Japan

• After the recent rally, Ebara Corp (6361 JP)‘s increased market cap and free float market cap should result in inclusion in a global index in November.
• Ebara Corp (6361 JP) has underperformed its larger peers, and the stock is trading cheaper than the average of its peers on most metrics.
• There has been a large increase in cumulative excess volume for Ebara Corp (6361 JP) since July and we do not see a similar increase in its peers.

• Tekscend Photomask (429A JP) is a global leader in semiconductor photomasks. At the IPO price, Tekscend will raise JPY138 billion (US$910 million). The shares will be listed on 16 October.
• I previously discussed the IPO in Tekscend Photomask (429A JP) IPO: The Bull Case, Tekscend Photomask (429A JP) IPO: The Bear Case and Tekscend Photomask (429A JP) IPO: Valuation Insights. 
• The peers have re-rated since the release of the prospectus. My analysis suggests that Tekscend is attractively valued at the IPO price.

• The Nikkei 225 (NKY INDEX) dived to 46544 on Tuesday, after peaking at 48.5k last week. It was ultra-overbought.
• This correction offers an opportunity to re-enter the rally (or enter the rally, if you missed it), but don’t be too eager to enter early.
• The Nikkei could correct easily for 2,3 or even 4 weeks when this pattern is encountered, according to our TIME MODEL. 43.5k may be the right area, details in insight.

• Along with political turbulence, expectations of a near term BoJ rate hike may be diminishing; nonetheless, we believe that these rate hikes will, at worst, be delayed and not derailed
• We take profits on Mizuho in big caps and on Hirogin Holdings in mid-caps, downgrading these names from buy to neutral whilst generally retaining banks with higher levels of cross-holdings
• We maintain the following Japanese banks on buy ratings; in the big-caps, we keep Resona and Shizuoka and in the mid-caps we stick with Iyogin Holdings, Hokuhoku and Hachijuni

• Tekscend Photomask (429A JP), a manufacturer and distributor of semiconductor photomasks, raised around US$900m in its Japan IPO.
• TP is a global provider of photomasks and related support services. It has been the leader in the merchant photomask market in terms of sales since 2016.
• In our previous note, we looked at its past performance and valuations. In this note, we will talk about the trading dynamics.

• Sales reached JPY46.6bn (+6.2% YoY), with operating profit at JPY3.6bn (+26.5% YoY) and EBITDA at JPY8.9bn (+10.1% YoY).
• Domestic business sales were JPY37.8bn (+8.6% YoY), driven by a 6.7% YoY increase in comparable store sales.
• China business sales declined to JPY1.7bn (-40.5% YoY), with operating loss narrowing due to structural reforms and facility closures.

• While more companies are now undertaking English-language disclosures compared to the past, many have merely implemented them without achieving level that truly helps overseas investors deepen understanding of management strategies.
• Overseas investors seek qualitative explanations and information regarding long-term strategies, yet many companies are reluctant to proactively disclose such information in English, including “corporate governance information” and “long-term/growth strategies.”
• Only a limited number of companies provide opportunities for top management to directly explain business strategies to overseas investors in English or for outside directors to meet with overseas investors.

• Satori Electric is a well-established Japanese distributor of electronic components, semiconductors, and factory automation systems, with a history dating back to 1947. The company is navigating the cyclical nature of the semiconductor industry by focusing on value-added services like design and development.
• Financially, the company exhibits strong growth in net income and dividends, supported by a high dividend yield. However, its profitability and ability to meet debt obligations show weakness, as indicated by a low resilience score. Cash flow has also shown significant volatility.
• A key strategic development is the planned business integration with Hagiwara Electric Holdings Co., Ltd., effective April 1, 2026. This merger is anticipated to create operational synergies and strengthen market positioning, representing a significant potential catalyst for future value creation.

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• In FY08/25, the company reported JPY129.8bn sales, JPY45.0bn gross profit, JPY15.6bn operating profit, and JPY8.9bn net income.
• Software Testing Services segment achieved JPY84.3bn sales, JPY31.1bn gross profit, and JPY21.5bn operating profit in FY08/25.
• FY08/26 forecasts JPY150.0bn sales, JPY20.0bn operating profit, and JPY13.5bn net profit, on an adjusted basis.

