In today’s briefing:
- Sun Corp (6736) – Still Cheap
- TSE Growth Market Reforms Also Expected to Be Effective in “Request”
- Nikkei Index Options Weekly (Mar 17 – 21): Muted Reaction to BOJ as Volatility Declines
- Workman Fixes the Big Problem: Colors Replaces Workman Joshi
- ECM Weekly (24th Mar 2025) -JX Advance, DN Solutions, Nanshan Aluminimum, Anthem, EAAA, Judo Capital
Sun Corp (6736) – Still Cheap
- Eight months on from the Tender Offer which changed the shape of the shareholder register, Sun Corp (6736 JP) is as cheap to its main asset as it was before.
- Sun Corp is cheap to its holding in Cellebrite DI (CLBT US). How cheap depends on the form and structure of its eventual exit.
- Understanding what the options are (and the dynamics around hedging/exposure) is worthwhile.
TSE Growth Market Reforms Also Expected to Be Effective in “Request”
- A drastic shift by the TSE to focus on quality without increasing the number of listed companies by reducing the number of IPO companies is not very promising.
- TSE will raise the hurdle for listing maintenance criteria slightly, but it will ask companies to make a commitment to post-listing growth during the listing examination process.
- It’ll take time for quality of market to increase, and we expect that companies that are aware of listing costs with help from investors will naturally move to de-list themselves.
Nikkei Index Options Weekly (Mar 17 – 21): Muted Reaction to BOJ as Volatility Declines
- A weekly recap of volatility and price metrics, covering option volumes, volatility trends, the spot/implied relationship, and open interest statistics.
- The Bank of Japan held rates steady, with little reaction from the Nikkei or USD/JPY amid lower option volumes.
- Implied volatility declined throughout the week, pressured by muted price action and low historic volatility.
Workman Fixes the Big Problem: Colors Replaces Workman Joshi
- Workman’s slower same-store growth can be blamed on its shift to mass market fashion and the choice of Workman Joshi as a banner, putting off male customers.
- The outdoor and workwear retailer has now acknowledged the misstep and will rebrand the chain as Workman Colors while adjusting merchandise back to more apparel basics.
- This will take time to implement but could mean a return to form for the apparel retailer.
ECM Weekly (24th Mar 2025) -JX Advance, DN Solutions, Nanshan Aluminimum, Anthem, EAAA, Judo Capital
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, JX Advanced Metals (5016 JP) managed to hold on to its deal price, riding on the copper price resurgance.
- On the placements front, Judo Capital (JDO AU) was the only largish deal over the past week.
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