In today’s briefing:
- Daiwa Securities Living (8986 JP): Historical Post-Offering Performance Does Not Look Good At All
- UPDATE: Kasumigaseki Capital (3498) Moving to TOPIX. Forward Earnings/Aggressive Forecast Surprise
- Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors
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Daiwa Securities Living (8986 JP): Historical Post-Offering Performance Does Not Look Good At All
- Midsize residential JREIT Daiwa Securities Living (8986 JP) (“DSLIC“) launched a follow-on equity offering to partially fund their recently-announced acquisitions.
- The primary offer quantity will be 139,047 units and there will also be an over-allotment quantity of 6,953 units.
- In this insight, we take a closer look at the details of this offering and the historical performance of DSLIC’s previous follow-on equity offerings.
UPDATE: Kasumigaseki Capital (3498) Moving to TOPIX. Forward Earnings/Aggressive Forecast Surprise
- Over the weekend I wrote about Kasumigaseki Capital (3498 JP)‘s move to TSE Prime and then move to TOPIX. I noted earnings would be out 3 October.
- I talked about the possibility of a surprise. They had revised full-year to end-Sep to ¥2bn. They got ¥2.05bn.
- But after growing revenue 79% last year, and growing net profit 101%, this year they expect revs +60% and Net Profit +144%.
Gap in Response to Disclosures in English Compared to the Growing Presence of Overseas Investors
- Overseas investors feel that the disclosure of English documents by Japanese companies is slow-paced and the majority of overseas investors are not satisfied with the English disclosure.
- Without sufficient disclosures in English, it is impossible to conduct a detailed analysis of the portfolio company. This also casts a shadow over engagement.
- Given the narrowing coverage of sell-side analysts, companies should proactively disclose English-language materials at the earliest possible time. For long-term investors, English-language disclosures such as annual securities reports are also useful.