Japan

• Mandom Corp (4917 JP) has disclosed that it has received a non-binding letter of intent from a third-party candidate, with purchase prices exceeding the CVC JPY2,520 offer.
• The Nikkei identifies the bidder as KKR and states that the offer is over JPY2,800, a 11.1% premium to the CVC offer. KKR want a Board-recommended offer.
• CVC has extended the close of its offer to 5 January 2026, but will need to revise terms as its irrevocables (particularly Murakami and Hibiki) can switch to KKR.

• Over the weekend the Nikkei reported that Nippon Life would bid ¥60bn for Medical Data Vision (3902 JP). At one price per share, that meant ¥1,585.  
• There is a deemed dividend treatment buyback for SBI at ¥1,189 which means they will end up with a capital loss (their in-price is ¥1,630) but they’ll offset that.
• This is the biggest win for minorities in a long while. Be happy.

• The Nikkei came out post-close with an article saying that KKR had offered “more than 10%” (“higher than ¥2,800”) for Mandom Corp (4917 JP) vs the revised ¥2,520 CVC Bid.
• Mandom announced a revision to the Opinion Statement to include some but not a lot of details. That triggers an extension to the deal, closing 5 Jan vs 18 Dec.
• The language in the Mandom release is kind of interesting. This price gets us closer, but it may not be high enough.

• 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.
• It raised around US$220m in its Japan IPO via an entirely secondary offering.
• In our previous note, we looked at its past performance and the deal dynamics. In this note, look at the trading dynamics.

• Medical Data Vision (3902 JP) has recommended a tender offer from Nippon Life at JPY1,693, a 212.4% premium to the last close.
• The substantial takeover premium reflects the outcome of an auction and SBI Holdings (8473 JP) willingness to share TOB tax benefits with minority shareholders. 
• The substantial takeover premium also ensures that this is a done deal. The tender closes on 3 February, with payment commencing from 9 February. 

• Matsuya R&D (7317 JP) has recommended a preconditional tender offer from Omron Corp (6645 JP) at JPY1,110, a 22.8% premium to the last close price.
• While the offer represents an all-time high, it is light as it is 22% below the midpoint of the target IFA DCF valuation range. 
• This is a done deal, as the lower limit is marginally above the level of irrevocables. Timing is the key risk with the offer expected to start in late June.

• Re-Rating delivered; stock now reflects spot copper (~$11.5k) and sustained mid-teens ROE, limiting multiple-led upside.
• Non-Resource platforms (leasing, agri) are stabilizing earnings; further upside depends on faster platform scaling and capital returns.
• Fair value ~¥4,550 on spot EPS; Hold bias with asymmetric downside if copper or FX turns.

• Smaregi is a high-growth, pure-play provider of cloud-based Point-of-Sale (POS) systems in Japan, capitalizing on the structural shift from legacy hardware to SaaS solutions among small and medium-sized businesses (SMBs).
• The company exhibits a robust financial profile, characterized by impressive revenue and earnings growth, expanding margins, and a rapidly growing base of high-margin Annual Recurring Revenue (ARR), which recently surpassed JPY 10 billion.
• While the company’s strategic focus on the underserved mid-sized retail and restaurant market presents a significant runway for growth, it faces intense competition and trades at a premium valuation, reflecting high investor expectations.

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• In cumulative Q3 FY01/26, the company reported no operating revenue and an operating loss of JPY2.7bn.
• The company forecasts a recurring loss of JPY4.5bn and a net loss of JPY4.0bn for FY01/26.
• R&D expenses increased to JPY2.8bn, reflecting sales preparation and manufacturing costs for AKUUGO® approval changes.

• Hikari Tsushin operates a diversified business model centered on recurring revenue streams from corporate and individual customers, with a strong focus on telecommunications, office automation, and energy services.
• The company has demonstrated a robust long-term growth track record, evidenced by double-digit compound annual growth in net income, EPS, and dividends over the past decade, alongside a strategic focus on shareholder returns through consistent dividend increases and buybacks.
• While revenue growth is solid, recent profitability has been hampered by rising Selling, General & Administrative (SG&A) expenses, leading to flat operating profit despite record top-line performance. This highlights a key challenge in managing costs amidst expansion.

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• On Friday, after market close, Makino Milling Machine Co (6135 JP) finally issued a progress update on the MBK preconditional tender offer. The update, while mixed, should calm nerves. 
• The positive read-across is a pathway to regulatory approvals, the Homeplus saga has not derailed the offer, and the likely breach of the long-stop date is not a termination event.
• The negative read-across is the lack of a revised tender start timeline, an unexplained delay in securing most regulatory approvals and ongoing uncertainty on the long-stop date.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Smart Share Global (EM US), Dongfeng Motor (489 HK), Raksul Inc (4384 JP), Jinke Smart Services (9666 HK), Qube Holdings (QUB AU), ENN Energy (2688 HK).       
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Toyota Industries (6201 JP), Hainan Meilan International Airport (357 HK), Ainsworth Game Technology (AGI AU).

