In today’s briefing:
- Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine
- TOPIX Inclusions: Who Is Ready (Dec 2024)
- EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.
- Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update
- i-mobile Co Ltd (6535 JP): Q1 FY07/25 flash update
- Torex Semiconductor (6616 JP) – Q2 Follow-Up
Thinking About Topcon (7732) And the New METI-Enabled Bad Cop-Good Cop Routine
- A Bloomberg article today said Topcon Corp (7732 JP) is weighing takeover bids received from KKR and EQT. ValueAct has been pressuring the company for 18mos (5+% in May23)
- ValueAct has apparently been pushing the company to divest assets and concentrate on core ops, or go private (and have someone else do it).
- This is further evidence of the METI-enabled “Bad Cop-Good Cop Routine” which could expand M&A and governance activity dramatically.
TOPIX Inclusions: Who Is Ready (Dec 2024)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Reently-Listed Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), and Intermestic (262A JP) were added to the TOPIX index at the end of November 2024.
- Our long-term pre-event candidate Japan Eyewear Holdings (5889 JP) has applied for a Section Transfer to the Prime Market which means there could be TOPIX Inclusion in the near future.
EQD | The Nikkei’s Wavering Trend: LONG Investors Should Brace For A Pullback.
- The Nikkei 225 Index continues its going nowhere trend: there is a pattern however in what it does and it’s quite repetitive as of lately.
- While we don’t attribute predictive value to chart patterns, we do know that a flat trend sooner or later breaks out.
- Our models see limited upside for the current range-bound mini rally (2 weeks in the making). Next we will have a pullback, and it could happen already after this week.
Poletowin Pitcrew Holdings (3657 JP): Q3 FY01/25 flash update
- Revenue grew 10.8% YoY to JPY37.3bn, driven by Overseas Solutions order growth and yen depreciation impact.
- Operating profit decreased 9.7% YoY to JPY634mn due to business liquidation expenses and additional game co-development costs.
- Revenue from animation production increased YoY, but Media Contents faced a loss due to joint game development costs.
i-mobile Co Ltd (6535 JP): Q1 FY07/25 flash update
- In Q1 FY07/25, the company reported revenue of JPY4.4bn, operating profit of JPY1.1bn, and net income of JPY720mn.
- Consumer Service business revenue was JPY3.8bn, with a segment profit of JPY1.1bn, and promotion costs of JPY2.2bn.
- Online Advertising business revenue was JPY644mn, segment profit was JPY34mn, and promotion costs were JPY114mn.
Torex Semiconductor (6616 JP) – Q2 Follow-Up
- TOREX SEMICONDUCTOR announced 1H FY25/3 consolidated financial results at 16:00 on Thursday 11/14, and it held a results briefing on Tuesday 11/19 at 16:00.
- Headline numbers were consolidated net sales -5.5% YoY, operating profit +277.2% YoY, and profit attributable to owners of parent turning into the black.
- However, in a pattern similar to the three months for Q2-only last term, profits dropped into losses, from an operating loss of JPY 133 million for FY24/3 Q2 (OPM -1.9%) → an operating loss of JPY 28 million for FY25/3 Q2 (OPM -0.4%), partly reflecting the high electricity rates for Phenitec, citing the prolonged adjustment of distribution inventories due to a slowdown in demand for industrial equipment as well as general consumer electronics, and a pause in the recovery of the China market.
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