In today’s briefing:
- Nexon Buyback May Signal End To Near-Term Relative Outperformance
- ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling
- Why Japan’s Labor Productivity and Engagement Index Is Low in International Comparisons?
- Lasertec (6920) | A Monopoly with a Long Runway
Nexon Buyback May Signal End To Near-Term Relative Outperformance
- Nexon (3659 JP) founder Kim Jung Ju tried to sell his holdco in 2019, didn’t, now shares are higher, but he passed suddenly in Q1. The stock popped.
- Inheritance tax issues for the estate are complicated, but the buyback just executed might signal a “pause” for a while.
- In the meantime, recent underperformance in terms of Peer-relative earnings forecasts suggests the stock could drift.
ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling
- ExaWizards (4259 JP) raised around US$300m in its Japan IPO in Dec 2021, where its IPO had been priced at the top end of its indicative price range.
- ExaWizards is an AI service provider in Japan, it develops and delivers AI products with the aim of addressing industry and social issues.
- While in our view, we would not expect a large block to come from this lockup expiry, we could expect some scattered selling across the shareholders.
Why Japan’s Labor Productivity and Engagement Index Is Low in International Comparisons?
- Î will discuss the issues on the Nikkei article, that reports Japan’s labor productivity is the lowest among the G7 countries, and that the “engagement.”
- I believe that the lack of wage increases for Japanese workers may not be linked to their enthusiasm for their jobs, showing the OECD data on average annual wages.
- Conversely, given wages that are lower wages, well-developed social infrastructure, and a workforce capable of producing a high-quality product, some managers would want to take advantage of this business environment.
Lasertec (6920) | A Monopoly with a Long Runway
- After a 50% fall in the share price, Lasertec looks cheap on an historical basis and trades at a discount to ASML
- The secular growth outlook for its extreme ultraviolet (EUV) inspection systems is brighter than ever
- Lasertec should be a core holding for Japan growth funds on expectations for continued earnings growth and high returns on equity
Before it’s here, it’s on Smartkarma