• Medical Data Vision (3902 JP) was IPOed in 2014. MitCorp sold. Others sold. Fujifilm and Medipal stayed in. The stock ran up. SBI bought from Fujifilm in Nov2020 at ¥2355.
• The stock fell, SBI bought more in 2021-2022. Then it fell more in 2023 and SBI bought more, then fell more in 2024 and SBI bought more. 
• The Nikkei reports today that Nippon Life will announce a TOB on 15 December with a max price of ¥60bn (242% premium), which coincidentally would bring SBI close to breakeven.

• The Nikkei reports that Nippon Life Insurance will launch a tender offer for Medical Data Vision (3902 JP) at a valuation up to JPY60 billion.
• If the valuation refers to market cap, the offer is JPY1,500, a 225% premium to the last close of JPY462. If it relates to EV, the offer price is JPY1,550. 
• Despite the staggering premium, it does not represent an all-time high (share price traded higher in November 2021). Nevertheless, a binding proposal would be a done deal. 

• Strategic Pivot to Web3 and Metaverse: Gumi is aggressively shifting its focus from a reliance on hit-driven mobile games to becoming a comprehensive Web3 enterprise, underscored by strategic partnerships with Square Enix and SBI Holdings, and significant investments in cryptocurrencies like XRP and Bitcoin.
• Financial Volatility and Restructuring: The company has experienced significant financial turbulence, with a substantial net loss in FY24 driven by underperforming titles, leading to the discontinuation of flagship games, workforce reductions, and a halt in the development of high-risk original titles.
• Leveraging Existing IP for Future Growth: Despite sunsetting major titles, Gumi plans to leverage its well-known ‘Brave Frontier’ IP for a new Web3 game, ‘Brave Frontier Versus’, in partnership with the Sui Foundation, aiming to blend its established brand with new blockchain-based gaming experiences.

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• Earnings re-based higher: FY2025–27 EPS upgraded ~20%, driven by copper and gold prices; resource earnings dominate while smelting volatility remains largely accounting-driven.
• Valuation near fair value: At ~¥6,000, SMM trades around mid-cycle value; upside depends on sustained copper/gold strength rather than multiple expansion.
• Downside cushioned: Strong balance sheet and ~2× FCF dividend cover limit downside, with pullbacks offering better entry than chasing spot-driven rallies.

• 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, this week will probably see the last of the big listings in Asia this year
• On the placements front, Swiggy was the main deal in the market. There are still a few lockup expiries left for 2025.

• Among companies failing the listing criteria for Standard Market and Growth Market, many that cannot meet 1 billion yen tradable shares market capitalization criteria will migrate to Nagoya Stock Exchange.
• These companies failed to grow market capitalization. For these companies, the purpose of going public may have been to increase their visibility and credibility than to achieve growth after listing.
• Companies migrating from TSE to other markets face a significant hurdle in achieving growth and improving corporate governance to enhance management transparency, especially when institutional investor engagement is lacking.

• Sales are growing again and the company has turned profitable with capacity utilization up and costs down. Guidance for 2H of FY Mar-26 looks conservative. 
• Sales of power devices is rising after a long period of weakness, supported by auto, industrial and data center related demand.
• Projected valuations are once again reasonable. The share price should continue to trend upwards.

• Shikoku Electric Power is demonstrating a significant financial turnaround, with net income rebounding strongly in the latest fiscal years after a loss in FY2023, driven by operational efficiencies and a favorable regulatory environment.
• The company is strategically expanding its renewable energy portfolio, with a target to increase capacity to 500MW by FY2030 and 2GW by FY2050, focusing on solar (including floating solar), biomass, and wind power.
• The stable operation of its sole nuclear reactor, Ikata Unit 3, is a critical earnings driver, though it remains subject to regulatory oversight, legal challenges, and periodic maintenance shutdowns.

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• Aeon Co Ltd (8267 JP)‘s Partial Offer for Tsuruha Holdings (3391 JP) discussed in [Japan Partial Tender] AEON (8267) Partial Offer for TSURUHA (3391) Announced at ¥2,900/Share is trading rich.
• The Conclusions/Trade section was clear on the near-term risks. There was good short-term upside. There may be less with the stock trading 0.5% away from the tender price.
• With the stock trading so close, it changes the calculus, in both directions.

• Sony Group Corporation reported a strong financial performance for the latest quarter with record sales and operating income figures.
• Sales from continuing operations increased by 5% year-on-year to JPY 3,107.9 billion, with a 10% rise in operating income to JPY 429 billion.
• Net income rose by 7% to JPY 311.4 billion.

• I tally 38 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
• Just one new deal was discussed on Smartkarma this week: Raksul Inc (4384 JP).
• Key updates/news also took place on Toyota Industries (6201 JP),Predictive Discovery (PDI AU), Jinke Smart Services (9666 HK), Hainan Meilan International Airport (357 HK), and Digital Holdings (2389 JP).