• Diversified Business Model Mitigates Risk: Meito Sangyo operates across three distinct segments: Food, Chemicals, and Real Estate, providing resilience against downturns in any single sector. The Food division offers a wide range of confectioneries and beverages, while the Chemicals segment produces specialized, high-margin products like enzymes and dextran for pharmaceutical and cosmetic applications.
• Exceptional Earnings Growth and Turnaround: The company has demonstrated a remarkable recovery, swinging from a net loss of JPY -703 million in FY2024 to a substantial net profit of JPY 4,719 million in FY2025. This is supported by a 3-year net income compound annual growth rate (CAGR) of 37.48%.
• Attractive Valuation with a Shareholder-Friendly Strategy: The company trades at a low Price-to-Book ratio of 0.62 and a Price-to-Earnings ratio of 7.15. Management is focused on enhancing shareholder value through its ‘MEITO CHALLENGE 2026’ plan, which includes progressive dividends, share buybacks, and a target dividend of JPY 50 per share by FY2027.

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• The sharp rally in JX Advanced Metals (5016 JP) over the last couple of months should result in inclusion in a global index in November.
• The stock is already a member of the TOPIX Index and another global index, and this inclusion will require passive trackers to buy a big chunk of the real float.
• There will be more passive buying in JX Advanced Metals (5016 JP) in April when the liquidity factor in the TOPIX Index increases from 0.75 to 1.

• Falcon Oil & Gas agreed to sell its assets to TBN, distributing TBN shares to shareholders at 0.00687 ratio.
• The merger’s spread fluctuates due to hedging concerns and potential TBN stock decline to pre-announcement levels.
• Lamesa Holdings’ shares are excluded from distribution due to sanctions, affecting the stock exchange ratio calculation.

• Santec is a key enabler of next-generation optical communications and medical imaging, capitalizing on secular growth in data traffic and healthcare diagnostics. Its leadership in tunable lasers and Optical Coherence Tomography (OCT) technology provides a strong foundation for sustained, high-margin growth.
• The company has demonstrated an exceptional growth track record, with revenue and net income CAGRs over the last three years of 39.3% and 45.2%, respectively. This robust performance is underpinned by strong demand from data centers, 5G network deployments, and expanding applications in the medical field.
• While valuation appears moderate relative to its growth profile, potential risks include cyclicality in the telecommunications sector, high dependency on technological innovation, and competitive pressures from larger, more diversified players in the photonics industry.

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• T&D Holdings operates a unique and resilient business model in the mature Japanese life insurance market through three specialized subsidiaries, each targeting a distinct demographic: Daido Life for small and medium-sized enterprises (SMEs), Taiyo Life for the senior market, and T&D Financial Life for the bancassurance channel.
• The company has demonstrated remarkable earnings recovery, swinging from a net loss in FY2023 to significant profitability in FY2024 and FY2025, driven by strategic initiatives and a shifting economic environment. The 3-year net income CAGR of 107.35% is a testament to this turnaround.
• While the company’s focused strategy provides a competitive moat, it faces key risks from Japan’s demographic shifts, interest rate volatility impacting its vast bond portfolio, and intense competition within the broader insurance and financial services sector.

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• Mani Inc (7730 JP) FY25 revenue increased 5% YoY to ¥29.9B while Operating margin deteriorated to 27.3%, down 210bps. Dental segment reported the worst margin decline from 18.7% to 11.7%.
• The company said that the impact voluntary recall of dia-burs in China has subsided in FY25, and expects a full recovery in sales from FY26.
• FY26 guidance expect revenue rise 9% to ¥32.8B with impact of recalls subsiding. Profits and margins are also expected to witness a significant uptick.

