on a Buyback?
Sony – Uncharted and Horizon Forbidden West Start Well
Rakuten: At a New Forward EV/EBITDA Bottom
Welcia’s Purchase of Kokumin: Watch Out Matsukiyo Cocokara
Familymart, the Lifestyle Store
Toyota – Quick Wage Negotiation Agreement Means Something
Harmonic Drive Systems (6324 JP): Consider the Competition
Japan’s Governance: Articles About Torii Pharmaceutical’s Annual General Meeting of Shareholders

Japan Post Bank – A Double on Spread Expansion and More on a Buyback?

Japan Post Bank is down 15.2% since its earnings results as quarterly profit declined noticeably.
This was driven by falls in income from PE investments and a reduction in gains on forex from maturing investments.
While that is a sharp fall for the name, its overall risk profile, exposure to rising rates and cheap valuations make it extremely attractive in our view.

Sony – Uncharted and Horizon Forbidden West Start Well

Sony had a busy 18th Feb as both the Uncharted movie and Horizon Forbidden West launched.
Uncharted has done reasonably well though not to the extent we believed likely while the Horizon franchise could be on the way to truly elite status.
We look for both releases to contribute to a strong 4Q along with Gran Turismo 7.

Rakuten: At a New Forward EV/EBITDA Bottom

By Oshadhi Kumarasiri

Rakuten Inc (4755 JP) is currently trading 20% below the bottom end of the long term trend channel.
With consensus FY+2 EBITDA at ¥309.8bn, Rakuten’s current EV/EBITDA is at an all-time low of 1.7x compared to the historical median and peak of 9.0x and 16.1x respectively.
Based on the consensus FY+2 EBITDA and EV trend, we feel the fair valuation of Rakuten could be somewhere around ¥3,000bn EV.

Welcia’s Purchase of Kokumin: Watch Out Matsukiyo Cocokara

Last month, Welcia announced the acquisition of Kokumin, the 30th ranked drugstore that runs a well-respected chain stretching across the country.
As the newly formed Matsukiyo Cocokara group continues to struggle, another year of high growth means Welcia will be only just behind when FY2021 results come in.
Overall growth in the drugstore sector remains strong and could even overtake convenience stores in the near future.

Familymart, the Lifestyle Store

Thanks to the huge supply chain capabilities of its parent Itochu Corp (8001 JP), FamilyMart Co Ltd (8028 JP) is moving into new categories of private label product.
These are not the traditional staples of the convenience store but new types of more fashionable lifestyle products in clothing and cosmetics.
Recent results show successful collaboration with Noin for cosmetics and with Hiromichi Ochiai from Facetasm for clothing basics, selling more than 1 million items each.

Toyota – Quick Wage Negotiation Agreement Means Something

The Nikkei reported today that Toyota had already agreed to accept its unions wage hike demands and in full.
This is unusual given typically fair but tough negotiations and Toyota’s penchant for very strict cost control.
Although the news does not appear to be attracting any great attention we believe it is actually quite significant.

Harmonic Drive Systems (6324 JP): Consider the Competition

By Scott Foster

Demand for speed reduction gears is rebounding from the COVID downturn, but sales and profits are likely to be restrained by an increasingly difficult operating environment.
HDS faces growing competition from Nidec in Japan and Leaderdrive in China, both of which want to lead the market. For HDS, a return to peak margins is unlikely.
The shares have dropped 31% since last September, but at 81x EPS guidance are still quite expensive. Consider alternative factory automation investments.

Japan’s Governance: Articles About Torii Pharmaceutical’s Annual General Meeting of Shareholders

This article will discuss about Nikkei’s article about “Torii Pharmaceutical opposes Hong Kong investment firm’s proposal to ban revolving door” which includes several points of discussion.
If the stock price is undervalued because investors are reluctant to invest on concerns about shareholder structure that doesn’t allow minority shareholders’ opinions to be heard, that is serious problem.
Many subsidiaries have no incentive to listen to opinions of minority shareholders and enhance governance practices. Lack of growth strategies and communication to investors is also a problem for Torii.

Before it’s here, it’s on Smartkarma

Feb 23

Japan: Noritsu Koki, SBI Sumishin Net Bank, JMDC Inc, Hoya Corp, Zojirushi Corp, Can Do Co Ltd, Koshidaka Holdings and more

In today’s briefing:

Noritsu Koki (7744) – PAAAAYDAAAAY!
SBI Sumishin Net Bank Pre-IPO – The Positives – Past Growth Has Been Decent
JMDC (4483 JP) – A Change of Ownership, and Future Path
Hoya – We Are Increasingly Confident About a Semi Capex Decline
SBI Sumishin Net Bank Pre-IPO – The Negatives – It’s Not Really a Digital Lender
Japan’s Governance: Articles About Zojirushi Corporation (7965)’s General Meeting of Shareholders
Can Do to Double Stores in 5 Years – and Boost Profits Too
Koshidaka Holdings (2157): 1H Guidance Revised

Noritsu Koki (7744) – PAAAAYDAAAAY!