• FY26–30 plan lifts scale ambitions, but ¥6 tn capex and U.S. Steel integration keep free cash flow negative through FY26.
• U.S. Steel synergies shift to FY27–28 amid labor, regulatory, and spread pressures, delaying ROCE recovery toward the 9–10% target.
• Look cheap on NTM multiples, but elevated leverage, FX sensitivity, and sub-8% forward ROCE limit near-term re-rating.

• Goldman Sachs will take Raksul private via a ~¥100bn MBO, restoring meaningful governance influence to the founder—one of the most explicitly founder-aligned take-privates in Japan’s tech sector.
• Public markets consistently undervalued Raksul’s multi-vertical SME platform; going private enables longer-horizon investment, selective M&A, and disciplined scaling across printing, logistics, marketing tech, and adjacent digital services.
• Deal completion probability is high (90–95%): a fair premium, full founder support, and limited interloper risk leave minority shareholders best served by tendering into the offer.

• Transitioning to company with audit and supervisory committee is neutral for governance improvement, but the reason governance improvement hasn’t decisively improved is that few companies adopt the US-type 3-committee structure.
• Currently, discussions are underway on company with US type 3 Committees, specifically the proposal that “only when outside directors constitute majority, shall the authority to determine nominations reside with theBOD.”
• This resembles the situation when companies established audit committees prioritized demonstrating improvements in corporate governance over substantive enhancements to corporate governance itself.

• Operating revenue increased 46.8% YoY to JPY4.8bn, driven by strong sales of TDM-621, especially in the US.
• The company returned to profitability with an operating profit of JPY361mn, improving JPY893mn YoY, aided by forex gains.
• Full-year FY04/26 forecast predicts JPY9.3bn operating revenue and JPY400mn operating profit, reversing previous year’s losses.

• GiG Works reported revenue of JPY22.3bn (-12.2% YoY) and net income of JPY272mn, surpassing full-year forecasts.
• The company recorded impairment losses of JPY171mn in the Web3 Services and Sharing Economy businesses for FY10/25.
• For FY10/26, GiG Works forecasts revenue of JPY22.0bn, operating profit of JPY50mn, and net income of JPY10mn.

Key points (machine generated)

• Human Creation Holdings is an independent solution integrator listed on the Tokyo Stock Exchange under ticker 7361.
• The company is transforming by expanding into M&A brokerage, IT consulting, development, maintenance, and BPO services.
• Through mergers and acquisitions, it aims to enhance capabilities and position itself as a next-generation management consulting firm.

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)

• Hurxley is projected to achieve an operating profit of 1.9 billion yen for the fiscal year ending March 2026, with a 55% interim progress rate.
• The company focuses on diversified mergers and acquisitions in the food sector, particularly in prepared meals, store assets and solutions, and logistics and food processing.
• Its prepared meals segment includes the ‘Hokka Hokka Tei’ brand, and the store assets segment was enhanced by the acquisition of TRN Corporation in 2006.

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

• In FY07/26, the company reported JPY10.1bn revenue (+129.7% YoY) and JPY8mn operating profit (-99.3% YoY).
• Consumer Service business Q1 FY07/26 revenue was JPY9.6bn (+154.2% YoY) with JPY76mn operating profit (-93.0% YoY).
• Online Advertising business Q1 FY07/26 revenue was JPY563mn (-12.6% YoY) with JPY50mn segment loss (profit in FY07/25).

• Revenue increased to JPY6.1bn (+15.2% YoY), operating profit to JPY1.9bn (+36.7% YoY), and recurring profit to JPY2.0bn (+35.1% YoY).
• Revenue from desknet’s NEO Cloud rose to JPY2.7bn (+30.1% YoY) due to a price revision in September 2024.
• Revised full-year FY01/26 forecast: revenue JPY8.2bn, operating profit JPY2.4bn, net income JPY1.7bn, annual dividend JPY50.00 per share.

Key points (machine generated)

• The report by FISCO Ltd. analyzes NexTone, a company listed on the Tokyo Stock Exchange under ticker 7094.
• It is intended for informational purposes only and does not constitute an investment invitation.
• FISCO disclaims guarantees on the report’s accuracy and includes disclaimers about investment risks.

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. forecasts a 6.0% sales increase for Nomura System Corporation, reaching 3,472 million yen by December 2025.
• The report predicts significant declines in operating profit, ordinary profit, and net profit, with decreases of 18.9% and 22.3%.
• The company aims to improve earnings through a steady increase in prime projects and delivering high value-added solutions.

