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>Sales increased by 13.3% YoY to JPY593.0bn, with operating profit rising 92.2% YoY to JPY51.9bn.</li><li>Recurring profit rose 157.7% YoY to JPY52.3bn, and net income attributable to owners increased 184.1% YoY to JPY37.2bn.</li><li>DIC revised its full-year forecast, expecting sales of JPY1.14tn and operating profit of JPY78.0bn.</li></ul>

Sales increased by 13.3% YoY to JPY593.0bn, with operating profit rising 92.2% YoY to JPY51.9bn.Recurring profit rose 157.7% YoY to JPY52.3bn, and net income attributable to owners increased 184.1% YoY to JPY37.2bn.DIC revised its full-year forecast, expecting sales of JPY1.14tn and operating profit of JPY78.0bn.

Dic Corp (4631 JP): 1H FY12/26 flash update

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/taiyo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15154:1" rel="noopener">Taiyo Holdings (4626 JP)</a> shares were up 19.1% based on a <a href="https://news.bloombergtax.com/private-equity/taiyo-holdings-gets-buyout-proposals-from-firms-including-kkr" target="_blank" rel="noopener">Bloomberg report</a> that it received privatisation proposals from KKR and Nippon Sangyo Suishin Kiko. </li>
<li>Taiyo confirmed that it has received privatisation offers. The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an <a href="https://www.corpgovfortaiyo.com/taiyo-corp-gov" target="_blank" rel="noopener">activist campaign</a>. </li>
<li>At the last close price of JPY6,230, Oasis would be up 45.9% on its highest price of JPY4,720. My analysis suggests that an offer around JPY7,000 can be justified.</li>
</ul>



Taiyo Holdings (4626 JP) shares were up 19.1% based on a Bloomberg report that it received privatisation proposals from KKR and Nippon Sangyo Suishin Kiko. 
Taiyo confirmed that it has received privatisation offers. The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an activist campaign. 
At the last close price of JPY6,230, Oasis would be up 45.9% on its highest price of JPY4,720. My analysis suggests that an offer around JPY7,000 can be justified.


Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Nomura Research Institute / Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute (4307 JP)</a> and <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a> will replace <a href="https://www.smartkarma.com/entities/nippon-paper-industries-co-l" target="_blank" data-smartkarma-citation="entities:557:1" rel="noopener">Nippon Paper Industries Co L (3863 JP)</a> and <a href="https://www.smartkarma.com/entities/dic-corp" target="_blank" data-smartkarma-citation="entities:7343:1" rel="noopener">Dic Corp (4631 JP)</a> in the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>'s CPAF will drop from 3 to 2.7 and there will be further selling in March 2025 as the CPAF drops to 2.4 (or possibly even 2.1!) </li>
<li>Passives will need to buy 7-15x ADV (13-14% of real float) in the adds and sell 2.7-6.5x ADV in the deletes. There is a big reverse funding trade too.</li>
</ul>



Nomura Research Institute (4307 JP) and Ryohin Keikaku (7453 JP) will replace Nippon Paper Industries Co L (3863 JP) and Dic Corp (4631 JP) in the Nikkei 225 (NKY INDEX). 

Fast Retailing (9983 JP)'s CPAF will drop from 3 to 2.7 and there will be further selling in March 2025 as the CPAF drops to 2.4 (or possibly even 2.1!) 
Passives will need to buy 7-15x ADV (13-14% of real float) in the adds and sell 2.7-6.5x ADV in the deletes. There is a big reverse funding trade too.


Nikkei 225 Index Rebalance: NRI, Ryohin Keikaku IN; Nippon Paper, DIC OUT; Fast Retailing Capped

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>DIC Corp is demonstrating a significant turnaround in profitability, with operating profit up 17.2% in FY12/25, driven by structural reforms and improved product mix, despite a slight decline in sales.</li>
 <li>The company holds a leading global market share in printing inks, organic pigments, and PPS compounds, providing a strong foundation for its business.</li>
 <li>Future growth is expected to be driven by a strategic shift towards high-value-added products in sectors like electronics and sustainable materials, as outlined in its 'DIC Vision 2030' plan.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  DIC Corp is demonstrating a significant turnaround in profitability, with operating profit up 17.2% in FY12/25, driven by structural reforms and improved product mix, despite a slight decline in sales.
  The company holds a leading global market share in printing inks, organic pigments, and PPS compounds, providing a strong foundation for its business.
  Future growth is expected to be driven by a strategic shift towards high-value-added products in sectors like electronics and sustainable materials, as outlined in its 'DIC Vision 2030' plan.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The <a href="https://www.smartkarma.com/entities/taiyo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15154:1" rel="noopener">Taiyo Holdings (4626 JP)</a> tender offer was expected to start around now. It is delayed because "necessary procedures and actions" under Chinese antitrust and Japan Investment Approval remain incomplete.</li>
<li>The latter is a trifle concerning, but I expect this gets done. Earnings will be better than originally guided and in the management forecast underpinning the FAs' valuations. </li>
<li>HOWEVER, they'd have to be a LOT better to trigger a re-rate. I don't think they get there but passive is big enough to make traders Oliver Twisty.</li>
</ul>


The Taiyo Holdings (4626 JP) tender offer was expected to start around now. It is delayed because "necessary procedures and actions" under Chinese antitrust and Japan Investment Approval remain incomplete.
The latter is a trifle concerning, but I expect this gets done. Earnings will be better than originally guided and in the management forecast underpinning the FAs' valuations. 
HOWEVER, they'd have to be a LOT better to trigger a re-rate. I don't think they get there but passive is big enough to make traders Oliver Twisty.


[Japan M&A] Taiyo Holdings (4626 JP) - A Last Gasp of Likely Fruitless Optionality Remains

Japan

DIC Corp. is a chemical company that specializes in printing inks, organic pigments, and thermosetting resins.  The Company also manufactures polymers, specialty plastics and compounds, and others which include building materials, pressure-sensitive adhesives materials, and biochemicals.

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Dic Corp (4631 JP)

Dic Corp (4631 JP): 1H FY12/26 flash update

Sales increased by 13.3% YoY to JPY593.0bn, with operating profit rising 92.2% YoY to JPY51.9bn. Recurring profit rose 157.7% YoY to JPY52.3bn,...

Shared Research

Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates

The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an activist campaign. My analysis suggests that...

Arun George

Nikkei 225 Index Rebalance: NRI, Ryohin Keikaku IN; Nippon Paper, DIC OUT; Fast Retailing Capped

Nomura Research Institute and Ryohin Keikaku replace Nippon Paper and DIC in the Nikkei 225. Fast Retailing will be capped (and probably again in...

Brian Freitas

Primer: Dic Corp (4631 JP) - Apr 2026

DIC Corp is demonstrating a significant turnaround in profitability, with operating profit up 17.2% in FY12/25, driven by structural reforms and...

αSK Primers

[Japan M&A] Taiyo Holdings (4626 JP) - A Last Gasp of Likely Fruitless Optionality Remains

Traders are hoping for more on Taiyo Holdings. It is probably fruitless but there are reasons why people might hope. But that is probably all it is...

Travis Lundy

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