Category

ESG

Oct 14
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: The Current Status and Future Outlook for Men Taking Parental Leave and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Current Status and Future Outlook for Men Taking Parental Leave

The Current Status and Future Outlook for Men Taking Parental Leave

By Aki Matsumoto

  • Although large companies improved the rate at which men take “parental leave,” the gap between men and women in both the take-up rate and the duration of leave remains overwhelming.
  • To further promote “parental leave,” it’s necessary to shift from business models that rely on understaffing to keep labor costs low to high-value-added businesses that don’t depend on manual labor.
  • In Japan, equality in gender and family matters has not been legally mandated. Consequently, the burden of childcare and housework has inevitably fallen disproportionately on women.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 12
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: What Do Managers Realize After Going Private? and more

By | Daily Briefs, ESG

In today’s briefing:

  • What Do Managers Realize After Going Private?

What Do Managers Realize After Going Private?

By Aki Matsumoto

  • The elimination of “parent-subsidiary listings” in the broad sense—including affiliated companies—and delistings resulting from TOBs etc. that lead to industry consolidation are expected to improve the profitability of listed companies.
  • After delisting, a company will have no choice but to break away from management style that defers challenges to work toward improving earnings in line with the fund’s profit targets.
  • After a company is delisted, some executives may realize for the first time that maximizing shareholder interests is the primary management objective of a corporation.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 10
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Electing Outside Directors as Board Chair Is Direct Path to Making Outside Directors More Effective and more

By | Daily Briefs, ESG

In today’s briefing:

  • Electing Outside Directors as Board Chair Is Direct Path to Making Outside Directors More Effective

Electing Outside Directors as Board Chair Is Direct Path to Making Outside Directors More Effective

By Aki Matsumoto

  • Amid calls for shifting to value-creating management, having independent outside directors—who can view matters from external perspectives—serve as board chair is one option for driving change within the company.
  • Companies with an outside director chairering the board of directors increased by 29—from 110 (2.9%) two years ago to 139 (4%). However, the pace remains far too slow.
  • Setting board agendas is crucial for outside directors to take the initiative during board meetings. The time has come to appoint an outside director as chair of the board.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 08
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?

Will Rising Capital Cost Lead to Fundamental Solution Beyond Simply Increasing Shareholder Returns?

By Aki Matsumoto

  • In survey conducted by Life Insurance Association of Japan on “Is ROE Exceeding the Cost of Capital?,” the discrepancy in perceptions between companies and investors has drawn attention every year.
  • With the rise in the cost of capital, there is a risk that ROE could fall below the break-even point—even based on a company’s own calculated “cost of capital.”
  • The key to achieving “ROE significantly exceeds the cost of capital” is to implement fundamental measures to boost earnings; however, many companies will focus solely on enhancing shareholder returns.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 06
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do and more

By | Daily Briefs, ESG

In today’s briefing:

  • There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do

There Are Still Many Companies that Fail to Carry Out Both What They Can Do and What They Must Do

By Aki Matsumoto

  • The reasons behind the sluggish ROE include insufficient shareholder returns, along with inadequate investment in creating businesses with high gross profit margins and insufficient implementation of business and industry restructuring.
  • Both ROE and net profit margin improved sharply in FY2017, primarily due to corporate tax cuts; since then, companies failed to implement fundamental measures to improve their operating profit margins.
  • All we can do is hope that the rising cost of capital will give those managers who haven’t been able to implement the necessary measures the push they need.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 04
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Compared to the TOPIX and more

By | Daily Briefs, ESG

In today’s briefing:

  • Compared to the TOPIX, Which Has Clear Criteria, the TSE Prime Market Appears Vague

Compared to the TOPIX, Which Has Clear Criteria, the TSE Prime Market Appears Vague

By Aki Matsumoto

  • To avoid being delisted from the TOPIX components, a company must reduce its cross-holdings and raise its stock price. Strengthening engagement with investors is also an effective strategy.
  • While the TOPIX is clearly defined based on market capitalization of free-floating shares, the TSE Prime Market exhibits a certain ambiguity that seems to favor listed companies over investors.
  • Stocks that are removed from TOPIX will need to attract investor attention through outperforming earnings more than ever before. They will also lose opportunities for engagement with domestic institutional investors.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 02
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Why Is Capital Profitability Slow to Improve and more

By | Daily Briefs, ESG

In today’s briefing:

  • Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?