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

• Raksul Inc (4384 JP) is a business roll-up business. They do printing, and advertising, and marketing, and supply. They want to be all things to all SMEs. 
• They are pretty good at it. Revenues and EBIT have been growing at 20-30% a year for years, and are scheduled to grow 19% and 26% for several years ahead.
• The bid is up 40% from last, but that gets them to a 30-month high. The register is very open. Lots of active institutional shareholders who have to agree. Maybe.

• Raksul Inc (4384 JP) has recommended a Goldman Sachs Group (GS US)-sponsored MBO at JPY1,710, a 39.5% premium to the last close.
• While the process is lacking (no auction), the offer is reasonable compared to peer multiples, analyst price targets and historical trading ranges. 
• The offer aligns with the midpoint of the target IFA DCF valuation range. Barring an emergence of an activist, this should get done. 

• Rising memory prices are significantly increasing Switch 2 hardware costs, threatening margin compression below expectations and undermining management’s prior guidance on maintaining stable profitability levels.
• Even with potential price hikes, higher ASPs may dampen unit demand, reducing operating leverage and forcing consensus earnings cuts across FY3/27–28 as hardware profitability deteriorates.
• Valuation remains stretched relative to historical norms, leaving limited downside protection if earnings reset lower and increasing vulnerability to sentiment reversals amid uncertain cost trajectories.

Key points (machine generated)

• Human Creation Holdings is an independent solution integrator addressing management challenges through IT.
• The company is transforming by expanding from engineer dispatch services into IT consulting, development, M&A brokerage, and BPO services.
• By leveraging mergers and acquisitions, the company aims to create a comprehensive business model for enhanced synergy and growth.

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)

• Japan National Land Development is a mid-sized general contractor in Japan, focusing on civil engineering and large-scale land development.
• The company was established post-war and expanded into civil engineering in 1953 and construction contracting in 1962.
• Currently, it is implementing a mid-term management plan to rebuild its management foundation and target an operating profit of 9 billion 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)

• FISCO Ltd.’s report forecasts a 6.0% sales increase for Nomura System Corporation, reaching 3,472 million yen.
• Significant declines in operating profit, ordinary profit, and net profit are projected, with decreases of 18.9% and 22.3%.
• Profitability improvements depend on a steady increase in prime projects, aligning with the company’s goal to deliver ‘high value.’

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)

• P.B. Systems, an independent system integrator in Fukuoka, saw a decline in revenue and profit for the fiscal year ending September 2025.
• The company specializes in hybrid cloud solutions for mid-sized companies, SaaS providers, and public organizations, focusing on cybersecurity and digital transformation.
• P.B. Systems operates a dual structure with projects like the VR theater series ‘MetaWalkers’ and ‘MetaAnywhere,’ while investing in scaling operations despite project management challenges.

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)

• SYLA Holdings Co., Ltd. was formed from the merger of CUMICA Corporation and SYLA Technologies Co., Ltd., focusing on real estate development and crowdfunding.
• In FY5/25, CUMICA experienced a 13.7% revenue increase but reported a net loss of ¥657 million; SYLA Holdings forecasts revenue growth to ¥34,500 million and net income of ¥868 million for FY5/26.
• The company aims to establish itself as a comprehensive real estate tech firm with mid-term targets of ¥100 billion in total assets and a 10% return on equity by FY5/30.

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)

• San-ei Corporation reported a decline in revenue and profit due to decreased demand for travel and outings.
• The company operates 17 overseas bases and 11 stores in Japan, focusing on high value-added products through OEM and brand businesses.
• The furniture and household goods segment accounts for 50.8% of sales, with apparel and accessories also contributing significantly.

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

• Q1–2 FY3/26 outperformed expectations at the bottom line, driven by lower raw material costs, robust performance in Industrial Films (including SRF and Mold releasing film for MLCC), and the return to positive OP in the Businesses requiring improvement, indicating steady progress in line with the plan.
• Free cash flow turned positive, supported by stronger operating cash flow and capex returning to more normal levels after a period of heavy investment.
• With the continued recovery in Businesses requiring improvement (namely Textiles, Pharmaceuticals, Airbag fabrics, Packaging film, Nonwoven materials) and solid demand for Industrial films, we anticipate that the current recovery momentum will be maintained throughout FY3/26.

• Elliott has filed a substantial shareholder notice reporting a Toyota Industries (6201 JP) ownership of 16.3 million or 5.01% of outstanding shares.
• The disclosure is likely a tactic to pressure Toyota Fudosan (offeror) and also a useful signalling tactic to other minorities that Elliott is committed to securing a bump.
• A potential bump could reach JPY19,000. While this would require an additional US$4 billion, financing should not be an issue as the book value (understated) is close to JPY18,000. 

• The somewhat unexpected outperformance in H1 FY3/26 reflects the volatile nature of the shipping industry, and the impact of macro events.
• The stability provided by the Real Estate segment remains a key enabler for IINO Lines’ long-term strategy.
• With a conservative D/E ratio of 0.79x, the Company retains significant financial flexibility to withstand shipping cycle volatility while funding its capital- intensive fleet renewal program. 

