In today’s briefing:
- Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion
- Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance
- Rorze (6323) | Q1 Miss, Buying Opp
- Initiation – OHBA (9765 JP)
- How Much Can ‘effort Targets’ Speed up the Narrowing of the Gender Pay Gap?
Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion
- Plus Alpha Consulting (4071 JP) listed on TSE Growth at end-June 2021 at ¥2300/share, which was 90x the trailing fiscal year’s earnings. but only about 65x then-current year earnings.
- The stock popped 20+% on Day 1 to close ¥2803. Last Friday, two years and 13% higher at ¥3185/share, the company announced a Secondary Offering and move to TSE Prime.
- It’s a big offering. It’s a smaller TOPIX inclusion event. Next spring we’ll see more upweights.
Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance
- Gasoline retail prices have caught up with declining wholesale prices, and it should lead to around 16-20% QoQ decrease in retail fuel margin to ¥35-37 cents per gallon.
- US gas station merchandise sales exhibited weak performance this year, experiencing YoY growth rates of 5%, -2%, -15%, -17%, and -22% during the first five months.
- We anticipate around 25% downside for Seven & I Holdings (3382 JP) after earnings, as it may face challenges in achieving its FY24 guidance.
Rorze (6323) | Q1 Miss, Buying Opp
- Rorze’s stock price has risen 35% since we became bullish on the stock in August
- Q1 sales and operating profits big miss versus analyst consensus due to slowing semicon capex cycle
- We would be buying into any stock weakness with an eye on recovery in 2H23 into 2024
Initiation – OHBA (9765 JP)
- OHBA is a general construction consulting firm boasting a leading market share in the field of urban development, with potential to reap the benefits of the long- term shift to compact and smart cities in rural areas.
- Since its establishment in 1922, the company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory
- This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei and Mitsui Trust.
How Much Can ‘effort Targets’ Speed up the Narrowing of the Gender Pay Gap?
- Since very few companies disclosed challenges, efforts to resolve them and progress, it’s unlikely that ‘gender pay gap’ will be disclosed in convincing manner, with this being the only exception.
- Japan’s Law for the Promotion of Women’s Activities does not prohibit gender discrimination and is not legally binding on gender equality, so the wage gap is only an effort target.
- While some proactive companies may accelerate their efforts as disclosures reveal gender pay gap, many are likely to move at modest pace to match the pace of those around them.
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