In today’s briefing:
- October 2023 TOPIX Free Float Review – $22.6bn to Trade and JPB (7182) The Biggie
- TOPIX Inclusions: Who Is Ready (Oct 2023)
- Money Forward (3994) | Show Me the Money
- Hisamitsu Pharmaceutical (4530 JP): Mixed Q2FY24 Result- Some Points Worth of Paying Attention
- Manager’s Real Intent to Prevent Further Increase in Ratio of Independent Directors Is Revealed
October 2023 TOPIX Free Float Review – $22.6bn to Trade and JPB (7182) The Biggie
- The TOPIX October Free Float Weight Review details are out. This is the biggest FFW review of the year. This year, it’s $11.3bn a side.
- As discussed in Japan Post Bank (7182) – The October TOPIX FFW Adjustment, JPB is the big buy. $2bn/23d of ADV. There is $2bn to buy of trading cos too.
- There are lots of large names to trade in both directions. If you have interests to sell the buys and vice versa, it is good to know the flows.
TOPIX Inclusions: Who Is Ready (Oct 2023)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Since my last insight, CellSource (4880 JP) and Kasumigaseki Capital (3498 JP) have confirmed they will move to TSE Prime which means they will be included in TOPIX at end-November.
- FP Partner (7388 JP) and I-NE (4933 JP) will get included in TOPIX at the end of October.
Money Forward (3994) | Show Me the Money
- Money Forward’s share price dipped 20% post-Q2 results, but strong operational performance and upward sales revisions make it appealing.
- We expect 42% YoY sales growth in Q3 and believe long-term growth prospects remain exceptional against the market size.
- Management to deliver profitability next FY, meeting investor demands to “show me the money” – we remain bullish
Hisamitsu Pharmaceutical (4530 JP): Mixed Q2FY24 Result- Some Points Worth of Paying Attention
- Hisamitsu Pharmaceutical Co (4530 JP) announced mixed Q2FY24 result, with single-digit revenue growth and bottom-line decline. Revenue grew 5% YoY to ¥34.9B, while operating profit declined 8% YoY to ¥4B.
- Salonpas line of OTC pain relieving patches have become major growth driver of the company. In Q2FY24, Salonpas revenue increased 14% YoY, lowest growth rate reported in last five quarters.
- Despite 70%+ progress of operating and net profits, Hisamitsu reiterated FY24 guidance. Declining margins, anticipated increase in SG&A expenses, and high base call for massive fall in profit in H2FY24.
Manager’s Real Intent to Prevent Further Increase in Ratio of Independent Directors Is Revealed
- The Kankeiren intends to prevent further increases in the ratio of independent directors because of the small number of candidates for outside directors.
- One reason why the substance of the Corporate Governance Code has not improved is that independent directors are a minority on the board.
- The company is also responsible for not developing female internal executive director candidates, relying on outside directors for female directors, and not appointing foreign talent to the board.
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