• Japan’s leading on-site urethane foam insulation installer with strong growth Nippon Aqua Co., Ltd. (hereinafter, the Company) is a high-growth enterprise listed on the Prime Market of the Tokyo Stock Exchange.
• Guided by its management philosophy— “Contribution to society through the creation of living environments that are friendly to people and the earth”—the Company leverages insulation and waterproofing technologies to drive energy efficiency and support a sustainable society.
• It holds the leading domestic share in on-site urethane foam insulation installation and operates its business through three key divisions: Single-family homes, Buildings, and Waterproofing.

• H1 FY3/26 results demonstrated solid execution, highlighted by visible efficiency gains.
• We believe visibility toward growth acceleration has improved post- Q2; the recovery in Individual Life is gaining momentum, evidenced by accelerating AP growth and improved profitability from tech- driven efficiency initiatives.
• Furthermore, the new partnership with The Kyoto Shinkin Bank clarifies the GCL segment’s growth upside by opening a strategic pathway to the vast domestic bank mortgage market. 

• On October 21st we published an insight predicting Toyota Motor’s imminent pullback. The stock started to pullback the following week, the correction lasted for a few weeks.
• After last week’s weakness, Toyota Motor (7203 JP) is rallying again. There’s conflicting sentiment on valuation—some see it as undervalued.
• This insight presents a short-term tactical analysis with a bullisht target at 3291 (75% probability of seeing a new pullback after that target is reached). 

• The convenience store sector is not only saturated but also facing serious levels of new competition. Despite this, Seven Eleven posted much higher growth in November but problems remain.
• The big 3 are working hard to innovate their way out of trouble and move on to new, fertile pastures of growth but Seven Eleven is behind Lawson and Familymart.
• Innovation means high levels of differentiation across prices, tech, services and merchandising, making each chain much more distinctive and a fascinating example of where Japanese retail is headed.

• Santen Pharmaceutical (4536 JP) witnessed revenue drop with profits also declining in H1FY26. Sequential quarterly improvement a positive. EMEA and Asia grow driving the overseas business rise.
• Company reiterated FY26 guidance where revenue is projected at ¥294B (down 2% YoY) and core operating profit at ¥54B (down 9% YoY). H2FY26 expected to be strong.
• Regular drug development, consistent approvals for new indications coupled with licensing deals and its market leadership position will help Santen to see through the sluggishness.

Key points (machine generated)

• Toho Gas reported increased revenue and profit for the interim period of fiscal year ending March 2026 due to rising customer numbers.
• The company, celebrating its 100th anniversary in 2022, has transitioned from coal to oil and now to natural gas, becoming a top player in the urban gas sector.
• Toho Gas is committed to community contributions, focusing on building trust and enhancing quality of life.

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

• Renaissance Inc. is a major player in the Japanese fitness industry, demonstrating a strong revenue recovery post-pandemic, although profitability and cash flow remain volatile.
• The company is diversifying its business model beyond traditional fitness clubs to include healthcare-related services, such as corporate wellness programs and senior-focused rehabilitation centers, tapping into Japan’s key demographic trends.
• While facing intense competition and economic sensitivity, the company’s strategic focus on health solutions for an aging population and its established brand presence of over 100 clubs position it for potential long-term growth in the expanding wellness market.

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

• Q1–3 FY12/25 results outperformed expectations. Membership in the core matchmaking business continued to grow steadily.
• The Life Design segment also delivered significant growth, driven by solid performance in the photo, insurance, and wedding businesses, as well as the positive contribution from GROWBING, which was newly consolidated.
• Organic growth continued to be a major driver of the group’s overall performance. 

• Elliott has filed a substantial shareholder notice reporting a Toyota Industries (6201 JP) ownership of 16.3 million or 5.01% of outstanding shares.
• The disclosure is likely a tactic to pressure Toyota Fudosan (offeror) and also a useful signalling tactic to other minorities that Elliott is committed to securing a bump.
• A potential bump could reach JPY19,000. While this would require an additional US$4 billion, financing should not be an issue as the book value (understated) is close to JPY18,000. 

• The somewhat unexpected outperformance in H1 FY3/26 reflects the volatile nature of the shipping industry, and the impact of macro events.
• The stability provided by the Real Estate segment remains a key enabler for IINO Lines’ long-term strategy.
• With a conservative D/E ratio of 0.79x, the Company retains significant financial flexibility to withstand shipping cycle volatility while funding its capital- intensive fleet renewal program. 

• H1 FY3/26 results demonstrated solid execution, highlighted by visible efficiency gains.
• We believe visibility toward growth acceleration has improved post- Q2; the recovery in Individual Life is gaining momentum, evidenced by accelerating AP growth and improved profitability from tech- driven efficiency initiatives.
• Furthermore, the new partnership with The Kyoto Shinkin Bank clarifies the GCL segment’s growth upside by opening a strategic pathway to the vast domestic bank mortgage market. 

