Japan

• Tsuruha Holdings (3391 JP) had been planning to release a Medium Term Management Plan this month BUT stock prices are higher, goodwill effects changed, so they announced a “Vision” instead. 
• Today post-close, Aeon Co Ltd (8267 JP) announced its Partial Tender Offer on TSURUHA (Japanese) at ¥2,900/share. Slightly lower than hoped. Much better than before. 
• AEON obviously really did not want to bump, but they did, considering synergies and the desire to consummate the deal. The Tender Offer shrinks so minimum pro-ration is lower. 

• Tsuruha Holdings (3391 JP) announced a partial tender offer from Aeon Co Ltd (8267 JP) at JPY2,900, a 27.2% premium over the previously stated offer price of JPY2,280.
• Aeon will acquire a maximum (upper limit) of 43.2 million shares (9.52% ownership ratio) such that it attains a 50.90% ownership ratio. There is no lower limit. 
• The offer is above the midpoint of the IFA DCF valuation range and marginally below the JPY3,100 price Aeon paid in 2024 to acquire Oasis’ stake. 

• Furukawa Electric is looking to sell around US$128m of Uacj Corp (5741 JP.
• The deal is a big one, representing 23.3 days of three months ADV and 5% of outstanding stock.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Inageya is an established supermarket chain with a strong regional focus in the Tokyo metropolitan area, but it faces significant profitability challenges amidst intense industry competition.
• Recent financial performance has been volatile, characterized by stagnant revenue, fluctuating margins, and a swing from net loss to a marginal profit, highlighting operational pressures from rising costs and stiff competition.
• A recent business combination with United Super Markets Holdings (U.S.M.H), making Inageya a wholly-owned subsidiary of U.S.M.H and resulting in its delisting from the Tokyo Stock Exchange in late 2024, is a pivotal strategic shift aimed at enhancing competitiveness in the Kanto region.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• MIXI’s Q1–2 FY3/26 results highlight a company in transition.
• Growth is increasingly driven by the Sports segment, supported by the consolidation of PointsBet Holdings and strong double-digit organic growth in Betting Sports.
• Underlying profitability in the Sports segment improved to an estimated 5.6% despite one-time acquisition costs.

Key points (machine generated)

• Realgate, listed on the Tokyo Stock Exchange under code 5532, reported an operating profit over 1 billion yen for the fiscal year ending September 2025.
• Founded in 2009 and led by President Yutaka Iwamoto, Realgate focuses on revitalizing old buildings in urban areas into flexible workspaces.
• The company has shown consistent revenue growth for 16 periods and became a consolidated subsidiary of CyberAgent in July 2021, leading to its listing in June 2023.

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)

• AZ-COM Maruwa Holdings, listed as 9090 on the Tokyo Stock Exchange, focuses on third-party logistics (3PL) services for major retail customers.
• The company reported a significant profit increase for the interim period of the fiscal year ending March 2026, exceeding initial forecasts.
• Its logistics operations include transportation services and various 3PL segments, supported by a network of 269 locations specializing in e-commerce, low-temperature food, and pharmaceutical logistics.

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)

• Torishima Pump Manufacturing Co., Ltd. specializes in large, high-pressure pumps for essential infrastructure since 1919.
• The company is a global leader in seawater desalination pumps, serving nearly all of the top 20 desalination plants worldwide.
• For Q2 of FY ending March 2026, Torishima reported a 48.3 billion yen order intake, down 9.5 billion yen from last year, but sales rose 9.8% to 41.24 billion yen.

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

• TSE plans to revise the listing maintenance criteria for its Growth Market to “market capitalization of over 10 billion yen within 5 years of listing,” with announcement scheduled for December.
• The problem lies not with companies listing on the growth market itself, but with the increasing number of non-growing companies listing on the growth market.
• Few companies exit the market, not just the growth market, which is why many companies lack growth mindset. Revising listing maintenance standards may slightly increase the number of companies exiting.

• Q1-2 FY3/26 results showed signs of stabilisation, which was a positive development.
• Restar showed clear earnings recovery in Q2 FY3/26, with OPM improving to 2.3% from 1.2% in Q1 FY3/26, signalling that earnings momentum is returning after a weak start to the year.
• Adjusting for yen appreciation, underlying sales rose 3.5% YoY. 

