Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Sony price hikes in Japan to have a mild positive impact. The stock still looks attractive after positives from recent earnings seem to have been lost in the recent volatility.</li>
<li>PPIH continues to look attractive as a continued laggard as the market rotates out of the big retail/inbound winners such as Isetan Mitsukoshi.</li>
<li>7&amp;I clearly showing how anti-takeover they are effectively asking for Govt protection to ward off Canada’s Alimentation Couche-Tard takeover approach.</li>
</ul>


Sony price hikes in Japan to have a mild positive impact. The stock still looks attractive after positives from recent earnings seem to have been lost in the recent volatility.
PPIH continues to look attractive as a continued laggard as the market rotates out of the big retail/inbound winners such as Isetan Mitsukoshi.
7&amp;I clearly showing how anti-takeover they are effectively asking for Govt protection to ward off Canada’s Alimentation Couche-Tard takeover approach.


Japan Morning Connection: Sony, PPIH, 7&I

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. 

<ul>
<li>There has been a long-term trend of market concentration in Japan's retail sector for more than a decade.</li>
<li>But consolidation is accelerating due to the pressures to find growth in a depopulating market and the winner takes all phenomenon which rewards the leading chains.</li>
<li>With higher growth and greater access to capital for the best retailers, the net result is dramatically higher levels of M&amp;A in sectors like drugstores and even supermarkets.  </li>
</ul>


There has been a long-term trend of market concentration in Japan's retail sector for more than a decade.
But consolidation is accelerating due to the pressures to find growth in a depopulating market and the winner takes all phenomenon which rewards the leading chains.
With higher growth and greater access to capital for the best retailers, the net result is dramatically higher levels of M&amp;A in sectors like drugstores and even supermarkets.  


Japan Retail: Market Concentration Accelerates Through M&A and Organic Growth

<ul>
<li>Estee Lauder continues to  underwhelm on its China strategy, making names with less country exposure such as Kose look increasingly attractive</li>
<li>While the 7&amp;I deal outcome remains highly  uncertain, NKY225 replacement candidates should see a lift in the short-term</li>
<li>This includes PPIH, which looks oversold after yesterdays negative price reaction to the Founder's 22 year old son being promoted to a non-exec director.</li>
</ul>


Estee Lauder continues to  underwhelm on its China strategy, making names with less country exposure such as Kose look increasingly attractive
While the 7&amp;I deal outcome remains highly  uncertain, NKY225 replacement candidates should see a lift in the short-term
This includes PPIH, which looks oversold after yesterdays negative price reaction to the Founder's 22 year old son being promoted to a non-exec director.


Japan Morning Connection: Kose, 7&I, PPIH

<ul>
<li>Retailing is booming in Japan, backed by consumers getting out and about, buying enthusiastically and enjoying Japan’s shop-focused entertainment centres once again. </li>
<li>Tourists are back in record numbers, with 3 million a month entering Japan since March and well over 30 million expected in 2024 overall.</li>
<li>Inflation remains a concern, but we’re two years into this round of price increases and consumers are becoming resigned to higher prices. FY2024 will be another excellent year.</li>
</ul>


Retailing is booming in Japan, backed by consumers getting out and about, buying enthusiastically and enjoying Japan’s shop-focused entertainment centres once again. 
Tourists are back in record numbers, with 3 million a month entering Japan since March and well over 30 million expected in 2024 overall.
Inflation remains a concern, but we’re two years into this round of price increases and consumers are becoming resigned to higher prices. FY2024 will be another excellent year.


Japan's Retail Sector Grows Faster than 1990

<ul>
<li>Upbeat results briefing from <a href="https://www.smartkarma.com/entities/asahi-intecc-co-ltd" target="_blank" rel="noopener">Asahi Intecc</a> on Friday continues to make this look oversold with GPM bottoming, its MTP 1-year ahead of plan and strong growth outlooks for key markets China and US.</li>
<li>With numbers out for <a href="https://www.smartkarma.com/compose/insight/155896/Pan%20Pacific%20International%20Holdings%20(7532%20JP)" target="_blank" rel="noopener">PPIH</a> on Friday and the outlook reassuringly steady, this may start to get more attention as NKY225 inclusion candidate given it comes from the under-represented consumer goods segment.</li>
<li>AMAT numbers showing a decline in China revenues a red flag for Japanese SPE names overly reliant on China sales?</li>
</ul>


Upbeat results briefing from Asahi Intecc on Friday continues to make this look oversold with GPM bottoming, its MTP 1-year ahead of plan and strong growth outlooks for key markets China and US.
With numbers out for PPIH on Friday and the outlook reassuringly steady, this may start to get more attention as NKY225 inclusion candidate given it comes from the under-represented consumer goods segment.
AMAT numbers showing a decline in China revenues a red flag for Japanese SPE names overly reliant on China sales?


Japan Morning Connection: Asahi Intecc, PPIH

Japan

Pan Pacific International Holdings Corporation operates discount stores which sell consumer electronics, daily necessities, groceries, watches, and sporting goods. The Company mostly operates small scale stores based in Tokyo.

Pan Pacific International Holdings (7532 JP)

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Pan Pacific International Holdings (7532 JP)

Japan Morning Connection: Sony, PPIH, 7&I

Sony's stock remains attractive as a long, PPIH is a laggard worth considering, and 7&I seeks government protection against takeover.

Andrew Jackson

Japan Retail: Market Concentration Accelerates Through M&A and Organic Growth

Market concentration in Japan's retail sector has been increasing due to the need for growth in a shrinking market, leading to a surge in M&A...

Michael Causton

Japan Morning Connection: Kose, 7&I, PPIH

Estee Lauder continues to struggle while those with less China exposure such as Kose look more attractive. Uncertainty over 7&I deal should lift...

Andrew Jackson

Japan's Retail Sector Grows Faster than 1990

Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Michael Causton

Japan Morning Connection: Asahi Intecc, PPIH

Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: Sony, PPIH, 7&I

​Sony's stock remains attractive as a long, PPIH is a laggard worth considering, and 7&I seeks government protection against takeover.

Andrew Jackson

Japan Retail: Market Concentration Accelerates Through M&A and Organic Growth

​Market concentration in Japan's retail sector has been increasing due to the need for growth in a shrinking market, leading to a surge in M&A...

Michael Causton

Japan Morning Connection: Kose, 7&I, PPIH

Estee Lauder continues to struggle while those with less China exposure such as Kose look more attractive. Uncertainty over 7&I deal should lift...

Andrew Jackson

Japan's Retail Sector Grows Faster than 1990

​Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Michael Causton

Japan Morning Connection: Asahi Intecc, PPIH

​Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...

Andrew Jackson

Sony's stock remains attractive as a long, PPIH is a laggard worth considering, and 7&I seeks government protection against takeover.

Market concentration in Japan's retail sector has been increasing due to the need for growth in a shrinking market, leading to a surge in M&A...

Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Positive results from Asahi Intecc show oversold potential; PPIH's steady outlook may indicate NKY225 cadidate; AMAT numbers showing decline in...