Daily Brief Japan: ASICS Corp, Softbank Group, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Asics (7936) | Strong Performance Meets Reasonable Valuation
Last Week in Event SPACE: Softbank, OZ Minerals, Lifestyle, Nexon, Magic Empire, Swire Pacific
Mandatory Disclosure of Gender Wage Differentials Is Still a First Step

Asics (7936) | Strong Performance Meets Reasonable Valuation

The stock price has rallied 40% since our last note. We are happy to take profit here, hence we label this insight as Bearish
The results and full year guidance hike were positive but largely currency assisted
We expect that a focus on China and Direct will drive margin expansion in the medium term

BHP launched a bid for OZ Minerals (OZL AU). OZ has rejected it as being too low. BHP said the Offer provides certainty of funding growth. They are both right
This Offer price for Lifestyle International Holdings (1212 HK) is probably sufficient to get up. It has been declared final for that reason. Optically $6/share was a more reasonable level.
Nexon (3659 JP) announced another ¥100bn buyback over three years. However, the buyback is too small to pay back the Kim family inheritance tax obligations.

There is the problem that a wage gap exists between men and women even among regular employees, and that the percentage of non-regular workers is very high among women.
Issues to be addressed include the creation of a social infrastructure in which workers don’t have to leave jobs due to childbirth or child-rearing, and fair wages for non-regular workers.
Mandatory disclosure is an important step. Managers should also think of employees as partners in creating new value, rather than simply as labor, which will help to eliminate this issue.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network