In today’s briefing:
- Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation
- JPX-Nikkei 400 2022 Rebal: Final Predictions
- USDJPY Disconnect
- The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step
- Ryohin Keikaku (7453) | Oops Something Went Wrong
Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation
- Just as the December quarter was flattered by the last minute IPO of SenseTime Group (20 HK), expiration of the lockup six months later has delivered a corresonding valuation hit
- Vision Fund is still up on that investment but the public portfolio is flirting with a $10bn loss for the quarter depending on how US shares trade later
- The discount has improved modestly to 49% from 51% but remains at the high end of the recent range as worries on tech valuations cast a long shadow
JPX-Nikkei 400 2022 Rebal: Final Predictions
- JPX-Nikkei 400 is composed of stocks listed on the Tokyo Stock Exchange selected based on multiple metrics relating to size, liquidity, financial performance, and corporate governance.
- The annual rebalance of the JPX-Nikkei 400 Index takes place in August every year and the cut-off date for the data used for this rebalance is the end of June.
- In this insight, we take a look at Quiddity’s final predictions for Potential ADDs/DELs for the August 2022 review.
USDJPY Disconnect
- The slip in US yields has lead the US_Japan yield spread to move lower thereby putting USDJPY out of line with it
- The danger is that once month end is over, USDJPY may “catch up” by trending down in the short term
- In addition we see price action developments on USDJPY itself that reflects weakness in the uptrend
The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step
- I would like to discuss the Nikkei article, “Japanese asset management companies have decided to steer against a proposal to elect directors for companies that do not have female directors.
- The reason why major Japanese investment managers have been reluctant to take action on diversity and governance is likely due to the sales policies of their parent companies,
- Companies with higher percentage of women directors the boards have higher stock prices. I would like to encourage both investment managers and companies to accelerate their efforts in the future.
Ryohin Keikaku (7453) | Oops Something Went Wrong
- Ryohin Keikaku (Muji) slashed its earnings guidance for FY8/22 by 32%
- The retailer is facing a number of headwinds, only some of which are industry wide
- We remain bearish as Muji lacks the pricing power to push through higher input costs
Before it’s here, it’s on Smartkarma