Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.</li>
<li>The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.</li>
<li>Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-September 2025.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-September 2025.


Quiddity JPX-Nikkei 400 Rebal 2026: End-Sep 2025 Ranks

Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Anglo and Teck have decided to merge, creating a ~$53bn copper-focused mining major that ranks #4 globally with ~1.2 Mt of output in 2024.</li>
<li>The deal targets ~$800m in annual savings by year four, though history suggests full delivery is unlikely.</li>
<li>The combined group offers strong leverage to copper’s structural growth and top-3 scale in seaborne met coal as a cash engine.</li>
</ul>


Anglo and Teck have decided to merge, creating a ~$53bn copper-focused mining major that ranks #4 globally with ~1.2 Mt of output in 2024.
The deal targets ~$800m in annual savings by year four, though history suggests full delivery is unlikely.
The combined group offers strong leverage to copper’s structural growth and top-3 scale in seaborne met coal as a cash engine.


Anglo–Teck: Building a Copper Champion with Coal Cash Flow

<ul>
<li>Copper Output Cuts: JX Advanced Metals will reduce electrolytic copper production by ~30kt (~5–8% of capacity) in FY25, with further smelting downscaling by March 2026.</li>
<li>Margins have collapsed as TC/RCs plunged into negative territory (~–$45/t vs $80/t in 2023), amid concentrate shortages and Chinese overcapacity.</li>
<li>Smelting will be retained mainly for rare-metal recovery (tantalum, indium, rhenium), while JX doubles down on semiconductor materials and upstream mineral projects.</li>
</ul>


Copper Output Cuts: JX Advanced Metals will reduce electrolytic copper production by ~30kt (~5–8% of capacity) in FY25, with further smelting downscaling by March 2026.
Margins have collapsed as TC/RCs plunged into negative territory (~–$45/t vs $80/t in 2023), amid concentrate shortages and Chinese overcapacity.
Smelting will be retained mainly for rare-metal recovery (tantalum, indium, rhenium), while JX doubles down on semiconductor materials and upstream mineral projects.


JX Advanced Metals (5016 JP) – Smelting Cuts Reinforce Materials Pivot

<ul>
<li>FY2024–25 results showed a sharp rebound, with Resources strength (copper, gold) more than offsetting Smelting losses.</li>
<li>August FY2025 guidance raised PBT and dividend despite trimming sales and Smelting outlook, reflecting confidence in core earnings.</li>
<li>EBITDA is set to grow ~6–7% over FY2025–27, leaving the stock inexpensive on P/E (~12x vs peers ~16x).</li>
</ul>


FY2024–25 results showed a sharp rebound, with Resources strength (copper, gold) more than offsetting Smelting losses.
August FY2025 guidance raised PBT and dividend despite trimming sales and Smelting outlook, reflecting confidence in core earnings.
EBITDA is set to grow ~6–7% over FY2025–27, leaving the stock inexpensive on P/E (~12x vs peers ~16x).


Sumitomo Metal Mining (5713 JP): Recovery Driven by Resources

<ul>
<li>Sumitomo Metal Mining (TSE:5713) faced challenges in FY2024, with earnings impacted by weak treatment and refining charges (TC/RCs) in the copper segment and underperformance in battery materials.</li>
<li>Its recent 3-Year Business Plan 2027,  to boost EBITDA from ¥150 billion to ¥275 billion by FY2027 by working on the mines, focussing on battery materials business, and recycling.</li>
<li>The stock has declined approximately 37% over the past year, making it more attractive with a forward EV/EBITDA of around 4.0x, suggesting potential undervaluation.</li>
</ul>


Sumitomo Metal Mining (TSE:5713) faced challenges in FY2024, with earnings impacted by weak treatment and refining charges (TC/RCs) in the copper segment and underperformance in battery materials.
Its recent 3-Year Business Plan 2027,  to boost EBITDA from ¥150 billion to ¥275 billion by FY2027 by working on the mines, focussing on battery materials business, and recycling.
The stock has declined approximately 37% over the past year, making it more attractive with a forward EV/EBITDA of around 4.0x, suggesting potential undervaluation.


Sumitomo Metal Mining (5713.T): Strategic Reset Amid Downstream Challenges and Valuation Discount

Japan

Sumitomo Metal Mining Co., Ltd. develops and mines non-ferrous metals in Japan and overseas.  The Company's primary products include copper, gold, silver, nickel, lead, and zinc.  The Company refines, produces, and sells precious metals.  Sumitomo Metal Mining also produces and markets electronic & housing construction materials and provides civil engineering works.

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Sumitomo Metal Mining (5713 JP)

Quiddity JPX-Nikkei 400 Rebal 2026: End-Sep 2025 Ranks

In total, there are 46 Potential ADDs and 44 Potential DELs (unique names) presented in the current Quiddity Leaderboard.

Janaghan Jeyakumar, CFA

Anglo–Teck: Building a Copper Champion with Coal Cash Flow

Anglo and Teck merge to create $53bn copper-focused mining major, aiming for $800m in annual savings by year four with strong leverage to copper's...

Rahul Jain

JX Advanced Metals (5016 JP) – Smelting Cuts Reinforce Materials Pivot

JX Advanced Metals to cut copper production by 5-8% in FY25 due to low margins, focusing on rare-metal recovery and semiconductor materials.

Rahul Jain