• Today, post-close of its first day of trading as MergeCo, Tsuruha Holdings (3391 JP) announced 12 different investors who had voted against the deal filed for dissenting shareholder share repurchase.
• This covers 27.154mm shares – a bit more than what Orbis owned when they last filed (25.5mm shs) and is just over half the AGM dissension.
• This creates some weirdness. A 5+% buyback is strong accretion, but “fair price” is a question, and it could mean smaller tender offer quantity and larger eventual index selldowns.

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, has set an IPO price range of JPY1,440 to JPY1,450 per share compared to the reference price of JPY1,440.
• I discussed the relisting in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Valuation Insights. 
• The relisting has attracted solid interest from several investors. The peers have modestly re-rated, and the IPO price range is attractive.

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2.1bn in its Japan listing.
• SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
• We looked at the company’s past performance in our earlier note. In this note, we talk about valuations.

• Fast Fitness Japan Inc (7092 JP) has recommended a JGIA-sponsored MBO at JPY2,315, a 29.3% premium to the undisturbed price (31 October).
• There was media speculation about a tender offer last month. The offer is arguably light as it is below the mid-point of the IFA DCF valuation range. 
• This is a done deal as the irrevocables to tender (20.65% ownership ratio) exceed the lower limit of the tender offer (17.12% ownership ratio).

• NS Group (471A JP) (NSG) is one of Japan’s leading rent guarantee service providers, offering payment guarantee and rent collection solutions to property owners and management companies.
• NSG aims to raise around US$220m in its Japan IPO via an entirely secondary offering, marking Bain Capital’s full exit from the company.
• In our previous note, we looked at the firm’s past performance and peer comparison. In this note, we talk about the pricing updates and IPO valuations.

• Dominant Market Leader with a Wide Moat: Fanuc is a global leader in factory automation, holding significant market share in CNC systems (estimated at 65%) and industrial robots. Its competitive advantages are rooted in technological prowess, a reputation for reliability, high switching costs for customers, and an extensive global service network.
• Poised to Capitalize on Secular Growth in Automation: The company is well-positioned to benefit from long-term structural tailwinds, including rising labor costs, skilled labor shortages, reshoring of manufacturing, and increased demand for automation in emerging sectors like electric vehicle (EV) production and electronics.
• Cyclical Headwinds and Competitive Intensity Present Risks: Fanuc’s financial performance is closely tied to global capital expenditure cycles, making it susceptible to economic downturns. The factory automation market is also highly competitive, with major players like ABB, Yaskawa, and Siemens vying for market share, which can pressure pricing and margins.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• A very constructive setup for FY12/26 – With AZN having largely delivered on its FY12/25 in Q1-3, the setup for FY12/26 appears increasingly constructive.
• Continued asset (equities, real estate, etc.) price appreciation in Japan, likely to persist under Prime Minister Takaichi’s policies, is providing support for further unit price growth.
• Volume growth visibility is improving as product shelf expansion enables further cross-selling opportunities. 

• AViC (hereinafter referred to as the Company) is a comprehensive digital marketing company that provides integrated services across both Paid (internet advertising) and Non-Paid (SEO/AI consulting, reputation management, etc.) domains.
• Its strength lies in the complementary integration of Paid services, which enhance short- term customer acquisition efficiency, and Non-Paid services, which build organic search traffic over the medium to long term.
• In recent years, through M&A deals with companies like FACT Co., Ltd. and Realation Inc., it has expanded its services into purchase-linked areas (e.g., e-commerce sales promotion support, live commerce). 

Key points (machine generated)

• Joshin Denki reported a 9.6% increase in sales and a 16.3% rise in operating profit for the interim period of fiscal year 2026.
• The company achieved a total sales of 210,452 million yen and an operating profit of 2,138 million yen.
• Joshin Denki launched the ‘JT-2028 Management Plan’ to expand its services beyond product sales, focusing on repairs and maintenance.

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

• In April there was a story suggesting Toyota Group would buy out Toyota Industries (6201 JP). In June, they announced a deal. It was a BAD DEAL.  
• The price was low, but it was BAD governance because it was the WRONG DEAL. TICO’s Board declared a valuation fair for a deal not announced, ignoring the ACTUAL DEAL.
• The valuation? Assumed no changes to the business. Actual deal? Sell 90+% of net assets driving 50% of net income, buy back 24+% of shares at discount. 

