Japan Specialist

Mark Chadwick

Equity Bottom-Up

Nippon Express Holdings / Equity Bottom-Up

<ul>
<li>Nippon Express (9147): Elliott’s 5% stake highlights latent real estate value; focus on accelerating asset monetisation and capital efficiency </li>
<li>Plus Alpha Consulting (4071): Oasis building a meaningful stake in a small-cap SaaS name; thesis centres on sustained growth, margin strength, and potential strategic/M&amp;A optionality.</li>
<li>CSP (9740): Zennor pushing value realisation via capital returns and strategic optionality; deep undervaluation and excess cash underpin downside with potential for further activist involvement.</li>
</ul>


Nippon Express (9147): Elliott’s 5% stake highlights latent real estate value; focus on accelerating asset monetisation and capital efficiency 
Plus Alpha Consulting (4071): Oasis building a meaningful stake in a small-cap SaaS name; thesis centres on sustained growth, margin strength, and potential strategic/M&amp;A optionality.
CSP (9740): Zennor pushing value realisation via capital returns and strategic optionality; deep undervaluation and excess cash underpin downside with potential for further activist involvement.


Japan Activism Briefs | Nippon Express, Plus Alpha, Central Security

Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

<ul>
<li>On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP - US$131 million) CFO, Kimitaka Hashimoto.</li>
<li>He provided color on Kaonavi’s second-quarter earnings result, which were released on 13 November and led to a negative reaction from the market.</li>
<li>In short, Kaonavi is a Japanese developer of talent management software. It helps companies manage their employees by solving staffing problems, designing their organizational structure, performance reviews, surveys, training, internal recruitment, etc.</li>
</ul>


On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP - US$131 million) CFO, Kimitaka Hashimoto.
He provided color on Kaonavi’s second-quarter earnings result, which were released on 13 November and led to a negative reaction from the market.
In short, Kaonavi is a Japanese developer of talent management software. It helps companies manage their employees by solving staffing problems, designing their organizational structure, performance reviews, surveys, training, internal recruitment, etc.


Has the Kaonavi Story Changed? (4435 JP )

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Several days ago I published a piece showing the data for TOPIX flows for April month-end.</li>
<li>This is an update reflecting new data companies have reported to regulators, one large correction to a data provider's data, and one Very Large Flow.</li>
<li>I believe that the revised data is more accurate. And there is more flow. With a spreadsheet attached. </li>
</ul>


Several days ago I published a piece showing the data for TOPIX flows for April month-end.
This is an update reflecting new data companies have reported to regulators, one large correction to a data provider's data, and one Very Large Flow.
I believe that the revised data is more accurate. And there is more flow. With a spreadsheet attached. 


Updated TOPIX Big April Basket Flows; More Big Flows and ¥270bn a Side

<ul>
<li>Every year in April there is an interesting phenomenon with TOPIX. It is what <a href="https://www.smartkarma.com/profiles/janaghan-jeyakumar-cfa" target="_blank" data-smartkarma-citation="accounts:3173" rel="noopener">Janaghan Jeyakumar, CFA</a> calls "The Big April Basket." The TSE re-assesses Liquidity Factor Coefficients.</li>
<li>It also does a FFW change, and this year it has Phased Weight Reductions for those slowly leaving TOPIX and PWR re-inclusions for those identified last October as going back.</li>
<li>Janaghan had 18 "High Conviction" LF removals. All were hits. They are upweights. Then there are 34 changes to FFW coefficients.</li>
</ul>


Every year in April there is an interesting phenomenon with TOPIX. It is what Janaghan Jeyakumar, CFA calls "The Big April Basket." The TSE re-assesses Liquidity Factor Coefficients.
It also does a FFW change, and this year it has Phased Weight Reductions for those slowly leaving TOPIX and PWR re-inclusions for those identified last October as going back.
Janaghan had 18 "High Conviction" LF removals. All were hits. They are upweights. Then there are 34 changes to FFW coefficients.


