Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/trial-holdings-inc" target="_blank" data-smartkarma-citation="entities:36821:1" rel="noopener">Trial Holdings (5882 JP)</a>'s is looking to raise around US$375m in its Japan IPO.</li>
<li>TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.</li>
<li>In this note, we will talk about the positive aspects of the deal.</li>
</ul>



Trial Holdings (5882 JP)'s is looking to raise around US$375m in its Japan IPO.
TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
In this note, we will talk about the positive aspects of the deal.


Trial Holdings Pre-IPO - The Positives - Steady past Performance with an Expanding Footprint

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. 

Equity Bottom-Up

<ul>
<li>Adastria's growth has been sporadic in recent years as it adjusts to maturity and saturation in core apparel markets.It has diversification projects but these will take time to develop.</li>
<li>It thinks it can find faster growth by franchising and licensing with already well-known brands, starting with Forever 21.</li>
<li>It also has a new business providing apparel collections to General Merchandise Retailers, starting with Izumi.</li>
</ul>


Adastria's growth has been sporadic in recent years as it adjusts to maturity and saturation in core apparel markets.It has diversification projects but these will take time to develop.
It thinks it can find faster growth by franchising and licensing with already well-known brands, starting with Forever 21.
It also has a new business providing apparel collections to General Merchandise Retailers, starting with Izumi.


Adastria Signs Forever 21, New Growth Through Licensing?

<a href="https://www.smartkarma.com/entities/izumi-co-ltd" target="_blank" data-smartkarma-citation="entities:13173:1" rel="noopener">Izumi Co Ltd (8273 JP)</a> is Japan’s largest retailer in the South and, at least until 2018, was the last GMS to maintain a growth trajectory. Now, with the popularity of the <a href="https://www.smartkarma.com/entities/cosmos-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:3797:1" rel="noopener">Cosmos Pharmaceutical (3349 JP)</a>  discount food chain eating into Izumi’s profits in Kyushu and the same lack of enthusiasm for the GMS format also spreading as it has elsewhere, Izumi last month announced a wide-ranging and ambitious plan to reinvent itself over the next five years. Izumi’s alliance with <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> will also grow in importance.
These plans include expansion online and investment in discount retailing. The problem with the former is that there are already many more and better organised competitors and in the latte, Izumi has no experience in the kind of supply chain expertise required to build a discount retail business of any scale.
While Izumi has been one of the few well-run GMS operators in the past five years, there is increasing concern that it will fall victim to pressures from discounters on one side and e-commerce competitors on the other.

Izumi Co Ltd (8273 JP) is Japan’s largest retailer in the South and, at least until 2018, was the last GMS to maintain a growth trajectory. Now, with the popularity of the Cosmos Pharmaceutical (3349 JP)  discount food chain eating into Izumi’s profits in Kyushu and the same lack of enthusiasm for the GMS format also spreading as it has elsewhere, Izumi last month announced a wide-ranging and ambitious plan to reinvent itself over the next five years. Izumi’s alliance with Seven &amp; I Holdings (3382 JP) will also grow in importance.
These plans include expansion online and investment in discount retailing. The problem with the former is that there are already many more and better organised competitors and in the latte, Izumi has no experience in the kind of supply chain expertise required to build a discount retail business of any scale.
While Izumi has been one of the few well-run GMS operators in the past five years, there is increasing concern that it will fall victim to pressures from discounters on one side and e-commerce competitors on the other.

Izumi Focus on Food and Online Should Improve Margins

Last year saw the launch of a new netsuper by <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> and <a href="https://www.smartkarma.com/entities/life-corp" target="_blank" data-smartkarma-citation="entities:1743:1" rel="noopener">Life Corp (8194 JP)</a>. The combination of the leading e-commerce retailer and the country’s top supermarket chain makes this one of the strongest contenders in the race for online food sales, particularly as Life is under the control of <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> – although <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a> and <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)</a> aren’t standing still.
Amazon is now expanding its tie-up with Life and plans to bring in Valor as a new partner later this year and is highly likely to add further partnerships going forward.

Last year saw the launch of a new netsuper by Amazon.com Inc (AMZN US) and Life Corp (8194 JP). The combination of the leading e-commerce retailer and the country’s top supermarket chain makes this one of the strongest contenders in the race for online food sales, particularly as Life is under the control of Mitsubishi Corp (8058 JP) – although Rakuten Inc (4755 JP) and Z Holdings (4689 JP) aren’t standing still.
Amazon is now expanding its tie-up with Life and plans to bring in Valor as a new partner later this year and is highly likely to add further partnerships going forward.

Amazon Adds Partnership with Valor in Race for Japan Online Food Retail Leadership

<a href="https://www.smartkarma.com/entities/izumi-co-ltd" target="_blank" data-smartkarma-citation="entities:13173:1" rel="noopener">Izumi Co Ltd (8273 JP)</a> has taken a 20% share in <a href="https://www.smartkarma.com/entities/maruyoshi-center-inc" target="_blank" data-smartkarma-citation="entities:6892:1" rel="noopener">Maruyoshi Center (7515 JP)</a>, the last major independent supermarket chain in Shikoku.
Coupled with Izumi’s new partnership with Seven &amp; I, the move opens up the battle lines between Izumi and <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a> as the only two major FMCG retailers in southern Japan.

Izumi Co Ltd (8273 JP) has taken a 20% share in Maruyoshi Center (7515 JP), the last major independent supermarket chain in Shikoku.
Coupled with Izumi’s new partnership with Seven &amp; I, the move opens up the battle lines between Izumi and Aeon Co Ltd (8267 JP) as the only two major FMCG retailers in southern Japan.

Izumi and Maruyoshi Center Become Affiliates, Furthers Proxy War with Aeon

Japan

IZUMI CO., LTD. operates shopping centers mainly in the Chugoku area, selling food products, clothing, and household utensils.  The Company also operates real estate business and credit card services.

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

Izumi Co Ltd (8273 JP)

Trial Holdings Pre-IPO - The Positives - Steady past Performance with an Expanding Footprint

Trial Holdings (5882 JP)'s is looking to raise around US$375m in its Japan IPO. In this note, we talk about the positive aspects of the deal.

Sumeet Singh

Adastria Signs Forever 21, New Growth Through Licensing?

Adastria has suffered from inconsistent growth recently as it adjusted to maturity and the pandemic but has come up with two new growth ideas:...

Michael Causton

Izumi Focus on Food and Online Should Improve Margins

Izumi has been one of the few decent performers among GMS retailers in the past five years but now looks under increasing pressure - despite new...

Michael Causton

Amazon Adds Partnership with Valor in Race for Japan Online Food Retail Leadership

Amazon is reaching out to the leading supermarkets in each region to create a network of supply and delivery points for its online supermarket in...

Michael Causton

Izumi and Maruyoshi Center Become Affiliates, Furthers Proxy War with Aeon

Izumi Co Ltd (8273 JP) has taken a 20% share in Maruyoshi Center (7515 JP), the last major independent supermarket chain in Shikoku. Coupled with...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)