• Japan’s leading on-site urethane foam insulation installer with strong growth Nippon Aqua Co., Ltd. (hereinafter, the Company) is a high-growth enterprise listed on the Prime Market of the Tokyo Stock Exchange.
• Guided by its management philosophy— “Contribution to society through the creation of living environments that are friendly to people and the earth”—the Company leverages insulation and waterproofing technologies to drive energy efficiency and support a sustainable society.
• It holds the leading domestic share in on-site urethane foam insulation installation and operates its business through three key divisions: Single-family homes, Buildings, and Waterproofing.

• On October 21st we published an insight predicting Toyota Motor’s imminent pullback. The stock started to pullback the following week, the correction lasted for a few weeks.
• After last week’s weakness, Toyota Motor (7203 JP) is rallying again. There’s conflicting sentiment on valuation—some see it as undervalued.
• This insight presents a short-term tactical analysis with a bullisht target at 3291 (75% probability of seeing a new pullback after that target is reached). 

• The convenience store sector is not only saturated but also facing serious levels of new competition. Despite this, Seven Eleven posted much higher growth in November but problems remain.
• The big 3 are working hard to innovate their way out of trouble and move on to new, fertile pastures of growth but Seven Eleven is behind Lawson and Familymart.
• Innovation means high levels of differentiation across prices, tech, services and merchandising, making each chain much more distinctive and a fascinating example of where Japanese retail is headed.

• Santen Pharmaceutical (4536 JP) witnessed revenue drop with profits also declining in H1FY26. Sequential quarterly improvement a positive. EMEA and Asia grow driving the overseas business rise.
• Company reiterated FY26 guidance where revenue is projected at ¥294B (down 2% YoY) and core operating profit at ¥54B (down 9% YoY). H2FY26 expected to be strong.
• Regular drug development, consistent approvals for new indications coupled with licensing deals and its market leadership position will help Santen to see through the sluggishness.

Key points (machine generated)

• Toho Gas reported increased revenue and profit for the interim period of fiscal year ending March 2026 due to rising customer numbers.
• The company, celebrating its 100th anniversary in 2022, has transitioned from coal to oil and now to natural gas, becoming a top player in the urban gas sector.
• Toho Gas is committed to community contributions, focusing on building trust and enhancing quality of life.

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

• Renaissance Inc. is a major player in the Japanese fitness industry, demonstrating a strong revenue recovery post-pandemic, although profitability and cash flow remain volatile.
• The company is diversifying its business model beyond traditional fitness clubs to include healthcare-related services, such as corporate wellness programs and senior-focused rehabilitation centers, tapping into Japan’s key demographic trends.
• While facing intense competition and economic sensitivity, the company’s strategic focus on health solutions for an aging population and its established brand presence of over 100 clubs position it for potential long-term growth in the expanding wellness market.

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

• Q1–3 FY12/25 results outperformed expectations. Membership in the core matchmaking business continued to grow steadily.
• The Life Design segment also delivered significant growth, driven by solid performance in the photo, insurance, and wedding businesses, as well as the positive contribution from GROWBING, which was newly consolidated.
• Organic growth continued to be a major driver of the group’s overall performance. 

• Makino Milling Machine Co (6135 JP)’s pre-conditional tender offer from MBK Partners is at JPY11,751 per share. The gross spread has increased to 9.9% due to several concerns.
• The wide gross spread reflects the risk in satisfying the precondition, the fallout from the Homeplus saga and breaching the long stop date (16 January 2026).
• While these concerns have merit, there are mitigating factors. The risk/reward is favourable as the upside (9.9% spread) exceeds the downside (6.3% to my estimated deal break price). 

• Today after the close, Broadmedia Corp (4347 JP) announced that UK-based Japan activist AVI and one of its funds would launch a tender offer for just over 10% of shares.
• The Tender Offer comes at a 29.5% premium, and it would take the activist to ~40% – close to board-spilling influence.
• This creates an interesting setup. One wonders whether this is meant to spill the Board post-tender, and whether the Company will seek alternate solutions.

• Okuma Corp (6103 JP) today announced a secondary offering of 5.0mm shares (including greenshoe) from a relatively large number of financial crossholders. 
• That takes out about a third of them and not quite a quarter of the crossholders. There’s more to go. And the register remains “blocked”. 
• It looks headed to retail but this stock is very low volatility and is likely to remain that way. A large buyback to start in January offsets the overhang here.

• Sumitomo Mitsui Trust Bank, MUFG and others are looking to sell around US$104m of Okuma Corp (6103 JP) stock.
• This is a slightly large deal to digest, representing 13.2 days of three month ADV and 6.4% of outstanding stock.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Makino is a globally recognized manufacturer of high-precision, high-quality metal-cutting and electrical discharge machines (EDM), serving demanding industries like aerospace, automotive, and medical.
• The company is currently a subject of M&A speculation, with a tender offer from MBK Partners on the table after a hostile bid from Nidec was withdrawn, creating potential for further bids and stock volatility.
• Financially, Makino has demonstrated revenue growth, but profitability and free cash flow have been inconsistent, reflecting the cyclical nature of the machine tool industry and recent supply chain pressures.

