Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>Recently, IT-solutions company <a href="https://www.smartkarma.com/entities/baudroie-inc" target="_blank" data-smartkarma-citation="entities:44459:1" rel="noopener">Baudroie (4413 JP)</a> announced a move to the Prime Market. This would result in a TOPIX Inclusion event for the stock at the end of April 2025.</li>
<li>Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for <a href="https://www.smartkarma.com/entities/tokyo-metro-co-ltd" target="_blank" data-smartkarma-citation="entities:40930:1" rel="noopener">Tokyo Metro (9023 JP)</a> during this event.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Recently, IT-solutions company Baudroie (4413 JP) announced a move to the Prime Market. This would result in a TOPIX Inclusion event for the stock at the end of April 2025.
Separately, the TOPIX Liquidity factor removal event will take place in April 2025 and there could be some positive index flows for Tokyo Metro (9023 JP) during this event.


TOPIX Inclusions: Who Is Ready (Mar 2025)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a>. Done. Finally. Look at whether you could borrow shares just before the close of the tender and short tender and buy back post ex-date</li>
<li>
<a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a> rolls over as <a href="https://www.smartkarma.com/entities/costar-group-inc" target="_blank" data-smartkarma-citation="entities:16907:1" rel="noopener">Costar Group (CSGP US)</a> bets big on key rival Domain <a href="https://www.smartkarma.com/entities/domain-holdings-australia-ltd" target="_blank" data-smartkarma-citation="entities:26033:1" rel="noopener">Domain Holdings Australia (DHG AU)</a>.</li>
<li>
<a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill (3978 JP)</a>'s tender extended. Still not a done deal. Look to buy shares at terms with the goal of NOT tendering and owning the back end.</li>
</ul>



Shinko Electric Industries (6967 JP). Done. Finally. Look at whether you could borrow shares just before the close of the tender and short tender and buy back post ex-date

REA Group Ltd (REA AU) rolls over as Costar Group (CSGP US) bets big on key rival Domain Domain Holdings Australia (DHG AU).

Macromill (3978 JP)'s tender extended. Still not a done deal. Look to buy shares at terms with the goal of NOT tendering and owning the back end.


Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>On February 14, 2025, JEH announced the cancellation of its planned share offering and withdrew its Prime Market listing application due to a potential insider trading violation involving an executive.</li>
<li>While the news may trigger a sharp correction in the stock, JEH's core business remains strong, driven by pricing power, expansion opportunities, and growing inbound demand.</li>
<li>If governance concerns are effectively addressed, the stock could offer a compelling buy-and-hold opportunity once market sentiment stabilizes.</li>
</ul>


On February 14, 2025, JEH announced the cancellation of its planned share offering and withdrew its Prime Market listing application due to a potential insider trading violation involving an executive.
While the news may trigger a sharp correction in the stock, JEH's core business remains strong, driven by pricing power, expansion opportunities, and growing inbound demand.
If governance concerns are effectively addressed, the stock could offer a compelling buy-and-hold opportunity once market sentiment stabilizes.


Japan Eyewear Holdings: A Short-Term Setback, Long-Term Opportunity?

Travis Lundy

<ul>
<li>On Friday after the close, <a href="https://www.smartkarma.com/entities/japan-eyewear-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40217:1" rel="noopener">Japan Eyewear Holdings (5889 JP)</a> made a short <a href="https://ssl4.eir-parts.net/doc/5889/tdnet/2569912/00.pdf" target="_blank" rel="noopener">announcement</a> that it would cancel its equity offering and TSE Prime application announced 10 Feb, discussed <a href="https://www.smartkarma.com/insights/japan-eyewear-5889-second-ipo-equity-offering-creates-topix-inclusion" target="_blank" rel="noopener">here</a>.</li>
<li>I had suggested that the offering price, or a large dip would be a buy. I rescind that recommendation immediately.</li>
<li>The reason for the cancellation? "Matters that need to be confirmed in relation to our internal control system have been discovered and that will take time."
</li>
</ul>


On Friday after the close, Japan Eyewear Holdings (5889 JP) made a short announcement that it would cancel its equity offering and TSE Prime application announced 10 Feb, discussed here.
I had suggested that the offering price, or a large dip would be a buy. I rescind that recommendation immediately.
The reason for the cancellation? "Matters that need to be confirmed in relation to our internal control system have been discovered and that will take time."



