Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Sojitz is a mid-tier sōgō shōsha with, shifting its earnings base from coal and resources toward Chemicals, Energy Solutions, and Healthcare.</li>
<li>FY25 profit is guided flat at ¥115bn, with Metals weakness offset by non-resource growth; by FY27, ~80% of profits are expected from non-resource segments.</li>
<li>Shares trade at 7.8x P/E (30–40% discount to peers) with a 4.2% yield, but cash flow volatility, coal exposure, and smaller scale remain key overhangs.</li>
</ul>


Sojitz is a mid-tier sōgō shōsha with, shifting its earnings base from coal and resources toward Chemicals, Energy Solutions, and Healthcare.
FY25 profit is guided flat at ¥115bn, with Metals weakness offset by non-resource growth; by FY27, ~80% of profits are expected from non-resource segments.
Shares trade at 7.8x P/E (30–40% discount to peers) with a 4.2% yield, but cash flow volatility, coal exposure, and smaller scale remain key overhangs.


Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

Pan Pacific International Holdings / Index Rebalance

Pan Pacific International Holdings (7532 JP)

<ul>
<li>Today, the results of the Nikkei 225 Sep2025 Periodic Review were announced, discussed in <a href="https://www.smartkarma.com/insights/quiddity-index-nikkei-225-sep25-review-shift-3697-in-citizen-watch-7762-out-kokusai-misses" target="_blank" data-smartkarma-citation="insights:200727" rel="noopener">[Quiddity Index] Nikkei 225 Sep25 Review: Shift (3697) In, Citizen Watch (7762) Out. Kokusai Misses</a>. </li>
<li>That means we can look at the March 2026 Periodic Review with a fair bit of accuracy. </li>
<li>It is likely to be the runner-ups in the Sep25 review, though the second-runner-up ADD needs a stock split to have any chance. As always, more below the fold!</li>
</ul>


Today, the results of the Nikkei 225 Sep2025 Periodic Review were announced, discussed in [Quiddity Index] Nikkei 225 Sep25 Review: Shift (3697) In, Citizen Watch (7762) Out. Kokusai Misses. 
That means we can look at the March 2026 Periodic Review with a fair bit of accuracy. 
It is likely to be the runner-ups in the Sep25 review, though the second-runner-up ADD needs a stock split to have any chance. As always, more below the fold!


[Quiddity Index] Nikkei 225 Mar26 Leaderboards; Probably One IN, One OUT

<ul>
<li>Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals.</li>
<li>Management is deploying ~¥1.2tn capex through FY30, tilted toward copper expansion in Chile and renewables growth.</li>
<li>Shares trade at ~11x P/E and 7–8% FCF yield with ~5% cash return yield, offering value on dips below ¥3,000.</li>
</ul>


Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals.
Management is deploying ~¥1.2tn capex through FY30, tilted toward copper expansion in Chile and renewables growth.
Shares trade at ~11x P/E and 7–8% FCF yield with ~5% cash return yield, offering value on dips below ¥3,000.


Marubeni Corporation (TSE: 8002) – Copper Torque, Platform Pivot, and Cash Returns

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

<ul>
<li>Solactive has announced the constituent changes for the Global Uranium &amp; Nuclear Components Index with implementation at the close on 31 July.</li>
<li>Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.</li>
<li>There are only 3 trading days to implementation of the changes and we'd watch out for big moves on stocks that have more than 2x ADV to trade.</li>
</ul>


Solactive has announced the constituent changes for the Global Uranium &amp; Nuclear Components Index with implementation at the close on 31 July.
Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
There are only 3 trading days to implementation of the changes and we'd watch out for big moves on stocks that have more than 2x ADV to trade.


Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

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>United Arrows is best known for building its own chains but has had a choppy few years spent fixing merchandising, supply chains and a poor e-commerce unit.</li>
<li>It now believes it can take a leaf from the playbook of Mash Holdings by signing promising overseas brands as a way to accelerate growth.</li>
<li>The first of these is the Korean brand, Nice Weather, a sort of lifestyle convenience store beloved by Gen Z.</li>
</ul>


United Arrows is best known for building its own chains but has had a choppy few years spent fixing merchandising, supply chains and a poor e-commerce unit.
It now believes it can take a leaf from the playbook of Mash Holdings by signing promising overseas brands as a way to accelerate growth.
The first of these is the Korean brand, Nice Weather, a sort of lifestyle convenience store beloved by Gen Z.


United Arrows Finds New Growth Path Through Korean Brand

Japan

ITOCHU Corporation is a general trading firm handling textiles, wood, machinery, metals, food, chemicals, construction materials, commodities, and energy related products such as oil and gas. The Company operates around the world. Itochu diversifies by operating in satellite communication and data communication businesses.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Itochu Corp (8001 JP)

Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists

Sojitz diversifies earnings away from coal and resources towards Chemicals, Energy Solutions, and Healthcare,. Trading at a discount to peers with...

Rahul Jain

[Quiddity Index] Nikkei 225 Mar26 Leaderboards; Probably One IN, One OUT

The Sep25 Nikkei 225 Periodic Review is announced. That means the Mar26 review can be predicted with a fair bit of accuracy. I see one ADD one...

Travis Lundy

Marubeni Corporation (TSE: 8002) – Copper Torque, Platform Pivot, and Cash Returns

Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals. Shares trade at ~11x P/E and 7–8%...

Rahul Jain

Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

There are 2 adds and capping changes in July for an estimated one-way turnover of 16.3% and a round-trip trade of US$1.4bn. Only 3 days to...

Brian Freitas

United Arrows Finds New Growth Path Through Korean Brand

United Arrows is looking to accelerate growth by signing promising overseas brands like Nice Weather, following a period of fixing internal issues...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists

​Sojitz diversifies earnings away from coal and resources towards Chemicals, Energy Solutions, and Healthcare,. Trading at a discount to peers with...

Rahul Jain

[Quiddity Index] Nikkei 225 Mar26 Leaderboards; Probably One IN, One OUT

The Sep25 Nikkei 225 Periodic Review is announced. That means the Mar26 review can be predicted with a fair bit of accuracy. I see one ADD one...

Travis Lundy

Marubeni Corporation (TSE: 8002) – Copper Torque, Platform Pivot, and Cash Returns

Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals. Shares trade at ~11x P/E and 7–8%...

Rahul Jain

Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

There are 2 adds and capping changes in July for an estimated one-way turnover of 16.3% and a round-trip trade of US$1.4bn. Only 3 days to...

Brian Freitas

United Arrows Finds New Growth Path Through Korean Brand

​United Arrows is looking to accelerate growth by signing promising overseas brands like Nice Weather, following a period of fixing internal issues...

Michael Causton

Sojitz diversifies earnings away from coal and resources towards Chemicals, Energy Solutions, and Healthcare,. Trading at a discount to peers with...

United Arrows is looking to accelerate growth by signing promising overseas brands like Nice Weather, following a period of fixing internal issues...