Japan

In today’s briefing:

(Mostly) Asia-Pac M&A:MMA, Boral, Orecorp, Probiotec, CPMC, CIMC Vehicle, Roland DG, Welbe, SciClone
Weekly Deals Digest (31 Mar) – Roland DG, Lawson, SciClone, Probiotec, MMA Offshore, Bharti Hexacom
Denso’s Big Multi-Year Toyota Industries (6201) Selldown
Koito Mfg – Stock Over-Pops on New MTMP/Buyback; There Will Be Overhang

(Mostly) Asia-Pac M&A:MMA, Boral, Orecorp, Probiotec, CPMC, CIMC Vehicle, Roland DG, Welbe, SciClone

By David Blennerhassett

I tally 53 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals were discussed this week on Smartkarma: MMA Offshore (MRM AU)‘s Scheme with Singapore’s Cyan Renewables; and Sciclone Pharmaceuticals (6600 HK)‘s Scheme.
Key updates took place on: Boral (BLD AU), Orecorp (ORR AU), Lawson Inc (2651 JP), CPMC (906 HK), CIMC Vehicle (1839 HK), Roland DG (6789 JP), and Welbe (6556 JP).

Weekly Deals Digest (31 Mar) – Roland DG, Lawson, SciClone, Probiotec, MMA Offshore, Bharti Hexacom

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: Bharti Hexacom (6597372Z IN) and Lianlian DigiTech (2104619D CH) IPOs.
Event-Driven developments: Lawson Inc (2651 JP), Roland DG Corp (6789 JP), Sciclone Pharmaceuticals (6600 HK), CIMC Vehicle Group Co Ltd (1839 HK), HKBN Ltd (1310 HK), Probiotec Ltd (PBP AU).

Denso’s Big Multi-Year Toyota Industries (6201) Selldown

We knew this was coming. We did not know HOW it was coming. The news today has to be seen as a bit of a disappointment.
Why is it a disappointment? Toyota Industries (6201 JP) is not buying back a big chunk, and there is no offering to oblige new investors to take a look.
This is long, slow, leakage on a company which is not overwhelmingly cheap, where it requires good governance to get out well, and even then…

Koito Mfg – Stock Over-Pops on New MTMP/Buyback; There Will Be Overhang

With a new Medium-Term Management Plan and a buyback, the stock was cheap as of Thursday’s close. It was less cheap after it went limit up +25% on Friday.
That put it in the camp of “it may go up more but probably not a lot”. It has told you about big divs and buybacks.
But model it up and they need to do more buybacks. Both to meet share price gains and the needs of legions of potential cross-holders looking to sell.

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Mar 30

Daily Brief Japan: TSE Tokyo Price Index TOPIX, Intloop and more

In today’s briefing:

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings
Intloop (9556) – Recalibrating to Aim for Long-Term Growth

Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings

Overseas investors tend to invest in companies with large market capitalization and high profitability, resulting in higher stock price valuations. They also tend to avoid investing in listed subsidiaries.
Since companies with over 20% foreign ownership show superior board practices, it’s reasonable to assume that board practices improve as foreign ownership increases and the influence of overseas investors increases.
Companies with more than 30% foreign ownership have many items that generally show excellent values in Key Actions. However, all companies still face challenges in cash allocation.

Intloop (9556) – Recalibrating to Aim for Long-Term Growth

By Astris Advisory Japan

Addressing selling activity by organizational change – Q1-2 FY7/24 results demonstrated double-digit sales growth of 41.5% YoY via underlying growth at the parent business and acquisitive impact from DICS Holdings.
However, the overall pace of growth was lower than expected, with INTLOOP experiencing lower-than-planned productivity from newly hired sales representatives.
The company has addressed this by implementing a new and reinforced organizational structure in H2 FY7/24 by recruiting senior management (partner and managing director class) to drive sales activities as well as customer acquisition and increasing overall market coverage.

