Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>US equities rebounded on Friday, snapping a recent losing streak as easing inflation concerns and renewed confidence in the AI trade lifted sentiment late in a volatile week.</li>
<li>Sony Group will acquire an additional 41% of Peanuts Holdings for about $460m, lifting ownership to 80%, consolidating the unit and booking a remeasurement gain in operating profit.</li>
<li>Nike’s earnings slump highlights China weakness and margin pressure, creating share-gain opportunities for <strong>ASICS</strong>, whose improving China margins and exposure to a healthy global running market position it favorably.</li>
</ul>


US equities rebounded on Friday, snapping a recent losing streak as easing inflation concerns and renewed confidence in the AI trade lifted sentiment late in a volatile week.
Sony Group will acquire an additional 41% of Peanuts Holdings for about $460m, lifting ownership to 80%, consolidating the unit and booking a remeasurement gain in operating profit.
Nike’s earnings slump highlights China weakness and margin pressure, creating share-gain opportunities for ASICS, whose improving China margins and exposure to a healthy global running market position it favorably.


Equity Bottom-Up

<ul>
<li>Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.</li>
<li>While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.</li>
<li>Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.</li>
</ul>


Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.
While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.
Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.


Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

<ul>
<li>Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.</li>
<li>Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.</li>
<li>Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. </li>
</ul>


Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.
Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.
Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. 


Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.</li>
<li>Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. </li>
<li>Of these, they have a combined stake of over US$1bn in 23 companies.</li>
</ul>


Following up on our earlier cross-shareholding work, in this note we look to summarize our work so far by looking at where most of the selling will likely come.
Of the seven companies that we have looked at so far, collectively they have around US$102bn worth of shares to sell in 118 companies. 
Of these, they have a combined stake of over US$1bn in 23 companies.


Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of M-Japan in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Toyota Motor, SoftBank, Rakuten, Kioxia, Sony Financial, Ebara, Honda Motor, Softbank, Ebara, Kioxia, Toyota Motor, Honda Motor, Sony Financial, Rakuten.</li>
</ul>


We analysed the earning revision of component stocks of M-Japan in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Toyota Motor, SoftBank, Rakuten, Kioxia, Sony Financial, Ebara, Honda Motor, Softbank, Ebara, Kioxia, Toyota Motor, Honda Motor, Sony Financial, Rakuten.


M-Japan Index Earning Revision (Nov): Toyota Motor, SoftBank, Rakuten, Kioxia, Sony Financial

Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

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ASICS Corp (7936 JP)

Ohayo Japan | Tech Leads Late-Week Rally

US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...

Mark Chadwick

Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Mark Chadwick

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

M-Japan Index Earning Revision (Nov): Toyota Motor, SoftBank, Rakuten, Kioxia, Sony Financial

We analyzed M-Japan's consensus for Nov 2025 and highlighted changes of EPS in Toyota Motor (7203 JP), SoftBank (9984 JP), Rakuten (4755 JP),...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Ohayo Japan | Tech Leads Late-Week Rally

​US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...

Mark Chadwick

Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

​Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Mark Chadwick

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

​Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

Mark Chadwick

Japan Cross-Shareholding - Summary Matrix - Over US$100bn of Selling in 118 Companies

Toyotal has just announced that it will buy back around 290m (around 2% of the stock) of its own shares from MS&AD, Tokio Marine, MUFG and SMFG. In...

Sumeet Singh

M-Japan Index Earning Revision (Nov): Toyota Motor, SoftBank, Rakuten, Kioxia, Sony Financial

We analyzed M-Japan's consensus for Nov 2025 and highlighted changes of EPS in Toyota Motor (7203 JP), SoftBank (9984 JP), Rakuten (4755 JP),...

Ke Yan, CFA, FRM

US equities rebounded on Friday due to easing inflation concerns and renewed confidence in the AI trade.Nike's earnings slump in China creates...

Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...