In today’s briefing:
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser
- The TSE’s New ‘Better’ Index: JPX Prime 150
- Japan Elevator Service Holdings (6544) – Going up to Reach New Heights
- Learning Through Engagement Takes a Certain Period of Time to Show Results
(Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser
- There are 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Five new deals this week: DDH1 (DDH AU), NWS Holdings (659 HK), Poly Culture Group Corp H (3636 HK), Mandala Multifinance (MFIN IJ), and JSR Corp (4185 JP).
- Key updates took place forSilk Laser Australia (SLA AU) and Challenger Technologies (CHLG SP).
The TSE’s New ‘Better’ Index: JPX Prime 150
- In April 2022, after long prep and considerable public comment as to desires and design, the TSE launched its new market segments designed to encourage governance and foreign investment.
- At the time, the TSE wanted to showcase Japan’s best blue chips. In March, JPX announced JPX Prime 150, designed to make visible
- In March 2023, JPX announced JPX Prime 150, to “make visible the leading Japanese companies that are estimated to create value.” Ambitious? Yes. Fated to fail? Probably. Badly constructed? Definitely.
Japan Elevator Service Holdings (6544) – Going up to Reach New Heights
A successful market disruptor – Japan Elevator Service (JES) has been executing its growth strategy, increasing market share in the domestic elevator maintenance market via organic and acquisitive growth.
Operating in a market dominated by OEMs, it is making solid headway by 1) offering a cost-effective solution, 2) a differentiated service offering technical services and availability of parts on par with the OEMs, and 3) experiencing rapid growth through by establishing a nationwide network providing regionally rooted services.
Pursuing growth opportunities – we highlight two drivers for the company; 1) secular growth as building owners convert to reputable independent providers for cost management, and 2) structural demand from aging elevators requiring modernization.
Learning Through Engagement Takes a Certain Period of Time to Show Results
- 8 years after the introduction of Corporate Governance Code and “Ito Report,” which showed the relationship between P/B and ROE as the cornerstone of management, few companies improved their management.
- Companies with sustained share price growth were executing excellent growth policies and IR disclosures that were likely learned from their engagement with overseas investors.
- It takes a certain period of time for a company to learn through engagement, for the results to show up in improved management, and for other investors to notice it.
💡 Before it’s here, it’s on Smartkarma
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