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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tryt-inc" target="_blank" data-smartkarma-citation="entities:39870:1" rel="noopener">Tryt Inc (9164 JP)</a>, a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July. </li>
<li>In <strong><em><a href="https://www.smartkarma.com/insights/tryt-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:105670" rel="noopener">TRYT IPO: The Bull Case</a></em></strong>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The key elements of the bear case rest on mid-tier revenue growth rates, margin pressure led by rising labour expenses, bottom-tier FCF margin and high leverage.</li>
</ul>



Tryt Inc (9164 JP), a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July. 
In TRYT IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on mid-tier revenue growth rates, margin pressure led by rising labour expenses, bottom-tier FCF margin and high leverage.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/tryt-inc" target="_blank" data-smartkarma-citation="entities:39870:1" rel="noopener">Tryt Inc (9164 JP)</a>, a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July.   </li>
<li>In 2022, Tyrt was the leading provider of personnel dispatch and personnel introduction services in Japan's welfare and nursing sector.</li>
<li>The key elements of the bull case rest on large addressable markets, favourable market trends, strong pro-forma revenue growth, top quartile EBITDA margins and rising staff retention rates.</li>
</ul>



Tryt Inc (9164 JP), a leading professional recruiting and temporary staffing service in Japan, seeks to raise US$450 million. Pricing is on 5 July, and book-building is 6-11 July.   
In 2022, Tyrt was the leading provider of personnel dispatch and personnel introduction services in Japan's welfare and nursing sector.
The key elements of the bull case rest on large addressable markets, favourable market trends, strong pro-forma revenue growth, top quartile EBITDA margins and rising staff retention rates.


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>December 10 was World Human Rights Day. In conjunction with World Human Rights Day, UT Group issued a release "Announcement of the Establishment of the UT Group Human Rights Policy."</li>
<li>As a company operating domestically, I think it is a big step for the UT Group to establish a human rights policy in compliance with international standards.</li>
<li>If each company describes its human rights policy in its own words without clear standards, each company's approach to human rights may differ greatly depending on its interpretation.</li>
</ul>


December 10 was World Human Rights Day. In conjunction with World Human Rights Day, UT Group issued a release "Announcement of the Establishment of the UT Group Human Rights Policy."
As a company operating domestically, I think it is a big step for the UT Group to establish a human rights policy in compliance with international standards.
If each company describes its human rights policy in its own words without clear standards, each company's approach to human rights may differ greatly depending on its interpretation.


Japan's Governance: Human Rights Policy: UT Group (2146)

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Thematic (Sector/Industry)

<ul>
<li>We think that investors can often find attractive opportunities among companies serving the HR department;</li>
<li>When it comes to the Japanese market, employment services companies can additionally take advantage of multiple tailwinds in our view;</li>
<li>We started with our favorable and demanding metric to shortlist 25 names across various industries within the sector, further examined them in terms of growth and cash generation, and ended with three of our top picks.</li>
</ul>


We think that investors can often find attractive opportunities among companies serving the HR department;
When it comes to the Japanese market, employment services companies can additionally take advantage of multiple tailwinds in our view;
We started with our favorable and demanding metric to shortlist 25 names across various industries within the sector, further examined them in terms of growth and cash generation, and ended with three of our top picks.