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Mar 29

Daily Brief Japan: Koito Manufacturing, RENOVA Inc, Rakuten Bank , Okinawa Cellular Telephone and more

In today’s briefing:

Koito Mfg (7276) – New Medium Term Plan, BIG Buyback, Even Bigger Shareholder Returns Planned
Quiddity JPX-Nikkei 400 Rebal 2024: End-Mar 2024 Estimates and Another Trade Reco
Rakuten Bank (5838 JP) Stands Out from the Other Asian Digital Banks
Okinawa Cellular (9436) – Dominant Local Market Leader Enhancing Shareholder Value

Koito Mfg (7276) – New Medium Term Plan, BIG Buyback, Even Bigger Shareholder Returns Planned

Koito Manufacturing (7276 JP) is a $4bn marketcap (~$6bn sales) Toyota Group auto parts manufacturer specialising in lighting parts, famous for being a T.Boone Pickens target in the 1980s.
As Toyota Group’s leaders restructure their cross-holdings and try to get to 1.0x PBR and a high enough ROE to sustain it, capital efficiency is on the block.
Koito today announced a revised Mid-Term Management Plan, a change in KPIs (higher), a large shareholder return plan, and a large buyback. As always, the fun is in the details.

Quiddity JPX-Nikkei 400 Rebal 2024: End-Mar 2024 Estimates and Another Trade Reco

By Janaghan Jeyakumar, CFA

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, adjusted every year in August.
We look at the rankings of the potential ADDs/DELs every month for the next rebal, based on most recent trading data.
Every month we provide trade suggestions. The last three months have seen market-neutral returns of +3.0%, +6.5%, +3.2% respectively for the one-month periods. A new trade is suggested below.

Rakuten Bank (5838 JP) Stands Out from the Other Asian Digital Banks

By Victor Galliano

Despite Rakuten Bank shares’ re-rating, we believe it remains attractive, with its strong balance sheet and its low cost base with undemanding valuations compared to its Asian digital banking peers
Rakuten Bank is well positioned to benefit from the negative interest rate policy exit in Japan, with its low LDR, high cash balances, growing loan book and healthy capital ratio
It continues to leverage off the Rakuten Group eco-system, as a low cost source of new customers; nearly a third of clients use Rakuten Bank as their primary Japanese bank

Okinawa Cellular (9436) – Dominant Local Market Leader Enhancing Shareholder Value

By Astris Advisory Japan

50% mobile market share with scope to improve shareholder returns – Okinawa Cellular is the operating company for parent KDDI’s (9433) mobile and FTTH brands in Japan’s southernmost prefecture, with a dominant 50% mobile carrier market share.
The company benefits from the parent’s centralized R&D initiatives limiting its costs, and economies of scale through the joint procurement of handsets.
With sector-leading operating margins and a strong track record of free cash flow generation, management actively allocates capital to shareholder returns, resulting in an estimated total shareholder payout ratio of 127.8% for FY3/24.

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Mar 28

Daily Brief Japan: Lawson Inc, Fast Retailing, Mitsubishi Heavy Industries, Eiken Chemical, Nippon Television, FamilyMart Co Ltd and more

In today’s briefing:

KDDI Launches Tender To Buy Out Lawson (2651) – Still Far Too Cheap
Lawson (2651 JP): KDDI Corp (9433 JP) Tender Offer Launches
Fast Retailing: Earnings Preview
Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up
Consolidation in the Med-Tech Sector? Eiken and Hogy to Benefit
NTV’s Change of Policy Is a Positive Effect Of TSE’s Request, But Its Seriousness Will Be Tested Now
Familymart Ties with Coca Cola on Logistics, Sells Laundromat Business

KDDI Launches Tender To Buy Out Lawson (2651) – Still Far Too Cheap

KDDI has announced the launch tomorrow of its Tender Offer to buy out the minorities in Lawson Inc (2651 JP).
It’s still too cheap. It is still a somewhat non-transparent and unfair process as far as I can tell. And it does not adhere to the METI Fair M&A Guidelines.
There SHOULD BE some activist interest to get KDDI to bump but it is not clear that will show up.

Lawson (2651 JP): KDDI Corp (9433 JP) Tender Offer Launches

Lawson Inc (2651 JP) has announced that the pre-condition for the KDDI Corp (9433 JP) tender offer is satisfied. The offer terms are unchanged at JPY10,360 per share.
The offer is arguably light due to the market re-rating, does not reflect significant synergies and is below the midpoint of the IFA DCF valuation range.
Nevertheless, the offer will likely succeed as it represents an all-time high, with no vocal opposition, an achievable 30.2% minority acceptance rate, and the shares never trading through terms.

