Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Yen weakness and stronger macro data propels Japanese stocks to two month high</li>
<li>Two themes to keep an eye on: Nuclear restarts and share buybacks</li>
<li>The IMF believes that Japan needs to embrace digitalisation to spur productivity and growth</li>
</ul>


Yen weakness and stronger macro data propels Japanese stocks to two month high
Two themes to keep an eye on: Nuclear restarts and share buybacks
The IMF believes that Japan needs to embrace digitalisation to spur productivity and growth


Japan Weekly: Nikkei Hits a Two Month High

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Mitsubishi UFJ Financial (MUFG) / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a> announced results today. Operating Income +0.8%, Operating Earnings +45.9%, Net Profit +45.5% to ¥1.13trln. </li>
<li>The forecast for Mar23 is for a "target" of Net Income of &gt;¥1trln. The DPS for Mar23 is set at ¥32 vs ¥28 last year and ¥25 the year before.</li>
<li>And MUFG announced both the delay of the closing of Union Bancorp sale to calendar H2, and a big buyback of ¥300bn. </li>
</ul>



Mitsubishi UFJ Financial (MUFG) (8306 JP) announced results today. Operating Income +0.8%, Operating Earnings +45.9%, Net Profit +45.5% to ¥1.13trln. 
The forecast for Mar23 is for a "target" of Net Income of &gt;¥1trln. The DPS for Mar23 is set at ¥32 vs ¥28 last year and ¥25 the year before.
And MUFG announced both the delay of the closing of Union Bancorp sale to calendar H2, and a big buyback of ¥300bn. 


MUFG (8306 JP) - BigBank BigBuyback But A Bit Pricey Vs SMFG

David Blennerhassett

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (9432 JP)</a> / <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data (9613 JP)</a> transaction is a little complicated, but the end goal appears, like before, to push operating control below holdcos on the chain. </li>
<li>Both <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a> and Dye &amp; Durham tanked over the unfortunate timing of an ACCC delay and MAC disconnect - before a price recovery to close the week.</li>
<li>MCB says the <a href="https://www.smartkarma.com/entities/agl-energy-ltd" target="_blank" data-smartkarma-citation="entities:554:1" rel="noopener">AGL Energy Ltd (AGL AU)</a> de-merger plan is bad, and now analysts say it is "underwhelming." Duh.  But the alternative? Underwhelming too, but less independent.</li>
</ul>


The NTT (9432 JP) / NTT Data (9613 JP) transaction is a little complicated, but the end goal appears, like before, to push operating control below holdcos on the chain. 
Both Link Administration (LNK AU) and Dye &amp; Durham tanked over the unfortunate timing of an ACCC delay and MAC disconnect - before a price recovery to close the week.
MCB says the AGL Energy Ltd (AGL AU) de-merger plan is bad, and now analysts say it is "underwhelming." Duh.  But the alternative? Underwhelming too, but less independent.


Last Week in Event SPACE:  NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chukyo-bank-ltd" target="_blank" data-smartkarma-citation="entities:20132:1" rel="noopener">Chukyo Bank (8530 JP)</a> and <a href="https://www.smartkarma.com/entities/aichi-bank-ltd" target="_blank" data-smartkarma-citation="entities:15259:1" rel="noopener">Aichi Bank (8527 JP)</a> have decided to join forces to become the largest regional lender in the Nagoya area. </li>
<li>This is probably driven by MUFJ's efforts to rid itself of non-core assets, but in doing so, it is allowing for an accretive structure for minorities.</li>
<li>This ends up being a cheap bank on a slightly complicated pro-forma basis.</li>
</ul>



Chukyo Bank (8530 JP) and Aichi Bank (8527 JP) have decided to join forces to become the largest regional lender in the Nagoya area. 
This is probably driven by MUFJ's efforts to rid itself of non-core assets, but in doing so, it is allowing for an accretive structure for minorities.
This ends up being a cheap bank on a slightly complicated pro-forma basis.


Chukyo (8530) + Aichi (8527) Bank to Create Aichi Fin'l Group - Interesting Structure Adds Value

<ul>
<li>Silchester has written letters to four Japanese regional banks where they hold large stakes asking for higher dividends and payout ratios. It has proposed a special div AGM agenda item.</li>
<li>
<a href="https://www.smartkarma.com/entities/bank-of-iwate-ltd" target="_blank" data-smartkarma-citation="entities:6171:1" rel="noopener">Bank Of Iwate (8345 JP)</a> is nearly 40% held by cross-holders and government-affiliated entities, and Real World Float is less than 50%. Winning at the AGM is tough.</li>
<li>The collection of banks is mixed. But this one is cheap. Cheap as chips. Or cheaper.</li>
</ul>


Silchester has written letters to four Japanese regional banks where they hold large stakes asking for higher dividends and payout ratios. It has proposed a special div AGM agenda item.

Bank Of Iwate (8345 JP) is nearly 40% held by cross-holders and government-affiliated entities, and Real World Float is less than 50%. Winning at the AGM is tough.
The collection of banks is mixed. But this one is cheap. Cheap as chips. Or cheaper.


JAPAN ACTIVISM: Silchester Goes After Bk of Iwate - Cheaper Than Chips

Japan

Mitsubishi UFJ Financial Group, Inc. (MUFG) is a holding company established through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. As a financial group, the Company provides a variety of financial and investment services including commercial banking, trust banking, international finance, and assets management services.

Mitsubishi UFJ Financial (MUFG) (8306 JP)

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Mitsubishi UFJ Financial (MUFG) (8306 JP)

Japan Weekly: Nikkei Hits a Two Month High

Japanese stocks rose to a two year high on the back of stronger economic data and weakness in the JPY. We highlight nuclear restarts and share...

Mark Chadwick

MUFG (8306 JP) - BigBank BigBuyback But A Bit Pricey Vs SMFG

MUFG reported earnings, and a buyback. MUFG has reported a buyback after about half of the fiscal halves in the past few years. This one, like last...

Travis Lundy

Last Week in Event SPACE: NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Chukyo (8530) + Aichi (8527) Bank to Create Aichi Fin'l Group - Interesting Structure Adds Value

Aichi and Chukyo Banks will merge to become top lender in Nagoya ahead of current #1 and cheap good regional Bk of Nagoya. Transaction structure is...

Travis Lundy

JAPAN ACTIVISM: Silchester Goes After Bk of Iwate - Cheaper Than Chips

Bank of Iwate is the smallest (so far) of Silchester Int'l Investors' regional bank AGM proposal letters. It owns 11%. This one is tough too, but...

Travis Lundy

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