In today’s briefing:
- Softbank Group – SenseTime Rally Offsets Some of China Weakness but Q3 Vision Fund in the Red
- Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index
- Square Enix – Is the 7% NFT Bump Sustainable?
- Ohsho Food Service (9936): Record High Sales for December
- Japan’s Governance: How Far Has Corporate Governance Progressed in 2021 (2)
Softbank Group – SenseTime Rally Offsets Some of China Weakness but Q3 Vision Fund in the Red
- We estimate Vision Fund portfolio companies lost $2.1bn in value in Q3 as upside from new listings was not enough to offset valuation losses from the current portfolio.
- A strong debut for SenseTime boosted Q3 gains by $2.3bn and +$1.7bn this week. That takes the sting out of weak Didi Q3 results but China remains a challenge.
- Shares trade at a 49% discount to NAV because investment losses both lower NAV and boost balance sheet concerns.
Japan Prime Realty REIT (8955 JP): Offering Could Trigger Outperformance Vs TSEREIT Index
- Today after the close, Japan Prime Realty Investment (8955 JP) (“JPR”) announced a follow-on equity offering to fund part of their recently announced property acquisition.
- The primary offer quantity is 38,100 units. In addition, there will also be an over-allotment quantity of 1,900 units. The total size of this offering could be roughly ¥16bn (~US$135mn).
- Below, we take a look at the attractiveness of JPR’s latest offering with greater emphasis on the potential for strong post-offering secondary market performance.
Square Enix – Is the 7% NFT Bump Sustainable?
- Square Enix rose 7.5% yesterday driven by some New Year commentary on integration of NFTs from President Yosuke Matsuda.
- The share price jump stands in contrast to broadly negative and suspicious reactions from consumers.
- The handling of the issue could be tricky as Ubisoft is finding out but we believe there is positive potential.
Ohsho Food Service (9936): Record High Sales for December
- Ohsho Food Service (9936, the company) disclosed monthly data for its directly-owned stores for December (on a preliminary basis)
- Same-store sales were 105.3% vs. December 2020 (same month last year = 100%; 100.6% for November)
- In December, the company opened one new store (one directly-owned store) and closed no store
Japan’s Governance: How Far Has Corporate Governance Progressed in 2021 (2)
- With regard to the key actions actually taken by listed companies, this article will take a look at how much the efforts of companies have improved over the past year.
- We have reviewed the effective use of cash and assets, but we have not been able to confirm any clear use that would lead us to expect growth.
- While stock prices and valuations are rising, the slight decline in the ratio of foreign shareholders may have something to do with the sluggish growth in ROE and ROA.
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