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: SBI Shinsei Bank (8303 JP), NS Group (471A JP), JD Industrial Technology (2231713D CH) IPOs, and Toyoda Gosei (7282 JP)‘s US$0.8 billion secondary offering.
• Event-Driven developments: ANE Cayman Inc (9956 HK), Canon Electronics (7739 JP), Digital Holdings Inc (2389 JP), Mandom Corp (4917 JP), National Storage REIT (NSR AU), Qube Holdings (QUB AU). 

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently twelve pair trade opportunities across four markets and five sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Of foreign shareholding in 30% range, 1% is held by activist funds. Meanwhile, the cross-shareholding is around 10%, and ETFs held by BoJ account for 7% of TSE market capitalization.
• Passing shareholder proposals remains difficult, as conditions must align: a company must have fairly high foreign ownership, and its conduct must be bad that domestic institutions can endorse the proposal.
• Claiming that “shareholder proposals from activist investors often target short-term profit-seeking initiatives” merely serves as a comforting excuse for executives who are postponing management challenges.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, busy season remains on in full swing going into the year end.
• On the placements front, there were a few large deals across the region.

• Sumitomo Pharma (4506 JP) will present updated clinical trial data of Enzomenib (for AML) and Nuvisertib (for Meylofibrosis). Both drug candidates hold strong future potential.
• The company revised FY26 revenue guidance upward to ¥429B backed by continued strong sales in North America (+56% to ¥163B). Orgovyx witnessed solid patient growth while Gemtesa improved market share.
• After largely remaining beaten down in the past few years Sumitomo stock has only begun to gain momentum in recent past. We feel it has still got an upside potential.

Key points (machine generated)

• Aiphone Co., Ltd. aims for a 10% or higher return on equity by 2032 through its 8th Medium-Term Management Plan.
• The company projects net sales of ¥65,400 million and operating income of ¥4,500 million for the fiscal year ending March 2026, despite a temporary profit decline.
• Aiphone holds a 61% share of the domestic intercom market and is expanding its product offerings while maintaining a strong financial position and stable dividends.

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

• Semiconductor segment drives structural margin expansion, now contributing over 100% of core profit with record Q3 performance.
• Legacy Chemicals and Graphite remain weak, but consolidated EBITDA outlook for FY2026–27 strengthens on improving mix.
• Forward valuation supports ¥8,000 target; Resonac trades at a discount to global semiconductor-materials peers despite rising semis exposure.

• Friday post-close, parent Canon Inc (7751 JP) announced a buyout of subsidiary Canon Electronics (7739 JP). The ¥3,650/share offer is supported and recommended (to shareholders) by Target Co management. 
• This is the least surprising of parent-subsidiary buyout situations, but it took some time. I expect there are some funds already long a basket of these, including this one.
• This is not a very fair procedure. The result is therefore, unfair. And no synergies to boot. But it is a 30+% premium to last, and Canon already owns 55%.

• Since the announcement of the US$0.8 billion secondary offering, Toyoda Gosei (7282 JP)’s shares have declined 4.9% to the undisturbed price of JPY3,754 per share (20 November).
• It is instructive to look at recent large Japanese placements to understand the potential trading pattern. Toyoda’s share decline is better than the median of recent large placements.
• The offering will likely be priced on 1 December. The average large Japanese placement tends to generate positive returns.

• I tally 35 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
• Three new deals were  discussed on Smartkarma this week: Qube Holdings (QUB AU), Monash IVF (MVF AU), and National Storage REIT (NSR AU).
• Key updates/news also took place on: Iress Ltd (IRE AU), ANE Cayman Inc (9956 HK), Digital Holdings Inc (2389 JP), and Grindr (GRND US).

• Revenue increased by 2.7% YoY to JPY3.1bn, with EC business up 6.8% and Financial business down 2.6%.
• Operating profit decreased 7.3% YoY to JPY575mn, with a 2.4pp rise in GPM and 4.3pp increase in SG&A ratio.
• Financial business segment profit rose 7.2% YoY to JPY402mn, with external payments handled growing 11.2% YoY.

