Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

<ul>
<li>The company has had good 2024 absolute and relative to Topix performance.</li>
<li>Will Jafco continue this winning streak into 2025 and beyond?</li>
<li>Results for the quarter ending December 2024 are encouraging with exit multiples increasing</li>
</ul>


The company has had good 2024 absolute and relative to Topix performance.
Will Jafco continue this winning streak into 2025 and beyond?
Results for the quarter ending December 2024 are encouraging with exit multiples increasing


Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

<ul><li>Revenue increased by 73.9% YoY to JPY25.4bn, with operating profit rising 149.6% YoY to JPY11.2bn.</li><li>Capital gains reached JPY10.9bn, with JPY7.6bn from IPO-related share sales and JPY3.4bn from unlisted shares.</li><li>Total investment executed in cumulative Q3 FY03/25 was JPY30.6bn, with JPY14.5bn for domestic VC investments.</li></ul>

Revenue increased by 73.9% YoY to JPY25.4bn, with operating profit rising 149.6% YoY to JPY11.2bn.Capital gains reached JPY10.9bn, with JPY7.6bn from IPO-related share sales and JPY3.4bn from unlisted shares.Total investment executed in cumulative Q3 FY03/25 was JPY30.6bn, with JPY14.5bn for domestic VC investments.

Jafco Co Ltd (8595 JP): Q3 FY03/25 flash update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I wrote about this stock in May 2024. At the time, Japan activist Murakami-san had gone from 5% to 20% in a hurry. Shortly after, he was at 29%. </li>
<li>Then he fiddled/sold/bought/waited/sold. The stock fell in late 2024 as a quant fund sold. Murakami-san started buying again. In 3 weeks to 7 January bought from 27.02% to 34.51%.</li>
<li>By my calculation, as of last week he has 38.4% of votes. This is worth a closer look again. It's a discount to BVPS but ask yourself why this big.</li>
</ul>


I wrote about this stock in May 2024. At the time, Japan activist Murakami-san had gone from 5% to 20% in a hurry. Shortly after, he was at 29%. 
Then he fiddled/sold/bought/waited/sold. The stock fell in late 2024 as a quant fund sold. Murakami-san started buying again. In 3 weeks to 7 January bought from 27.02% to 34.51%.
By my calculation, as of last week he has 38.4% of votes. This is worth a closer look again. It's a discount to BVPS but ask yourself why this big.


[JAPAN Activism] Murakami Buying Mitsui Matshima (1518 JP) BIGLY - Now At 38% Aiming at Control?

<ul>
<li>Recent IPO exit multiples of invested capital above long-term averages</li>
<li>The domestic exits highlight the value in the domestic investment portfolio</li>
<li>Capital Management enhanced by the start of interim dividends and expanding stock compensation scheme</li>
</ul>


Recent IPO exit multiples of invested capital above long-term averages
The domestic exits highlight the value in the domestic investment portfolio
Capital Management enhanced by the start of interim dividends and expanding stock compensation scheme


Jafco- Recent Results Highlight the Upside Case Going Forward

<ul>
<li>Its portfolio of Japanese investments should benefit from the change in investor focus to domestic names.</li>
<li>Has shown strong outperformance since the sell-off presaging future relative strength</li>
<li>The business itself progressing as planned for increased shareholder returns</li>
</ul>


Its portfolio of Japanese investments should benefit from the change in investor focus to domestic names.
Has shown strong outperformance since the sell-off presaging future relative strength
The business itself progressing as planned for increased shareholder returns


Back to Jafco- Continues to Be in the Right Place and at the Right Time

Japan

JAFCO Co., Ltd. forms venture capital groups to invest primarily in domestic and foreign private companies with high potential for future growth.  The Company also provides management services to the groups, makes loans and offers consultation services to the invested companies.

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Jafco Co Ltd (8595 JP)

Jafco- Continues to Perform

Looking at whether Jafco's strong 2024 absolute and relative performance will continue into 2025 as it releases Q3 results.

Rikki Malik