Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

Equity Bottom-Up

SUMITOMO CHEMICAL COMPANY, LIMITED manufactures chemical products.  The Company specializes in basic chemicals, petrochemicals, fine chemicals such as photo-resists, pharmaceutical intermediates, and agrochemicals.  Sumitomo Chemical operates manufacturing plants and sales offices worldwide.

<ul>
<li>Sumitomo Chemicals aims to transform from a cyclical company with low market share in declining markets into a focused entity with high market share in secular growth markets.</li>
<li>We estimate that the stock’s fair value is about 140% above the current price.</li>
<li>Results meeting on April 30 should confirm that company is on track in returning to positive cash flow and selling off core assets. </li>
</ul>


Sumitomo Chemicals aims to transform from a cyclical company with low market share in declining markets into a focused entity with high market share in secular growth markets.
We estimate that the stock’s fair value is about 140% above the current price.
Results meeting on April 30 should confirm that company is on track in returning to positive cash flow and selling off core assets. 


Sumitomo Chemical (4005): Potential Posterchild of Japan's Resurgence

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

<ul>
<li>This insight is a book review of 주주 권리가 없는 나라 (A Country Without Shareholder Rights), which is one of the best books on the corporate governance in Korea.</li>
<li>There are so much wisdom that are included in this book. The author really goes into details about numerous corporate governance problems in Korea and ways to fix them.</li>
<li>This book was published in January 2024 and it was written by a famous Korean retail investor called Park Young-Ok.</li>
</ul>


This insight is a book review of 주주 권리가 없는 나라 (A Country Without Shareholder Rights), which is one of the best books on the corporate governance in Korea.
There are so much wisdom that are included in this book. The author really goes into details about numerous corporate governance problems in Korea and ways to fix them.
This book was published in January 2024 and it was written by a famous Korean retail investor called Park Young-Ok.


A Country Without Shareholder Rights (주주 권리가 없는 나라) - A Book Review

Forensics and Corporate Governance Analyst, Beat the Street

Nimish Maheshwari

Forensics and Corporate Governance Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Forensic Accounting

Ganesh Benzoplast Ltd. manufactures specialty chemicals, preservatives, plasticizers, lubricants, and lubricant additives. The Company constructs liquid chemical storage tanks for rental by the petroleum, chemical, and oil industries.

<ul>
<li>GBL was touted as a turnaround story as few investors have shown faith by infusing the funds for further expansion</li>
<li>In a rare instance, one of the promoter member fraudlently took the loan of 45 crores in the name of the company</li>
<li>What lies ahead is the case possible fund diversion and promoter family feud</li>
</ul>


GBL was touted as a turnaround story as few investors have shown faith by infusing the funds for further expansion
In a rare instance, one of the promoter member fraudlently took the loan of 45 crores in the name of the company
What lies ahead is the case possible fund diversion and promoter family feud


Promoter Family Feud and Fund Diversion : A Rare Saga of Governance Issue at Ganesh Benzoplast

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

TKC Corporation is an consulting firm that provides accounting and tax information with local and overseas clients.  The Company provides database services for judicial precedents in tax and civil law.  TKC develops and sells personal computer and office automation equipment, and also provides nationwide management data-process consulting services.

<ul>
<li>TKC Corporation provides accounting and tax services to accounting firms (and client companies they advise), local governments, and others using its own computational centers, while subsidiary TLP Corp.</li>
<li>In full-year FY09/23, the company reported consolidated sales of JPY71.9bn, operating profit of JPY14.3bn, recurring profit of JPY14.8bn, and net income attributable to owners of the parent of JPY10.8bn.</li>
<li>TKC does not release a medium-term business plan. However, it is pursuing the following four objectives in close cooperation with TKC National Federation.</li>
</ul>


TKC Corporation provides accounting and tax services to accounting firms (and client companies they advise), local governments, and others using its own computational centers, while subsidiary TLP Corp.
In full-year FY09/23, the company reported consolidated sales of JPY71.9bn, operating profit of JPY14.3bn, recurring profit of JPY14.8bn, and net income attributable to owners of the parent of JPY10.8bn.
TKC does not release a medium-term business plan. However, it is pursuing the following four objectives in close cooperation with TKC National Federation.


Event-Driven

Celltrion Inc. produces and sells biosimilar products and also provides consignm ent processing service for other companies.  The Company's main product is Abata cept which is for arthritis treatment

<ul>
<li>In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.</li>
<li>The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.</li>
<li>All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.</li>
</ul>


In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.
The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.
All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.


Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

Corporate Governance
The slippery slope

Sumitomo Chemical (4005): Potential Posterchild of Japan's Resurgence

If you are buying Japanese stocks because of a belief in the turnaround in corporate governance, Sumitomo Chemical has the potential to become the...

Michael Allen

A Country Without Shareholder Rights (주주 권리가 없는 나라) - A Book Review

This insight is a book review of 주주 권리가 없는 나라 (A Country Without Shareholder Rights), which is one of the best books on the corporate governance in...

Douglas Kim

Promoter Family Feud and Fund Diversion : A Rare Saga of Governance Issue at Ganesh Benzoplast

The Possible case of Promoter Fund Diversion and Promoter Family Feud due to fraudulent transactions of 45 crores of loan. The impact of this is...

Nimish Maheshwari

TKC (9746): Q1 FY09/24 Update

TKC Corporation provides accounting and tax services to accounting firms (and client companies they advise), local governments, and others using...

Shared Research

Sumitomo Chemical (4005): Potential Posterchild of Japan's Resurgence

If you are buying Japanese stocks because of a belief in the turnaround in corporate governance, Sumitomo Chemical has the potential to become the...

Michael Allen

A Country Without Shareholder Rights (주주 권리가 없는 나라) - A Book Review

This insight is a book review of 주주 권리가 없는 나라 (A Country Without Shareholder Rights), which is one of the best books on the corporate governance in...

Douglas Kim

Promoter Family Feud and Fund Diversion : A Rare Saga of Governance Issue at Ganesh Benzoplast

The Possible case of Promoter Fund Diversion and Promoter Family Feud due to fraudulent transactions of 45 crores of loan. The impact of this is...

Nimish Maheshwari

TKC (9746): Q1 FY09/24 Update

TKC Corporation provides accounting and tax services to accounting firms (and client companies they advise), local governments, and others using...

Shared Research

Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

On 17 April, Celltrion Inc announced that it will buyback shares worth 75 billion won. Including 75 billion won of share repurchase last month,...

Douglas Kim