In today’s briefing:
- Nihon M&A: Puts Aside Mid-Term Growth Plan by Two Years
- Rather, Listing Criteria for Prime Market Should Be Modified to the Original Concept of the Market
Nihon M&A: Puts Aside Mid-Term Growth Plan by Two Years
- Nihon M&A reported 4QFY03/2023 results last week. Revenue increased 86.7% YoY to ¥11.4bn (vs consensus ¥10.0bn) while OP for the quarter more than quadrupled to ¥4.2bn (vs consensus ¥4.9bn).
- Full-Year FY03/2023 revenue of ¥41.3bn and OP of ¥15.3bn were slightly below guidance of ¥42bn and ¥18bn respectively and the company has put aside its medium-term growth plan by 2years.
- We continue to prefer Baycurrent over Nihon M&A Center (2127 JP) in the Japanese consulting/M&A space as Baycurrent continues to make strong progress.
Rather, Listing Criteria for Prime Market Should Be Modified to the Original Concept of the Market
- While the listing criteria aren’t consistent with the initial concept of the prime market, “investment targets for global investors,” “transitional” companies that don’t meet those listing criteria are allowed listing.
- Delisting through TOB or MBO will lead to the metabolism of listed companies and maintain the quality of the TSE as an “investment target for global investors” market.
- It is not about bringing “transitional” companies into compliance with the listing criteria of the prime market, but about modifying the listing criteria to the original concept of the market.
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