• In 1H FY02/26, TECMIRA recorded JPY4.9bn revenue (-12.2% YoY), JPY153mn operating loss, and JPY207mn net loss.
• IoT & Devices segment saw 0.2% revenue increase, while Life Design and AI & Cloud segments experienced revenue declines.
• SaaS business showed YoY growth in revenue and profit, driven by AI chatbot service enhancements and marketing efforts.

• 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 14 pair trade opportunities across four markets and six 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.

• FineToday Holdings (420A JP), a Japanese personal care business, is seeking to raise US$280 million. It previously pulled an IPO to raise US$500 million in December 2024.
• I previously discussed the investment thesis in FineToday Holdings (420A JP) IPO: The Investment Case. 
• In this note, I present my forecasts and valuation. My analysis suggests that FineToday is fully valued at the IPO price.

• 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, the year end looks set to see a flurry of listings, with the pace already starting to pick up again.
• On the placements front, markets were back where they left of prior to the October holidays.

• Financial statements and accompanying explanations alone provide insufficient information about the background of earnings results and guidance, so overseas investors seek qualitative and information about long-term strategies regarding earnings information.
• Currently, only half of Prime Market-listed companies disclose full earnings releases in English. It’s only natural that investors would want IR briefing materials to be disclosed in English as well.
• Companies whose top management cannot communicate directly in English with overseas investors should provide simultaneous interpretation or written English translations for their investor relations presentations.

• Recent gains wiped out as large advertising budget cuts operating and net profit, diverting attention from unique technology and long-term potential.  Gross margin steady at about 80%.
• M&A could add 50% to sales, but details won’t be available until a deal is made.  Sales of functional food ingredients, supplements, personal care products and textiles continue to rise.  
• Pharmaceuticals and agricultural bio-stimulants should make significant contributions to the company’s business in the next several years. Buy into current weakness for long-term growth.

• Global Apparel Leader with Strong Growth Momentum: Fast Retailing is a dominant force in the global apparel industry, primarily through its flagship UNIQLO brand. The company has demonstrated a consistent track-record of robust, double-digit growth in revenue and profits, driven by the successful international expansion of UNIQLO, particularly in North America and Europe. The company forecasts continued strong growth, projecting a 10.3% revenue increase for FY2026.
• Unique Business Model Focused on Quality and Innovation: Unlike typical fast-fashion players that chase fleeting trends, Fast Retailing‘s ‘LifeWear’ philosophy emphasizes high-quality, functional, and durable basics. This is supported by a vertically integrated SPA (Specialty-Store Retailer of Private Label Apparel) model, which controls the entire process from design to sale, and a strong focus on material innovation and technology to enhance operational efficiency.
• Strategic Challenges and Key Risks Remain: Despite its success, the company faces significant risks. It has a heavy reliance on Asian markets, particularly Greater China, making it vulnerable to regional economic and geopolitical instability. The global apparel market is intensely competitive, and the company must contend with formidable rivals like Inditex (Zara) and H&M, as well as navigate supply chain complexities and potential controversies regarding labor practices.

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• I tally 43- mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Three new deal was discussed on Smartkarma this week: Pacific Smiles (PSQ AU), Predictive Discovery (PDI AU)/Robex Resources (RXR AU), and Hang Seng Bank (11 HK).
• Key updates/news took place on: Infomedia Ltd (IFM AU), Pacific Industrial (7250 JP), ReNew Energy Global (RNW US), and Mandom Corp (4917 JP).

• Context: The ABC Mart (2670 JP) vs. Fast Retailing (9983 JP) price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ABC Mart (2670 JP) and short Fast Retailing (9983 JP) targets an 11% return. Both companies reported very recently.
• 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.

• Tadashi Yanai has finally achieved one of his many long-term ambitions: surpassing ¥1 trillion in sales in the home market. 
• This, after exceeding ¥3 trillion globally for the first time but his goal of ¥10 trillion remains outstanding.  Whether a mostly single-brand company can achieve such volume is debatable.
• Yanai is rebuilding GU in the hopes of creating a second brand – while at last admitting failure with his old French acquisitions.

