Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.</li>
<li>The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.</li>
<li>Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-September 2025.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-September 2025.


Quiddity JPX-Nikkei 400 Rebal 2026: End-Sep 2025 Ranks

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Event-Driven

<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 Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

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.

Equity Capital Markets

<ul>
<li>The Japanese eyewear company <a href="https://www.smartkarma.com/entities/intermestic-inc" target="_blank" data-smartkarma-citation="entities:43929:1" rel="noopener">Intermestic (262A JP)</a> has set the terms for its Tokyo IPO and plans to raise US$121m through the IPO.</li>
<li>Our analysis shows that the company’s IPO is valued attractively compared to <a href="https://www.smartkarma.com/entities/jins-holdings-inc" target="_blank" data-smartkarma-citation="entities:12002:1" rel="noopener">JINS Inc (3046 JP)</a> , who offers eyewear at a similar price range to Intermestic.</li>
<li>Japanese eyewear makers who have aggressively expanded into overseas markets seems to be suffering from falling sales and margins, particularly in China due to economic slowdown.</li>
</ul>


The Japanese eyewear company Intermestic (262A JP) has set the terms for its Tokyo IPO and plans to raise US$121m through the IPO.
Our analysis shows that the company’s IPO is valued attractively compared to JINS Inc (3046 JP) , who offers eyewear at a similar price range to Intermestic.
Japanese eyewear makers who have aggressively expanded into overseas markets seems to be suffering from falling sales and margins, particularly in China due to economic slowdown.


This insight is meant to be read in conjunction with <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a>'s <a href="https://www.smartkarma.com/insights/topix-upweights-big-april-basket-2021-pre-event-is-a-win-now-the-event-leg" target="_blank" data-smartkarma-citation="insights:50084" rel="noopener">TOPIX Upweights: Big April Basket 2021 Pre-Event Is a WIN! Now the Event-Leg!</a> (which is the announced result of the proposed 50-name buy basket introduced in the explanation of an annual but obscure aspect of TOPIX Index calculation rebalancing explained in <a href="https://www.smartkarma.com/insights/topix-index-upweights-the-big-april-basket-2021" target="_blank" data-smartkarma-citation="insights:49660" rel="noopener">TOPIX Index Upweights: The Big April Basket 2021</a>).Suffice it to say, he got 48 out of the 50 names chosen right, and there are a few more trades related to this on the side. That is US$1.1bn to buy. This insight is about all the OTHER names in the TOPIX rebalance for April 2020, including a total of 43 up-weights and 16 down-weights with ~ US$500mm to buy and US$260mm to sell.That means there will be a US$1bn sell on the close of the 28th too. Not huge, but there. The trades to do here are for investors to see if any of these situations warrant use as a liquidity event.

This insight is meant to be read in conjunction with Janaghan Jeyakumar, CFA's TOPIX Upweights: Big April Basket 2021 Pre-Event Is a WIN! Now the Event-Leg! (which is the announced result of the proposed 50-name buy basket introduced in the explanation of an annual but obscure aspect of TOPIX Index calculation rebalancing explained in TOPIX Index Upweights: The Big April Basket 2021).Suffice it to say, he got 48 out of the 50 names chosen right, and there are a few more trades related to this on the side. That is US$1.1bn to buy. This insight is about all the OTHER names in the TOPIX rebalance for April 2020, including a total of 43 up-weights and 16 down-weights with ~ US$500mm to buy and US$260mm to sell.That means there will be a US$1bn sell on the close of the 28th too. Not huge, but there. The trades to do here are for investors to see if any of these situations warrant use as a liquidity event. 

TOPIX April-End Rebalance - The OTHER Trades

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

Major eyewear retailer <a href="https://www.smartkarma.com/entities/meganesuper-co-ltd" target="_blank" data-smartkarma-citation="entities:14070:1" rel="noopener">Meganesuper (3318 JP)</a>, has announced it is switching from physical stores to mobile shops mounted on trucks. By the end of 2023, Megane Super wants 110 trucks in service across the country.
Supermarkets and others are also trying this idea with growing success but this is the first case of an eyewear company and, we think, the first where the retailer says it no longer expects to open physical stores.
Initial results suggest the trucks work very well, with far lower set-up and operating costs, but with sales equivalent to some of the chain’s best immobile shops, potentially resulting in a significant uptick in operating margins.

Major eyewear retailer Meganesuper (3318 JP), has announced it is switching from physical stores to mobile shops mounted on trucks. By the end of 2023, Megane Super wants 110 trucks in service across the country.
Supermarkets and others are also trying this idea with growing success but this is the first case of an eyewear company and, we think, the first where the retailer says it no longer expects to open physical stores.
Initial results suggest the trucks work very well, with far lower set-up and operating costs, but with sales equivalent to some of the chain’s best immobile shops, potentially resulting in a significant uptick in operating margins.

Megane Super: Shops on Wheels Are the Future

Japan

JINS HOLDINGS Inc. sells eyeglass products. The Company mainly distributes thin aspheric lenses and other products. JINS Holdings also provides medial products, apparels, and other products.

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JINS Inc (3046 JP)

Quiddity JPX-Nikkei 400 Rebal 2026: End-Sep 2025 Ranks

In total, there are 46 Potential ADDs and 44 Potential DELs (unique names) presented in the current Quiddity Leaderboard.

Janaghan Jeyakumar, CFA

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

Intermestic IPO: Forecasts and Valuation

Intermestic's IPO is valued attractively compared to peers. It seems that Japanese eyewear makers who expanded aggressively into overseas markets,...

Shifara Samsudeen, FCMA, CGMA

TOPIX April-End Rebalance - The OTHER Trades

The April TOPIX Rebalance is about $1.5bn one way, with two thirds of that on Liquidity Factor changes, one-third on normal FFW changes. Toshiba,...

Travis Lundy

Megane Super: Shops on Wheels Are the Future

All retailers are investing in online and closing stores but in Japan, combining online with mobile shops in trucks allows customers to try before...

Michael Causton

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