Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-tobacco-inc" target="_blank" data-smartkarma-citation="entities:13498:1" rel="noopener">Japan Tobacco (2914 JP)</a>’s 4Q22 results were stronger than anticipated yet again with revenue and OP surpassing consensus by 4.3% and 35.2% respectively through selling price increments.</li>
<li>2023 guidance looks a bit disappointing, with the company guiding adjusted OP at ¥667bn in 2023 compared to ¥729bn in the previous year, expecting an unfavourable foreign exchange movement.</li>
<li>But the highlight these days was the proposal by the activist investor LIM Advisors to dispose JT’s share ownership in <a href="https://www.smartkarma.com/entities/torii-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:3253:1" rel="noopener">Torii Pharmaceutical (4551 JP)</a>.</li>
</ul>



Japan Tobacco (2914 JP)’s 4Q22 results were stronger than anticipated yet again with revenue and OP surpassing consensus by 4.3% and 35.2% respectively through selling price increments.
2023 guidance looks a bit disappointing, with the company guiding adjusted OP at ¥667bn in 2023 compared to ¥729bn in the previous year, expecting an unfavourable foreign exchange movement.
But the highlight these days was the proposal by the activist investor LIM Advisors to dispose JT’s share ownership in Torii Pharmaceutical (4551 JP).


Japan Tobacco: An Activist Targeting Torii Pharmaceutical, Turns to JT to Fulfil Their Wishes

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>Torii Pharmaceutical rejected a shareholder proposal at its AGM to prohibit "revolving door" appointments of people from JT to the board of directors and to disclose the cost of capital.</li>
<li>The Company disclosed the propriety of opposing these shareholder proposals, but this was not understood to be a sufficient explanation.</li>
<li>Will the Company eventually terminate its parent-subsidiary listing if it does not meet the prime market listing criteria for governance?</li>
</ul>


Torii Pharmaceutical rejected a shareholder proposal at its AGM to prohibit "revolving door" appointments of people from JT to the board of directors and to disclose the cost of capital.
The Company disclosed the propriety of opposing these shareholder proposals, but this was not understood to be a sufficient explanation.
Will the Company eventually terminate its parent-subsidiary listing if it does not meet the prime market listing criteria for governance?


Japan's Governance: Articles About Torii Pharmaceutical's AGM (2)

<ul>
<li>This article will discuss about Nikkei's article about "Torii Pharmaceutical opposes Hong Kong investment firm's proposal to ban revolving door" which includes several points of discussion.</li>
<li>If the stock price is undervalued because investors are reluctant to invest on concerns about shareholder structure that doesn't allow minority shareholders' opinions to be heard, that is serious problem.</li>
<li>Many subsidiaries have no incentive to listen to opinions of minority shareholders and enhance governance practices. Lack of growth strategies and communication to investors is also a problem for Torii.</li>
</ul>


This article will discuss about Nikkei's article about "Torii Pharmaceutical opposes Hong Kong investment firm's proposal to ban revolving door" which includes several points of discussion.
If the stock price is undervalued because investors are reluctant to invest on concerns about shareholder structure that doesn't allow minority shareholders' opinions to be heard, that is serious problem.
Many subsidiaries have no incentive to listen to opinions of minority shareholders and enhance governance practices. Lack of growth strategies and communication to investors is also a problem for Torii.


Japan's Governance: Articles About Torii Pharmaceutical's Annual General Meeting of Shareholders

Japan

TORII PHARMACEUTICAL CO., LTD. produces and sells pharmaceuticals.  The Company promotes medical products of its parent company, Japan Tobacco. Torii Pharmaceutical operates building maintenance and management business as well as shipping business.

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Torii Pharmaceutical (4551 JP)

Japan Tobacco: An Activist Targeting Torii Pharmaceutical, Turns to JT to Fulfil Their Wishes

It was reported a few weeks ago that activist investor LIM Advisors has sent a letter to Japan Tobacco requesting the company to divest its 53%...

Oshadhi Kumarasiri

Japan's Governance: Articles About Torii Pharmaceutical's AGM (2)

Having rejected shareholder proposals, Torii doesn't meet the listing criteria for governance. Will Torii terminate its parent-subsidiary listing?...

Metrical Inc

Japan's Governance: Articles About Torii Pharmaceutical's Annual General Meeting of Shareholders

This article will discuss about Nikkei's article about "Torii Pharmaceutical opposes Hong Kong investment firm's proposal to ban revolving door"...

Metrical Inc

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