Category

ESG

Aug 30
0

Daily Brief ESG: The Environment Necessary for Disclosure of Annual Securities Report 3 Weeks Prior to AGMs Is… and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Environment Necessary for Disclosure of Annual Securities Report 3 Weeks Prior to AGMs Is…

The Environment Necessary for Disclosure of Annual Securities Report 3 Weeks Prior to AGMs Is…

By Aki Matsumoto

  • There is a clear difference in awareness of pre-AGM disclosure in annual securities reports between companies that are targeted by overseas investors and those that are not.
  • Regarding the postponement of shareholder meetings, companies that have responded to investor needs are considering postponing their AGM dates, while most other companies are reluctant to do so.
  • In order for more companies to disclose their annual securities reports three weeks prior to AGMs and postpone their AGM dates, more companies need to be aware of this 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


Aug 26
0

Daily Brief ESG: An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are… and more

By | Daily Briefs, ESG

In today’s briefing:

  • An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are…
  • Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them

An Option for Implementing Serious Corporate Governance Reforms to Achieve Results Are…

By Aki Matsumoto

  • Companies that have been unable to achieve growth in corporate value and stock price increases need to shift their management thinking toward sustainable growth in corporate value.
  • When analyzing 1,793 companies in Metrical Universe by independent director ratio group, companies with an independent director ratio of 50% or more show excellent capital profitability and stock price valuation.
  • One option for implementing serious corporate governance reforms in the next revision of the Corporate Governance Code is to raise the standards to a level that cannot be easily manipulated.

Setting Goals Is Key to Achieving Corporate Governance Reform, Rather than the Means to Achieve Them

By Aki Matsumoto

  • Only a few companies fulfill the objectives of Corporate Governance Code. The reason why many fail to achieve them is simply because they do not aim for those goals.
  • The reason why many companies could not improve capital profitability can be explained by the fact that they had not made the sustainable expansion of corporate value a management goal.
  • Even if a company cannot achieve capital profitability that exceeds its cost of capital, it will not be delisted, so many companies may still be seeing through the TSE’s seriousness.

💡 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


Aug 24
0

Daily Brief ESG: Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth and more

By | Daily Briefs, ESG

In today’s briefing:

  • Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth

Recent Stock Price Rise May Be Due to Expectation for Greater Shareholder Returns Rather than Growth

By Aki Matsumoto

  • P/B was highly correlated with P/E, so it’ll be effective for individual companies to announce/implement measures to increase EPS or profits in order to attract the attention of overseas investors.
  • From April 2022 to June 2025, overseas investors have been focusing on companies with significant potential for shareholder returns, as the TOPIX has the highest correlation with BPS.
  • The recent rise in stock prices may be due to expectations for increased shareholder returns rather than growth expectations, as EPS and BPS have risen while P/B and P/E haven’t.

💡 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


Aug 22
0

Daily Brief ESG: Isn’t the Market Impatient for the Companies to Implement Management Reforms? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Isn’t the Market Impatient for the Companies to Implement Management Reforms?

Isn’t the Market Impatient for the Companies to Implement Management Reforms?

By Aki Matsumoto

  • More companies are mentioning share buybacks, reducing cross-shareholdings, capital allocation policies, and capital costs. However, the ROE of most companies has not improved significantly.
  • “TSE’s request” is at critical juncture addressing whether it’ll lead to formal improvements such as the introduction of corporate governance code, or whether it’ll enable sustainable growth in corporate value.
  • Looking at recent market trends, investors are increasingly expecting activist investors to directly demand management reforms from companies, in anticipation that it’ll take time to realize results of internal reforms.

💡 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


Aug 21
0

Daily Brief ESG: The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market

The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market

By Aki Matsumoto

  • Standard Market is home to companies that face challenges that fail to meet tradable shares ratio, can’t grow market capitalization, or feel it burdensome to meet governance and disclosure requirements.
  • TSE is likely to request companies listed on the Standard Market to disclose improvement measures in response to TSE’s requests, rather than raising the listing maintenance criteria.
  • 262 Standard Market companies are listed subsidiaries. It’s considered that the quickest way to improve the quality of the Standard Market is to delist these companies by eliminating parent-subsidiary listings.

