Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>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.</li>
<li>In the last few days, <a href="https://www.smartkarma.com/entities/sunwels-co-ltd" target="_blank" data-smartkarma-citation="entities:43702:1" rel="noopener">SUNWELS Co (9229 JP)</a> and <a href="https://www.smartkarma.com/entities/macbee-planet-inc" target="_blank" data-smartkarma-citation="entities:39863:1" rel="noopener">Macbee Planet (7095 JP)</a> have announced their moves to TSE prime which would eventually trigger a TOPIX Inclusion event.</li>
<li>
<a href="https://www.smartkarma.com/entities/macbee-planet-inc" target="_blank" data-smartkarma-citation="entities:39863:1" rel="noopener">Macbee Planet</a> was in our highest conviction list but <a href="https://www.smartkarma.com/entities/sunwels-co-ltd" target="_blank" data-smartkarma-citation="entities:43702:1" rel="noopener">SUNWELS Co</a> was not. In this insight, we have made some modifications to our methodology to improve future hit rates.</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.
In the last few days, SUNWELS Co (9229 JP) and Macbee Planet (7095 JP) have announced their moves to TSE prime which would eventually trigger a TOPIX Inclusion event.

Macbee Planet was in our highest conviction list but SUNWELS Co was not. In this insight, we have made some modifications to our methodology to improve future hit rates.


TOPIX Inclusions: Who Is Ready (July 2024)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

<ul>
<li>On 2 July 2024, nursing care operator <a href="https://www.smartkarma.com/entities/sunwels-co-ltd" target="_blank" data-smartkarma-citation="entities:43702:1" rel="noopener">SUNWELS Co (9229 JP)</a> announced <a href="https://ssl4.eir-parts.net/doc/9229/tdnet/2470388/00.pdf" target="_blank" rel="noopener">a sale of Treasury shares and newly-issued shares,</a> and with it, a move to TSE Prime (therefore TOPIX)</li>
<li>The stock, of course, popped. The stock starts with VERY low float because the CEO and his company own 64% of shares out ex-treasury. </li>
<li>The offering is much larger than the TOPIX inclusion, so this is really more about the growth story.</li>
</ul>


On 2 July 2024, nursing care operator SUNWELS Co (9229 JP) announced a sale of Treasury shares and newly-issued shares, and with it, a move to TSE Prime (therefore TOPIX)
The stock, of course, popped. The stock starts with VERY low float because the CEO and his company own 64% of shares out ex-treasury. 
The offering is much larger than the TOPIX inclusion, so this is really more about the growth story.


Sunwels Co (9229) - Nursing Care Operator Offering and TOPIX Inclusion

Smartkarma AI Primers, Smartkarma

αSK Primers

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<ul>
 <li>
<a href="https://smartkarma.com/entities/sunwels-co-ltd">SUNWELS Co</a>., Ltd. is a specialized operator of nursing care facilities in Japan, with a primary focus on providing care for individuals with Parkinson's disease through its 'PD House' brand. This specialization provides a niche market advantage in a rapidly aging society.</li>
 <li>The company is strategically expanding its network of facilities across Japan, capitalizing on the growing demand for elderly care services. This expansion is a key driver of its revenue growth.</li>
 <li>Financial performance has shown strong top-line growth, though profitability has been impacted by expansion-related costs and a challenging operating environment. The company's ability to manage costs while scaling its operations will be critical for future earnings.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
SUNWELS Co., Ltd. is a specialized operator of nursing care facilities in Japan, with a primary focus on providing care for individuals with Parkinson's disease through its 'PD House' brand. This specialization provides a niche market advantage in a rapidly aging society.
  The company is strategically expanding its network of facilities across Japan, capitalizing on the growing demand for elderly care services. This expansion is a key driver of its revenue growth.
  Financial performance has shown strong top-line growth, though profitability has been impacted by expansion-related costs and a challenging operating environment. The company's ability to manage costs while scaling its operations will be critical for future earnings.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