• FY02/26 forecast revised upward: revenue JPY225.0bn (+9.8% YoY), operating profit JPY8.2bn (+12.2% YoY), net income JPY4.8bn (+26.2% YoY).
• 1H sales rose 11.3% YoY, driven by product initiatives, new stores, and price revisions; profit margin improved.
• Overseas sales declined 1.7% YoY due to exchange rates; segment profit fell 4.8% YoY from higher labor costs.

• Even as more companies shifted to cash flow-focused management, their cash reserves remained stubbornly high, and few announced cash allocation policies. Finally, cash reserves began to decline—driven by TSE’s request.
• ROE and P/B of companies that disclosed in response to TSE’s request haven’t improved. Consequently, the strategic intent behind share buybacks appears weak and isn’t being well received by investors.
• The decision to veer away from increasing cash reserves is the first step. How long will it take before the next move emerges to improve capital profitability and generate value?

Key points (machine generated)

• Relo Group aims for an operating profit of 50 billion yen by March 2029 under its ‘Fourth Olympic Strategy’.
• The company supports non-core business operations for SMEs and large corporations, focusing on employee benefits.
• Relo Group’s business model includes BtoB outsourcing services and BtoC rental management in major cities.

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• Revenue increased 17.0% YoY to JPY15.4bn, driven by strong Emergency and Preventive Maintenance Services performance.
• Operating profit rose 25.6% YoY to JPY1.2bn, with an OPM increase of 0.5pp YoY to 7.5%.
• Shin Maint Holdings expanded market share by acquiring new customers and projects from competitors, enhancing sales activities.

Key points (machine generated)

• TOKAI Holdings Corporation reported record Q1 FY3/26 results with net sales of ¥58,128 million and operating profit of ¥3,941 million.
• Growth was driven by the energy business, supported by a customer base of approximately 3.44 million and favorable market conditions.
• For FY3/26, the company projects net sales of ¥253,000 million and operating profit of ¥17,500 million, with a focus on a 40-50% dividend payout ratio.

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• Sales increased by JPY2.3bn (+8.7% YoY), with growth in Creative (Japan) and Medical Staffing segments, despite operating profit decline.
• Progress toward FY02/26 forecast: 46.8% sales, 42.8% operating profit, 42.2% recurring profit, 69.2% net income achieved.
• CRES segment sales were JPY411mn (20x YoY), with an operating loss of JPY467mn, reflecting new subsidiary performance.

• E-J Holdings reported Q1 FY05/26 revenue of JPY4.3bn, a 39.1% YoY increase, with operating loss of JPY1.5bn.
• Orders received totaled JPY11.8bn, a 31.5% YoY increase, due to Tokyo Soil Research Co., Ltd. consolidation.
• Losses at all profit levels due to government-related revenue concentration in Q4 and consistent fixed costs.

• Today after the close, Value Act reported that it owned 7.87% of shares outstanding in Sun Corp (6736 JP) and it may make proposals to management. 
• This has been trading cheaply (and I pointed it out on 13 Aug and 12 Sep). Cellebrite DI (CLBT US) is up 35% in those 8 weeks. Sun Corp +50%.
• ValueAct had owned 4.9+% for at least a few months before, but now it has gone public. They were likely in already under a different name in March, now public.

• The Soft99 Corp (4464 JP) Board has responded to Effissimo’s allegations. As expected, the Board accuses Effissimo of stating half-truths. 
• The Board’s missive indirectly suggests that incremental acceptances since October 1 have been tepid, KeePer has not tendered, and the MBO is struggling to meet the minimum tendering condition. 
• The two likeliest outcomes are 1) the MBO succeeds at current terms with KeePer likely joining BidCo, and 2) both offers fail. The risk/reward is unattractive at the last close. 

• Today after the close, Soft99 Corp (4464 JP)‘s Board issued a statement on “Our View” of Effissimo’s “Our View” Press Release. It’s bad.   
• But it points out the “weaknesses” that Effissimo’s Tender Offer Press Release had as it concerns a counterbid. And that tells you how Effissimo should amend their Tender Offer docs.
• Soft99 Board’s response is interesting. It asks Effissimo to not be coercive (i.e. bid for 50%+) in response to the MBO Bid’s coerciveness. Not a winning argument but not impossible.

