Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Noritake - Despite strong profits from semiconductor ceramics, lack of strategy for underperforming segments and idle assets invites activist pressure for structural reform. </li>
<li>Square Enix - New turnaround plan lacks clear KPIs and capital discipline, prompting activists to demand sharper execution and improved shareholder returns. </li>
<li>Eiken Chemical - Activists gained board influence through compromise, advancing governance reform and signaling momentum toward a potential buyout.</li>
</ul>


Noritake - Despite strong profits from semiconductor ceramics, lack of strategy for underperforming segments and idle assets invites activist pressure for structural reform. 
Square Enix - New turnaround plan lacks clear KPIs and capital discipline, prompting activists to demand sharper execution and improved shareholder returns. 
Eiken Chemical - Activists gained board influence through compromise, advancing governance reform and signaling momentum toward a potential buyout.


Japan Activism Briefs | Noritake, Square Enix, Eiken Chemical

<ul>
<li>Square Enix holds globally recognized IP with monetization upside across platforms, and recent pipeline discipline signals a shift toward higher-margin, high-quality titles that can stabilize earnings and restore growth.</li>
<li>Activist involvement is intensifying, creating strong pressure for capital returns, governance reform, and strategic clarity - unlocking shareholder value in a business that remains structurally underleveraged and undervalued vs peers.</li>
<li>With operating margins improving, digital sales accelerating, and cost structures being realigned, Square Enix is positioned to re-rate meaningfully as investor confidence rebuilds and management delivers on core turnaround objectives.</li>
</ul>


Square Enix holds globally recognized IP with monetization upside across platforms, and recent pipeline discipline signals a shift toward higher-margin, high-quality titles that can stabilize earnings and restore growth.
Activist involvement is intensifying, creating strong pressure for capital returns, governance reform, and strategic clarity - unlocking shareholder value in a business that remains structurally underleveraged and undervalued vs peers.
With operating margins improving, digital sales accelerating, and cost structures being realigned, Square Enix is positioned to re-rate meaningfully as investor confidence rebuilds and management delivers on core turnaround objectives.


Square Enix (9684) | Turnaround in Motion

<ul>
<li>Activist investors 3D Investment Partners and Dalton Investments have both taken meaningful stakes in Square Enix - highlights capital inefficiency and poor margin profile</li>
<li>Daito Trust sits on over ¥100bn in net cash, an arguably excessive cushion for a mature operator with steady cash flows. Silchester have taken note</li>
<li>Iriso Electronic and INES both trade below book value. Attractive value plays for small cap funds.</li>
</ul>


Activist investors 3D Investment Partners and Dalton Investments have both taken meaningful stakes in Square Enix - highlights capital inefficiency and poor margin profile
Daito Trust sits on over ¥100bn in net cash, an arguably excessive cushion for a mature operator with steady cash flows. Silchester have taken note
Iriso Electronic and INES both trade below book value. Attractive value plays for small cap funds.


Japan Activist Watch | Square Enix, DaitoTrust, Iriso & INES

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shift-up-corp" target="_blank" data-smartkarma-citation="entities:36232:1" rel="noopener">Shift Up (462870 KS)</a> raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.</li>
<li>Shift Up is a South Korean games developer, which as released three games so far for the global markets.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.
Shift Up is a South Korean games developer, which as released three games so far for the global markets.
In this note, we will talk about the lockup dynamics and possible placement.


Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kadokawa-dwango-corp" target="_blank" data-smartkarma-citation="entities:4152:1" rel="noopener">Kadokawa Dwango (9468 JP)</a> shares rose 16% after <a href="https://www.reuters.com/markets/deals/sony-talks-buy-media-powerhouse-behind-elden-ring-sources-say-2024-11-19/" target="_blank" rel="noopener">Reuters reported</a> that <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> is in talks to acquire it. Kadokawa confirmed an initial letter of intent. </li>
<li>The privatisation interest is unsurprising as Kadokawa’s publishing arm, acclaimed intellectual properties, and positioning in the anime industry would be attractive to Sony.</li>
<li>The upside is limited as the last close reflects a significant takeover premium. There is a risk if a binding proposal emerges, it could be takeunder like Bain/T-Gaia.</li>
</ul>



Kadokawa Dwango (9468 JP) shares rose 16% after Reuters reported that Sony Corp (6758 JP) is in talks to acquire it. Kadokawa confirmed an initial letter of intent. 
The privatisation interest is unsurprising as Kadokawa’s publishing arm, acclaimed intellectual properties, and positioning in the anime industry would be attractive to Sony.
The upside is limited as the last close reflects a significant takeover premium. There is a risk if a binding proposal emerges, it could be takeunder like Bain/T-Gaia.


Kadokawa (9468 JP): Take Profits as a Sony Privatisation Rumours Surface

Japan

SQUARE ENIX HOLDINGS CO., LTD. develops and sells entertainment software for home video game consoles including Dragon Quest and Final Fantasy series. The Company also publishes books such as informational guide books for its game software, and comic magazines and books.  Additionally, Square Enix sells character goods and stationery items from its software products.

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Square Enix Holdings (9684 JP)

Japan Activism Briefs | Noritake, Square Enix, Eiken Chemical

Activist pressure mounts on Noritake, Square Enix, and Eiken Chemical for strategic reform and improved shareholder returns.

Mark Chadwick

Square Enix (9684) | Turnaround in Motion

Square Enix's focus on high-quality titles and improved financials could lead to a re-rating of the company's stock as investor confidence grows...

Mark Chadwick

Japan Activist Watch | Square Enix, DaitoTrust, Iriso & INES

Activist investors target Square Enix for capital inefficiency, Daito Trust criticized for excessive cash reserves, Iriso Electronic and INES...

Mark Chadwick

Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from...

Sumeet Singh

Kadokawa (9468 JP): Take Profits as a Sony Privatisation Rumours Surface

While an acquisition has a strong strategic rationale, the upside is limited as the last close reflects a significant takeover premium. There is a...

Arun George

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Japan Activism Briefs | Noritake, Square Enix, Eiken Chemical

​Activist pressure mounts on Noritake, Square Enix, and Eiken Chemical for strategic reform and improved shareholder returns.

Mark Chadwick

Square Enix (9684) | Turnaround in Motion

​Square Enix's focus on high-quality titles and improved financials could lead to a re-rating of the company's stock as investor confidence grows...

Mark Chadwick

Japan Activist Watch | Square Enix, DaitoTrust, Iriso & INES

​Activist investors target Square Enix for capital inefficiency, Daito Trust criticized for excessive cash reserves, Iriso Electronic and INES...

Mark Chadwick

Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from...

Sumeet Singh

Kadokawa (9468 JP): Take Profits as a Sony Privatisation Rumours Surface

While an acquisition has a strong strategic rationale, the upside is limited as the last close reflects a significant takeover premium. There is a...

Arun George

Activist pressure mounts on Noritake, Square Enix, and Eiken Chemical for strategic reform and improved shareholder returns.

Square Enix's focus on high-quality titles and improved financials could lead to a re-rating of the company's stock as investor confidence grows...

Activist investors target Square Enix for capital inefficiency, Daito Trust criticized for excessive cash reserves, Iriso Electronic and INES...