In today’s briefing:
- HUGE Suruga Bank (8358 JP) Buyback
- Fast Retailing: Siding with Russia Could Be a Recipe for a Boycott
- Japan Post Holdings – Gaming Out a Five Bagger
- Japan’s Governance: Improvement in Governance of Companies that Chose Prime Market in ROA Change
HUGE Suruga Bank (8358 JP) Buyback
- In 2018, Suruga Bank got itself in trouble, the shares fell 80% or more in a year-plus. In 2019 they took a big hit, and the Okano family sold out.
- Nojima Corp (7419 JP) bought the shares -85% from the peak. Now they are selling those shares, plus the ones they already owned. Down nearly 10% from where they bought.
- This is an instant 15+% boost to BVPS and 22+% boost to EPS. That’s great. But that may be where greatness stops.
Fast Retailing: Siding with Russia Could Be a Recipe for a Boycott
- It was reported yesterday that Uniqlo plans to continue doing business in Russia despite the Ukraine war situation.
- Fast Retailing (9983 JP)’s decision to continue doing business in Russia has not gone too well with some of its customers.
- If this leads to a fully blown boycott, the price impact could be significant as the company’s valuation remains towards the expensive side even after a 45% drop in valuation.
Japan Post Holdings – Gaming Out a Five Bagger
- We have articulated why we believe Japan Post Bank and Japan Post Insurance could have 100%+ upside.
- We further believe that Japan Post Holdings also offers very significant upside potential.
- His comes not just from its subsidiaries’ performance but also improvements in post office profitability and shrinking of the holdco discount.
Japan’s Governance: Improvement in Governance of Companies that Chose Prime Market in ROA Change
- I would like to explore again how companies that have chosen the prime market have improved their corporate governance practices by the degree of improvement in ROA.
- Improvements in corporate governance practices for companies that improved ROA by more than 2% were advanced in many of the criteria other than items that newly stated in listing criteria.
- Companies that have improved their profitability may have confirmed that they have begun to move toward more effective use of cash and assets. If so, there are signs of hope.
Before it’s here, it’s on Smartkarma
