Daily Brief Japan: Kadoya Sesame Mills, Japan Property Management Center, Oliver Corporation, Kioxia Holdings , Japan Treasury, Axis Consulting , TSE Tokyo Price Index TOPIX, Curves Holdings Co Ltd, Densan System Holdings, Fusion Partners Co and more

• VERY late last night Tokyo time, Kadoya Sesame Mills (2612 JP) announced a Supported/Recommended Deal whereby local PE form Integral would buy out the company at ¥2,514-2,760 pending shareholder agreements. 
• The base case is ¥2,514. ¥2,760 comes when major shareholders agree to sell at a discount, passive their tax benefits to the whole shareholder base.
• But there’s competition. A started things off last year. Integral/family joined in. Major shareholders MitCorp and Mitsui got B and C to join. A and C are still in it.

• Ahead of the first close, Sunrise Capital increased its Japan Property Management Center (3276 JP) offer by 0.9% from JPY2,250 to JPY2,270. The closing date is 5 October.
• The price increase was funded by Hikari Tsushin (9435 JP) agreeing to a share buyback. It also has the added benefit of locking in additional support for the offer.
• Overall, the revised terms do not reflect an offer struggling to complete but good governance in securing better (even if modest) terms for minorities. 

• Oliver Corporation (619A JP) raised US$142m in its Japan IPO.
• Established in 1967, Oliver Corporation was initially a furniture manufacturing company known as Fuji Steel and sold steel furniture. 
• In our previous note, we looked at its past performance and valuations. In this note, we will talk about the trading dynamics.

• NAND Cycle Peak and Hyperscale Demand Bottlenecks: Kioxia is enjoying record-breaking near-term profitability, with Q1 FY2026 operating margins hitting 75% driven by enterprise SSD (eSSD) demand from AI infrastructure. However, the market is misinterpreting the cyclical tailwinds. Hyperscaler pre-booking has locked in 100% of 2026 capacity, but the cooling of retail/client channels and rising capital constraints at key hyperscalers indicate a cyclical peak in late 2026, making the proposed 2027 U.S. ADR listing a race against a cooling market.
• BiCS10 Ramping vs. Korean Peers: The transition to the 332-layer BiCS10 node at the newly opened Kitakami K2 fab represents a massive leap in areal density (greater than 29 Gb/mm² for TLC and 37 Gb/mm² for QLC). While Kioxia’s CMOS directly Bonded to Array (CBA) architecture keeps it cost-competitive with Samsung and SK Hynix despite lower layer counts, the co-development joint venture structure with SanDisk (now independent post-spin from Western Digital) severely hinders technology transition speed and capital flexibility.
• The Liquidity and Governance Gameboard: With Bain Capital having fully exited its direct fund-level stake in July 2026, and SK Hynix-backed SPC BCPE Pangea Cayman2 becoming Kioxia’s largest shareholder in August 2026 at 14.19%, the strategic path is fraught. The planned $10 billion U.S. ADR listing on Nasdaq is not an expansion play—it is a critical necessity to address Kioxia’s ¥447.5 billion in unsecured bank loans, fund the massive capex required for Kitakami K2, and provide a clear exit for SK Hynix’s indirect convertible bond exposure before the next structural down-cycle.

• Japan’s 30-year yields 4.16%, 236 basis points over the Bank of Japan’s neutral midpoint. Part is fiscal premium; the rest is the price of a domestic bid returning at 4%
• Post-Covid inflation was supply-driven, imported through the yen, oil and food. Inflation excluding food and energy never exceeded 2.7%. Real wages are rising, consumption grows 1%: neutral, not above it.
• The buyers’ strike is ending. Life insurers sold ¥2.1 trillion of super-longs in FY2025 and are buying again; Meiji Yasuda doubled its plan; GPIF is pressed to add domestic assets.

Key points (machine generated)

• Axis Consulting is listed on the Tokyo Stock Exchange Growth Market and is advancing its medium-term management plan.
• The company specializes in recruitment services for high-end talent and skill-sharing to tackle complex management challenges.
• Through its brands ‘AXIS Agent’, ‘AXIS Solutions’, and ‘AXIS Advisors’, it offers flexible consulting services for clients.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Since FY2022, the NP Margin and Equity Ratio have moved in parallel, indicating that the improvement in non-operating income and expenses has directly contributed to the increase in equity.
• Over the past few years, while sales growth driven by passing on inflationary costs has gradually boosted operating profit, the improvement in the operating profit margin has been negligible.
• To raise profit margins to a level that can stand up to comparisons with companies in other countries, create products with high gross profit margins to increase cash flow.

• Curves sells adherence, not gym access: coaching and community help exercise-inexperienced older women sustain a habit they may struggle to maintain alone.
• The existing network remains underutilized: most recent member growth came from mature clubs, while company-operated locations still materially outperform franchisees.
• The thesis: transferring those economics across the franchise estate could sustain capital-light growth; labor intensity, technology-enabled self-service and execution in new formats are the key tests.

Key points (machine generated)

• Densan System Holdings reported revenue growth for the 19th consecutive term, largely due to strong performance linked to Google.
• The company operates in two main sectors: Information Services (system integration and software development) and Payment Collection Services (payment solutions at convenience stores).
• Densan is focusing on developing next-generation services using Web3 and blockchain technology to create innovative partnerships and services.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• Scalar is projected to achieve double-digit revenue and profit growth for the fiscal year ending June 2027, driven by M&A and operational expansion.
• The company emphasizes ethical values, social responsibility, and sustainable prosperity, focusing on Digital Transformation, human resources, and Trading Card Games.
• For the fiscal year ending June 2026, Scalar reported a revenue increase of 4.3% to 8,533 million yen, but experienced a 30.5% decline in operating profit to 522 million yen.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.