In today’s briefing:
- Descente (8114) : Itochu Still Buying and ANTA Gives You Earnings Hints
- Wacom (6727 JP) – Large, Short-Dated, On-Market Buyback Against Dense Register
- Saizeriya (7581 JP): Best Pick For Asia/China Restaurant Space
Descente (8114) : Itochu Still Buying and ANTA Gives You Earnings Hints
- Descente Ltd (8114 JP) saw Itochu report it had continued its streak of consecutive days of buying, extending it to 115. Now they own 44.1% of voting rights.
- ANTA gave hints to the progress of Descente China in the Interim Results, and Q3 Operational Update. Descente analysts are 20% ahead of guidance, but they’re probably low still.
- Descente reports Q2 tomorrow. I expect the numbers and presentation to surprise at the Net Profit level. I expect a forecast revision.
Wacom (6727 JP) – Large, Short-Dated, On-Market Buyback Against Dense Register
- Wacom splits its pen-tablet business into “Branded Business” and “Technology Solutions” which is not dissimilar to simply splitting based on customer type. TS is doing well. BB is not.
- But BB is doing better than it was, which means a rebound in profit this year. After Q2 there is new guidance, probably soft. And there is a BIG buyback.
- The buyback is large enough to take notice, even though practically it will be smaller than the headline. And a read of the MTMP “Wacom Chapter 3” is highly recommended.
Saizeriya (7581 JP): Best Pick For Asia/China Restaurant Space
- I continue to believe that Saizeriya is the best pick for gaining exposure to Asia/China restaurant space.
- Saizeriya has a very clear business strategy and focus: price. The founder Yasuhiko Shogaki made it clear that price always comes first, and everything else second.
- Looking ahead, the runway for growth in China is huge. The company is currently only in 3 cities for a total of 373 stores as of end-FY23 year ending August.
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