Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Buybacks are a central part of Corporate Japan's effort to improve corporate/capital governance. Lots of cross-holders want/need to sell. Lots of companies want to reduce excess equity.</li>
<li>This earnings season has seen a LOT of new buybacks announced. ¥7.3trln in the last month and that doesn't even include the biggest buybacks extant by March-end companies.</li>
<li>We are experimenting with new ways of displaying data/analytics for buybacks in Japan. To that end, we have a new tool. We hope users find it useful. We invite feedback.</li>
</ul>


Buybacks are a central part of Corporate Japan's effort to improve corporate/capital governance. Lots of cross-holders want/need to sell. Lots of companies want to reduce excess equity.
This earnings season has seen a LOT of new buybacks announced. ¥7.3trln in the last month and that doesn't even include the biggest buybacks extant by March-end companies.
We are experimenting with new ways of displaying data/analytics for buybacks in Japan. To that end, we have a new tool. We hope users find it useful. We invite feedback.


[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month - Data on Each, Plus History

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>On 12 May, Sankyo Co Ltd (6417 JP) announced a big share buyback worth 13.66% of total issued shares (excluding treasury shares).</li>
<li>Aggregate amount of the purchase cost is up to 60 billion yen (9.7% of its current market cap).</li>
<li>We continue to have a Positive view of Sankyo which continues to demonstrate its commitment to deliver higher shareholder returns through aggressive share buybacks.</li>
</ul>


On 12 May, Sankyo Co Ltd (6417 JP) announced a big share buyback worth 13.66% of total issued shares (excluding treasury shares).
Aggregate amount of the purchase cost is up to 60 billion yen (9.7% of its current market cap).
We continue to have a Positive view of Sankyo which continues to demonstrate its commitment to deliver higher shareholder returns through aggressive share buybacks.


Sankyo Co: Big Buyback + Five Years Left Until Opening of Mega MGM Osaka Integrated Casino Resort

Equity Bottom-Up

<ul>
<li>On 12 May 2025, <a href="https://www.smartkarma.com/entities/sankyo-co-ltd" target="_blank" data-smartkarma-citation="entities:12385:1" rel="noopener">Sankyo Co Ltd (6417 JP)</a> announced earnings (Revenue -3.7%yoy, OP +1.5%, Net Profit +0.4%) with guidance for March 2026 showing Revs, OP, and NP all falling.</li>
<li>OP and NP would fall 14.4% and 18.5% respectively. The dividend is expected to fall ¥10 to ¥90/share which would be a 41.6% payout ratio.</li>
<li>The company also announced a BIG BUYBACK - Up to ¥60bn buying up to 30.0mm shares (13.66%), starting today and going through 31 March 2026.</li>
</ul>


On 12 May 2025, Sankyo Co Ltd (6417 JP) announced earnings (Revenue -3.7%yoy, OP +1.5%, Net Profit +0.4%) with guidance for March 2026 showing Revs, OP, and NP all falling.
OP and NP would fall 14.4% and 18.5% respectively. The dividend is expected to fall ¥10 to ¥90/share which would be a 41.6% payout ratio.
The company also announced a BIG BUYBACK - Up to ¥60bn buying up to 30.0mm shares (13.66%), starting today and going through 31 March 2026.


[Japan Buyback] Sankyo (6417) - Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE

<ul>
<li>Sankyo is a leading Japanese maker of Pachinko and Pachislot machines. The company has a consistent record of generating positive free cash flow and operating cash flow.</li>
<li>It trades at 6x EV/EBITDA (2025E) and P/E of 9.5x (2025E). Its net margin improved from 9.9% in 2021 to 21.8% in 2022, and 27% in 2024.</li>
<li>Sankyo has also been aggressively buying back its shares in the past five years. We believe Sankyo could continue to outperform the market in the next 1-2 years. </li>
</ul>


Sankyo is a leading Japanese maker of Pachinko and Pachislot machines. The company has a consistent record of generating positive free cash flow and operating cash flow.
It trades at 6x EV/EBITDA (2025E) and P/E of 9.5x (2025E). Its net margin improved from 9.9% in 2021 to 21.8% in 2022, and 27% in 2024.
Sankyo has also been aggressively buying back its shares in the past five years. We believe Sankyo could continue to outperform the market in the next 1-2 years. 


External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Sankyo, a Japanese company previously seen as a value trap, has made changes to enhance shareholder value</li><li>The company has implemented share buybacks, acquiring 24% of shares in the last year and leading to a higher valuation</li><li>The focus on capital efficiency and returning value to shareholders has revitalized Sankyo, leading to increased investor confidence and potential future growth opportunities</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Sankyo, a Japanese company previously seen as a value trap, has made changes to enhance shareholder valueThe company has implemented share buybacks, acquiring 24% of shares in the last year and leading to a higher valuationThe focus on capital efficiency and returning value to shareholders has revitalized Sankyo, leading to increased investor confidence and potential future growth opportunitiesThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Japan

SANKYO CO., LTD. develops, manufactures, and sells pachinko, pachinko slot machines, related parts, and other peripheral devices.  The main products include Fever Zeus Series.  The Company also operates amusement related businesses.

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Sankyo Co Ltd (6417 JP)

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month - Data on Each, Plus History

Japan saw ¥7.3trln of buybacks announced in the March-end earnings season. Here we offer a tool to see them all, and past buyback patterns of each...

Travis Lundy

Sankyo Co: Big Buyback + Five Years Left Until Opening of Mega MGM Osaka Integrated Casino Resort

On 12 May, Sankyo Co announced a big share buyback worth 13.66% of total issued shares (excluding treasury shares). Aggregate amount of the...

Douglas Kim

[Japan Buyback] Sankyo (6417) - Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE

Sankyo Corp is a good business in an unloved industry. Multiples are low. Cashflows are often great, until they are not. This company is super cash...

Travis Lundy

Asian Dividend Gems: Sankyo Co

Sankyo is a leading Japanese maker of Pachinko and Pachislot machines. The company has a strong track record of generating positive free cash flow...

Douglas Kim

Sankyo (6417) - Thursday, Aug 15, 2024

The focus on capital efficiency and returning value to shareholders has revitalized Sankyo, leading to increased investor confidence and potential...

Value Investors Club

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