Japan: Softbank Group, W Scope Corp, Sunac China Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

• Softbank is apparently trying to garner a $50bn valuation for Arm at its IPO and secure $8bn in margin loans on the back of that.
• We think that is a stretch though it is certainly not impossible that it would succeed. 
• However, in terms of real value we suspect Arm could be worth less than $10bn and articulate why below.

• Nickel price was the catalyst for the share price underperformance in the last 2 weeks, especially after the Russian invasion of Ukraine which drove it up to a 100% increase.
• Its main product is a lithium-ion secondary battery separator that is critical for rechargeable battery safety. Thus the sell-off due to the higher commodity price especially nickel is unwarranted.
• W Scope Corp (6619 JP) share price has underperformed the NCM and LFP battery makers presents a compelling buying opportunity. 

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. CIFI Holdings
2. China Jinmao Holdings
3. Kaisa Group Holdings
4. Guangzhou R&F Properties
5. Sunac China Holdings

and more…

• During the period from December 2020 to February 2022, the increase in foreign ownership and the increase in Tobin’s q contributed to the increase in market capitalization.
• Since it’s difficult to expect board practices to directly affect market capitalization over one-year, I maintain the hypothesis that improving board practices raise it by leading to improving key actions.
• Regarding key actions, rather than implementation of individual shareholder return policies alone, systematic implementation of such policies in the context of growth and capital allocation management policies is more effective.