In today’s briefing:
- Tryt IPO – The Negatives – Margins Have Consistently Narrowed and Gearing Could Cap Growth
- Fast Retailing (9983) | Is China Still Recovering?
- M&A Research Institute Placement – Phenomenal Performance Since Listing Only a Year Ago
- TRYT IPO: The Bull Case
- Less Positive Disclosure Regarding the Gender Wage Gap Is Evidence of Less Positive Reasons
Tryt IPO – The Negatives – Margins Have Consistently Narrowed and Gearing Could Cap Growth
- Tryt Inc (9164 JP) is looking to raise about US$460m in its Japan IPO.
- Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
- In this note, we will talk about the not so positive aspects of the deal.
Fast Retailing (9983) | Is China Still Recovering?
- Fast Retailing’s stock price is overvalued and faces downside risks from its Q3 results (maybe), China outlook (perhaps), and index rebalancing (most likely).
- Fast Retailing has enjoyed a premium over its global peers largely due to its higher exposure to China growth. Any wobbles here could be negative catalyst
- There is also a technical issue that will likely cap the weighting of Fast Retailing in the Nikkei 225 = index selling pressure
M&A Research Institute Placement – Phenomenal Performance Since Listing Only a Year Ago
- M&A Research Institute (9552 JP)’s founder and CEO, Shunsaku Sagami, together with two other board members, aims to raise a total of US$127m through an accelerated international secondary offering.
- The deal is a small one to digest at only 3 days of three month ADV and about 8.5% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
TRYT IPO: The Bull Case
- Tryt Inc (9164 JP), a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July.
- In 2022, Tyrt was the leading provider of personnel dispatch and personnel introduction services in Japan’s welfare and nursing sector.
- The key elements of the bull case rest on large addressable markets, favourable market trends, strong pro-forma revenue growth, top quartile EBITDA margins and rising staff retention rates.
Less Positive Disclosure Regarding the Gender Wage Gap Is Evidence of Less Positive Reasons
- The few positive disclosures suggest that there are few positive companies. The question is how much progress companies will make in efforts on gender gap disparity over the next year.
- To eliminate this gap, companies need to quickly realize that human resources are valued fairly as human capital, without gender distinction, and used as a resource for growth.
- Now that stock prices have become a key measure of management, pressure from investors influencing stock prices is more effective. Deep analysis of human capital disclosures is required of investors.
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