• Guidance slightly ahead: FY8/26 outlook modestly above consensus at both revenue and operating profit, signalling continued steady growth.
• Global strength offsets China: Expanding international markets and yen tailwinds continue to drive profitability, plus an end to lingering China weakness?
• Valuation supportive: Trading below historical averages on EBIT and P/E, offering global exposure at a reasonable multiple.

• In 1H FY02/26, revenue was JPY73.1bn (+1.5% YoY) with operating profit at JPY5.9bn (+23.0% YoY).
• Revenue from SC operations was JPY62.6bn (+1.0% YoY) and SB operations JPY10.4bn (+5.4% YoY).
• Gross profit in 1H FY02/26 was JPY13.6bn (+6.5% YoY) with a GPM of 18.5% (+0.9pp YoY).

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group
• The UST curve twisted flatter slightly yesterday, albeit there were few material catalysts. The yield on the 2Y UST rose 2 bps to 3.58%, while that on the 10Y UST was unchanged at 4.12%. Equities rebounded from Tuesday’s dip, with the S&P 500 and Nasdaq up 0.6% and 1.1%, respectively.
• The September FOMC meeting minutes showed that most officials “judged that it likely would be appropriate to ease policy further over the remainder of this year”.

• Highlights    • Market shift from premium to mid-tier brands   • Profit vs volume strategy hurting premium brands   • Mid-Tier brands expanding globally There is a lot of uncertainty around the ongoing tire demand and supply situation.
• The first thing to note is that while demand is growing slightly, the distribution of sales between premium tire makers and less well-known brands is changing.
• The transfer of market share away from the premium tire makers is rapid and appears to be accelerating.

• Loadstar Capital is unique among listed Japanese real estate peers in its use of leverage, velocity of capital deployment, and shareholder alignment.
• We believe the Company is much more akin to a real estate private equity fund in its approach towards capital allocation and focus on asset monetization.
• Importantly, Loadstar’s founder, Mr. Tatsushi Iwano, continues to hold 20% of the Company, reflecting management’s alignment with shareholders and belief that Loadstar can continue to sustain its growth. 

Key points (machine generated)

• IID, Inc. reported its first net profit increase in four years for FY6/25 despite a decline in net sales and operating profit.
• The company operates two segments: Creator Platform Business and Creator Solutions Business, facing challenges in the latter.
• For FY6/26, IID expects a 5.2% increase in net sales and a 30.5% rise in operating profit, focusing on M&A, AI monetization, and shareholder benefits.

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Key points (machine generated)

• TANABE CONSULTING GROUP CO., LTD. achieved record-high net sales and profits in 2025, its 68th year in business.
• The company’s success is driven by effective business development and M&A initiatives as part of a diversification strategy.
• TCG provides tailored consulting services to upper mid-sized enterprises, focusing on management strategies, operational execution, and digital transformation.

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• Three weeks ago I wrote that KKR’s lockup would expire about now in [Japan ECM] Kokusai Elec (6525) – KKR’s Lock Up Expiry in 3 Weeks – $700mm Clean-Up Coming? 
• Today post-close, Applied Materials (AMAT US) announced a 10.7mm share (4.5%) Accelerated Block Offering to be priced tomorrow morning, at an indicated 4.5-6.5% discount. This would put them at 10+%. 
• This should be very well taken up. There is index demand on the follow. The question is more about the unwind of KKR’s last bit. Perhaps to come soon?

• Sony Financial Group (8729 JP) started ToSTNeT-3 buybacks last week and did one this week to jumpstart the buyback, cushioning the Nikkei 225 deletion on 29 Sep and subsequent overhang.
• In three ToSTNeT-3 buybacks in 6 trading days spending ¥28.9bn, the company bought back 177.513mm shares or 2.5% of shares out, or about 6.2% of Max Real World Float (MRWF).
• With ¥71.1bn left, at last that’s 460mm shares, or 16.2% of MRWF. Over 10mos that is 1.62%/month. That will boost Mar26 DPS, Mar27 DPS projections, EPS, etc.

