Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>TSE-Listed companies are asked to file "Management Conscious of Capital Cost/Stock Price" awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.</li>
<li>There were case study updates published late-Dec25. Interesting, but not ground-breaking. 146 CGRs were filed in January after 475 in December 2025. It's low season til spring.</li>
<li>The ongoing Study Group to review Minority Shareholder Protection, etc has interim comments suggesting Toyota Fudosan's claim of Majority of Minority is false (of course it is, but they're nicer).</li>
</ul>


TSE-Listed companies are asked to file "Management Conscious of Capital Cost/Stock Price" awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
There were case study updates published late-Dec25. Interesting, but not ground-breaking. 146 CGRs were filed in January after 475 in December 2025. It's low season til spring.
The ongoing Study Group to review Minority Shareholder Protection, etc has interim comments suggesting Toyota Fudosan's claim of Majority of Minority is false (of course it is, but they're nicer).


[Japan CorpGov] TSE "Mgmt Conscious" Reports (Feb26) - Disappointing Case Studies, Weak Study Group

<ul>
<li>TSE-Listed companies are asked to file "Management Conscious of Capital Cost/Stock Price" awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.</li>
<li>There were case study updates published 26 December. Interesting, but not ground-breaking. 475 companies filed CGRs in December 2025 after 262 companies filed in November.</li>
<li>The most recent set of documents has some really disappointing comments and questions from companies and their executives. It makes one wonder...</li>
</ul>


TSE-Listed companies are asked to file "Management Conscious of Capital Cost/Stock Price" awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
There were case study updates published 26 December. Interesting, but not ground-breaking. 475 companies filed CGRs in December 2025 after 262 companies filed in November.
The most recent set of documents has some really disappointing comments and questions from companies and their executives. It makes one wonder...


[Japan CorpGov] TSE "Mgmt Conscious" Reports (Jan26) - Disappointing Set of Case Studies

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

Equity Bottom-Up

<ul>
<li>Okamura trades at a PBR of 1.0 and a PER of 8.6 despite earning more than 12% return on equity.</li>
<li>Okamura’s new AI-driven warehouse automation system is a potential game-changer as it reduces costs and improves decision making for mid-sized enterprises.</li>
<li>Management’s incentives are still poorly aligned with the interests of shareholders, and their performance is well below potential.</li>
</ul>


Okamura trades at a PBR of 1.0 and a PER of 8.6 despite earning more than 12% return on equity.
Okamura’s new AI-driven warehouse automation system is a potential game-changer as it reduces costs and improves decision making for mid-sized enterprises.
Management’s incentives are still poorly aligned with the interests of shareholders, and their performance is well below potential.


Okamura (7994): Why Management Incentives Are So Important

David Blennerhassett

<ul>
<li>There is no suggestion of precondition breach attached to <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing Inc (2427 JP)</a>'s impairment losses. </li>
<li>Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral (BLD AU)</a>, with certain tendering thresholds triggering more cash.</li>
<li>
<a href="https://www.smartkarma.com/entities/itoki-corp" target="_blank" data-smartkarma-citation="entities:18032:1" rel="noopener">Itoki Corp (7972 JP)</a>'s mega ToSTNeT-3 buyback is now done.</li>
</ul>


There is no suggestion of precondition breach attached to Outsourcing Inc (2427 JP)'s impairment losses. 
Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in Boral (BLD AU), with certain tendering thresholds triggering more cash.

Itoki Corp (7972 JP)'s mega ToSTNeT-3 buyback is now done.


Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

<ul>
<li>As discussed in <a href="https://www.smartkarma.com/insights/itoki-7972-mammoth-buyback-coming-imminently-after-35-jump" target="_blank" data-smartkarma-citation="insights:127355" rel="noopener">Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump</a>, the company was going to do a mega ToSTNeT-3 buyback between then and end-Feb. That happened this morning.</li>
<li>The company bought back 7.966mm shares (13.96%) for ¥15.9bn. That should have cleared out the bulk of the risk of the original warrant holders who bought in 2020. But...</li>
<li>The dilution/accretion don't offset perfectly, and there is a clause suggesting how this might play out from here. But we can infer things from other data we now have.</li>
</ul>


As discussed in Itoki (7972) Mammoth Buyback Coming Imminently After 35% Jump, the company was going to do a mega ToSTNeT-3 buyback between then and end-Feb. That happened this morning.
The company bought back 7.966mm shares (13.96%) for ¥15.9bn. That should have cleared out the bulk of the risk of the original warrant holders who bought in 2020. But...
The dilution/accretion don't offset perfectly, and there is a clause suggesting how this might play out from here. But we can infer things from other data we now have.


Itoki (7972 JP) - Worth Thinking About Post Mega ToSTNeT-3 Buyback

Japan

ITOKI CORPORATION manufactures office furniture and equipment.  The Company also produces home furniture such as work/study desks and dining sets.  Itoki focuses on the development of its mechatronic products, including automatic sorters and automated warehouses.

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Itoki Corp (7972 JP)

[Japan CorpGov] TSE "Mgmt Conscious" Reports (Feb26) - Disappointing Case Studies, Weak Study Group

The TSE releases a list every month with names of cos which have submitted "Management Conscious of Share Price/Cost of Capital" policies. We do it...

Travis Lundy

[Japan CorpGov] TSE "Mgmt Conscious" Reports (Jan26) - Disappointing Set of Case Studies

The TSE's "Management Conscious of Capital Costs and Share Price" filings continue. 475 CorpGovReports filed in December. Exedy has a new plan. TSE...

Travis Lundy

Okamura (7994): Why Management Incentives Are So Important

Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.

Michael Allen

Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

The 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

Itoki (7972 JP) - Worth Thinking About Post Mega ToSTNeT-3 Buyback

Itoki was to conduct a large ToSTNeT-3 buyback. They did this morning, and the largest sellers were the original warrant-holders. The data implies...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan CorpGov] TSE "Mgmt Conscious" Reports (Feb26) - Disappointing Case Studies, Weak Study Group

The TSE releases a list every month with names of cos which have submitted "Management Conscious of Share Price/Cost of Capital" policies. We do it...

Travis Lundy

[Japan CorpGov] TSE "Mgmt Conscious" Reports (Jan26) - Disappointing Set of Case Studies

The TSE's "Management Conscious of Capital Costs and Share Price" filings continue. 475 CorpGovReports filed in December. Exedy has a new plan. TSE...

Travis Lundy

Okamura (7994): Why Management Incentives Are So Important

​Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.

Michael Allen

Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights

The 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

Itoki (7972 JP) - Worth Thinking About Post Mega ToSTNeT-3 Buyback

Itoki was to conduct a large ToSTNeT-3 buyback. They did this morning, and the largest sellers were the original warrant-holders. The data implies...

Travis Lundy

Okamura's undervalued stock and innovative AI warehouse system have potential, but management's incentives need to be juiced up.