Noritsu Koki (7744 JP) just sold two-thirds of its stake in subsidiary JMDC Inc (4483 JP) to Omron Corp (6645 JP) for ¥112bn – pretty good for a ¥61bn marketcap.
This is the payday for those who have been long NK as a proxy for JMDC and possibly short JMDC against it. Now the shape of the company is different.
A closer look at the pro-forma financial profile is warranted. It’s a lot of money. BUT… if you look today and buy today you do NOT get the special div!

SBI Sumishin Net Bank Pre-IPO – The Positives – Past Growth Has Been Decent

SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
SSNB 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, a financial services firm.
The deal, if successful, would be Japan’s first online-only bank to go public. In this note we will talk about the positive aspects of the deal.

JMDC (4483 JP) – A Change of Ownership, and Future Path

JMDC Inc (4483 JP) or formerly Japan Medical Device Corp was incubated then IPOed by Noritsu Koki (7744 JP). Noritsu Koki is now selling two-thirds of its stake to OMRON.
OMRON’s heft should help JMDC grow better with larger clients. That’s the bet OMRON is making too.
The sale by Noritsu Koki reduces potential overhang from a share sale which heretofore had been a possibility.

Hoya – We Are Increasingly Confident About a Semi Capex Decline

We spoke to Hoya today to understand market trends in both the semi and healthcare areas.
Overall, business conditions remain strong although momentum appears stronger for the Life Care segment.
More pertinently, we interpret some of the commentary on the semi capex side as suggesting some downside risk to overall spend.

SBI Sumishin Net Bank Pre-IPO – The Negatives – It’s Not Really a Digital Lender

SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
SSNB 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, a financial services firm.
The deal, if successful, would be Japan’s first online-only bank to go public. In this note we will talk about the not so positive aspects of the deal.

Japan’s Governance: Articles About Zojirushi Corporation (7965)’s General Meeting of Shareholders

While Zojirushi proposed a takeover defense plan at this AGM, it again rejected a shareholder proposal. This article will discuss this in conjunction with the Nikkei article.
Zojirushi’s board practices are generally in place except for the introduction of anti-takeover, but the decision to introduce anti-takeover would be often made independently of other board practice improvements.
There are some issues with key actions. Especially, unclear growth policy, capital allocation and IR disclosure would have affected the stock performance and the earnings outlook.

Can Do to Double Stores in 5 Years – and Boost Profits Too

100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.
With more flexible pricing models and high demand for discount retailing, there is optimism again.
Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.

Koshidaka Holdings (2157): 1H Guidance Revised

By Mita Securities

2Q OP guidance of 1.160bn yen, first quarterly positive OP under the pandemic
On February 21, Koshidaka Holdings (2157, the company) announced a revision to its 1H FY8/22 (Sep. 2021-Feb. 2022) guidance
The company lowered its sales guidance from 17.063bn yen to 16.305bn yen (+34.6% YoY)

Before it’s here, it’s on Smartkarma

Feb 22

Japan: Yaskawa Electric, BASE Inc, Tsubaki Nakashima and more

In today’s briefing:

Yaskawa – Increasingly Positive on Robotics but Still Too Early… Except…
Base Inc: Down, But Not Down Enough
Japan’s Governance: Tsubaki Nakashima (6464) FY12/2021 Financial Results Analyst Meeting

Yaskawa – Increasingly Positive on Robotics but Still Too Early… Except…

We spoke to Yaskawa today to understand recent trends and the detailed outlook on demand going forward.
There were no major surprises with the company still relatively positive on demand remaining strong across the board though only robots seem to offer strong growth potential.
Profitability for robots should also improve going forward creating a nice story, but valuations are still too dear.

Base Inc: Down, But Not Down Enough

By Oshadhi Kumarasiri

Both management and consensus seem to think that BASE Inc (4477 JP) will be able to maintain the COVID-19 growth trajectory beyond the COVID affected years.
However, investors seem more circumspect with shares currently trading around 90% below the peak level.
With the company likely failing to meet revenue targets and losses expanding exponentially, we think Base Inc could fall another 25-30% towards the pre-COVID level.