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• Miroku Jyoho Service (MJS) is a dominant player in Japan’s financial and accounting software market, holding a substantial ~25% market share among tax and CPA firms, which provides a stable foundation for growth.
• The company is strategically shifting from a one-time license model to a cloud-based subscription model, aiming to increase recurring revenue and customer lifetime value. This transition is crucial for long-term growth but is currently pressuring profitability margins.
• Fueled by government-led digitalization initiatives, such as the mandatory Qualified Invoice System, MJS is well-positioned to capitalize on the accelerated adoption of ERP and cloud accounting solutions by its core SME customer base.

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• FY01/24 Q4 revenue share was 28.0%, with Q1 lowest at 23.4%; operating profit impacted by allowances.
• FY01/26 forecast revised due to lower order acquisition; revenue at JPY48.5bn, operating profit at JPY279mn.
• Media Contents revenue fell 56.5% YoY; Domestic Solutions revenue increased 4.8% YoY, Overseas Solutions rose 11.2% YoY.

• Medical Data Vision’s [MDV] produced FY25 (Dec year-end) Q3 gross profit [GP] of ¥3,248mil (+6.3% YoY) and operating profit [OP]of ¥95mil (vs FY24 Q3’s operating loss of -¥140mil) on sales of ¥4,650mil (+12.7% YoY).
• FY25 is the last year of the ongoing 3-year medium-term management plan [MTP].
• MDV revised down the FY25 guidance on 14 October from OP of ¥2,600mil (vs a recovery from ¥3mil in FY24) on sales of ¥9,000mil (+52.4% YoY) to OP of ¥490mil on sales of ¥6,860mil (+16.1% YoY).

Key points (machine generated)

• The briefing by Fullhashi EPO Co., Ltd. on December 4, 2025, included key figures like President Naohiko Yamaguchi and Director Toru Ueno.
• The focus was on the company’s Q2 financial results for the fiscal year ending March 2026, highlighting sustainability.
• Fullhashi EPO Co., Ltd. is listed on the Tokyo Stock Exchange and Nagoya Stock Exchange under securities code 9221.

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• Leading Provider of Critical Semiconductor and FPD Manufacturing Solutions: Japan Material is a key supplier of high-purity gas and chemical supply systems, essential for the semiconductor and flat-panel display (FPD) industries. Its business model is built on the complexity and critical nature of these systems, ensuring consistent demand from manufacturers requiring high quality and reliability.
• Strategic Position in a Revitalized Japanese Semiconductor Industry: The Japanese government is actively promoting the domestic semiconductor industry through subsidies and strategic partnerships, aiming to triple domestic semiconductor sales to 15 trillion yen by 2030. This national initiative, coupled with the entry of global giants like TSMC, creates a favorable operating environment and significant growth opportunities for Japan Material.
• Solid Financial Performance and Shareholder Returns: The company has demonstrated a strong track record of revenue and net income growth, with a notable increase in operating and free cash flow in recent years. Japan Material has also consistently increased its dividend, reflecting a commitment to shareholder returns.

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• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Japan Eyewear Holdings (5889 JP), FIT EASY (212A JP), and Tekscend Photomask (429A JP) were included in the TOPIX index at the end of November 2025.
• Bengo4.Com Inc (6027 JP) recently announced a Section Transfer to the Prime market which means there will be a TOPIX inclusion at the end of January 2026.

• Note is a Japanese content platform capitalizing on the burgeoning creator economy, demonstrating a remarkable turnaround from significant losses to profitability, driven by accelerating revenue growth.
• The company exhibits classic platform characteristics with extremely high gross margins and a scalable business model, but faces intense competition in the crowded digital content space.
• Valuation appears stretched, with high multiples on current earnings, indicating that the market has priced in substantial future growth and successful monetization expansion.

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• In FY02/25, the company reported revenue of JPY4.7bn (+14.6% YoY), operating profit of JPY482mn (+5.8% YoY), recurring profit of JPY487mn (+6.5% YoY), and net income attributable to owners of the parent of JPY349mn (+16.4% YoY).
• Service usage in the Financial Solutions business increased as the company’s main clients—online banks—actively promoted their housing loan products.
• Operating profit grew at a slower pace than revenue due to higher depreciation from system upgrades and the addition of new functions, as well as a rise in human capital investment.

• MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.
• Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.
• The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.

