In today’s briefing:
- Trend Micro (4704) – In-Line Announcement Causes Selloff – Hopium Meets Reason
- Daiichi Kigenso Kagaku-Kogyo – Awaiting Solid Execution
- Kintetsu Uses Franchise Model to Diversify from Department Stores
Trend Micro (4704) – In-Line Announcement Causes Selloff – Hopium Meets Reason
- Last November, Trend Micro Inc (4704 JP) announced a second change to Shareholder Return Policy in 9 months. Activist ValueAct had been pushing. This was their big win.
- I discussed, bullishly, in Trend Micro BIG Bonanza But Shareholder AND Balance Sheet Structure Matter. N225 Divs Get a Fillip.
- Yesterday, with 2024 earnings, we got the promised special dividend and 2024 buyback, and in-line forecasts. No surprises. But the stock is down hard as yesterday’s hopium met today’s reason.
Daiichi Kigenso Kagaku-Kogyo – Awaiting Solid Execution
- Q1-3 FY3/24 results were in line with company guidance, reflecting the strategic importance for DKK to scale its new growth initiatives.
- Ongoing positive developments related to semiconductor, secondary battery, and biomaterial applications were offset by weakness in electronics and the mature profile of the core automotive catalyst business.
- Operating a business model that is externally driven (such as FX movements and market pricing), the company has disclosed ROIC targets that coincide with its current 10- year plan for FY3/32.
Kintetsu Uses Franchise Model to Diversify from Department Stores
- Kintetsu has been expanding the number of direct franchises in its stores for the past five years.
- It now plans to open as many as 100 franchises both in its own properties and in third-party locations, including new franchises from overseas.
- The department store has set a target for nearly 40% of sales from this source by 2026.
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