In today’s briefing:
- Oriental Land: Google Search Signals Potential Miss; Guidance Could Challenge Consensus Optimism
- EQD | Nikkei 225 MONTHLY Rally May Be Finally Coming
- Kokusai Electric IPO Trading – Decent Demand, Now for the Real Test
- Companies with over 50% Independent Directors Have High Profitability and Stock Valuations
Oriental Land: Google Search Signals Potential Miss; Guidance Could Challenge Consensus Optimism
- During 2QFY24, Tokyo Disneyland and Tokyo DisneySea both saw a QoQ decline in Google search interest.
- This suggests to us that there might be an earnings miss when Oriental Land (4661 JP) reports its FQ2 results on October 30, 2023.
- Additionally, there are potential downside risks to both FY24 and medium-term consensus projections following a revised FY24 guidance announcement.
EQD | Nikkei 225 MONTHLY Rally May Be Finally Coming
- The Nikkei 225 (NKY) INDEX closed last week down at 31259.36. It’s currently trading between the Q2 and Q3 WEEKLY support levels and down for 4 months, so it’s OVERSOLD.
- The index could reverse this week, or fall more into the end of October, but if this week closes down, the odds are very good for a rally in November.
- Consider going LONG between here and supports in the 30600-30400 price area, a MONTHLY reversal could last at least 2-4 weeks (a month).
Kokusai Electric IPO Trading – Decent Demand, Now for the Real Test
- KKR raised around US$730m via selling a stake in Kokusai Electric’s (6525 JP) (KE) Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In our previous notes we have looked at the company’s past performance, undertaken a peer comparison and looked at valuations. In this note, we talk about the trading dynamics.
Companies with over 50% Independent Directors Have High Profitability and Stock Valuations
- While the number of companies with majority of independent directors is still small (15.7% of the Metrical Universe as of September 2023), the number of those companies is steadily increasing.
- The group of companies with over 50% independent director are superior in market capitalization, ratio of foreign shareholders, ratio of female board members, ROE, ROA, Tobin’s Q, and Metrical Score.
- Given that the presence of overseas investors remains high, profitability, share price valuation, and corporate governance practices such as independent director ratios will continue to improve in the future.
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