• Hirano Tecseed (hereinafter HT) reported FY25 1H OP of ¥1,209mil (+18.0% YoY) on sales of ¥18,157mil (-25.5% YoY), generating an OPM of 6.7% – a significant improvement from FY24 1H’s OPM of 4.2%.
• Given the successful passing through of cost increases to customers in the C&LM segment, FY25 1H earnings overshot company guidance which had been revised up with the release of its Q1 results from an OP of ¥750mil (-26.8% YoY) on sales of ¥16,750mil (-31.3% YoY) to an OP of ¥1,000mil (-2.4 YoY) on unchanged sales.
• Full-year FY25 guidance remains unchanged [OP of ¥1,500mil (-10.8% YoY) on sales of ¥33,500mil (-30.7% YoY)] as HT anticipates FY25 revenues and OP will decline in the C&LM segment due to ongoing uncertainty surrounding US tariffs and shifts in global EV market.

• Nachi Fujikoshi is a diversified Japanese manufacturer of industrial machinery and components, with a significant presence in bearings, machine tools, robotics, and specialty steels. The company’s integrated production model, from materials to finished products, provides a key operational advantage.
• The company is currently facing headwinds, reflected in declining revenue and net income over the past three years. This is largely attributable to sluggishness in key end markets like China and weakening demand for semiconductor-related equipment.
• Strategically, Nachi is focusing on structural reforms to improve profitability and is targeting growth in the electric vehicle (EV) and industrial machinery sectors. Expansion in key geographic markets such as the U.S. and India, particularly for its robotics division, is a central pillar of its future growth strategy.

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• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Smart Share Global (EM US), Dongfeng Motor (489 HK), Qube Holdings (QUB AU), Jinke Smart Services (9666 HK), Makino Milling Machine Co (6135 JP), ENN Energy (2688 HK). 
• Lowest spreads: Bright Smart Securities (1428 HK), Toyota Industries (6201 JP), Pacific Industrial (7250 JP), Low Keng Huat Singapore (LKH SP), Ainsworth Game Technology (AGI AU).

• TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
• This report skipped two months as there were no real developments until the 13 November Council meeting. 262 companies filed CGRs in November, 243 in October, 230 in September.
• The most recent set of documents has some really disappointing comments and questions from companies and their executives. It makes one wonder…

• 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 in full swing going into the year end.
• On the placements front, there were a few large deals and looked at some of the upcoming likely deals.

• MHI benefits from two long-term supercycles—AI-driven power generation and global defense rearmament—with a recent pullback offering an appealing re-entry point. 
• A global gas-turbine supercycle is boosting orders, pricing power, and margins as demand from hyperscalers and utilities exceeds manufacturing capacity. 
• Markets have yet to fully price in structurally higher earnings and valuations driven by AI-linked power demand and persistent turbine supply constraints.

• freee (44778 JP — US$1.1 billion) is a Japanese developer of cloud accounting software.
• It was founded by a former Google executive called Daisuke (“Dice”) Sasaki, who had also run a start-up.
• Sasaki was shocked at how inefficient accounting processes were at his previous firm and other small- and medium-sized enterprises.

• Money Forward is a leading Japanese fintech company capitalizing on the nation’s push for digitalization through its dual-engine model: a popular personal financial management (PFM) app for individuals and a comprehensive suite of cloud-based SaaS solutions for businesses.
• The company is demonstrating a strategic shift towards profitability, evidenced by improving EBITDA margins and a focus on core business operations, including strategic divestitures and a joint venture with Sumitomo Mitsui Financial Group (SMFG).
• While revenue growth remains robust, driven by a strong position in the expanding Japanese SaaS market, the company faces challenges related to achieving consistent net profitability, high valuation multiples, and intense competition.

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• Freee K.K. is a dominant player in Japan’s burgeoning cloud-based software market for small and medium-sized enterprises (SMEs), offering integrated accounting and HR solutions.
• The company has recently achieved a significant turnaround to profitability after years of prioritizing growth, demonstrating the viability of its subscription-based business model.
• Strong secular tailwinds, including a government-led push for digitalization and the introduction of a new e-invoicing system, provide a long runway for sustained growth in a largely underpenetrated market.

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• Nippon Shinyaku (4516 JP) and Capricor Therapeutics (CAPR US) announced positive topline results from its pivotal Phase 3 HOPE-3 trial evaluating Deramiocel.  
• Capricor plans to submit its response to the Complete Response Letter incorporating HOPE-3 data, following prior alignment with FDA.
• The next big trigger for the stock would be the approval of Deramiocel and RGX-121 by FDA followed by their commercialization.

• The most common reason companies fail to meet listing maintenance standards is insufficient tradable shares market capitalization for Prime and Standard Markets, and insufficient market capitalization growth for Growth Market.
• Many companies failing to meet listing maintenance standards on Prime/Growth Market will transition to Standard Market. Those failing to meet Standard market’s criteria will seek to transition to regional exchanges.
• Most companies failing to meet the listing maintenance standards on the Standard Market can transfer to regional exchanges, but 14 companies face difficulties even in transferring to regional exchanges.