Fast Retailing: Earnings Preview

By Oshadhi Kumarasiri

While domestic revenues may have slowed, Uniqlo’s domestic OP shows upside potential driven by upside to GM and a gradual reduction in SG&A expenditure.
Simultaneously, Uniqlo International is exhibiting strong performance, with anticipated revenue and OP growth of 21% and 30% YoY respectively.
Despite expecting a strong earnings beat, concerns over high valuations and index issues make us cautious about trading Fast Retailing (9983 JP) in the current earnings cycle.

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up

By Scott Foster

MHI’s share price has risen more than 60% year-to-date and nearly tripled over the past 12 months on the improving outlook for Japanese defense contractors.
A huge increase in new orders, prospects for a doubling of sales and a rapidly rising operating margin on Aircraft, Defense & Space have been factored into the price.
The shares do not look expensive compared with international comparables, but neither are they particularly cheap. Potential problems, from Japanese defense budget constraints to production glitches, have been ignored.

Consolidation in the Med-Tech Sector? Eiken and Hogy to Benefit

By Mark Chadwick

The med-tech sector is ripe for consolidation. Smaller players like Hogy Medical (3593 JP) , and Eiken Chemical (4549 JP) exhibit sub-par growth and lagging valuations
Activist investors like ValueAct Capital, Dalton and Asset Value have recognized an opportunity for growth and potential M&A
Both Hogy and Eiken trades at a deep discount to larger domestic peers and stand to benefit the most from any consolidation

NTV’s Change of Policy Is a Positive Effect Of TSE’s Request, But Its Seriousness Will Be Tested Now

Although unavoidable under the provisions of Broadcasting Act, the fact that the right to receive dividends as interest-bearing securities was inhibited was problematic in terms of fairness with other shareholders.
NTV Holdings, which has ignored this issue, changes its policy, which is a positive impact of “TSE’s request,” but NTV’s seriousness can be measured by whether it raises its ROE.
If the intention is to leave cross-shareholdings intact and attract overseas investor purchases through some share repurchases, there would be little prospect of a serious increase in ROE.

Familymart Ties with Coca Cola on Logistics, Sells Laundromat Business

By Michael Causton

In one of many ventures in response to the 2024 logistics problem, Familymart began an experimental collaboration with Coca Cola Bottlers in February, seeking to reduce delivery frequency in Kanagawa.
It is also streamlining its business, selling both its gyms and laundries recently.
While unlisted, its ongoing innovations provide an insight into the wider convenience store sector.

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Mar 27

Daily Brief Japan: Roland DG Corp, TSE Tokyo Price Index TOPIX, Look Holdings Incorporated and more

In today’s briefing:

Roland DG (6789 JP): Taiyo Hoping for the Best as Brother Plays the Waiting Game
Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis
Look HD Bullish on Fashion Imports and Exports

Roland DG (6789 JP): Taiyo Hoping for the Best as Brother Plays the Waiting Game

In response to Roland DG Corp (6789 JP) request, on 22 March, Taiyo said it was considering a revised offer. However, Taiyo has since remained silent.
Despite discussions with Brother Industries (6448 JP), the Board have not been able to eliminate dis-synergies concerns. The Board has left the decision to accept the Taiyo offer to shareholders.
While the Board is trying to dissuade Brother, Brother will take its offer directly to shareholders if the Taiyo offer fails. Taiyo’s behaviour suggests a reluctance to bump.

Shareholder Returns Should Be Examined on a Cash Basis, Not on a Net Profit Basis

The pace of share repurchases in 2023 (+1.4%, YoY) is not sufficient compared to the increase in corporate profits, and there is much room for reconsideration of cash allocations.
In Japan, where many manufacturers keep CapEx within the depreciation, it’s more important to verify whether shareholder return is appropriate on a cash basis rather than a net income basis.
Companies that fail to formulate measures to generate ROE that exceeds the cost of capital in accordance with TSE requests are not able to achieve an appropriate cash allocation.

Look HD Bullish on Fashion Imports and Exports

By Michael Causton

It has been a tough few years for premium fashion importers.
Decimated sales during Covid were followed by a sharp depreciation in the Yen that has forced a hike in prices and/or a squeeze on profits.
Look has found some solutions, adding new brands while exploring new markets and expects significant upside in revenues and profits.

