In today’s briefing:
- Tohokushinsha (2329 JP) – 3D Investment Partners Proposes Take-Private
- Timee IPO Trading – Garnered a Strong Demand, Should Pop
- Jafco Co Ltd (8595 JP): Q1 FY03/25 flash update
- Ono Sokki (6858 JP): 1H FY12/24 flash update
- Canon Marketing Japan (8060 JP): 1H FY12/24 flash update
- Sanyo Trading (3176) – Multifaceted Strategy for Growth
- Pca Corp (9629 JP): Q1 FY03/25 flash update
- Canon Marketing (8060) – Finally Using Its Cash, But It Is Walking The Walk With No Talk Behind
Tohokushinsha (2329 JP) – 3D Investment Partners Proposes Take-Private
- 3D Investment Partners, known to be activist-ish-y, purchased 18% of Tohokushinsha Film (2329 JP) in the 12 months to March 2024. They started a public activism campaign in February.
- The company has started down a better governance track, but now 3D has made a takeover proposal to Tohokushinsha, which will consider it under Special Committee.
- There are a couple of possible outcomes here which are interesting to consider. There are no other spoilers possible except those friendly to founders and management.
Timee IPO Trading – Garnered a Strong Demand, Should Pop
- Timee Inc (215A JP) raised US$300m in its Japan IPO. The IPO had been a 100% secondary selldown by existing shareholders.
- Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
- We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.
Jafco Co Ltd (8595 JP): Q1 FY03/25 flash update
- Revenue increased to JPY5.1bn (+7.3% YoY), with operating profit at JPY1.6bn (+171.7% YoY) and net income at JPY1.1bn (+32.6% YoY).
- Capital gains reached JPY2.5bn (+33.2% YoY), with JPY570mn from listed shares and JPY1.9bn from unlisted shares.
- Total investment in Q1 FY03/25 was JPY9.9bn, with JPY5.7bn for domestic VC investments and JPY4.2bn for the US.
Ono Sokki (6858 JP): 1H FY12/24 flash update
- Orders for 1H FY12/24 totaled JPY7.1bn (+27.0% YoY), with Measuring Equipment at JPY2.3bn (+14.9% YoY) and Custom Order Test Equipment and Services at JPY4.8bn (+33.7% YoY).
- Operating loss expanded to JPY478mn, recurring loss to JPY457mn, and net profit attributable to owners of the parent was JPY884mn due to a JPY1.9bn gain from the sale of fixed assets.
- Full-year FY12/24 forecast: Sales JPY12.5bn (+8.3% YoY), Operating profit JPY300mn (+115.8% YoY), Recurring profit JPY330mn (+61.8% YoY), Net income JPY1.6bn (+253.9% YoY).
Canon Marketing Japan (8060 JP): 1H FY12/24 flash update
- Sales rose 5.3% YoY to JPY318.9bn, driven by strong SI and IT infrastructure services; operating profit fell 3.9% YoY.
- FY12/24 sales forecast revised to JPY650.0bn (+6.6% YoY) due to Primagest acquisition and strong IT solutions performance.
- Segment forecasts: Consumer sales flat, Enterprise sales JPY236.2bn (+7% YoY), Professional sales JPY44.0bn (+9% YoY).
Sanyo Trading (3176) – Multifaceted Strategy for Growth
- Proactiveanddiversifiedapproachtogrowth–SanyoTrading continues to execute its transformation strategy toward generating sustainable growth, underlined by its key principles in its latest long- term plan ‘SANYO VISION 2028’.
- While sales mix improvement remains a core theme to raise profitability, we believe the company is taking a multifaceted approach to generating growth through margin enhancement efforts, sales volume expansion, and earnings-accretive M&A.
- With this, management has access to different growth levers, as the business model is inevitably influenced by economic cycles.
Pca Corp (9629 JP): Q1 FY03/25 flash update
- Q1 FY03/25 revenue was JPY3.9bn (+14.5% YoY), operating profit JPY700mn (+63.6% YoY), and net income JPY455mn (+71.1% YoY).
- Revenue by product category: conventional software JPY156mn (-55.3% YoY), cloud services JPY2.2bn (+36.4% YoY), maintenance services JPY957mn (+14.1% YoY).
- The company revised PCA software prices in July 2023 and will end packaged software sales by March 2024.
Canon Marketing (8060) – Finally Using Its Cash, But It Is Walking The Walk With No Talk Behind
- Today after the close, Canon Marketing Japan (8060 JP) announced a large Tender Offer Buyback from its parent company Canon Inc (7751 JP). Canon will tender 20mm shares (15.42%).
- This is a very capital efficient way to conduct a buyback from a parent, and an even better way for a parent to sell shares of a sub.
- This corporate action will reduce equity by 20%, and partially clean up the messy inter-company transactions which should not exist.
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