In today’s briefing:
- Nintendo – Switch Pro Leaks And Implications For Developers
- Aslead To Exit Fuji Kosan, Leaving Would-Be Activist Shigeta-San
- Pola Orbis: Our Preferred Choice Leading up The Reopening of Japan to Foreign Tourists
- Askul Corp – Q3 22 Results Reaction: Margin Concerns Hold Back Shares Despite Beat
- Japan’s Governance: About Articles on TSE Market Reorganization
- S Foods (2292): Raising TP; Expect Strong Prices in the Short-Term
Nintendo – Switch Pro Leaks And Implications For Developers
- Recent hacks into Nvidia have resulted in leaks that have got the rumour mills churning again for an upgrade to the Switch.
- Most details are similar to previous reporting by Bloomberg for the Switch Pro that was expected last year but failed to materialise.
- However, the recent leaks point to a bigger GPU upgrade that previously envisioned and that has implications…
Aslead To Exit Fuji Kosan, Leaving Would-Be Activist Shigeta-San
- Last year, Aslead Capital tried a hostile partial tender offer on Fuji Kosan, perhaps to get in, or perhaps to try to trigger an overbid to exit.
- Fuji Kosan Company (5009 JP) made life difficult for them, and Aslead backed down. Now the stock has fallen 25% from where they made their Tender Offer.
- And now they are selling. That will leave ENEOS and SHIGETA Mitsutoki as the two largest shareholders…. 👀
Pola Orbis: Our Preferred Choice Leading up The Reopening of Japan to Foreign Tourists
- With Omicron under control, Japan is expected to relax home quarantine requirements for foreign travellers some time or the other.
- Meanwhile, Google Mobility data hints that domestic customers are starting to head back to places like shopping centres, suggesting an improvement in demand conditions.
- Based on valuation and the price performance trend, long time underperformer Pola Orbis Holdings (4927 JP) seems like the best option to capitalise on the reopening of Japan to foreign tourists.
Askul Corp – Q3 22 Results Reaction: Margin Concerns Hold Back Shares Despite Beat
- Q3 22 results were in-line/ahead of consensus expectations but shares fell 7% today anyway
- Operating profit fell 10% as improvements in operating losses for new businesses like Lohaco and logistics were not enough to make up for higher spending in the core B2B segment
- Despite the decline, Askul shares have largely outperformed peers YTD on optimism over the planned launch of quick commerce business Yahoo!Mart announced in late January
Japan’s Governance: About Articles on TSE Market Reorganization
- TSE will begin market reclassification on April 4. Nikkei introduced some of the issues and problems related to this, and I would like to share my thoughts on these issues.
- This market reorganization is far from what investors desired. TSE, which charges listing fees from the listed companies, is more likely to bend to the wishes of the listed companies.
- I believe that what should have been reformed was not the reorganization of market segments but the revision of TOPIX, and TSE market reorganization missed the point from the beginning.
S Foods (2292): Raising TP; Expect Strong Prices in the Short-Term
We have updated our earnings forecast for S Foods (2292, the company) and raised our target price to 5,300 yen from 4,900 yen
We have raised our OP forecasts from 12.9bn yen to 17.3bn yen (+36.9% YoY) for FY2/22, 13.6bn yen to 17.5bn yen for FY2/23, and 14.6bn yen to 16.3bn yen for FY2/24
In calculating our target price, we used a residual income model (RIM) with a cost of equity of 6.0% (unchanged) and a terminal growth rate of 0.4% (unchanged), based on our earnings forecasts for FY2/22-FY2/27 (updated due to progress of the term)
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