In today’s briefing:
- Anycolor (5032 JP) – Moving to Prime Next Week, TOPIX Inclusion Next Month
- Sawai Group Holdings (4887 JP): FY23 Result Missed Guidance; FY24 Guidance Calls For Lower Profits
- When Will Fiduciary Duty Take Root in Japan?
- D. Western Therapeutics Institute (4576 JP) – News Flash
Anycolor (5032 JP) – Moving to Prime Next Week, TOPIX Inclusion Next Month
- Anycolor (5032 JP) IPOed a year ago, rose several-fold, saw the underwriting broker offer a huge target price, then it fell. There was an offering. And then the murders began.*
- The offering in January, discussed here, created overhang, and the stock fell sharply in the next 6 weeks. Blowout earnings came in mid-March. Along with a TSE Prime transfer application.
- Now we have the Prime promotion on 8 June, which leads to a TOPIX inclusion on 28 July.
Sawai Group Holdings (4887 JP): FY23 Result Missed Guidance; FY24 Guidance Calls For Lower Profits
- Sawai Group Holdings (4887 JP) reported muted FY23 result, with all parameters missing guidance. Miss was due to the lower-than-expected performance in Japan, which contributed 82% of revenue.
- Sawai’s U.S. business revenue increased 22% YoY to ¥36.6B, beating guidance of ¥32.2B. The U.S. business is now back to profitability by reporting higher-than-expected operating profit of ¥930M.
- Sawai guided for 8% revenue growth in FY24. Core operating income is projected to decline due to the soaring raw material and energy prices and an increase in upfront costs.
When Will Fiduciary Duty Take Root in Japan?
- Although listed companies are required to consider the interests of minority shareholders, parent-subsidiary listings should inherently be avoided because it’s difficult to reconcile conflicting interests between parent and its subsidiary.
- This case questioned whether the FamilyMart directors considered the interests of minority shareholders. The fact that fiduciary duty is scarce in Japan could have been a factor behind this case.
- This lack of understanding may also be a factor preventing independent directors from fulfilling their functions, as some CEOs are seen to consider independent directors as advisors rather than managers.
D. Western Therapeutics Institute (4576 JP) – News Flash
- DWTI announced that out-license partner Dutch Ophthalmic Research Center (International) B.V. (DORC) has submitted a new drug application for approval of DW1002 to the National Medical Products Administration (NMPA) of China for the indication of ILM staining in vitreoretinal surgery (May 30 local time).
- No milestone will be received as a result of this transaction, and there will be no change to the forecast of financial results for the fiscal year ending December 31, 2023.
- DWTI granted an exclusive sublicense for DW-1002 for all regions worldwide outside Japan to DORC, which has been manufacturing and selling the product in Europe and other countries since September 2010.
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