Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Most companies appointed IR officers and hold some sort of briefing for analysts and investors, but briefings for overseas investors and explanations by the CEO himself are still insufficient.</li>
<li>It is valuable to have a direct Q&amp;A session with the CEO about the feasibility of the business plan's commitments and planned values, and the formulation process.</li>
<li>There are still many companies that are reluctant to hold meetings between independent outside directors and investors, and such companies are missing out on an opportunity to create value.</li>
</ul>


Most companies appointed IR officers and hold some sort of briefing for analysts and investors, but briefings for overseas investors and explanations by the CEO himself are still insufficient.
It is valuable to have a direct Q&amp;A session with the CEO about the feasibility of the business plan's commitments and planned values, and the formulation process.
There are still many companies that are reluctant to hold meetings between independent outside directors and investors, and such companies are missing out on an opportunity to create value.


What Is More Important in Promoting "Effective Investor Relations"?

<ul>
<li>Listed subsidiaries focusing on core businesses have higher capital profitability and stock valuations than parent companies, while parent companies with diversified businesses have lower than listed subsidiaries in the both.</li>
<li>By converting a listed subsidiary with high capital profitability into a wholly owned subsidiary, or by selling a listed subsidiary with low capital profitability,  it could increase profitability of parent.</li>
<li>Even though this was expected, parent-subsidiary listings continue to this day (recently, more subsidiaries are listing on Standard Market), and the value that can be reliably obtained is being lost.</li>
</ul>


Listed subsidiaries focusing on core businesses have higher capital profitability and stock valuations than parent companies, while parent companies with diversified businesses have lower than listed subsidiaries in the both.
By converting a listed subsidiary with high capital profitability into a wholly owned subsidiary, or by selling a listed subsidiary with low capital profitability,  it could increase profitability of parent.
Even though this was expected, parent-subsidiary listings continue to this day (recently, more subsidiaries are listing on Standard Market), and the value that can be reliably obtained is being lost.


Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained

<ul>
<li>There is a clear difference in awareness of pre-AGM disclosure in annual securities reports between companies that are targeted by overseas investors and those that are not.</li>
<li>Regarding the postponement of shareholder meetings, companies that have responded to investor needs are considering postponing their AGM dates, while most other companies are reluctant to do so.</li>
<li>In order for more companies to disclose their annual securities reports three weeks prior to AGMs and postpone their AGM dates, more companies need to be aware of this need.</li>
</ul>


There is a clear difference in awareness of pre-AGM disclosure in annual securities reports between companies that are targeted by overseas investors and those that are not.
Regarding the postponement of shareholder meetings, companies that have responded to investor needs are considering postponing their AGM dates, while most other companies are reluctant to do so.
In order for more companies to disclose their annual securities reports three weeks prior to AGMs and postpone their AGM dates, more companies need to be aware of this need.


The Environment Necessary for Disclosure of Annual Securities Report 3 Weeks Prior to AGMs Is...

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Commodities

<ul>
<li>The current macro environment has elements of both the 1970's and mid-2000s commodity bull market</li>
<li>Investor interest and allocation to this asset class is still minimal</li>
<li>A rising cost of capital globally favours a move out of long duration into real assets</li>
</ul>


The current macro environment has elements of both the 1970's and mid-2000s commodity bull market
Investor interest and allocation to this asset class is still minimal
A rising cost of capital globally favours a move out of long duration into real assets


2026 High Conviction Idea: Our Basket of Commodity Equities Will Outperform Broad Equity Indices

<ul>
<li>Only a few companies fulfill the objectives of Corporate Governance Code. The reason why many fail to achieve them is simply because they do not aim for those goals.</li>
<li>The reason why many companies could not improve capital profitability can be explained by the fact that they had not made the sustainable expansion of corporate value a management goal.</li>
<li>Even if a company cannot achieve capital profitability that exceeds its cost of capital, it will not be delisted, so many companies may still be seeing through the TSE's seriousness.</li>
</ul>


Only a few companies fulfill the objectives of Corporate Governance Code. The reason why many fail to achieve them is simply because they do not aim for those goals.
The reason why many companies could not improve capital profitability can be explained by the fact that they had not made the sustainable expansion of corporate value a management goal.
Even if a company cannot achieve capital profitability that exceeds its cost of capital, it will not be delisted, so many companies may still be seeing through the TSE's seriousness.


Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

What Is More Important in Promoting "Effective Investor Relations"?

I would like to discuss the issues in the document “Investor Feedback on IR Systems and IR Activities” published by TSE on July 22.

Metrical Inc

Continuing Parent-Subsidiary Listings Is Losing Value that Could Be Reliably Obtained

I would like to discuss the Nikkei article on July 16, “Parent-subsidiary listing raises expectations for change at parent company; Mitsubishi...

Metrical Inc

The Environment Necessary for Disclosure of Annual Securities Report 3 Weeks Prior to AGMs Is...

I would like to discuss the issues on the document titled “Results of the Questionnaire on Disclosure of Securities Reports Prior to Shareholders'...

Metrical Inc

2026 High Conviction Idea: Our Basket of Commodity Equities Will Outperform Broad Equity Indices

Why a basket of commodity producers provide a good risk reward for any portfolio looking to get a real return. Underowned and unloved!

Rikki Malik

Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them

I would like to discuss the issues on the Nikkei newspaper article dated August 4, titled “Corporate Governance: Rebuilding from Scratch.”

Metrical Inc