💡 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


Aug 19
0

Daily Brief ESG: Keppel Ltd. M1: From Privatization to Divestment and more

By | Daily Briefs, ESG

In today’s briefing:

  • Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

By Tan Yee Peng

  • Keppel’s sale of M1 to SIMBA generated a lot of interest. However, the most important question goes unanswered: Did Keppel make money since the privatization of M1 in 2018?

  • Keppel has been reticent about this question, which is odd as this goes to the heart of Keppel’s Vision 2030 transformation plan: to be a global asset manager with Funds Under Management of S$200 billion.

  • Keppel has insisted that its operating capability differentiates it from other money managers such as Blackstone, Brookfield, KKR, Carlyle, TPG, etc. Connectivity is a main business unit of Keppel, and M1 has been a key business within this vertical.

💡 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


Aug 18
0

Daily Brief ESG: How Effective Will the Changes in Listing Criteria Be and more

By | Daily Briefs, ESG

In today’s briefing:

  • How Effective Will the Changes in Listing Criteria Be, Amid a Long Grace Period and Secured Listing?

How Effective Will the Changes in Listing Criteria Be, Amid a Long Grace Period and Secured Listing?

By Aki Matsumoto

  • Companies with market capitalization of under 10 billion yen will be given long grace period. Considering inflation and long grace period, this seems not such a difficult hurdle to overcome.
  • If it becomes easy to meet the new standards, the growth market may not change much from the current situation, where many companies with limited growth potential remain.
  • Even though there’re measures to enable companies to move to standard market if things don’t work out, it’s questionable how many companies will seriously pursue measures to increase market capitalization.

💡 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


Aug 17
0

Daily Brief ESG: Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies and more

By | Daily Briefs, ESG

In today’s briefing:

  • Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

By Aki Matsumoto

  • At June AGMs held by over 1,700 companies, out of 114 companies that received shareholder proposals, 7 were approved. The fact is that proposals aren’t approved without high foreign ownerships.
  • At the end of March 2024, institutional investors’ shareholding surpassed the combined shareholding of corporate and financial institutions. Companies are expected to listen to the opinions of their shareholders.
  • Although technical guidance from FSA and TSE is unlikely to directly lead to management improvements, it’s expected to serve as a basis for supporting dialogue between overseas investors and companies.

💡 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


Aug 15
0

Daily Brief ESG: Catalyst for Value-Creating Management Isn’t the Revision of Corporate Governance Code and more

By | Daily Briefs, ESG

In today’s briefing:

  • Catalyst for Value-Creating Management Isn’t the Revision of Corporate Governance Code, but Rather..

Catalyst for Value-Creating Management Isn’t the Revision of Corporate Governance Code, but Rather..

By Aki Matsumoto

  • Financial Services Agency is planning to revise the Corporate Governance Code because corporate governance reforms aimed at achieving sustainable growth and medium- to long-term corporate value have not been achieved.
  • The essence of the problem is that many managers have little interest in the goal of expanding shareholder profits, which is the purpose of a listed company.
  • When shareholders hold management accountable for continuing measures that do not raise stock prices or increase corporate value, it becomes catalyst for a return to shareholder-oriented management.

💡 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


Aug 12
0

Daily Brief ESG: To Companies that Adopt DOE: It’s Good to Consider ROE and more

By | Daily Briefs, ESG

In today’s briefing:

  • To Companies that Adopt DOE: It’s Good to Consider ROE, but Are They Falling into Short-Termism?

To Companies that Adopt DOE: It’s Good to Consider ROE, but Are They Falling into Short-Termism?

By Aki Matsumoto

  • With many companies unable to increase their ROE, the company also intends to demonstrate its commitment to improving ROE by strengthening shareholder returns through the adoption of DOE.
  • The increase in the number of companies adopting DOE may be a reflection of the fact that many companies are forecasting lower profits this fiscal year.
  • Of course, returning excess cash on hand while considering ROE isn’t a bad thing, but it’s also a concern that few companies are taking steps to ensure medium-to-long-term growth.

💡 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