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Mar 26

Daily Brief Japan: Resona Holdings, United Arrows, Carta Holdings, Inc. and more

In today’s briefing:

Japanese Banks – Cash Balances and the BoJ’s Negative Interest Rate Policy Exit
United Arrows (7606): Q3 FY03/24 Update
3q Follow-Up – CARTA HOLDINGS (3688 JP)

Japanese Banks – Cash Balances and the BoJ’s Negative Interest Rate Policy Exit

By Victor Galliano

The Japanese banks’ share prices have barely moved following the Bank of Japan’s exit from negative interest rates; is it largely discounted or does the continued accommodative stance instil caution?
Japanese banks will benefit from 100% of their deposits at the BoJ earning 0.1%, as opposed to 40% of bank deposits which was the case up to the 20th March
We believe our positive recommendations are all geared into higher domestic interest rates; we highlight Resona, Mizuho and Suruga in this report for their high cash and at bank balances

United Arrows (7606): Q3 FY03/24 Update

United Arrows (7606 JP) is an industry leader in operating clothing select shops in Japan, and is the eighth largest apparel company in the country in terms of sales value.
In FY03/23, United Arrows reported revenue of JPY130.1bn, operating profit of JPY6.4bn, recurring profit of JPY6.9bn, and net income attributable to owners of the parent of JPY4.3bn
In May 2023, the company announced its long-term vision ending in FY03/33 and medium-term management plan ending in FY03/26 as the first step.

3q Follow-Up – CARTA HOLDINGS (3688 JP)

By Sessa Investment Research

FY23/12 saw a strong push towards management initiatives aimed at a V-shaped recovery in financial performance.
On the other hand, conservative guidance was provided for FY24/12, due to the uncertain market sentiment, strategic cost increases, and the need to avoid downward revisions for three consecutive terms in the mid-year.
Although the stock price fell sharply after the 4Q FY23/12 earnings announcement, it has recently been recovering somewhat, perhaps fueled by the recognition and understanding of the conservatism of the guidance and the company’s true earnings potential.

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Mar 25

Daily Brief Japan: ZOZO Inc, Hogy Medical and more

In today’s briefing:

Mar24 Nikkei 225 Rebal: Zozo (3092) And Other ADDs Update
Hogy Medical (3593): A Prescription for Renewed Growth

Mar24 Nikkei 225 Rebal: Zozo (3092) And Other ADDs Update

ZOZO Inc (3092 JP) is +10% since the close after the Nikkei 225 inclusion announcement vs Nikkei225 +2%. Fellow upweight Nitori is up too. Disco and Socionext are up less.
All three inclusions and one upweight see considerable inclusion demand when compared to active holdings. Some more than others.
Some trades here are more interesting than others, still. Cumulative excess volumes are one guide. Fundamentals, and flow dynamics are another.

Hogy Medical (3593): A Prescription for Renewed Growth

By Mark Chadwick

NAVF and Dalton invest heavily in Hogy Medical, eyeing its market dominance and growth potential in disposable surgical equipment
Despite past underperformance, NAVF’s proactive engagement signals a push for a more aggressive overseas expansion
We see a number of continued catalysts for future shareholder value enhancement and improved corporate governance position

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Mar 24

Daily Brief Japan: Nikkei 225, JSR Corp, Shinko Electric Industries, Fast Retailing, TSE Tokyo Price Index TOPIX and more

In today’s briefing:

EQD | Nikkei 225 Flying High, Don’t Burn Your Wings….
(Mostly) Asia-Pac M&A: IntelliCentrics, Chilled & Frozen Logistics, Boral, Orecorp, Link Admin, JSR
Weekly Deals Digest (24 Mar) – Shinko, C&F Logistics, JSR, IntelliCentrics, SciClone, Link Admin
Last Week in Event SPACE: Fast Retailing, Giordano, C&F Logistics, Swire, Japan’s Big Dividend
First Step in Engagement in Term of Listening to Overseas Investors Is Seeking Disclosure in English

EQD | Nikkei 225 Flying High, Don’t Burn Your Wings….

By Nico Rosti

The Nikkei 225 INDEX has been rallying for >3 months, rising more than 28%. Is it too much, too fast?
Short-Term, if we look at the Market Reversal Matrix’s SHORT WEEKLY model for the index, it looks like it could either reverse within a couple of weeks, or stall.
Look for the ~41000 resistance area to place SHORT or hedge your LONG positions.