The TOPIX Big April Basket Flows:  ¥200bn a Side Including Many Multi-ADV Flows

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

<ul>
<li>Quiddity's <strong>"Who is Ready"</strong> series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.</li>
<li>
<a href="https://www.smartkarma.com/entities/plus-alpha-consulting-co-ltd" target="_blank" data-smartkarma-citation="entities:33441:1" rel="noopener">Plus Alpha Consulting (4071 JP)</a> will be included in TOPIX at the end of August 2023 and so far the stock has performed negatively as expected (see <a href="https://www.smartkarma.com/insights/plus-alpha-consulting-4071-jp-30bn-offer-leads-to-5bn-topix-inclusion" target="_blank" rel="noopener">link</a>).</li>
<li>Our long-term TOPIX pre-event name <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a> has seen its share price decline sharply in the last few weeks which raises some important questions.</li>
</ul>


Quiddity's "Who is Ready" series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.

Plus Alpha Consulting (4071 JP) will be included in TOPIX at the end of August 2023 and so far the stock has performed negatively as expected (see link).
Our long-term TOPIX pre-event name CELSYS (3663 JP) has seen its share price decline sharply in the last few weeks which raises some important questions.


TOPIX Inclusions: Who Is Ready (Aug 2023)

Japan

Plus Alpha Consulting Co.,Ltd. provides management consulting services. The Company offers marketing solutions development and operation, customer relationship management solutions development, human resources platform management, and other services. Plus Alpha Consulting provides its services throughout China.

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Plus Alpha Consulting (4071 JP)

Japan Activism Briefs | Nippon Express, Plus Alpha, Central Security

Investors eye latent real estate value at Nippon Express, sustained growth at Plus Alpha Consulting, and value realisation at CSP through...

Mark Chadwick

Has the Kaonavi Story Changed? (4435 JP )

Its 2QFY2025 result shocked the market. Estimated reading time: 10 minutes. On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP -...

Asian Century Stocks

Updated TOPIX Big April Basket Flows; More Big Flows and ¥270bn a Side

Earnings releases in tech will start to pick up the next few days, and while the market is open on the 29th then also on the 1st and 2nd, the 5-day...

Travis Lundy

The TOPIX Big April Basket Flows: ¥200bn a Side Including Many Multi-ADV Flows

The TOPIX Big April Basket is ¥200bn a side of flows - FFW changes, PWR cascading deletions, PWR unwinds, share count changes, Liquidity Factor...

Travis Lundy

TOPIX Inclusions: Who Is Ready (Aug 2023)

I am Bullish on CELSYS at the current price level (JPY 672). The share price has to increase to slightly for the company to meet the Section...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Activism Briefs | Nippon Express, Plus Alpha, Central Security

​Investors eye latent real estate value at Nippon Express, sustained growth at Plus Alpha Consulting, and value realisation at CSP through...

Mark Chadwick

Has the Kaonavi Story Changed? (4435 JP )

Its 2QFY2025 result shocked the market. Estimated reading time: 10 minutes. On Monday, I had the great pleasure to speak to Kaonavi’s (4435 JP -...

Asian Century Stocks

Updated TOPIX Big April Basket Flows; More Big Flows and ¥270bn a Side

Earnings releases in tech will start to pick up the next few days, and while the market is open on the 29th then also on the 1st and 2nd, the 5-day...

Travis Lundy

The TOPIX Big April Basket Flows: ¥200bn a Side Including Many Multi-ADV Flows

The TOPIX Big April Basket is ¥200bn a side of flows - FFW changes, PWR cascading deletions, PWR unwinds, share count changes, Liquidity Factor...

Travis Lundy

TOPIX Inclusions: Who Is Ready (Aug 2023)

I am Bullish on CELSYS at the current price level (JPY 672). The share price has to increase to slightly for the company to meet the Section...

Janaghan Jeyakumar, CFA

Investors eye latent real estate value at Nippon Express, sustained growth at Plus Alpha Consulting, and value realisation at CSP through...