Quick Picks: Top-Quality Employment Services Providers From Japan

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/124/934/original/2020-03-27_06-28-40.png?1585258181" class="editor-image img-responsive" data-smartkarma-image-id="124934"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong>THURSDAY 26th MARCH</strong> - Yesterday saw six companies reporting results, of which only two -<a href="https://www.smartkarma.com/entities/optoelectronics-co-ltd" target="_blank" data-smartkarma-citation="entities:9374:1" rel="noopener">Optoelectronics (6664 JP)</a> and <a href="https://www.smartkarma.com/entities/fukushima-printing-co-ltd" target="_blank" data-smartkarma-citation="entities:3931:1" rel="noopener">Fukushima Printing (7870 JP)</a> - has positive scores. Seventeen companies revised their forecasts, and one made initial forecasts. In terms of our scoring system, the ratio of positive to negative 'scores' was 5:11, with <a href="https://www.smartkarma.com/entities/jxtg-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">JXTG (5020 JP) </a>being the largest negative-scoring company and <a href="https://www.smartkarma.com/entities/maxvalu-nishinihon-co-ltd" target="_blank" data-smartkarma-citation="entities:13743:1" rel="noopener">Maxvalu Nishinihon (8287 JP)</a> being unchanged. Of the six companies announcing results, only two had positive outcomes.</p><div class="content-caption"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/124/936/original/File%202020-03-27%200%2015%2036.jpeg?1585258841" class="editor-image img-responsive" data-smartkarma-image-id="124936"></figure></div><div class="content-caption">Source • NHK</div><p><strong>GOOD NEWS • BAD NEWS </strong>- The good news is that the increase in disclosed cases of Covid-19 outside Tokyo has not increased significantly; Tokyo, however, has seen an alarming rise. Forty-seven new cases were confirmed yesterday, taking the total in the metropolis to 259. Tokyo will implement a 'stay-at-home-policy' this weekend. Surrounding prefectures have encouraged their residents not to travel into the city over the weekend. Amusement parks that had reopened last weekend will now close their doors.</p><p><strong>ODD NEWS</strong> - In other 'news', the Sapporo Board of Education is debating whether to allow students to wear face masks that are not white. In the past, many schools have mandated that children can only have black hair, forcing some children whose hair is naturally lighter to dye their hair black to conform to the 'norm'.  </p>

Source • Japan AnalyticsTHURSDAY 26th MARCH - Yesterday saw six companies reporting results, of which only two -Optoelectronics (6664 JP) and Fukushima Printing (7870 JP) - has positive scores. Seventeen companies revised their forecasts, and one made initial forecasts. In terms of our scoring system, the ratio of positive to negative 'scores' was 5:11, with JXTG (5020 JP) being the largest negative-scoring company and Maxvalu Nishinihon (8287 JP) being unchanged. Of the six companies announcing results, only two had positive outcomes.Source • NHKGOOD NEWS • BAD NEWS - The good news is that the increase in disclosed cases of Covid-19 outside Tokyo has not increased significantly; Tokyo, however, has seen an alarming rise. Forty-seven new cases were confirmed yesterday, taking the total in the metropolis to 259. Tokyo will implement a 'stay-at-home-policy' this weekend. Surrounding prefectures have encouraged their residents not to travel into the city over the weekend. Amusement parks that had reopened last weekend will now close their doors.ODD NEWS - In other 'news', the Sapporo Board of Education is debating whether to allow students to wear face masks that are not white. In the past, many schools have mandated that children can only have black hair, forcing some children whose hair is naturally lighter to dye their hair black to conform to the 'norm'.  

🇯🇵 JAPAN • Revisions & Results Alert - 26th March

Japan

UT Group Co., Ltd. is a holding company.  The Group specializes in semiconductor and LCD (Liquid Crystal Display) related products and provides outsourcing services to electronics manufacturers.

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UT Group Co Ltd (2146 JP)

TRYT IPO: The Bear Case

The key elements of the bear case rest on mid-tier revenue growth rates, margin pressure led by rising labour expenses, bottom-tier FCF margin and...

Arun George

TRYT IPO: The Bull Case

The key elements of the bull case rest on large addressable markets, favourable market trends, strong pro-forma revenue growth, top quartile EBITDA...

Arun George

Japan's Governance: Human Rights Policy: UT Group (2146)

it is a big step for the UT Group to establish a human rights policy in compliance with international standards. Such companies doing business in...

Metrical Inc

Quick Picks: Top-Quality Employment Services Providers From Japan

We started with our favorable and demanding metric to shortlist 25 names, further examined them in terms of growth and cash generation, and ended...

Steven Chen

🇯🇵 JAPAN • Revisions & Results Alert - 26th March

THURSDAY 26th MARCH - Yesterday saw six companies reporting results, of which only two -Optoelectronics (6664 JP) and Fukushima Printing (7870 JP)...

Campbell Gunn

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