Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. </li>
<li>The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.</li>
<li>Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.</li>
</ul>


Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. 
The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.
Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.


[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/valor-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2256:1" rel="noopener">Valor Holdings (9956 JP)</a> announced an equity offering worth ¥20bn at last price, which will probably mean a lower strike.</li>
<li>The Use of Proceeds is new stores and refurbishment of existing stores in Gifu, Aichi, and Tokyo.</li>
<li>Valor also announced the terms of its Capital and Business Alliance with <a href="https://www.smartkarma.com/entities/kohnan-shoji-co-ltd" target="_blank" data-smartkarma-citation="entities:5662:1" rel="noopener">Kohnan Shoji (7516 JP)</a> after the basic agreement signed in February and Kohnan's April Tender for Alleanza HD.</li>
</ul>


Today after the close, Valor Holdings (9956 JP) announced an equity offering worth ¥20bn at last price, which will probably mean a lower strike.
The Use of Proceeds is new stores and refurbishment of existing stores in Gifu, Aichi, and Tokyo.
Valor also announced the terms of its Capital and Business Alliance with Kohnan Shoji (7516 JP) after the basic agreement signed in February and Kohnan's April Tender for Alleanza HD.


[Japan Offering] Retailer Valor Holdings (9956) Raising New Money for New Stores

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/valor-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2256:1" rel="noopener">Valor Holdings (9956 JP)</a> is looking to raise $113m in a primary offering.</li>
<li>Proceeds will be used for expanding supermarkets, fund subsidiaries' capex and repay ST debt.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Valor Holdings (9956 JP) is looking to raise $113m in a primary offering.
Proceeds will be used for expanding supermarkets, fund subsidiaries' capex and repay ST debt.
In this note, we will talk about the placement and run the deal through our ECM framework.


Aequitas: Valor Holdings Placement - $113m Primary Issuance On The Back Of Strong Performance

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/albis-co-ltd" target="_blank" data-smartkarma-citation="entities:16344:1" rel="noopener">Albis Co Ltd (7475 JP)</a> announced a tender offer from <a href="https://www.smartkarma.com/entities/life-corp" target="_blank" data-smartkarma-citation="entities:1743:1" rel="noopener">Life Corp (8194 JP)</a> at JPY3,780, a 51.2% premium to the last close of JPY2,500.  </li>
<li>Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges and peer multiples.</li>
<li>The offer is above the midpoint of the target IFA’s DCF valuation range. The required minority acceptance rate to meet the lower limit is achievable. This is a done deal. </li>
</ul>



Albis Co Ltd (7475 JP) announced a tender offer from Life Corp (8194 JP) at JPY3,780, a 51.2% premium to the last close of JPY2,500.  
Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges and peer multiples.
The offer is above the midpoint of the target IFA’s DCF valuation range. The required minority acceptance rate to meet the lower limit is achievable. This is a done deal. 


Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

<ul>
<li>Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.</li>
<li>The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.</li>
<li>This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.</li>
</ul>


Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.
The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.
This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.


Japan

VALOR HOLDINGS CO., LTD. is a chain store operator which handles perishables, general foods, and daily-use sundry goods.  The Company is active to diversify into new business including home centers, restaurants, fitness clubs, and pet shops. Valor is based in Gifu area and moving into Aichi, Kanagawa, and Tokyo.

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Valor Holdings (9956 JP)

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

Michael Causton

[Japan Offering] Retailer Valor Holdings (9956) Raising New Money for New Stores

Valor Holdings today announced the scant details of its alliance with Kohnan Shoji and an equity offering with 10% dilution. Max Real World Float...

Travis Lundy

Aequitas: Valor Holdings Placement - $113m Primary Issuance On The Back Of Strong Performance

Valor Holdings (9956 JP) plans to raise $113m through a primary offering. This note discusses the placement and analyzes the deal using an ECM...

Hong Jie Seow

Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges...

Arun George

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

​Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

Michael Causton

[Japan Offering] Retailer Valor Holdings (9956) Raising New Money for New Stores

Valor Holdings today announced the scant details of its alliance with Kohnan Shoji and an equity offering with 10% dilution. Max Real World Float...

Travis Lundy

Aequitas: Valor Holdings Placement - $113m Primary Issuance On The Back Of Strong Performance

​Valor Holdings (9956 JP) plans to raise $113m through a primary offering. This note discusses the placement and analyzes the deal using an ECM...

Hong Jie Seow

Albis (7475 JP): Life Corp (8194 JP)’s Tender Offer at JPY3,780

Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges...

Arun George

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

Valor Holdings (9956 JP) plans to raise $113m through a primary offering. This note discusses the placement and analyzes the deal using an ECM...