Japan’s Governance: Tsubaki Nakashima (6464) FY12/2021 Financial Results Analyst Meeting

This article will update on Tsubaki Nakashima, which I focused on in my previous article, as I attended the analyst meeting for its financial results for FY12/2021.
A temporary issue with quality and inventory management in 4Q resulted in missed profits in FY12/2021, but the company resolved the issue early and it will not affect FY12/2022.
As the demand for high-margin ceramic balls accelerates in line with the shift to high-power EVs, it is only a matter of time before it regains the confidence from investors,.

Before it’s here, it’s on Smartkarma

Feb 20

Japan: SBI Sumishin Net Bank, Monogatari Corp and more

In today’s briefing:

Last Week in Event SPACE: SBI Sumishin Net Bank, Western Areas, Keisei Electric, Crown Resorts
Japan’s Governance: Diversity Is Strength：Update

Last Week in Event SPACE: SBI Sumishin Net Bank, Western Areas, Keisei Electric, Crown Resorts

By David Blennerhassett

SBI Sumishin Net Bank (7163 JP) is likely to be a hot IPO. One small problem is the lack of dividends.
Andrew Forrest’s Wyloo Metals pivots to a back-end JV with IGO Ltd (IGO AU) after recently paying through terms on Western Areas (WSA AU).
Crown Resorts (CWN AU) enters into a Scheme with Blackstone as Star Entertainment Group (SGR AU) bows out.

Japan’s Governance: Diversity Is Strength：Update

I have introduced Monogatari Corporation (3097) before as a listed company that has been implementing advanced diversity initiatives. This article will update as I participated in the analyst meeting.
The essence of D&I is to instill a culture of “it’s okay for everyone to be different,” so that each person is not afraid to voice his or her opinion.
By having each person express their opinion, it creates a culture of discussion within the company. President Kato says that there are three benefits to this.

Before it’s here, it’s on Smartkarma

Feb 19

Japan: Sky Perfect Jsat and more

In today’s briefing:

Sky Perfect JSAT (Buy) – Follow up After Q3 21 Results

Sky Perfect JSAT (Buy) – Follow up After Q3 21 Results

By Kirk Boodry

Space segment revenue is growing despite Covid-19 headwinds for in-flight Wi-Fi and should continue into the next few years as new capacity is unlocked
Investment in the media segment is likely to step up in Q4 on prootional spending for new Japan professional baseball and the Spoox streaming service
The outlook is improving heading into 2022 as the company will lap accounting changes that made headline revenue look weaker. We’ve updated our forecasts and remain at Buy

Before it’s here, it’s on Smartkarma

Feb 18

Japan: Appier Group Inc, Kirin Holdings, Safie, JPY, W Scope Corp, MonotaRO Co Ltd and more

In today’s briefing:

TOPIX Inclusion Pre-Event: Appier Group (4180 JP)
Kirin: Off of Myanmar & Off to a Good Start
Safie – Baby Thrown Out With the Bathwater Number Two
USDJPY at Risk
W Scope (6619): Improved and Price Is Moving
MonotaRO (3064): Earnings Forecast Update. Focus on Evolution of Logistics Infrastructure

TOPIX Inclusion Pre-Event: Appier Group (4180 JP)

By Janaghan Jeyakumar, CFA

Japan-Based AI company Appier Group Inc (4180 JP) announced they had resolved to prepare to apply to change its listing on the Tokyo Stock Exchange to the Prime Market.
Appier has confirmed that it meets the criteria for the TSE Growth Market but if they move to the Prime Market, that would trigger a TOPIX Inclusion Event.
Below is a look at Appier’s potential to satisfy the Section Transfer Requirements and the upside potential of this event.

Kirin: Off of Myanmar & Off to a Good Start

By Oshadhi Kumarasiri

Earlier this week, Kirin Holdings (2503 JP)’s board decided to withdraw from all the businesses in Myanmar urgently.
With the Myanmar JV issue out of the way and asset write-offs mostly complete, we think Kirin’s normalised EPS will grow at a CAGR of 11% through 2021-24.
This puts Kirin on 9.4x 2024 EPS, limiting the down side risk to the bare minimum.

Safie – Baby Thrown Out With the Bathwater Number Two

Safie reported 2021 results on Monday and beat slightly with revenue 1.6% above guidance and an operating loss of ¥76m, better than guidance of a ¥225m loss.
The stock is rated neutral by the sell side despite offering perhaps the best growth prospects in Japan and demonstrating numerous signs of exceptional management.
We consider the name to be potentially Japan’s best growth story in the small cap space.