• Once every quarter the TSE reassesses free float weights for a set of companies whose fiscal years ended 7-10 months prior. Calendar Q1 is the biggie so October is too.
• This year, as companies have made dramatic changes in their shareholder registries through crossholder sales, activist acquisitions, and other, there are some big changes and big dollar changes.
• We see nearly 600 FFW changes up and down, and then nearly 1,100 stocks which see a significant (average 0.5x ADV) funding trade. $35bn in total.

• Applied Materials (AMAT US) is looking to raise approximately US$330m through an accelerated secondary offering for around 4.5% of Kokusai Electric (6525 JP) (KE) stock.
• KE had seen two selldown earlier, from KKR, with mixed results. KKR just came out of its last lockup.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Tekscend Photomask (429A JP) has set the IPO pricing at JPY2,900–3,000 per share, and will offer 39.6m shares raising around ¥115-118bn (US$800m) at a valuation of ¥240-250bn.
• The company is a leading global photomask manufacturer with strength in advanced EUV masks, and generates most of its revenue from overseas markets.
• We have compared the company against its closest pure-play peer Photronics Inc (PLAB US)  and believe the IPO is valued attractively given its expansion plans and technological edge.

• After months of going nowhere, Astroscale shot up more than 20% in the two trading days following the election of defense hawk Sanae Takaichi as president of the LDP.
• Astroscale made a small gross profit last quarter, but needs a rising flow of contracts and subsidies in order to turn profitable at the operating and net levels.
• At ¥825, the stock price is 38% below the ¥1,326 high reached just over a year ago. If Takaichi becomes prime minister, the chances of regaining that high would improve.

• Defense expansion priced in: JSW remains a key beneficiary of Japan’s multi-year defense buildup, but recent political optimism has driven valuations ahead of fundamentals.
• Structural growth secured: Medium-term defense sales set to more than double by FY2028, supported by artillery dominance, APC production, and new railgun development projects.
• Valuation headwinds: Even under bullish growth and margin assumptions, DCF implies ¥8,000 fair value; current 20x EV/EBITDA multiple looks rich versus domestic peers.

• FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares.
• FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.
• In our previous note, we had looked at its past performance. In this note, we will talk about valuations.

Key points (machine generated)

• FCE Ltd. has increased its earnings forecast for the fiscal year ending September 2025 due to strong performance and the launch of its AI agent business.
• The company specializes in Robotic Process Automation software and offers a human resource development platform called ‘Smart Boarding.’
• FCE aims to enhance human capital in Japan by integrating ‘subjectivity’ with ‘productivity’ through various educational tools and training programs.

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• In FY02/25, Bellsystem24 Holdings reported revenue of JPY143.6bn (-3.4% YoY), operating profit of JPY11.6bn (+0.9% YoY), and profit attributable to owners of the parent of JPY8.0bn (+6.1% YoY).
• The company captured outsourcing demand for contact center and back-office operations, raising the number of clients to 1,586 (from 1,520 in FY02/24).
• As a result, SC operations generated revenue of JPY123.2bn (+2.4% YoY) and SB operations, JPY20.0bn (+6.0% YoY).

• 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.
• Section-Transfer name Japan Business Systems (5036 JP) is expected to be included in the TOPIX index at the end of October 2025.
• New listings Orion Breweries (409A JP) and Tekscend Photomask (429A JP) are expected to be included in TOPIX at the end of October 2025 and November 2025 respectively.

• Established in 2022, Tekscend Photomask (429A JP)  (previously Toppan Photomask) is the world’s leading semiconductor photomask supplier, holding a global market share of 38.9%.
• Tekscend provides a diverse portfolio of high-precision photomasks for semiconductors, displays, MEMS, and R&D, including cutting-edge EUV masks, leveraging its expertise in microfabrication.
• The company is planning for a listing on TSE on 16th October and plans to raise proceeds of around US$800m through a combination of existing and new share issues.

