In today’s briefing:
- Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress
- Ono Pharmaceutical (4528 JP): Key Drugs On High Growth Trajectory; Pipeline Expands Beyond Opdivo
- More Profit for Donki as It Expands Private Label, Even Freezers
- Isn’t FSA Too Forward-Thinking to Keep up with the Global Trend in Human Capital Disclosure?
Yodobashi to Become Top 10 Retailer in Sogo Seibu Deal with Fortress
- Although there are some points to iron out, Fortress Investment is in the final stages of negotiation to purchase Sogo Seibu from Seven & I, with Yodobashi Camera as partner.
- This is an exciting move for Yodobashi as it should be an excellent choice to leverage Sogo Seibu’s better locations and create more competition for rivals like Bic Camera.
- Even so, some stores will no longer have a future under their existing banners and the acquisition will mark the final demise of a 170 year old brand and company.
Ono Pharmaceutical (4528 JP): Key Drugs On High Growth Trajectory; Pipeline Expands Beyond Opdivo
- Ono Pharmaceutical (4528 JP) is an innovation driven pharmaceutical company, with major focus on oncology. Opdivo, Forxiga, and Orencia are the top three products, together contributing ~75% of product revenue.
- While the competition intensified, use of Opdivo for malignant tumors was expanded to first-line treatment for NSCLC, esophageal cancer, and gastric cancer, resulting in FY22 sales of ¥112.4B (+14% y/y).
- Ono’s second largest drug Forxiga is also on a double-digit growth path. The company has been expanding its pipeline beyond Opdivo by reinforcement of in-house research and in-licensing activities.
More Profit for Donki as It Expands Private Label, Even Freezers
- Pan Pacific International Holdings (7532 JP)’ Don Quijote stores rebounded strongly from Covid, despite the lack of inbound tourists, reflecting the hard work done to update stores and merchandise.
- This innovation continues and Don Quijote stores recently even began offering several new private brand cosmetics ranges and new electronics, including a new small footprint freezer.
- The company expects 15% of domestic sales from private brands alone but rising to 25% in the near term, with significant upside for operating profits.
Isn’t FSA Too Forward-Thinking to Keep up with the Global Trend in Human Capital Disclosure?
- The government’s application of human capital disclosure starting with FY3/2023 companies runs the risk of omitting process of fully discussing and internalizing concept of human capital with company’s management strategy.
- The government’s policy change to make disclosure of quarterly financial results voluntary in exchange for mandatory disclosure of human capital will likely lead to a setback in information disclosure.
- Various issues will likely emerge in the future: whether the 3 indicators mandated for disclosure correctly reflect the company’s human capital approach and whether they can be compared among companies.
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