Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On 28 Feb, the Nikkei <a href="https://asia.nikkei.com/Business/Business-deals/Mitsubishi-readies-sale-of-stake-in-KFC-restaurant-chain-in-Japan" target="_blank" rel="noopener">reported</a> (an article I missed) <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> would seek to unload its 35% stake in <a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a> </li>
<li>The stock popped, then continued to rise further. After the close Friday, the Nikkei <a href="https://asia.nikkei.com/Business/Business-deals/Carlyle-nears-deal-to-buy-KFC-Japan-s-shares-from-Mitsubishi-Corp" target="_blank" rel="noopener">reported</a> MitCorp was close to a deal with Carlyle. A deal is apparently expected imminently.</li>
<li>I expect this could be a "Split Price Deal" (like Hitachi Transport and Pasona).</li>
</ul>


On 28 Feb, the Nikkei reported (an article I missed) Mitsubishi Corp (8058 JP) would seek to unload its 35% stake in Kfc Holdings Japan (9873 JP) 
The stock popped, then continued to rise further. After the close Friday, the Nikkei reported MitCorp was close to a deal with Carlyle. A deal is apparently expected imminently.
I expect this could be a "Split Price Deal" (like Hitachi Transport and Pasona).


Carlyle Reportedly To Buy KFC Japan (9873) From MitCorp (8058) - Deal Likely Imminent

Research from Mita Securities, Mita Securities

Mita Securities

Research from Mita Securities

Mita Securities provides a full scale diversified investment banking and financial services. A comprehensive investment banking department, specializes in rights offerings advisory, take-over bids agents, M&A etc. Including a proprietary trading desk, and wealth management department that offers brokerage, custody, real estate, and full proxy services.

Equity Bottom-Up

<ul><li>Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)</li><li>All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.</li><li>In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)</li></ul>

Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)

Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June

<ul><li>Although the company implemented price hikes on May 14, the guest count continues to be solid, which gives us a positive impression.</li><li>All-store sales of 7.384bn yen (120.3% vs. April 2021) were the record high for a single month. The company said that in-store dining sales recovered in a significant manner.</li><li>In May, the company opened two new stores (one company-owned store and one franchised store) and closed one store (one franchised store)</li></ul>

Although the company implemented price hikes on May 14, the guest count continues to be solid, which gives us a positive impression.All-store sales of 7.384bn yen (120.3% vs. April 2021) were the record high for a single month. The company said that in-store dining sales recovered in a significant manner.In May, the company opened two new stores (one company-owned store and one franchised store) and closed one store (one franchised store)

Ohsho Food Service (9936): Price Hikes Not Affecting Popularity; Record Sales in a Single Month

<ul><li>On May 16, Ohsho Food Service (9936, the company) announced FY3/22 full-year sales of 84.775bn yen (+5.1% YoY), OP of 6.959bn yen (+14.6% YoY), and RP of 13.024bn yen (+89.7% YoY)</li><li>4Q (Jan-Mar) OP was 1.938bn yen (+33.7% YoY; +6.0% QoQ), and OPM was 8.8% (7.2% in 4Q FY3/21; 8.2% in 3Q)</li><li>The company’s guidance for FY3/23 is sales of 90.029bn yen (+6.2% YoY), OP of 7.516bn yen (+8.0% YoY), OPM 8.3% (+0.1ppt YoY) and RP of 8.627bn yen (-33.8% YoY)</li></ul>

On May 16, Ohsho Food Service (9936, the company) announced FY3/22 full-year sales of 84.775bn yen (+5.1% YoY), OP of 6.959bn yen (+14.6% YoY), and RP of 13.024bn yen (+89.7% YoY)4Q (Jan-Mar) OP was 1.938bn yen (+33.7% YoY; +6.0% QoQ), and OPM was 8.8% (7.2% in 4Q FY3/21; 8.2% in 3Q)The company’s guidance for FY3/23 is sales of 90.029bn yen (+6.2% YoY), OP of 7.516bn yen (+8.0% YoY), OPM 8.3% (+0.1ppt YoY) and RP of 8.627bn yen (-33.8% YoY)

Ohsho Food Service (9936): OP Exceeds Our Forecast for Both FY3/22 Results and FY3/23 Guidance

<ul><li>All-store sales of 6.649bn yen (107.7% vs. April 2021) were the record high for April. In-store dining sales were 118.4% vs. April 2021, and delivery sales were 111.8% vs. April 2021.</li><li>In April, the company opened two new stores (two directly-owned stores) and closed one store (one franchised store)</li><li>The company announced that it would raise the retail price of approximately 20% of all items on its grand menu by 20 to 30 yen excluding tax, effective May 14</li></ul>

All-store sales of 6.649bn yen (107.7% vs. April 2021) were the record high for April. In-store dining sales were 118.4% vs. April 2021, and delivery sales were 111.8% vs. April 2021.In April, the company opened two new stores (two directly-owned stores) and closed one store (one franchised store)The company announced that it would raise the retail price of approximately 20% of all items on its grand menu by 20 to 30 yen excluding tax, effective May 14

Ohsho Food Service (9936): Solid Sales for April; Announced Price Hikes

Japan

OHSHO FOOD SERVICE CORP is a Kansai-based operator of Chinese restaurants.  The Company operates directly-run restaurants in Kansai, Chubu, and Kanto regions. Ohsho Food Service also wholesales food material to franchise stores.  The Company mainly sells noodle and gyoza dumpling.

Ohsho Food Service (9936 JP)

Carlyle Reportedly To Buy KFC Japan (9873) From MitCorp (8058) - Deal Likely Imminent

The Nikkei reported two months ago that MitCorp would sell its 35% KFC Japan (9873) stake. Two months later, we may have a deal imminent.

Travis Lundy

Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June

Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)

Mita Securities

Ohsho Food Service (9936): Price Hikes Not Affecting Popularity; Record Sales in a Single Month

Although the company implemented price hikes on May 14, the guest count continues to be solid, which gives us a positive impression.

Mita Securities

Ohsho Food Service (9936): OP Exceeds Our Forecast for Both FY3/22 Results and FY3/23 Guidance

On May 16, Ohsho Food Service (9936, the company) announced FY3/22 full-year sales of 84.775bn yen (+5.1% YoY), OP of 6.959bn yen (+14.6% YoY), and...

Mita Securities

Ohsho Food Service (9936): Solid Sales for April; Announced Price Hikes

All-store sales of 6.649bn yen (107.7% vs. April 2021) were the record high for April. In-store dining sales were 118.4% vs. April 2021, and...

Mita Securities