• Monday’s huge post-election move in Nikkei 225 and Advantest Corp (6857 JP) caused Advantest to clear 10.00% realtime at day-end. Assuming nothing changes til end-Jan-2026, Advantest gets capped at end-Mar-2026
• As of today, that would be roughly 1.6x ADV and US$2.75bn but it would be 10% of Max Real World Float. 
• This is far off but should stay on the radar. Softbank Group (9984 JP) is close behind at 8.7%. 15+% outperformance would put it in capping territory too.  

• The Nikkei 225 (NKY INDEX) has reached eye-popping valuations, a 20% rally from the end of June into early October (40k to 48k).
• Our forecast is always short-term, 3-5 weeks horizon, so we cannot say if the index will continue to rally in 2026, but right now it’s OVERBOUGHT.
• We expect a pullback soon, you can buy the pullback, we discuss the support areas in the insight.

• Suzuki Motor (7269 JP) had a disappointing Q1FY2025 driven by lower sales in India & Europe and impact of raw material cost and foreign exchange rates.
• However, we expect business performance should revive in H2FY2025 driven by booster shot from India.
• We remain positive on long term prospects of the company driven by its maiden EV launch and long term growth plans though near term valuation appears to be full.

• FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares.
• FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.
• In our previous note, we had looked at its past performance. In this note, we will talk about the updates from its most recent filings.

• Standard Market contains many companies with small market capitalizations and low trading liquidity, so there aren’t many companies in the Standard Market that institutional investors can consider as investment targets.
• Standard Market has more companies with P/B below 1x and ROE below 8%, but there’s little difference between Prime Market and Standard Market in their improvements over past two years.
• Whether companies disclosed improvement plans in response to the TSE’s request does not necessarily correlate with improvements in their P/B ratio or ROE.

• ABC Mart holds a dominant position in the Japanese footwear market, leveraging strong relationships with major brands and a successful private label strategy to drive consistent growth.
• The company is pursuing a dual-pronged growth strategy focused on expanding its high-end ‘Grand Stage’ store format in Japan and accelerating its presence in overseas markets, particularly in South Korea and Taiwan.
• Financial performance has been robust, with a strong 3-year CAGR in net income and free cash flow, supported by recovering margins and efficient inventory management. The company maintains a healthy balance sheet and a consistent dividend payout.

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• Ricoh is navigating a strategic pivot from its legacy office printing business to a growth-oriented digital services company. This transition is driving revenue growth, with a notable contribution from the Digital Services segment.
• The company’s stock is currently trading at a discount compared to its peers, which, combined with a consistent dividend history, presents a potential value opportunity for investors. However, this is contrasted by recent market underperformance.
• A significant near-term risk is the potential deletion from a global index in August, which could lead to substantial passive selling pressure on the stock. This technical factor may overshadow fundamental performance in the short term.

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• Revenue decreased by 3.1% YoY, resulting in an operating loss of JPY213mn, compared to a profit in 1H FY02/25.
• Full-year FY02/26 forecast: Revenue JPY59.9bn (-1.0% YoY), operating profit JPY2.3bn (-15.3% YoY), net income JPY4.1bn (+2.3% YoY).
• 2H initiatives include new store openings, procurement cost control, and increasing full-price sales to improve GPM.

• Advantest Corp (6857 JP)‘s weight in the Nikkei 225 (NKY INDEX) has crossed 10% and staying there will lead to capping at the March rebalance.
• A lot of Advantest Corp (6857 JP)‘s float is held by passive trackers, and the real float is much lower. The capping will increase that float significantly.
• Advantest Corp (6857 JP) has outperformed its peers significantly and trades at higher valuation metrics compared to its peers.

• Four weeks ago, CVC announced a family-led MBO of hair care and cosmetics company Mandom Corp (4917 JP) at a price which was decidedly too light, well below company plans.
• One activist wrote a letter clearly calling them out for accepting a low-ball price well below the Medium Term Management Plan target. Another bought a lot of shares. 
• On 25 September, Murakami-san and affiliates reported an 8.39% position. Seven trading days later it is 16.59% and the shares are up small from my last piece + 1. 