USDJPY at Risk

By Shyam Devani

If earlier charts are correct in suggesting lower US long end yields in the short term then USDJPY is vulnerable
So far it has failed twice at 116.35 thereby creating the possibility of a double top
Support is seen at 113.47 followed by a range of levels between 112.14 and 112.53

W Scope (6619): Improved and Price Is Moving

By Henry Soediarko

W Scope Corp (6619 JP) share price has severely underperformed Tokyo Stock Exchange Tokyo Price Index Topix (TPX INDEX)in the last 5 years.
Its business has picked up followed by the ability to pare debt down and potentially lower shipping costs that will expand margin.
It trades at 1.8x PBR, cheaper than Samsung SDI and LG Energy solution although more expensive than Showa Denko but W Scope’s operational number has been phenomenal.

MonotaRO (3064): Earnings Forecast Update. Focus on Evolution of Logistics Infrastructure

By Mita Securities

New target price 2,150 yen; Reiterate our Hold rating
On February 3, the company announced FY12/21 consolidated OP of 24.1bn yen (+23.1% YoY, OPM 12.7%), slightly below the company’s guidance of 24.7bn yen
Mita Securities’ earnings forecast: Lowering our OPM assumptions

Before it’s here, it’s on Smartkarma

Feb 17

Japan: Kadoya Sesame Mills, Gungho Online Entertainment, SBI Sumishin Net Bank, Japan Post Insurance, Appier Group Inc, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Deciphering the Dynamics of a Tachiaigai Bunbai Offering
Gungho Is Gungho for Gungho (3765 JP)
SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April
Japan Post Insurance – Why This Could Double… In Charts
Appier – Baby Thrown Out With the Bathwater Number One
Japan’s Governance: Considerations for Takeover Defense Measures (3)
SBI Sumishin NetBank (7163 JP) IPO Details, Fundamentals Tearsheet, and Likely Index Treatment

Deciphering the Dynamics of a Tachiaigai Bunbai Offering

In Japan, there is a type of offering called a tachiaigai bunbai offering which is used by companies to conduct small, relatively low-cost, offerings to increase liquidity or shareholder breadth.
These are conducted with a bit over a week of warning, and there are usually very low limits of shares purchasable per applicant.
There are certain dynamics surrounding such tachiaigai bunbai which are worth understanding.

Gungho Is Gungho for Gungho (3765 JP)

Gungho on Monday announced results, with both revenues and earnings up.
They also announced a buyback, which at current price means about 2.8% of shares out.
That doesn’t sound like a lot, but context matters. It may matter a great deal.

SBI Sumishin Net Bank (7163 JP) IPO: Listing in March, TPX Inclusion Possibly in April

By Brian Freitas

SBI Sumishin Net Bank (7163 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on 24 March.
News reports indicate a raise of US$1bn (JPY 115.5bn). This translates to an IPO price of JPY 1,920/share, valuing the company at JPY 300bn (US$2.59bn).
The stock should be added to the TPX INDEX at the close on 27 April where trackers will need to buy over 14% of the stock issued in the IPO.

Japan Post Insurance – Why This Could Double… In Charts

Japan Post Insurance beat consensus 3Q estimates by 77% at the NP level and the company revised up FY guidance 30.5% to ¥365.49 in EPS.
Consensus still forecasts EPS to drop to ¥234 next FY but we see little reason to not expect a further increase.
If so, the name is likely to be close to 5x PE vs. peers at over 10x creating a significant opportunity.

Appier – Baby Thrown Out With the Bathwater Number One

Appier reported 4Q21 results on Monday with revenue beating consensus by 5% and EBITDA beating by 323%.
The company guided for ¥17.5bn in revenue, above consensus at ¥16.2bn but significantly below our guesstimate of ¥20.8bn.
However, a close look at trends in the US suggest that our initial estimate remains reasonable enough.

Japan’s Governance: Considerations for Takeover Defense Measures (3)

This article focuses on whether or not a company has takeover defense measures, and conducts further analysis in the evaluation items of Profile, Key Performance Indicators and Corporate Governance Practices.
Since the presence or absence of anti-takeover measures wasn’t significantly correlated with other board practices, they stand apart from improving efforts in other practices and maintain as an independent policy.
Companies with anti-takeover show negative correlations with asset/capital efficiency, capital allocation and communication with investors, so companies should be watched if this is related to their inferior ROE and ROA.

SBI Sumishin NetBank (7163 JP) IPO Details, Fundamentals Tearsheet, and Likely Index Treatment

On 15 February, SBI Holdings (8473 JP) and Sumitomo Mitsui Trust Holdings (8309 JP) announced the likely details/schedule of the IPO of their joint venture online bank.
Pre-Announcement media commentary had suggested an IPO of US$1bn in size and a potential market cap in the range of ¥300-400bn.
The stock is likely to see significant interest because of its growthy business model, and non-negligible index buying at end-March and end-April, especially if it prices at the high end.

Before it’s here, it’s on Smartkarma