• We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.
• Top-Picks in China are Haier Smart Home (6690 HK) , Midea Group (300 HK) and Yadea Group Holdings (1585 HK).
• Our top picks in Japan are Suzuki Motor (7269 JP) and ROHM Co Ltd (6963 JP) and in India-Auto it is Mahindra & Mahindra (MM IN) &Ashok Leyland (AL IN)

• Canon Electronics (7739 JP) has recommended a tender offer from Canon Inc (7751 JP) at JPY3,650, a 32.4% premium to the last close price.
• The offer is attractive as it is above book value (P/B of 1.21x), above the midpoint of the IFA DCF valuation range and represents an all-time high. 
• An attractive offer facilitates meeting the required tendering rate. The offer closes on 19 January 2026 and is a done deal. 

• Daicel is notable for being Japan’s only manufacturer of acetic acid and for holding world-leading market positions in some cellulose-acetate products and in acetate tow for cigarette filters.
• At current prices, the dividend yield of the company is at a healthy 4.6%. Its dividend yield averaged 4.4% from FY2021 to FY2025.
• The company has enjoyed a solid sales growth of 10.5% CAGR from FY2021 to FY2025. Operating income nearly doubled from FY2021 to FY2025.

• Japanese banks are entering a new, structurally sound phase driven by the BoJ’s policy pivot, which is fundamentally elevating Net Interest Income and profitability.
• Capital efficiency and mandatory corporate governance reforms are set to significantly close the P/B gap against global peers.
• TOPIX Bank Index could be poised for continued outperformance over the broader market, making it an essential, high-conviction portfolio exposure as 8303 Shinsei returns to the index.

• Nippo produced record earnings in FY25 1H, with OP of ¥946mil (+12.8% YoY) on sales of ¥22,186mil (+0.3% YoY).
• While 1H sales remained flat YoY due to a decline in sales of the Electronics segment (-3.3% YoY), OP hit a semi-annual record, thanks to (1) solid growth of in-house products such as semiconductor wafer grinding carriers and (2) cost reductions in overseas factories.
• FY25 is the final year of Nippo’s medium-term plan [MTP].

Key points (machine generated)

• NextGen Inc. specializes in voice communication technology solutions for various sectors and pioneered Japan’s first nationwide IP telephone service.
• The company has developed a business model that reduces product development risks and promotes growth through standardized products and cloud services.
• In Q2 of the fiscal year ending March 2026, NextGen reported an 18.4% revenue increase to 1,894 million yen and a 78.3% rise in operating profit to 190 million yen.

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)

• OKM Co., Ltd. holds a 90% market share in Japan and 40% globally in the valve industry.
• The company has revised its fiscal year 2026 performance forecast upwards due to strong sales in marine and LNG valves.
• OKM’s medium-term plan aims for 13.2 billion yen in sales, 1.3 billion yen in operating profit, and an ROE of 8-10% by March 2028.

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)

• Papanets (9388) is a service company listed on the Fukuoka Stock Exchange Q-Board in March 2025.
• The company supports real estate management firms and related businesses with services like patrol, cleaning, and reporting through its system ‘Jun-kun.’
• Papanets also offers comprehensive interior support, including furniture manufacturing, sales, delivery, and installation.

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)

• Soft99 Corporation reported a 3.0% increase in real estate-related sales to 648 million yen and a 12.8% rise in operating profit to 156 million yen.
• The real estate rental sector declined due to tenant vacancies, while the bathing business and preventive care support business experienced growth.
• The company revised its fiscal year 2026 forecast, projecting consolidated sales of 30,800 million yen (up 3.6%) and operating profit of 4,100 million yen (up 1.6%).

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)

• FISCO Ltd.’s report highlights TOYOKOH Inc.’s growth potential in the CoolLaser business, transitioning from R&D to revenue generation.
• With a domestic market of ¥80 billion and plans for international expansion, TOYOKOH is expected to see significant profit increases by FY3/26.
• The report notes the rising stock price since TOYOKOH’s IPO, driven by profit growth, but includes disclaimers about the information’s accuracy and investment solicitation.

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

• Back in mid-August, Bengo4.Com Inc (6027 JP) (“Bengoshi.com”) announced that it had applied to transfer to TSE Prime. 3+mos later, today it announced it will move on 4 Dec 2025.
• That sets up a TOPIX inclusion for end-January 2026 and then a likely upweight at end-April 2026.
• There is no accompanying offering, and the float is likely small. But the inclusion displaces the current active base. And there’s at least one large holder selling recently.