Japan Eyewear Cancels Offering and TSE Prime Application on Internal Controls Problem - OFF

Equity Capital Markets

Japan Eyewear Holdings   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> has had <a href="https://www.smartkarma.com/entities/japan-eyewear-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40217:1" rel="noopener">Japan Eyewear Holdings (5889 JP)</a> on his watchlist. He wrote on 6 Feb 2025 in his<a href="https://www.smartkarma.com/insights/topix-inclusions-who-is-ready-feb-2025" target="_blank" rel="noopener"> TOPIX Who Is Ready</a> piece he expected Q1 inclusion.</li>
<li>He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.</li>
<li>The equity offering proposed is large enough one could consider it a "Second IPO". This matters in terms of absorption and in thinking about the TOPIX Inclusion event.</li>
</ul>



Janaghan Jeyakumar, CFA has had Japan Eyewear Holdings (5889 JP) on his watchlist. He wrote on 6 Feb 2025 in his TOPIX Who Is Ready piece he expected Q1 inclusion.
He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.
The equity offering proposed is large enough one could consider it a "Second IPO". This matters in terms of absorption and in thinking about the TOPIX Inclusion event.


Japan Eyewear (5889) - "Second IPO" Equity Offering Creates TOPIX Inclusion

Japan

Japan Eyewear Holdings Co. Ltd. manufactures and distributes optical goods. The Company produces and sells luxury glasses and other products. Japan Eyewear Holdings markets its products worldwide.

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

Japan Eyewear Holdings (5889 JP)

TOPIX Inclusions: Who Is Ready (Mar 2025)

There are currently 100 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 133 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Japan Eyewear Holdings: A Short-Term Setback, Long-Term Opportunity?

JEH cancels share offering and withdraws listing application due to insider trading violation, but core business remains strong with potential for...

Oshadhi Kumarasiri

Japan Eyewear Cancels Offering and TSE Prime Application on Internal Controls Problem - OFF

JEH prepared its TSE Section Transfer and accompanying equity offering by large holders for months. Four days later they pulled the plug because of...

Travis Lundy

Japan Eyewear (5889) - "Second IPO" Equity Offering Creates TOPIX Inclusion

Japan Eyewear has been an expected TSE Prime segment transfer candidate for many months. Now it's here but the equity offering enabling it is VERY...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TOPIX Inclusions: Who Is Ready (Mar 2025)

There are currently 100 names that satisfy all 5 key Segment Transfer requirements based on current data. Another 133 names can satisfy 4 out of 5...

Janaghan Jeyakumar, CFA

Last Week in Event SPACE: Shinko Electric, REA Group, Macromill, CNBM, Prosus/Tencent

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Japan Eyewear Holdings: A Short-Term Setback, Long-Term Opportunity?

​JEH cancels share offering and withdraws listing application due to insider trading violation, but core business remains strong with potential for...

Oshadhi Kumarasiri

Japan Eyewear Cancels Offering and TSE Prime Application on Internal Controls Problem - OFF

JEH prepared its TSE Section Transfer and accompanying equity offering by large holders for months. Four days later they pulled the plug because of...

Travis Lundy

Japan Eyewear (5889) - "Second IPO" Equity Offering Creates TOPIX Inclusion

Japan Eyewear has been an expected TSE Prime segment transfer candidate for many months. Now it's here but the equity offering enabling it is VERY...

Travis Lundy

JEH cancels share offering and withdraws listing application due to insider trading violation, but core business remains strong with potential for...