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)
- 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
- 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
- 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
- There is concern that if the statements in Annual Securities Report, a legal document, are not questioned as misstatements, they will be left unwritten with no hope of being realized.
- Most companies didn’t have human capital policy as of last July. It’s welcome that more companies will take this opportunity to shift to a strategy of adding value through growth-investments.
- Companies are required to answer the alignment of management and human resource strategies, whether they can reasonably demonstrate path to future growth in corporate value while investing in human capital.
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