In today’s briefing:
- JMDC Placement – Lots to like but past Deals Have Been Mixed and It Is Expensive
- Nikkei 225 March 2023 Review Quiddity Leaderboard
- Kansai Electric | Growing Support for Nuclear Restarts; Bullish
- Director Compensation Should Be Changed from Stable Compensation to More Variable Compensation
JMDC Placement – Lots to like but past Deals Have Been Mixed and It Is Expensive
- JMDC Inc (4483 JP) aims to raise around US$235m, US$150m coming via an international offering and the rest via issuing shares to its largest shareholder, Omron Corp (6645 JP) .
- The company plans to use the proceeds to repay some of its debt that was taken on earlier to acquire other companies.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Nikkei 225 March 2023 Review Quiddity Leaderboard
- The Sep 2022 Nikkei 225 Annual Review has been announced. This was discussed in Nikkei 225 Review Results: Nidec, SMC, Hoya IN.
- That means we can make early predictions for the March 2023 rebalance to be announced in six months. One way turnover would be about 1.4%.
- The top three adds are Oriental Land, Renesas, and JAL. The top 3 sells would be Toyobo, Toho Zinc, and Nippon Sheet Glass. There are some dark horses here too.
Kansai Electric | Growing Support for Nuclear Restarts; Bullish
- We believe KEPCO is well-positioned within the utility sector to benefit from growing support for nuclear restarts among policy makers and the general public
- Given its substantial nuclear power generating capacity, KEPCO will likely see best-in-class balance sheet and cash flow-generation over the next several years.
- This puts KEPCO well ahead of peers in terms of both environmental credentials and attractive shareholder returns.
Director Compensation Should Be Changed from Stable Compensation to More Variable Compensation
- The reason for high remuneration of foreign directors isn’t only that remuneration is determined based on overseas compensation levels, but also that fixed remuneration for directors in Japan is high.
- It is hoped that more companies will increase the proportion of variable compensation, and that for shareholders, performance will increase enough to significantly increase variable compensation.
- In order for directors to fulfill their responsibilities in determining important strategies, the system must be designed to be high-risk and high-return as well as individually disclosed.
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