(Mostly) Asia-Pac M&A: IntelliCentrics, Chilled & Frozen Logistics, Boral, Orecorp, Link Admin, JSR

By David Blennerhassett

I tally 52 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals were discussed this week on Smartkarma: IntelliCentrics Global Holding (6819 HK) disposal/winding-up/special dividend arb; and Chilled & Frozen Logistics Holdings (9099 JP)‘s hostile Offer.
Key updates took place on: Boral Ltd (BLD AU), Orecorp Ltd (ORR AU), Link Administration (LNK AU), and JSR Corp (4185 JP).

Weekly Deals Digest (24 Mar) – Shinko, C&F Logistics, JSR, IntelliCentrics, SciClone, Link Admin

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: Lianlian DigiTech (2104619D CH) launches a US$78 million IPO.
Event-Driven developments: Chilled & Frozen Logistics Holdings (9099 JP), JSR Corp (4185 JP), Shinko Electric Industries (6967 JP), IntelliCentrics Global Holding (6819 HK), Sciclone Pharmaceuticals (6600 HK).

Last Week in Event SPACE: Fast Retailing, Giordano, C&F Logistics, Swire, Japan’s Big Dividend

By David Blennerhassett

The trade of being short Fast Retailing (9983 JP) vs Nikkei 225 or Sector Basket is fundamentally slightly short Nikkei 225 froth.
Giordano (709 HK)‘s SGM will likely pivot off how the shareholders under Halcyon Securities vote. Digging a little deeper as to who these shareholders are, provides some (not-altogether) surprising results.
AZ-Com Maruwa Holdings (9090 JP) intends to launch a Tender Offer on Chilled & Frozen Logistics Holdings (9099 JP) without having contacted C&F first. A HOSTILE deal. Yum!

First Step in Engagement in Term of Listening to Overseas Investors Is Seeking Disclosure in English

Companies with the highest Disclosure in English scores have the highest ROE, Tobin’s Q, Market Capitalization, and Foreign Shareholder Ratio, while companies with the lowest scores have the lowest values.
Companies with the highest Disclosure in English scores also show generally higher Board Practices and Key Actions. Both Disclosure in English and these practices are the result of engagement efforts.
If Disclosure in English and corporate governance efforts are advanced through engagement, it can be hypothesized that profitability will also increase through engagement with overseas investors.

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Mar 23

Daily Brief Japan: Japan Airlines and more

In today’s briefing:

Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA

Japan Airlines – Encouraging Lifting of Medium Term Expectations to Narrow Recovery Gap to ANA

By Neil Glynn

JAL finishing FY24 strongly with another guidance upgrade – upgraded FY26 targets more logical in light of existing ANA targets
Demand momentum particularly helpful as wages rise across Japan and cost control to remain impressive over FY25-FY26 as LCC growth set to dilute FSC inflation
Detailed analysis of JAL’s widening margin gap to ANA suggests revenue solution required – momentum helpful and needs to be watched carefully

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Mar 22

Daily Brief Japan: Chilled & Frozen Logistics Holdings, Nippon Shokubai, Sourcenext Corp, Sun*, Azbil Corp, Organo Corp, LaKeel, Hochiki Corp, TSE Tokyo Price Index TOPIX and more

In today’s briefing:

Chilled & Frozen Logistics (9099) – Hostile Takeover Launched by AZ-Com Maruwa (9090)
Chilled & Frozen Logistics (9099 JP): AZ-COM Maruwa (9090 JP)’s Hostile Offer
Nippon Shokubai (4114) – Business Transformation and Scope for Improving Capital Management
SOURCENEXT (4344): Q3 FY03/24 Update
Sun* (4053): Full-Year FY12/23 Update
Azbil (6845): Q3 FY03/24 Update
Organo (6368): Q3 FY03/24 Update
LaKeel (4074): Full-Year FY12/23 Update
Hochiki (6745): Q3 FY03/24 Update
A Change in Manager’s Mindset that Has Begun Will Lower the Investment Risk for Activist Investors

Chilled & Frozen Logistics (9099) – Hostile Takeover Launched by AZ-Com Maruwa (9090)

Chilled & Frozen Logistics Holdings (9099 JP) last week announced its “Action to Implement Management That is Conscious of Cost of Capital and Stock Price”.
Today it announced AZ-Com Maruwa Holdings (9090 JP) had announced its intention to launch a Tender Offer on C&F Logistics without having contacted C&F first. A HOSTILE deal. Yum.
The deal is proposed at a 50% premium, with the goal of getting to a minimum of 50.00%. This will be interesting.