• FineToday Holdings Co Ltd (289A JP), a Japanese personal care business, is seeking to raise US$286 million. It previously pulled an IPO to raise US$500 million in December 2024.  
• FineToday has four product categories: Hair care, Skin care, Body care and others. Hair care is the largest category, accounting for 49.0% of 1H25 revenue.
• The investment case rests on top-tier revenue growth, top-quartile profitability, peer-leading FCF generation and manageable leverage. 

• Japan System Techniques Co., Ltd. (hereafter, JAST or the Company) is a fully independent system integrator.
• The Company’s business portfolio consists of the DX&SI business, the Package business, the Medical Big Data business and the Global business.
• In recent years, the Company has seen an increase in prime contract development projects, and for the current fiscal year it expects net sales to rise for the 15th consecutive year and operating profit to reach a record high for the 11th straight year.

Key points (machine generated)

• Syla Holdings is formed from the merger of Kumika Co., Ltd. and Syla Technologies Co., Ltd.
• The company will operate under a new name after its stock exchange merger on June 1, 2025.
• Starting in fiscal year ending May 2026, Syla Holdings will segment its operations into real estate, management, construction, and renewable energy.

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

• Revenue reached JPY84.0bn, achieving 85.6% of the full-year forecast, with a 20.9% YoY increase.
• Operating profit for the Fund and Consulting segment rose 42.8% YoY, with OPM improving 5.6pp to 63.9%.
• The company acquired 34 buildings and 70 pre-owned condominium units, while selling 32 renovated whole-building properties.

• Revenue increased by 6.7% YoY to JPY121.6bn, with gross profit rising 5.7% YoY to JPY30.7bn.
• Operating profit grew 6.6% YoY to JPY5.6bn, while recurring profit increased 8.0% YoY to JPY5.9bn.
• The company expanded its network by acquiring Sunefu Co., Ltd., adding nine dedicated dispensing pharmacies.

Key points (machine generated)

• Cyberlinks reported record financial results for the interim period ending December 2025, with sales of 8,849 million yen, an 11.5% increase from the previous year.
• Regular income rose by 7.6% to 4,250 million yen, while operating profit surged by 74.6% to 990 million yen.
• Interim net profit attributable to parent company shareholders increased by 101.9% to 673 million yen, supporting the company’s medium-term management plan.

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)

• Globe-ing Inc. reported a 97.7% revenue increase to ¥8,255 million for FY5/25, driven by demand for digital transformation and AI in consulting.
• For FY5/26, the company projects a 40% revenue increase to ¥11,555 million and a 26.4% rise in operating profit, supported by strategic hiring and AI productivity improvements.
• The company’s growth strategy focuses on developing AI agents for consulting tasks and promoting a ‘Dynamic Equilibrium management’ methodology for competitive advantage.

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

• An agreement to supply OpenAI with energy-saving electric power equipment should be accretive to Hitachi’s sales and profits as long as the AI boom continues.
• Hitachi is also building an “AI Factory” based on Nvidia technology. This should accelerate the growth of Hitachi’s Lumada digital services platform, also boosting sales and profits.
• Hitachi’s share price jumped 10.3% on the OpenAI news. Data center news flow and AI sentiment now drive the share price. 

• 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: Tekscend Photomask (429A JP), Tata Capital Limited (TATACAP IN) and LG Electronics India (123D IN) IPOs.
• Event-Driven developments: Soft99 Corp (4464 JP), Daiseki Eco. Solution (1712 JP), I Net Corp (9600 JP), Mitsubishi Logisnext Co., Ltd. (7105 JP), Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK). 

Key points (machine generated)

• Unerry reported a 31.4% increase in sales to 3,726 million yen and a 74.2% rise in operating profit to 311 million yen for the fiscal year ending June 2025.
• The company’s ordinary profit surged by 133.4% to 315 million yen.
• Unerry enhances user experience through its Beacon Bank® platform, focusing on data analysis, behavior change, and personalized marketing.

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