• SilverCape has increased its tender offer price for Digital Holdings Inc (2389 JP) by 2.9% to JPY2,450 and raised the minimum tendering condition to 6.8 million shares (36.61% ownership ratio).
• The SilverCape hostile offer faces twin challenges: preventing completion of the Hakuhodo Dy Holdings (2433 JP) offer and gaining the Board’s support/stopping the implementation of countermeasures.
• SilverCape’s revised terms are unlikely to address these challenges. While Hakuhodo may (again) revise its offer, I expect the bump to be marginal (less than 5%). 

• Today late in the afternoon session, the Nikkei reported that the MBO price would be bumped by “about 30%”. The stock popped 4.6%. 
• Post-Close, the deal is bumped from ¥1,960 to ¥2,520 (+29%). Activist holders Murakami Group with 21.4% and Hibiki Path Advisors with 5.5% have agreed to tender. 
• With the two main activists publicly engaged now agreed to tender, this looks like a done deal.

• Digital Holdings Inc (2389 JP) jumped today after spending a week or more at levels just above the revised Tender Price of Hakuhodo Dy Holdings (2433 JP). 
• SilverCape had promised to bid ¥2,380 against Hakuhodo’s ¥1,970 and the Company responded by threatening a Poison Pill against SilverCape, for relatively spurious reasons (as discussed here).
• Hakuhodo bid slightly more, and lowered its minimum, thereby nearly ensuring their success. HOWEVER…. SilverCape’s CIO interviewed yesterday promised a higher price. The stock popped today. But…

• Mandom Corp (4917 JP) has disclosed that the CVC-sponsored MBO price has increased by 28.6% from JPY1,960 to JPY2,520.
• The revised terms mark a big win for activists, Murakami and Hibiki. Both activists will tender, with Hibiki reinvesting around 40% of its proceeds into the offeror’s parent entity.
• The revised terms are attractive, and this is a done deal. The offer closes on 18 December, with payment from 25 December.

• JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
• The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
• Below is a look at potential ADDs and DELs for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-November 2025.

• Context: The Toyota Motor (7203 JP) vs. Suzuki Motor (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Toyota and short Suzuki targets a 7% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• The Bank has reached its three-year target one year ahead of schedule
• Focus has now turned to growth and new opportunities as unleashed from full  government supervision
• Valuations do not yet discount an improvement in returns from here

• Daido Steel (5471 JP) produced FY25 (March year-end) 1H OP [IFRS basis] of ¥18,464mil (+1.1% YoY) on sales of ¥284,499mil (+0.4% YoY).
• Both sales and OP surpassed guidance which called for OP of ¥12,500mil (-31.5% YoY) on sales of ¥275,000mil (-3.0% YoY), thanks primarily to stronger than expected demand for ship engine valves in the open die forging business and despite having incurred about ¥2,300mil of costs related to the Superalloy Manufacturing Process Transformation Project, one of the firm’s ongoing strategic investments in the current MTP.
• The Mid-Term Plan [MTP], which ends in FY26, was revised down to reflect (1) a larger than expected decline in steel product sales volumes, (2) sluggish auto production and weaker than expected industrial machinery-related orders and (3) increasing lack of clarity in the business environment.

• Nicca Chemical is a leading Japanese specialty chemical manufacturer with a dual-pillar business model in Chemicals (surfactants for textiles, paper, etc.) and Cosmetics (professional hair care). The company holds a dominant market share in the domestic textile chemicals sector and is pursuing growth through high-value-added products and overseas expansion, primarily in Asia.
• The company presents an attractive valuation profile, trading at a significant discount to book value and a low P/E ratio. This is complemented by a strong commitment to shareholder returns, evidenced by a robust dividend yield and a remarkable 3-year dividend per share CAGR of over 33%.
• Future growth is expected to be driven by the “INNOVATION25″strategic plan, which focuses on increasing the sales ratio of high-value-added products (Environment, Health, Digital), expanding the cosmetics business, and improving capital efficiency with a focus on raising its price-to-book ratio.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Last week, before the long weekend, Toyota Motor (7203 JP) and Sumitomo Mitsui Financial Group (8316 JP) announced a very big secondary selldown of shares in Toyoda Gosei (7282 JP). 
• The selldown is 85x 3mo ADV, 27% of shares out. 125% of Max Real World Float. It’s a lot of stock at $750mm. One wonders where demand is.
• They also announced a big buyback, which is some of it, and there are index impacts, BUT this offering needs to find LOTS of new fundamental owners quickly.

