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.

Equity Bottom-Up

<ul><li>Revenue for Q1 FY03/25 was JPY12.1bn (+27.2% YoY), with operating profit at JPY1.1bn and recurring profit at JPY1.3bn.</li><li>Electronic Materials segment revenue increased 32.7% YoY to JPY7.2bn, with an operating profit of JPY488mn (loss of JPY260mn in Q1 FY03/24).</li><li>Display Materials segment revenue increased 75.9% YoY to JPY1.3bn, with an operating profit of JPY515mn (+309.9% YoY).</li></ul>

Revenue for Q1 FY03/25 was JPY12.1bn (+27.2% YoY), with operating profit at JPY1.1bn and recurring profit at JPY1.3bn.Electronic Materials segment revenue increased 32.7% YoY to JPY7.2bn, with an operating profit of JPY488mn (loss of JPY260mn in Q1 FY03/24).Display Materials segment revenue increased 75.9% YoY to JPY1.3bn, with an operating profit of JPY515mn (+309.9% YoY).

Arisawa Mfg (5208 JP): Q1 FY03/25 flash update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Today after the close, <a href="https://www.smartkarma.com/entities/arisawa-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:18028:1" rel="noopener">Arisawa Mfg (5208 JP)</a> announced (<a href="http://www.arisawa.co.jp/jp/ir/news/data/202012021.pdf" target="_blank" rel="noopener">J-only</a>) a Partial-to-Full Tender Offer for shares of their currently 52.3%-owned (and consolidated) Taiwan-based subsidiary "We Thin Your Flex" <a href="https://www.smartkarma.com/entities/thinflex-corp" target="_blank" data-smartkarma-citation="entities:5386:1" rel="noopener">Thinflex Corp (3144 TT)</a> (website: <a href="https://www.thinflex.com.tw/" target="_blank" rel="noopener">https://www.thinflex.com.tw/</a>).<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/176/077/original/Screenshot%202020-12-02%20at%206.04.57%20PM.png?1606903603" class="editor-image img-responsive" data-smartkarma-image-id="176077"></figure></section>So far there is no announcement on emops but it should be forthcoming and when it arrives it will be <a href="https://mops.twse.com.tw/mops/web/t05st01?step=1&amp;firstin=true&amp;year=107&amp;co_id=3144" target="_blank" rel="noopener">here</a>.The deal is conditional on them getting to 70% (i.e. buying a minimum of 17.7%) but they will buy all shares tendered. The deal is also conditional on receiving regulatory approval. The Tender Offer Price announced is TWD 36.00/share, which is a relatively tiny premium of 7.1%. It is not clear this should fly at that level.

Today after the close, Arisawa Mfg (5208 JP) announced (J-only) a Partial-to-Full Tender Offer for shares of their currently 52.3%-owned (and consolidated) Taiwan-based subsidiary "We Thin Your Flex" Thinflex Corp (3144 TT) (website: https://www.thinflex.com.tw/).So far there is no announcement on emops but it should be forthcoming and when it arrives it will be here.The deal is conditional on them getting to 70% (i.e. buying a minimum of 17.7%) but they will buy all shares tendered. The deal is also conditional on receiving regulatory approval. The Tender Offer Price announced is TWD 36.00/share, which is a relatively tiny premium of 7.1%. It is not clear this should fly at that level. 

Arisawa (5208 JP) Partial Tender for ThinFlex (3144 TT)

Yesterday after the close of trading, <a href="https://www.smartkarma.com/entities/nippon-kayaku-co-ltd" target="_blank" data-smartkarma-citation="entities:6971:1" rel="noopener">Nippon Kayaku (4272 JP)</a>, which owns 66.5% of smallcap polarizing film maker <a href="https://www.smartkarma.com/entities/polatechno-co-ltd" target="_blank" data-smartkarma-citation="entities:19636:1" rel="noopener">Polatechno (4239 JP)</a>, announced a Tender Offer at a 90+% premium to take over the remaining shares of Polatechno. The Tender Offer's success is contingent on 22.38% (i.e. 66.7% of the minority tendering. That success is easily achieved as <a href="https://www.smartkarma.com/entities/arisawa-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:18028:1" rel="noopener">Arisawa Mfg (5208 JP)</a> happens to own exactly 22.38% of Polatechno and said that it <a href="http://www.arisawa.co.jp/jp/ir/news/data/201908271JP.pdf" target="_blank" rel="noopener">intended to tender the shares</a>, and sell them for ¥9.215 billion. That is a fair bit of change for a ¥31.3bn company. The company simultaneously announced a forecast revision downwards because of lower equity affiliate income going forward. To offset equity weakness going forward, they also <a href="http://www.arisawa.co.jp/jp/ir/news/data/201908272JP.pdf" target="_blank" rel="noopener">announced</a> a stock buyback. For 10% of the company. The stock is up 11% this morning as a result.If you are into small caps, or you own it, or are interested in Japan activism, it is worth a look.

Yesterday after the close of trading, Nippon Kayaku (4272 JP), which owns 66.5% of smallcap polarizing film maker Polatechno (4239 JP), announced a Tender Offer at a 90+% premium to take over the remaining shares of Polatechno. The Tender Offer's success is contingent on 22.38% (i.e. 66.7% of the minority tendering. That success is easily achieved as Arisawa Mfg (5208 JP) happens to own exactly 22.38% of Polatechno and said that it intended to tender the shares, and sell them for ¥9.215 billion. That is a fair bit of change for a ¥31.3bn company. The company simultaneously announced a forecast revision downwards because of lower equity affiliate income going forward. To offset equity weakness going forward, they also announced a stock buyback. For 10% of the company. The stock is up 11% this morning as a result.If you are into small caps, or you own it, or are interested in Japan activism, it is worth a look. 

Arisawa (5208) Activism:  Biggish Buyback, But Lots More Potential Behind

Japan

Arisawa Mfg. Co., Ltd. processes industrial materials such as fiberglass and resin molds.  The Company's products are used as electronics, optics, and insulator materials.

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Arisawa Mfg (5208 JP)