In today’s briefing:
- Noritsu Koki (7744) – PAAAAYDAAAAY!
- SBI Sumishin Net Bank Pre-IPO – The Positives – Past Growth Has Been Decent
- JMDC (4483 JP) – A Change of Ownership, and Future Path
- Hoya – We Are Increasingly Confident About a Semi Capex Decline
- SBI Sumishin Net Bank Pre-IPO – The Negatives – It’s Not Really a Digital Lender
- Japan’s Governance: Articles About Zojirushi Corporation (7965)’s General Meeting of Shareholders
- Can Do to Double Stores in 5 Years – and Boost Profits Too
- Koshidaka Holdings (2157): 1H Guidance Revised
Noritsu Koki (7744) – PAAAAYDAAAAY!
- Noritsu Koki (7744 JP) just sold two-thirds of its stake in subsidiary JMDC Inc (4483 JP) to Omron Corp (6645 JP) for ¥112bn – pretty good for a ¥61bn marketcap.
- This is the payday for those who have been long NK as a proxy for JMDC and possibly short JMDC against it. Now the shape of the company is different.
- A closer look at the pro-forma financial profile is warranted. It’s a lot of money. BUT… if you look today and buy today you do NOT get the special div!
SBI Sumishin Net Bank Pre-IPO – The Positives – Past Growth Has Been Decent
- SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
- SSNB is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group, a financial services firm.
- The deal, if successful, would be Japan’s first online-only bank to go public. In this note we will talk about the positive aspects of the deal.
JMDC (4483 JP) – A Change of Ownership, and Future Path
- JMDC Inc (4483 JP) or formerly Japan Medical Device Corp was incubated then IPOed by Noritsu Koki (7744 JP). Noritsu Koki is now selling two-thirds of its stake to OMRON.
- OMRON’s heft should help JMDC grow better with larger clients. That’s the bet OMRON is making too.
- The sale by Noritsu Koki reduces potential overhang from a share sale which heretofore had been a possibility.
Hoya – We Are Increasingly Confident About a Semi Capex Decline
- We spoke to Hoya today to understand market trends in both the semi and healthcare areas.
- Overall, business conditions remain strong although momentum appears stronger for the Life Care segment.
- More pertinently, we interpret some of the commentary on the semi capex side as suggesting some downside risk to overall spend.
SBI Sumishin Net Bank Pre-IPO – The Negatives – It’s Not Really a Digital Lender
- SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
- SSNB is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group, a financial services firm.
- The deal, if successful, would be Japan’s first online-only bank to go public. In this note we will talk about the not so positive aspects of the deal.
Japan’s Governance: Articles About Zojirushi Corporation (7965)’s General Meeting of Shareholders
- While Zojirushi proposed a takeover defense plan at this AGM, it again rejected a shareholder proposal. This article will discuss this in conjunction with the Nikkei article.
- Zojirushi’s board practices are generally in place except for the introduction of anti-takeover, but the decision to introduce anti-takeover would be often made independently of other board practice improvements.
- There are some issues with key actions. Especially, unclear growth policy, capital allocation and IR disclosure would have affected the stock performance and the earnings outlook.
Can Do to Double Stores in 5 Years – and Boost Profits Too
- 100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.
- With more flexible pricing models and high demand for discount retailing, there is optimism again.
- Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.
Koshidaka Holdings (2157): 1H Guidance Revised
2Q OP guidance of 1.160bn yen, first quarterly positive OP under the pandemic
On February 21, Koshidaka Holdings (2157, the company) announced a revision to its 1H FY8/22 (Sep. 2021-Feb. 2022) guidance
The company lowered its sales guidance from 17.063bn yen to 16.305bn yen (+34.6% YoY)
Before it’s here, it’s on Smartkarma