Chilled & Frozen Logistics (9099 JP): AZ-COM Maruwa (9090 JP)’s Hostile Offer

AZ-Com Maruwa Holdings (9090 JP) has launched a pre-conditional hostile offer for Chilled & Frozen Logistics Holdings (9099 JP) at JPY3,000 per share, a 47.0% premium to the last close.
The pre-conditions primarily relate to regulatory approvals. The tender is expected to start in early May. The Board responded that it will evaluate the offer.
The hostile offer was a reaction to the Board’s lack of engagement. The Board will struggle to reject an attractive offer, which is 37.5% higher than the all-time high.

Nippon Shokubai (4114) – Business Transformation and Scope for Improving Capital Management

By Astris Advisory Japan

Driving strategic revitalization – Nippon Shokubai is a global chemical company with competitive proprietary technology, a track record of sustained free cash flow generation, and a balance sheet with room for optimization.
It has embarked on a business transformation, strategically focused on expanding its Solutions business with higher- margin performance chemicals and identifying energy, electronics, and life science sectors as growth markets.
Organizational changes being conducted aim to enhance human resource development and conduct quicker decision-making.

SOURCENEXT (4344): Q3 FY03/24 Update

Sourcenext Corp (4344 JP) plans, develops, and sells PC software, smartphone apps, and IoT products.
In POCKETALK®, besides the existing device business, the company will focus on sales of software products, including Simultaneous Interpreter for the POCKETALK® for BUSINESS series for corporate customers.
The revision is mainly due to the extended lead time from inquiry to full-scale orders for the POCKETALK for BUSINESS Simultaneous Interpretation web browser version.

Sun* (4053): Full-Year FY12/23 Update

Sun* (4053 JP) provides consulting, software development, recruiting, and other services to companies that seek to create value or businesses, including startups.
In FY12/23, revenue was JPY12.5bn (+16.5% YoY), operating profit JPY1.8bn (+96.8% YoY), recurring profit JPY2.3bn (+99.1% YoY), and net income attributable to owners of the parent JPY1.6bn (+90.4% YoY).
Sun* does not disclose a medium-term business plan with quantitative targets, but it releases qualitative targets related to KPI growth.

Azbil (6845): Q3 FY03/24 Update

Azbil Corp (6845 JP) provides automation services for buildings, factories, and plants and also offers subsistence-related automation services in the lifestyle area.
In FY03/23, sales were JPY278.4bn (+8.5% YoY), operating profit was JPY31.3bn (+10.7% YoY), recurring profit was JPY32.1bn (+8.9% YoY), and net income attributable to owners of the parent was JPY22.6bn.
Azbil in May 2021 announced a new medium-term management plan to cover the four fiscal years from FY03/22 to FY03/25 and new long-term targets for FY03/31.

Organo (6368): Q3 FY03/24 Update

As a comprehensive water treatment engineering company, Organo Corp (6368 JP) engages in the planning, design, procurement, construction, operational management, and maintenance of water treatment plants.
In FY03/23, orders received were JPY173.5bn, revenue was JPY132.4bn, operating profit was JPY15.2bn, recurring profit was JPY16.0bn, and net income attributable to owners of the parent was JPY11.7bn.
Organo Corporation announced revisions to its full-year forecast for FY03/24.

LaKeel (4074): Full-Year FY12/23 Update

LaKeel (4074 JP) is a software development company that uses a new system development method called microservices.
In FY12/23, revenue was JPY7.7bn (+11.2% YoY), operating profit JPY775mn (+0.3% YoY), recurring profit JPY807mn (+10.3% YoY), and net income attributable to owners of the parent JPY540mn.
The company has not announced a medium-term business plan, but has medium-term targets of JPY10.0bn in revenue and an OPM of 15% to be achieved.

Hochiki (6745): Q3 FY03/24 Update

Hochiki Corp (6745 JP) is a major manufacturer of fire alarm and fire extinguishing systems.
In FY03/23, the company posted revenue of JPY85.5bn, operating profit of JPY5.6bn, recurring profit of JPY5.9bn, and net income attributable to owners of the parent of JPY4.4bn.
Hochiki Corporation announced an upward revision of its full-year FY03/24 earnings forecast.

A Change in Manager’s Mindset that Has Begun Will Lower the Investment Risk for Activist Investors