Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Japan defence may be buoyed by comments from Frances Macron that spending needs to rise.</li>
<li>Wild ride for Kokusai Electric continues as outstanding short interest jumps 46% over the last week.</li>
<li>Kura Sushi bringing back free meals - limit up yesterday, but with a big SI will there be more today?</li>
</ul>


Japan defence may be buoyed by comments from Frances Macron that spending needs to rise.
Wild ride for Kokusai Electric continues as outstanding short interest jumps 46% over the last week.
Kura Sushi bringing back free meals - limit up yesterday, but with a big SI will there be more today?


Japan Morning Connection: Walmart Results Raising Questions over the Overall Economy

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/zensho-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:4586:1" rel="noopener">Zensho Holdings (7550 JP)</a> aims to raise around US$300m via a public offering.</li>
<li>As per the company it will use the proceeds from the deal for potential M&amp;A transactions.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Zensho Holdings (7550 JP) aims to raise around US$300m via a public offering.
As per the company it will use the proceeds from the deal for potential M&amp;A transactions.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Zensho Placement - Good Price to Raise At, at Least for the Company

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/arcland-service-co-ltd" target="_blank" data-smartkarma-citation="entities:2392:1" rel="noopener">Arcland Service (3085 JP)</a>/Arcland SHD has recommended <a href="https://www.smartkarma.com/entities/arcland-sakamoto-co-ltd" target="_blank" data-smartkarma-citation="entities:10395:1" rel="noopener">Arcland Sakamoto (9842 JP)</a>/Arclands’ share exchange offer at 1.87 Arclands shares per Archland SHD share.</li>
<li>The implied offer value of JPY3,051.84 per share at Arclands’ last close price is a 35.3% premium to the undisturbed price of JPY2,256.00 per share (14 April).</li>
<li>The offer requires Arcland OGM (25 May) and Arcland SHD EGM (22 June) shareholder approval. Arcland SHD shareholders will be supportive as the deal metrics are attractive.  </li>
</ul>



Arcland Service (3085 JP)/Arcland SHD has recommended Arcland Sakamoto (9842 JP)/Arclands’ share exchange offer at 1.87 Arclands shares per Archland SHD share.
The implied offer value of JPY3,051.84 per share at Arclands’ last close price is a 35.3% premium to the undisturbed price of JPY2,256.00 per share (14 April).
The offer requires Arcland OGM (25 May) and Arcland SHD EGM (22 June) shareholder approval. Arcland SHD shareholders will be supportive as the deal metrics are attractive.  


Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp

Independent Research, US Dominant Players, Investment Talk

Investment Talk

Independent Research, US Dominant Players

Investment Talk is for readers who wish to learn about companies that are potentially outside of their own circle of research, as well as those who are longing to become part of a community of like-minded investors and learn more about investment research. I would describe myself as a long-term investor who typically takes a 3Y to 5Y outlook, before reassessing once that period matures. I follow the adage that one should research, reach a conclusion, and then verify and continue to hold so long as the thesis remains intact. My own investing style is one that seeks to find dominant players within their respective market who have shown signs of monopoly or oligopolistic behaviour, unlikely to be disrupted, in tandem with discovering market disruptors who have a high likelihood of disrupting their respective market. Equally (and weighted accordingly) I seek to discover more nuanced, misunderstood, situations with a shorter time frame.

Equity Bottom-Up

<ul>
<li>The memo I shared about Kura Sushi five days ago had two conclusions.</li>
<li>The fundamentals of the business continue to endure and the company was going to have to raise cash fairly soon.</li>
<li>I noted that “I believe within the next 6-12 months, we may see Kura issue additional stock or tap into their credit line”.</li>
</ul>


The memo I shared about Kura Sushi five days ago had two conclusions.
The fundamentals of the business continue to endure and the company was going to have to raise cash fairly soon.
I noted that “I believe within the next 6-12 months, we may see Kura issue additional stock or tap into their credit line”.


<ul><li>Despite now being valued at ~$635 million (down ~32% from ATHs) Kura Sushi, the small-time restaurant operator with 40 stores across the United States, continues to boast an overzealous market valuation.</li><li>Perhaps it’s their ability to consistently beat expectations. Perhaps it’s because they remain undercovered and somewhat illiquid for their size (the parent organisation owns a considerable amount of outstanding shares).</li><li>I can’t be sure, nor do I really care. After reporting Q4 earnings last week, Kura rounded off the year in style, continuing to demonstrate a healthy recovery in demand for their service.</li></ul>

Despite now being valued at ~$635 million (down ~32% from ATHs) Kura Sushi, the small-time restaurant operator with 40 stores across the United States, continues to boast an overzealous market valuation.Perhaps it’s their ability to consistently beat expectations. Perhaps it’s because they remain undercovered and somewhat illiquid for their size (the parent organisation owns a considerable amount of outstanding shares).I can’t be sure, nor do I really care. After reporting Q4 earnings last week, Kura rounded off the year in style, continuing to demonstrate a healthy recovery in demand for their service.

That's a Wrap, Kura Exits 2022 on a High Note

Japan

KURA CORPORATION operates a revolving sushi restaurant chain based in Osaka. The Company operates its own stores.

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Kura Sushi Inc (2695 JP)

Japan Morning Connection: Walmart Results Raising Questions over the Overall Economy

Japan's defense may see a boost with Macron's call for increased spending. Kokusai Electric's short interest surges. Kura Sushi limit up yesterday...

Andrew Jackson

Zensho Placement - Good Price to Raise At, at Least for the Company

Zensho Holdings (7550 JP) aims to raise around US$300m via a public offering. In this note, we talk about the deal dynamics and run the deal...

Sumeet Singh

Five Days Later

The memo I shared about Kura Sushi five days ago had two conclusions. The fundamentals of the business continue to endure and the company was going...

Investment Talk

That's a Wrap, Kura Exits 2022 on a High Note

Despite now being valued at ~$635 million (down ~32% from ATHs) Kura Sushi, the small-time restaurant operator with 40 stores across the United...

Investment Talk

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Walmart Results Raising Questions over the Overall Economy

​Japan's defense may see a boost with Macron's call for increased spending. Kokusai Electric's short interest surges. Kura Sushi limit up yesterday...

Andrew Jackson

Zensho Placement - Good Price to Raise At, at Least for the Company

Zensho Holdings (7550 JP) aims to raise around US$300m via a public offering. In this note, we talk about the deal dynamics and run the deal...

Sumeet Singh

Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp

The share exchange offer is at 1.87 Arclands shares per Archland SHD share. Arcland SHD shareholders will be supportive as the deal metrics are...

Arun George

Five Days Later

The memo I shared about Kura Sushi five days ago had two conclusions. The fundamentals of the business continue to endure and the company was going...

Investment Talk

That's a Wrap, Kura Exits 2022 on a High Note

Despite now being valued at ~$635 million (down ~32% from ATHs) Kura Sushi, the small-time restaurant operator with 40 stores across the United...

Investment Talk

Japan's defense may see a boost with Macron's call for increased spending. Kokusai Electric's short interest surges. Kura Sushi limit up yesterday...