Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>
<a href="https://www.smartkarma.com/entities/gmo-financial-gate-inc" target="_blank" data-smartkarma-citation="entities:35234:1" rel="noopener">GMO Financial Gate (4051 JP)</a> and <a href="https://www.smartkarma.com/entities/azoom-co-ltd" target="_blank" data-smartkarma-citation="entities:32232:1" rel="noopener">Azoom (3496 JP)</a> have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.</li>
<li>
<a href="https://www.smartkarma.com/entities/kitazato-corp" target="_blank" data-smartkarma-citation="entities:45255:1" rel="noopener">Kitazato (368A JP)</a> is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July. </li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.

GMO Financial Gate (4051 JP) and Azoom (3496 JP) have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.

Kitazato (368A JP) is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July. 


TOPIX Inclusions: Who Is Ready (Jun 2025)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Event-Driven

<ul>
<li>MBK has made a legally binding bid for <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a>. Stay long if you still hold or buy the dip. Buy at under ¥11,200.</li>
<li>Given the share price decline, <a href="https://www.smartkarma.com/entities/nufarm-ltd-australia" target="_blank" data-smartkarma-citation="entities:1128:1" rel="noopener">Nufarm (NUF AU)</a>'s board is under pressure to do "something". Nufarm would be better off selling its entire operations, as opposed to offloading divisions.</li>
<li>
<a href="https://www.smartkarma.com/entities/dic-corp" target="_blank" data-smartkarma-citation="entities:7343:1" rel="noopener">Dic Corp (4631 JP)</a> is (also) under pressure from activist Oasis Management. Buy large dips rather than chase another day of a big gain.</li>
</ul>


MBK has made a legally binding bid for Makino Milling Machine Co (6135 JP). Stay long if you still hold or buy the dip. Buy at under ¥11,200.
Given the share price decline, Nufarm (NUF AU)'s board is under pressure to do "something". Nufarm would be better off selling its entire operations, as opposed to offloading divisions.

Dic Corp (4631 JP) is (also) under pressure from activist Oasis Management. Buy large dips rather than chase another day of a big gain.


Last Week in Event SPACE: Makino Milling Machine, Nufarm, Dic Corp, HKBN

Travis Lundy

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/gmo-internet-group-inc" target="_blank" data-smartkarma-citation="entities:13631:1" rel="noopener">GMO Internet Group (9449 JP)</a> subsidiary <a href="https://www.smartkarma.com/entities/gmo-payment-gateway-inc" target="_blank" data-smartkarma-citation="entities:1492:1" rel="noopener">GMO Payment Gateway (3769 JP)</a> announced its subsidiary <a href="https://www.smartkarma.com/entities/gmo-financial-gate-inc" target="_blank" data-smartkarma-citation="entities:35234:1" rel="noopener">GMO Financial Gate (4051 JP)</a> would move to TSE Prime 5 June.</li>
<li>That means it moves to TOPIX at the close of trading 30 July 2025.</li>
<li>This growth stock appears to have "de-growthed" somewhat in stock price terms - trading near its IPO price from covid era, so it is worth a look.</li>
</ul>


Today after the close, GMO Internet Group (9449 JP) subsidiary GMO Payment Gateway (3769 JP) announced its subsidiary GMO Financial Gate (4051 JP) would move to TSE Prime 5 June.
That means it moves to TOPIX at the close of trading 30 July 2025.
This growth stock appears to have "de-growthed" somewhat in stock price terms - trading near its IPO price from covid era, so it is worth a look.


[Quiddity Index] GMO (9449) Sub GMO Financial Gate (4051) Moves to TOPIX

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.</li>
<li>Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.</li>
<li>Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.</li>
</ul>


The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.
Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.
Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.


GMO Financial Gate (4051 JP): Speculative Buy on Weakness

Japan

GMO Financial Gate, Inc. develops and manufactures transaction management systems. The Company produces and sells cashless payment systems and equipment. GMO Financial Gate provides its services throughout Japan.

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GMO Financial Gate (4051 JP)

TOPIX Inclusions: Who Is Ready (Jun 2025)

There are currently 121 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 140 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

Last Week in Event SPACE: Makino Milling Machine, Nufarm, Dic Corp, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

[Quiddity Index] GMO (9449) Sub GMO Financial Gate (4051) Moves to TOPIX

GMO Group subsidiary GMO Financial Gate - which provides cashless payment infra - will move to TSE Prime next week, which means moving to TOPIX at...

Travis Lundy

GMO Financial Gate (4051 JP): Speculative Buy on Weakness

A speculative investment in what could be exponential growth in cashless payments in Japan. Valuations very high, but share price down 25% from...

Scott Foster

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