David Blennerhassett

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a> was (finally) included in the Shanghai/Shenzhen-HK Connect programs; on the same day a Cayman court uplifted a BABA dissenter's merger price by 659%.</li>
<li>MBK has teamed up with <a href="https://www.smartkarma.com/entities/young-poong-corporation" target="_blank" data-smartkarma-citation="entities:11740:1" rel="noopener">Young Poong (000670 KS)</a> to secure control of <a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a> via Partial Tender Offers for Korea Zinc and <a href="https://www.smartkarma.com/entities/young-poong-precision-corp" target="_blank" data-smartkarma-citation="entities:16188:1" rel="noopener">Young Poong Precision (036560 KS)</a>
</li>
<li>Like all long-dated arbs, <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric (6967 JP)</a> is really about buying dips, then lightening up when it gets tighter, as long as the opinion about eventual result/path is unchanged.</li>
</ul>



Alibaba Group Holding (9988 HK) was (finally) included in the Shanghai/Shenzhen-HK Connect programs; on the same day a Cayman court uplifted a BABA dissenter's merger price by 659%.
MBK has teamed up with Young Poong (000670 KS) to secure control of Korea Zinc (010130 KS) via Partial Tender Offers for Korea Zinc and Young Poong Precision (036560 KS)

Like all long-dated arbs, Shinko Electric (6967 JP) is really about buying dips, then lightening up when it gets tighter, as long as the opinion about eventual result/path is unchanged.


Last Week in Event SPACE: Alibaba, Young Poong/Korea Zinc, Shinko Electric, Guotai Junan/Haitong Sec

<ul>
<li>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.</li>
<li>
<a href="https://www.smartkarma.com/entities/sunwels-co-ltd" target="_blank" data-smartkarma-citation="entities:43702:1" rel="noopener">SUNWELS Co (9229 JP)</a> and <a href="https://www.smartkarma.com/entities/macbee-planet-inc" target="_blank" data-smartkarma-citation="entities:39863:1" rel="noopener">Macbee Planet (7095 JP)</a> moved to the Prime market in July 2024 and their TOPIX Inclusion events took place at the end of August 2024.</li>
<li>We currently have <a href="https://www.smartkarma.com/entities/celsys-inc" target="_blank" data-smartkarma-citation="entities:20774:1" rel="noopener">CELSYS (3663 JP)</a>, <a href="https://www.smartkarma.com/entities/japan-eyewear-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40217:1" rel="noopener">Japan Eyewear Holdings (5889 JP)</a>, and <a href="https://www.smartkarma.com/entities/core-concept-technologies-inc" target="_blank" data-smartkarma-citation="entities:34323:1" rel="noopener">Core Concept Technologies Inc (4371 JP)</a> in our TOPIX Inclusions pre-event watchlist.</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.

SUNWELS Co (9229 JP) and Macbee Planet (7095 JP) moved to the Prime market in July 2024 and their TOPIX Inclusion events took place at the end of August 2024.
We currently have CELSYS (3663 JP), Japan Eyewear Holdings (5889 JP), and Core Concept Technologies Inc (4371 JP) in our TOPIX Inclusions pre-event watchlist.


TOPIX Inclusions: Who Is Ready (September 2024)

Japan

SUNWELS Co.,Ltd. offers care services. The Company provides elderly housing operation, day services, home visit nursing, care plan creation, and other services. SUNWELS also operates welfare equipment rental, home remodeling, and other businesses.

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SUNWELS Co (9229 JP)

TOPIX Inclusions: Who Is Ready (July 2024)

We have revised our framework to improve the weightings for the key factors in the TSE Prime transfer requirements. Now we see 81 names that can...

Janaghan Jeyakumar, CFA

Sunwels Co (9229) - Nursing Care Operator Offering and TOPIX Inclusion

Sunwels announced an equity offering, and a move to TSE Prime which means a move to TOPIX. That likely gets it into TOPIX at end-August. But this...

Travis Lundy

Primer: SUNWELS Co (9229 JP) - Mar 2026

SUNWELS Co., Ltd. is a specialized operator of nursing care facilities in Japan, with a primary focus on providing care for individuals with...

αSK Primers

Last Week in Event SPACE: Alibaba, Young Poong/Korea Zinc, Shinko Electric, Guotai Junan/Haitong Sec

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

TOPIX Inclusions: Who Is Ready (September 2024)

Our long-term pre-event candidate Celsys (3663 JP) has outperformed TOPIX by +21.3% in the last month. The stock has decent earnings momentum and...

Janaghan Jeyakumar, CFA

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