In today’s briefing:
- JMDC (4483) Partial Offer Results – Tough Tender, I’d Watch For “THE Block” (Maybe)
- Kokusai Electric IPO: Lower Price Range Is Reasonable
- Ryohin Keikaku: Expecting FY24 OP Guidance of ¥55.0bn
- Board Diversity Also Confuses Ends with Means
JMDC (4483) Partial Offer Results – Tough Tender, I’d Watch For “THE Block” (Maybe)
- Results for the Omron Corp (6645 JP) Partial Tender Offer for JMDC (4483 JP) are out.
- The Pro-Ration was 51.63%, at the lower end of my initial estimate of 50-58% range, and at the higher end of my revised range (42-56%).
- The pro-ration, the nature of the shapes (technical term) tendered, and what that suggests for Noritsu Koki’s position suggests the back end could be more squeezy than not.
Kokusai Electric IPO: Lower Price Range Is Reasonable
- Kokusai Electric (6525 JP) has trimmed its IPO price from JPY1,890 to JPY1,830-1,840 per share to raise up to US$727 million. The IPO price will be determined on 16 October.
- We previously discussed the IPO in Kokusai Electric IPO: The Bull Case, Kokusai Electric IPO: The Bear Case and Kokusai Electric IPO: Valuation Insights.
- Our base-case DCF valuation is JPY2,058 per share. Peers have modestly re-rated, and a lower IPO price range helps increase the IPO’s attractiveness.
Ryohin Keikaku: Expecting FY24 OP Guidance of ¥55.0bn
- Ryohin Keikaku (7453 JP) will announce FQ4 results on October 13th; we expect earnings to beat consensus by ¥2-3bn, potentially boosting stock performance.
- FY24 OP guidance at around ¥55bn could be a catalyst for significant upside potential in the short term.
- The current share price of approximately ¥1,800 per share supports an annual OP of roughly ¥30bn, indicating nearly 100% upside potential with FY24 guidance.
Board Diversity Also Confuses Ends with Means
- With few women in managerial positions, the reality is that for the time being female directors are forced to appoint candidates from outside the company.
- Two companies is the limit for a monthly board meeting with agenda preliminarily reviewed; investors should oppose proposals to elect candidates who hold board positions at three or more companies.
- The main idea is to promote board diversity for making strategic decisions based on diverse values, but it has become a numbers matching exercise to achieve % of female board members.
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