• Until the latest accounting scandal, Nidec was just another stupidly over-valued company that chased too many rainbows and missed too many targets.
• Now, finally, it has fallen to interesting valuations and there is a real incentive to fix the things that need fixing. 
• Nidec is a governance nightmare with poor oversight, a history of bad strategic decisions, and shoddy execution. If these are fixed, though, the upside is enormous.

• Human Made (456A JP) raised US$116m in its Japan IPO.
• Human Made Inc. is a Japan-based apparel and lifestyle company. Its business model centers on producing high-value, limited-supply apparel and goods. 
• In our previous note, we looked at its past performance and valuations. In this note, we will talk about the trading dynamics.

• Q2 results confirmed a clear earnings inflection, driven by strong enterprise SSD demand, improving ASPs, and recovering smartphone NAND volumes.
• Q3 guidance signals record revenue and further margin expansion supported by tight NAND supply and AI-linked storage demand.
• Despite near-term pressure from Bain’s selldown, long-term fundamentals remain intact; valuation discounts justify a ¥12,500 target and accumulate-on-weakness stance.

• OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning.
• In the construction consulting industry, there were 56 companies with annual sales of JPY 5 bn or more and 106 companies with JPY 2 bn or more in the 12 months from January to December 2024.
• The Company ranks 24th, positioning it as a mid-tier player. Over its century-long history, however, the Company has specialized in urban development fields such as city planning, and in this domain, it holds the top domestic market share, ahead of the runner-up, Nippon Koei Urban Space, by just under JPY 1 bn in annual sales.

• SIR believes DWTI has entered an exciting new phase given significant advances in pipeline development achieved over the last year.
• Key advances included: 1) publishing favorable topline results of in-house developed glaucoma treatment [H- 1337] Phase IIb US trials (strong prospects as “first choice as a second-line drug”)
• 2) commenced joint development Japan Phase II clinical trials of regenerative cell therapy [DWR-2206] with ActualEyes, and successfully completed all transplants

• Gold’s outlook is strongly supported by a dovish Federal Reserve, structural de-dollarization trends, and increasing central bank demand for a strategic stagflation hedge.
• The Nikkei 225’s high is vulnerable to concentrated risk in the technology sector and geopolitical volatility, necessitating a tactical approach to portfolio protection.
• Deep dive into a two-part portfolio-defensive structure, pairing a strategic long-term inflation asset with a short-term volatility hedge on a key equity index.

• For years, overseas investors have raised concerns about management’s lack of awareness regarding fiduciary duty to fulfill corporate value growth and shareholder returns, which are integral to maximizing shareholder interest.
• While the weak yen has certainly increased the “foreign currency translation adjustment” and impacted ROE, it has also had a positive effect on profits.
• Among the three components of ROE, Net Profit Margin showed the highest correlation. There is a problem with accumulating cash on the balance sheet without investing to improve profit margins.

• Eisai Co Ltd (4523 JP) recorded153% YoY revenue growth to ¥41B for Leqembi during H1FY26, driven by significant growth in Japan (+177% YoY) and Americas (+84% YoY).
• For FY26, Eisai has guided for Leqembi revenue of ¥77B, up 73% YoY.  H1FY26 Leqembi revenue represents progress rate of more than 50%, thereby raising conviction of meeting full-year guidance.
• Recent clinical trial setbacks suffered by two large players, Johnson & Johnson and Novo Nordisk should act in favor of Leqembi.  

• Q1-2 FY3/26 results were broadly in line with expectations, with OP reaching ¥1.44bn, the highest level at interim in the company’s history.
• The launch of Nintendo Switch 2 provided a strong tailwind to the DH Group, while AGEST Group returned to profitability as overseas restructuring neared completion.
• To further enhance group synergies and accelerate global expansion, the company divested identity last year and acquired HUWIZ SOLUTIONS this year, reshaping its portfolio toward higher-margin and growth-oriented opportunities. 

