Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>YFO has played a relatively upfront game for <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a> - badly at first, then better. </li>
<li>With <a href="https://www.smartkarma.com/entities/takashimaya-co-ltd" target="_blank" data-smartkarma-citation="entities:370:1" rel="noopener">Takashimaya (8233 JP)</a> and <a href="https://www.smartkarma.com/entities/h2o-retailing-corp" target="_blank" data-smartkarma-citation="entities:17562:1" rel="noopener">H2O (8242 JP)</a> now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.</li>
<li>
<a href="https://www.smartkarma.com/entities/skyworth-group-limited" target="_blank" data-smartkarma-citation="entities:10941:1" rel="noopener">Skyworth Group Limited (751 HK)</a>'s latest buyback offers a minimum proration of 7.8%, although applying the last buyback two years ago, it's likely to be 13%+.</li>
</ul>


YFO has played a relatively upfront game for Toyo Construction (1890 JP) - badly at first, then better. 
With Takashimaya (8233 JP) and H2O (8242 JP) now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.

Skyworth Group Limited (751 HK)'s latest buyback offers a minimum proration of 7.8%, although applying the last buyback two years ago, it's likely to be 13%+.


Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Takashimaya and H2O Retailing entered what felt like a forced engagement of convenience in 2008 when all their other competitors were busy merging.</li>
<li>Although discussions for a full merger were held, in truth, thea agreement was more about practical collaboration to create more efficiencies. </li>
<li>With both firms now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.</li>
</ul>


Takashimaya and H2O Retailing entered what felt like a forced engagement of convenience in 2008 when all their other competitors were busy merging.
Although discussions for a full merger were held, in truth, thea agreement was more about practical collaboration to create more efficiencies. 
With both firms now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.


Thematic (Sector/Industry)

<ul>
<li>With convenience stores at saturation, the question is how the big 3 chains, Seven Eleven, <a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a> and Familymart can grow.</li>
<li>Their long-standing reputation for innovation is deserved and they continue to adjust quickly to new realities, including during Covid. </li>
<li>They are also now creating new events, hybrid stores and even advertising revenue streams. The following is a review of the key strategies of the big 3 chains.</li>
</ul>


With convenience stores at saturation, the question is how the big 3 chains, Seven Eleven, Lawson Inc (2651 JP) and Familymart can grow.
Their long-standing reputation for innovation is deserved and they continue to adjust quickly to new realities, including during Covid. 
They are also now creating new events, hybrid stores and even advertising revenue streams. The following is a review of the key strategies of the big 3 chains.


Japan's Big 3 Convenience Stores Try to Innovate Out of Saturation

<ul>
<li>OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.</li>
<li>It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.</li>
<li>Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.</li>
</ul>


OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.
It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.
Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.


Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>J-Front Retailing, a Japanese department store operator, will announce full-year results on April 11.</li>
<li>We expect FY2/23 guidance to be more optimistic as Japan normalises post COVID. </li>
<li>Pent up demand for luxury goods to drive recovery of department stores. J-Front is still trading below book value.</li>
</ul>


J-Front Retailing, a Japanese department store operator, will announce full-year results on April 11.
We expect FY2/23 guidance to be more optimistic as Japan normalises post COVID. 
Pent up demand for luxury goods to drive recovery of department stores. J-Front is still trading below book value.


J-Front (3086) | Recent Datapoints Point to High-End Shoppers Loosening the Purse Strings

Japan

H2O RETAILING CORPORATION founded in Osaka in 1929, operates railway terminal department stores.  The Company's main store is located at Hankyu terminal in Umeda (Osaka) and sells clothing, foods, sundry goods, furniture, and household utensils.  H2O Retailing also operates restaurants and coffee shops.

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H2O Retailing (8242 JP)

Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

The long weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Takashimaya and H2O Cancel Tie-Up

Takashimaya and H2O Retailing originally discussed merger in 2008 at the height of department store defensive measures but never really committed....

Michael Causton

Japan's Big 3 Convenience Stores Try to Innovate Out of Saturation

The big 3 Japanese convenience stores are continuing to innovate in an effort to offset saturation and changing work patterns. They will remain...

Michael Causton

OK Super: Winning in Inflation Era

OK Corporation runs Japan's most successful discount supermarket operation and is a benchmark to measure its listed competitors. It is likely to...

Michael Causton

J-Front (3086) | Recent Datapoints Point to High-End Shoppers Loosening the Purse Strings

J-Front Retailing is a beneficiary of COVID normalisation and eventual resumption of inbound tourism. The restructuring and cost cuts bode well for...

Mark Chadwick

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