In today’s briefing:
- Kansai Paint (4613) Announces Large Sale of Cross-Holdings – Buyback Here We Come
- Hokkoku Financial (7381) Earnings Report Delay But HUGE Buyback. Again.
- Takamiya (2445 JP) Initiation Report
- Stay Tactically Overweight Defensives; Remain Overweight Europe, Japan, & EAFE. Buys in Defensives
Kansai Paint (4613) Announces Large Sale of Cross-Holdings – Buyback Here We Come
- Today after the close, Kansai Paint (4613 JP) announced it would sell 3 investment securities in the current quarter and would book a gain of “around ¥30bn.”
- As discussed in Kansai Paint (4613 JP) Secondary Offering & Buyback and All the Subsequent Flows, Toyota’s sale of KP shares meant KP could sell Toyota shares. Now they will.
- This is a set-up to another buyback, eventually to unwind more in-bound cross-holdings and to raise ROE.
Hokkoku Financial (7381) Earnings Report Delay But HUGE Buyback. Again.
- Yesterday Hokkoku Financial Holdings (7381 JP) came out with an odd decision to delay earnings from 28 April to 8 May. Volume traded.
- Today, despite not reporting earnings, the Kanazawa-based regional bank announced a BIG buyback with subsequent share cancellation. This was not unexpected. They have an aggressive policy which started last year.
- Hokkoku Bank policy introduced last year is special. It has worked. They are pursuing it. Expect more policy action like this as banks report.
Takamiya (2445 JP) Initiation Report
- Accelerating de facto standardization of the Iq System
- Guiding for double-digit growth in sales and profit in FY23/3
- Roadmap for sustainable growth. Takamiya is currently implementing its medium-term management plan ending in FY2024/3.
Stay Tactically Overweight Defensives; Remain Overweight Europe, Japan, & EAFE. Buys in Defensives
- Our 2023 outlook, initially discussed in our January 6th 2023 Int’l Compass, was for $93 to cap upside on the MSCI ACWI (ACWI-US); this has again proven prescient.
- Since late-January/early-February we have recommended shifting to defensives, and MSCI ACWI defensive Sectors including Health Care (IXJ-US), Utilities (JXI-US), and Consumer Staples (KXI-US) are now hitting 3-4-month RS highs.
- With the ACWI-US just now starting to turn down after testing $93, we continue to recommend a tactical overweight to the aforementioned defensive Sectors, and also to gold miners (GDX-US).
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