• Bloomberg reports that Bain Capital is selling 36.0 million Kioxia Holdings (285A JP) shares through a block trade. IFR reports that the offering is worth up to JPY330 billion (US$2.1 billion).
• The offering is unsurprising given the shares are up around 7x since the IPO. The offering is easily digestible as it represents 2.7 days of the average ADV since listing.
• Kioxia is anticipated to return to growth in 3Q, and the underlying margin is recovering from recent lows. However, Kioxia’s EV/EBITDA multiple is full compared to peers and historical ranges. 

• After the close today, BCPE Pangea Cayman announced plans to sell a stake of 36mm shares of Kioxia Holdings (285A JP) in an overnight block. It trades tomorrow.
• This is 6.7% of shares out, 1.5x ADV. The discount is 7-9%. But it is 35% of Max Real World Float. And probably gets tradable shares to 34+%, not 35%.
• That means another offering is likely near-term. The lockup is only 30 days it appears. There is possibly a fair bit of long-dated index demand.

• Bain Capital is looking to place 36m shares of Kioxia Holdings (285A JP) to overseas investors at a 7-9% discount to the last close of the stock.
• The stock has run up a lot since its IPO with the last leg driven by inclusion in a global index that took place at the close on Friday.
• Toshiba (6502 JP) had already been selling stock, and the Bain selling could take the stock lower, especially with limited passive buying in the short-term to support the big runup.

• Bain aims to raise around US$2bn via selling around 6% of its stake in Kioxia Holdings (285A JP). The IPO linked lockup on its shareholding had expired in Jun 2025.
• Kioxia is a manufacturer and a global leader in flash memory and solid state drives for smartphones, PCs, enterprise servers and data centers.
• In this note, we will talk about deal dynamics and run the deal through our ECM framework.

• Today after the close, Tokyo-based Dear Life (3245 JP) announced a primary offering to raise approximately ¥7bn through 15% dilution. Implying a 13+% price drop to protect PER.
• But the company plans on growing earnings. It has some projects in inventory, but it obviously plans a lot of turnover this year and needs to replenish.
• The MTMP “slogan” is “2028 – Ride the Wave!”  This is a bit what investing in Tokyo real estate is like now. So one rides it until one doesn’t.

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2bn in its Japan listing
• SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
• We have looked at past performance in our earlier notes. In this note, we talk about valuations.

• POSCO Holdings (005490 KS) is looking to sell its remaining stake in Nippon Steel Corporation (5401 JP) to raise up to US$154m via a cleanup block trade.
• This deal represents 1.6 days of ADV and is around 1% of shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• NS Group (471A JP) (NSG) is one of Japan’s leading rent guarantee service providers, offering payment guarantee and rent collection solutions to property owners and management companies.
• NSG aims to raise around US$256m in its Japan IPO via an entirely secondary offering, marking Bain Capital’s full exit from the company.
• In our previous note, we looked at the firm’s past performance. In this note, we talk about the peer comparison and IPO valuations.

• Kioxia is a leading global supplier of NAND flash memory, experiencing a strong financial recovery driven by surging demand from AI, data centers, and smart devices.
• The company’s strategic focus is on technological leadership in 3D NAND and advanced SSDs, supported by a significant joint venture with Western Digital that enhances R&D and production scale.
• While the outlook is positive, key risks include the inherent cyclicality of the memory industry, intense competition from established players, and execution risks associated with ambitious margin and technology targets.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• United Arrows is beginning to flex its market power by launching more new brands rather than just iterations of its eponymous name
• A key focus is a move to exploit the massive demand for Korean brands in Japan with Korean licenses for Nice Weather and Osoi.
• More licenses are expected in the near future as the select shop retailer looks to take more share of the premium market.

• The March 2026 review for the Nikkei 225 is turning out to be a little more interesting than one might have expected a few months ago. 
• As of the end of August, the 3mo ADTV for Kioxia (285A) was ¥18bn despite expectations it would go into M _ _ _. The 1mo average today? ¥383bn.
• That means it has rapidly climbed into the top echelons of 5yr trading history. Importantly, JX Advanced Metals (5016 JP) and Kokusai Electric (6525 JP) are not far behind.

• While focus on dividend yield is common, we think secular growth in DPS over a long period of time is a stronger marker of robust earnings trajectory and shareholder friendliness. 
• Among stocks in Asian EM and DM, we screen 50 that raised their DPS every year over the past decade – a commendable performance given earnings dislocations during this period.
• Stocks from Japan (24), HK (10), onshore China (6), India (6), Singapore (2) and Taiwan (2) make up our list. 10 are large and liquid with strong forecast EPS growth.

