Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

TOPIX Inclusions:  New Regulations! Who Is READY? 2.0

Smartkarma Webinar | TOPIX Inclusion Trades: Strategies for Japanese Small-Caps

Historical TOPIX Inclusions:  What Flavor Performs Best?

TOPIX Inclusion (4765 JP): Morningstar Japan

Nippon Rietec's (1938) Gangbusters TOPIX Inclusion

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

In an insight in July 2020, <a href="https://skr.ma/7bQ9n" target="_blank" rel="noopener">TOPIX Inclusion Pre-Events: Who Is Ready?</a>, I discussed the results of a screening process that identified TSE2, MOTHERS, and JASDAQ-listed stocks which were capable of satisfying most of the TSE1 Section Transfer Requirements and had a high potential to move to TSE1 in the following months.Among these stocks, I highlighted <a href="https://www.smartkarma.com/entities/shinnihonseiyaku-co-ltd" target="_blank" data-smartkarma-citation="entities:28122:1" rel="noopener">Shinnihonseiyaku Co Ltd (4931 JP)</a> to be the top pick for a pre-event bet at that time due to its potentially attractive inclusion parameters and the recent expiry of its one-year post-IPO waiting period. Since then, the stock has rallied 90%+. Today after market close, <a href="https://www.smartkarma.com/entities/shinnihonseiyaku-co-ltd" target="_blank" data-smartkarma-citation="entities:28122:1" rel="noopener">Shinnihonseiyaku Co Ltd (4931 JP)</a> announced that they have <a href="https://contents.xj-storage.jp/xcontents/AS04814/091a7183/46ee/419c/95b0/77bcfea2984e/140120201124427377.pdf" target="_blank" rel="noopener">received approval</a> to move from the Mothers Section to TSE1 or TSE2 as of 15th December 2020. In conjunction, they also announced <a href="https://contents.xj-storage.jp/xcontents/AS04814/d99a915b/14c9/455e/95ce/5dc8026ead1d/140120201124427378.pdf" target="_blank" rel="noopener">a sale of shares</a> for a total quantity of 2,070,000 shares including the over-allotment portion. Although the final market section has not been confirmed yet, we expect this to be TSE1 and we anticipate a confirmation by the company on this once the above-mentioned share sale is successfully executed.  Consequently, TSE1 reassignment would trigger inclusion into the TOPIX Index and the Inclusion Event could be at the close of trading 28th January 2021. <a href="https://www.smartkarma.com/entities/shinnihonseiyaku-co-ltd" target="_blank" data-smartkarma-citation="entities:28122:1" rel="noopener">Shinnihonseiyaku Co Ltd (4931 JP)</a> provides cosmetics, pharmaceuticals, and health foods in Japan and internationally. The company provides skincare products under the Perfect One brand and they operate through online, mail order, and direct store channels. In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

In an insight in July 2020, TOPIX Inclusion Pre-Events: Who Is Ready?, I discussed the results of a screening process that identified TSE2, MOTHERS, and JASDAQ-listed stocks which were capable of satisfying most of the TSE1 Section Transfer Requirements and had a high potential to move to TSE1 in the following months.Among these stocks, I highlighted Shinnihonseiyaku Co Ltd (4931 JP) to be the top pick for a pre-event bet at that time due to its potentially attractive inclusion parameters and the recent expiry of its one-year post-IPO waiting period. Since then, the stock has rallied 90%+. Today after market close, Shinnihonseiyaku Co Ltd (4931 JP) announced that they have received approval to move from the Mothers Section to TSE1 or TSE2 as of 15th December 2020. In conjunction, they also announced a sale of shares for a total quantity of 2,070,000 shares including the over-allotment portion. Although the final market section has not been confirmed yet, we expect this to be TSE1 and we anticipate a confirmation by the company on this once the above-mentioned share sale is successfully executed.  Consequently, TSE1 reassignment would trigger inclusion into the TOPIX Index and the Inclusion Event could be at the close of trading 28th January 2021. Shinnihonseiyaku Co Ltd (4931 JP) provides cosmetics, pharmaceuticals, and health foods in Japan and internationally. The company provides skincare products under the Perfect One brand and they operate through online, mail order, and direct store channels. In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.  

TOPIX Inclusion (4931 JP): Shinnihonseiyaku