In today’s briefing:
- Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux
- JAL Mall: Gold from 30m Mileage Members
- Asian Dividend Gems: Precision Tsugami China
Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux
- At end-January 2023 it became clear activist Elliott Management had set its sights on Dai Nippon Printing (7912 JP). The stock popped and people got bullish.
- I warned about the “complicated” nature of gains going forward here. Three weeks later they announced details of including ¥100bn of buybacks per year for 3yrs. That’s discussed here.
- I rarely write bearishly about a huge buyback program but from next day open, over 1yr, total return has been 4.9%. Stage 2 starts 11 March with ¥50bn through end-Sep24.
JAL Mall: Gold from 30m Mileage Members
- Amidst intense competition in online mall retailing, JAL and ANA both launched their own e-commerce malls last year to replace once popular catalogues.
- Although a tough market to enter given the competition from the big 3 (Amazon, Rakuten and Yahoo), airlines have distinct advantages over other small malls.
- In particular, they have data on millions of consumers and access to premium customers willing to spend ¥1 million on a case of wine.
Asian Dividend Gems: Precision Tsugami China
- Precision Tsugami China specializes in the production of precision machine tools. Precision Tsugami China is part of the broader Tsugami Corporation, a Japanese company founded in 1923.
- The company’s dividend yield increased from 4.3% in FY2021 to 8.9% in FY2022 and 10.1% in FY2023.
- We found Precision Tsugami China (1651 HK) using Smartkarma’s Smart Score Screener system.
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