• In this insight, we discuss a pair trade involving a basket of Korean consumer stocks (long) and  a basket of Japanese consumer stocks (short) over the next 3-6 months.
• The 10 Korean names (long basket) include Samyang Food, APR, Amorepacific Corp, Korean Air, CJ Corp, Classys, Nongshim, Shinsegae, Hotel Shilla, and Lotte Tour Development. 
• The 10 Japanese names (short basket) include Fast Retailing, Oriental Land, Kao Corp, Seibu Holdings, ANA Holdings, Shiseido, J.Front Retailing, Kose Corp, Pola Orbis Holdings, and Kyoritsu Maintenance. 

• Softbank Group (9984 JP) crashed nearly -11% between Thursday and Friday close, reaching deeply oversold extremes. 
• Softbank Group has declined for three consecutive weeks, posting a cumulative -37% correction over this period.
• Softbank Group‘s entry into the Outliers zone suggests an extreme oversold condition—potentially creating a tactical long setup for risk-tolerant traders.

• Share buybacks peak every year in June when AGMs are held, after which the “Quiet Period” begins. Toward the fiscal year-end, buybacks are expected as a means to resolve cross-shareholdings.
• Given that the capital profitability of all TSE-listed companies hasn’t shown improvement, investors must continue to call for reducing excess cash reserves through dissolution of cross-shareholdings and the share buybacks.
• Shareholders entrust management with the responsibility to maximize shareholder interest, which includes shareholder returns and corporate value growth. It’s natural for shareholders to demand that management fulfill this fiduciary duty.

• VisasQ is a dominant player in Japan’s expert network service (ENS) market, poised for global expansion following its strategic acquisition of US-based Coleman Research Group.
• The company exhibits a strong revenue growth trajectory, driven by the increasing demand for specialized knowledge in corporate strategy and investment decisions. However, profitability has been volatile, highlighted by a significant goodwill impairment charge in FY2024 related to the Coleman acquisition.
• Future growth hinges on successfully integrating Coleman, leveraging AI to enhance its service platform, and capitalizing on the expanding global ENS market, which is projected to grow at a CAGR of over 16%.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• NS Group (471A JP) is a Japanese property rent guarantee company. It is seeking to raise up to US$255 million. Pricing is on 1 December and listing is on 16 December.   
• The controlling shareholder is Bain Capital, which owns 51.0% of voting rights. The offering is a pure secondary sale by Bain.   
• The investment case rests on its unique market positioning, accelerating growth, sector-leading profitability, cash generation, and low leverage. 

• SBI Shinsei Bank (8303 JP), a Japanese financial institution, aims to raise around US$2bn in its Japan listing.
• SBI Shinsei Bank (SBISB) is a Japanese financial institution providing a range of financial products and services to both individual and institutional customers.
• We have looked at past performance in our earlier notes. In this note, we undertake a peer comparison

• Ryohin Keikaku has once again exceeded expectations, posting record sales and profits that suggest its near-term ¥1 trillion target will easily be reached. 
• While worries over ubiquity remain, the trusting relationship between customer and brand has allowed rapid and successful category expansion which should deliver those targets.
• This includes overseas markets where Muji is now gaining momentum again in China and, at last, making the most of its brand in Europe.

• Onward has quietly but radically transformed its business from wholesale to omnichannel retail.
• Even more remarkably for a company whose average customer age was until very recently over 50, its latest brands now appeal to teens and 20s.
• The new brands exemplify how much this previously staid wholesaler has changed.

• Welcome to Curator’s Cut — a fortnightly roundup of standout themes from the 1,500+ insights published on Smartkarma.
• In this cut, we review CATL’s H-share lock-up expiry, iron ore equity opportunities in the face of Simandou’s expected supply, and the accelerating consolidation in Japan’s consumer sector.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: SBI Shinsei Bank (8303 JP) is looking to relist by raising about US$2 billion, and Toyoda Gosei (7282 JP)‘s US$0.8 billion secondary offering. 
• Event-Driven developments: Digital Holdings Inc (2389 JP), Jinke Smart Services (9666 HK), RPMGlobal Holdings Limited (RUL AU), Webjet Group (WJL AU).