Why Is Capital Profitability Slow to Improve, Even Though More Board Members Have “Finance Skills”?

By Aki Matsumoto

  • While having more board members with “financial skills” is expected to contribute to increasing corporate value, many companies still struggle to improve their capital profitability.
  • Possible reasons for this include an inaccurate skills matrix, a lack of financial strategies aimed at increasing corporate value, and a board of directors—including outside directors—that is not functioning effectively.
  • To implement management practices aimed at increasing corporate value, all board members must understand corporate finance so that the board of directors can discuss strategies to achieve this goal.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 01
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Justco Holdings Not Just Another Wework? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Justco Holdings Not Just Another Wework?

Justco Holdings Not Just Another Wework?

By Tan Yee Peng

  • It is not surprising that investors compare JustCo to WeWork, as both share the same business model: sign a long lease with a landlord, spend on renovation, rent out workstations on shorter and flexible terms, and earn the rental spread.

  • There are inherent mismatches of fixed cost versus flexible revenue, long liability versus short visibility.

  • The flexi-office business model carries high operating leverage, given that its costs are mostly fixed.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 30
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: Flashlight Capital Goes Activist on SECOM (Overhaul Its Overseas Strategy) and more

By | Daily Briefs, ESG

In today’s briefing:

  • Flashlight Capital Goes Activist on SECOM (Overhaul Its Overseas Strategy)
  • Won’t the “Market Reform” of TSE Growth Market End up Merely Creating a “10-Billion-Yen Club”?

Flashlight Capital Goes Activist on SECOM (Overhaul Its Overseas Strategy)

By Douglas Kim

  • Flashlight Capital (Singapore based activist firm) is going activist on Secom Co Ltd (9735 JP), especially demanding Secom’s management team to overhaul the company’s overseas strategy.  
  • Flashlight Capital has urged SECOM to increase its stakes in S-1 and Taiwan SECOM to at least 50% for under JPY 156 billion to raise overseas revenue to approximately 28%.
  • All in all, despite Flashlight Capital’s attempt at overhauling Secom Co’s overseas business, I think realistically any major change could take a long period of time (several years).

Won’t the “Market Reform” of TSE Growth Market End up Merely Creating a “10-Billion-Yen Club”?

By Aki Matsumoto

  • Companies planning IPO on Growth Market now have no choice but to aim for market capitalization of 10 billion yen. Companies with lower market capitalization will list on Standard Market.
  • The issue of declining quality in Standard Market—as companies with low growth and small market capitalizations list, and companies with small market capitalizations migrate from Growth Market—will come into focus.
  • Can a company that IPOs 15 years after its founding be considered a growth company? This highlights the seriousness of the problem that there are few growth companies in Japan.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 29
0
Smartkarma The Investment Intelligence Platform

Daily Brief ESG: FnGuide – Significant Improvement in the New Value-Up Program and more

By | Daily Briefs, ESG

In today’s briefing:

  • FnGuide – Significant Improvement in the New Value-Up Program

FnGuide – Significant Improvement in the New Value-Up Program

By Douglas Kim

  • FnGuide Inc (064850 KS) announced a significant improvement in its new Corporate Value-Up program. The changes are meaningful and likely to have positive impact on share price.
  • FnGuide also plans on share buyback and cancellation of 15 billion won over the next three years (2026 – 2028).
  • FnGuide raised total shareholder returns to 40% or higher from 2026 to 2028. Previously, FnGuide did not explicitly mention the total shareholder returns, other than the 25%+ dividend payout ratio.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free