Daily Brief Japan: ASICS Corp, Fancl Corp, Nippon Yusen Kk, Sun Corp, Temairazu, Inc. and more

• Since the US$1.4 billion secondary placement announcement, ASICS Corp (7936 JP)’s shares are up 0.9% from the undisturbed price of JPY2,564 per share (12 July).
• Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Asics’ shares have deviated from the pattern of previous large placements.
• The offering will likely be priced on 23 July. Investors who have participated in previous large Japanese placements tend to secure positive returns.

• Kirin Holdings (2503 JP)’s JPY8,620 offer for Fancl Corp (4921 JP) closes on 29 July. The shares have traded above terms for 25 out of the 26 trading days.
• MY.Alpha Management has amassed 10.3 million shares (8.51% ownership ratio) with several purchases above terms. MY.Alpha could catalyse other shareholders to rally against a light offer. 
• The emergence of MY.Alpha, the high volume above terms, peers re-rating, the required minority acceptance rate, and an offer unattractive to historical trading ranges increase the probability of a bump. 

• Nippon Yusen Kk (9101 JP) today announced an upward revision of H1 and full-year guidance. It was a dramatic increase.
• The breakdown of the OP and RP numbers suggests a huge gain in containers in Q1 and into Q2. The breakdown of revenue and OP changes suggested substantial H2 conservatism.
• On a capital-adjusted basis, Nippon Yusen is now slightly cheap vs its domestic peers and has shown a willingness to spend its excess cash on buybacks. Expect more.

• Today, the final day of the Tender Offer that True Wind Capital launched on 10 June 2024 to buy 19% of Sun Corp (6736 JP), TWC raised its price to ¥4,750/share./
• They also lowered their minimum from 3.7934mm shares (17.0%) to 3.3472mm shares (15.0%).
• As Cellebrite DI (CLBT US) had traded higher, SunCorp had too, and even though shares fell today, they are at ¥4,785/share.

• Temairazu is a high-quality vertical SaaS company in Japan with impressive EBIT growth rates, presenting as an undervalued investment opportunity
• Japan’s software sector is flourishing with a higher number of listed companies compared to Western markets, offering fertile ground for small-cap opportunities like Temairazu
• With upcoming improvements in shareholder returns and a competitive landscape in sectors like accounting software, Temairazu has the potential to be a Japanese hidden gem for prospective investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.