Japan

• A group of shareholders are looking to raise ~US$350m in a secondary sale of Japan Airport Terminal Co (9706 JP).
• The deal is another cross-shareholding unwind, which has been an ongoing narrative in Japan over the past 1-2 years.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• F&M Co., Ltd. is a 35-year-old Osaka-based back-office outsourcer for Japan’s sole proprietors and small/mid-size companies
• Selling bookkeeping (Accounting Service), a membership and subsidy-application consulting service branded “F&M Club” (Consulting), and cloud HR/labor-administration software branded “Office Station” (Business Solutions)
• Distributed almost entirely through regional banks and tax/labor-consultant firms rather than direct sales.

• Asahi Holdings (5857 JP) share price rose 30% in a month after our last insight. Nothing was wrong with the company and result was great. 
• The stock will go ex-dividend next month, but the share price appreciation has beaten the dividend amount of 3.5%. Worth protecting the capital gain. 
• It generates one of the highest ROIC at 10% against the peers and trades at the lower end of the spectrum. 

• Broadening growth across both core businesses – With 79% OP growth YoY, Q1 FY3/27 results were a positive surprise, with a turnaround in profitability at the Direct Selling Group, and the Food Group demonstrating sustained growth YoY.
• The company’s two core businesses are now contributing to solid earnings growth and serving as pillars of earnings.
• The quality of growth remains stronger in the Food Group, as the ‘Mister Donut’ restaurants conduct new store openings and experience higher customer footfall and higher customer spend. 

• Front-loading investment – Q1-2 FY12/26 results were below expectations, reflecting continued weakness in high-margin Product Service sales and rising AI-related investment costs.
• With revised FY guidance indicating further front-loaded investment and head office relocation costs, we view FY12/27 as an important recovery year.
• We believe the key factor increasingly comes down to management execution; LaKeel must demonstrate that accelerated AI investment can translate into stronger revenue growth, improved competitiveness and ultimately a recovery in profitability.

• Although the 68.4% YoY decline in Q1 FY3/27 OP may appear soft on the surface, this dip was anticipated and primarily driven by the planned concentration of regular biomass facility maintenance.
• Looking past this temporary noise, execution against core growth pillars remains robust.
• Recent milestones include securing ¥7.2bn in project finance for the 100MW Fukuroi Ugari Battery Energy Storage System (BESS), marking the successful rollout of its second large-scale merchant facility. 

Key points (machine generated)

• TENOX CORPORATION is a leader in foundation construction in Japan, known for its technological capabilities and reliability.
• In FY3/26, net sales decreased by 11.1% to ¥21,093 million, but operating profit increased by 15.6% to ¥1,289 million due to improved efficiency.
• Projected net sales for FY3/27 are expected to rise by 9.0% to ¥23,000 million, driven by growth in the domestic construction sector and a new alliance with Japan Home Shield Corporation.

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

• On Friday after the close, Kakaku.com Inc (2371 JP) announced that Bain would not respond to EQT+DG/Kamgras1’s bid bump to ¥3,570 which meant Bain’s ¥3,640 was just 1.96% higher. 
• This means Bain will simply let EQT’s current ¥3,570 bid close on 27 August. If the minimum threshold is met, EQT wins.  If not, presumably Bain will launch.
• On 18 August, Oasis Management with 19.5% said it did not support a Tender Offer below ¥3,640/share. This, and the market price, may have emboldened Bain. What next?

• Bain/LY (4689 JP) have kept their Kakaku.com Inc (2371 JP) offer unchanged and have decided to wait for the EQT/Digital Garage (4819 JP) offer to close, convinced that it will fail. 
• Minorities have a free option on the higher Bain/LY offer. In the worst case, the EQT/DG offer succeeds, and in the best-case, it fails, and minorities get the Bain/LY offer.
• The success of the EQT/DG offer relies heavily on KDDI’s support, which remains uncertain. It is very likely that EQT/DG will at least match Bain/LY’s JPY3,640 offer. 

• 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 seven pair trade opportunities persist across three markets and five sectors.
• 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.

• I tally 39 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
• Five new deals were was discussed on Smartkarma this week: Reliance Worldwide Corp (RWC AU), Ausgold Ltd (AUC AU), EQT Holdings (EQT AU), Refine (377450 KS), and Baudroie (4413 JP).
• Key updates/news also took place on: Kakaku.com Inc (2371 JP), Steadfast (SDF AU), FleetPartners Group (FPR AU), Public Financial (626 HK), and European Lithium (EUR AU).

• While the number of shareholder proposals passed at the June AGMs remained at the usual level of two, those receiving over 40% approval increased from four in 2025 to 11.
• The shareholding of foreigners, based on votes, has risen to 28.3%, and while the influence of overseas investors is growing, they still need support of domestic investors to secure majority.
• Even if not approved, the company should respect shareholder proposals that receive high approval rate as the shareholders views, and it’s important to maintain a sense of accountability toward shareholders.

• MHI’s diversified exposure to AI (and recent collaboration with NVIDIA), gas turbines, defense, and potentially space, point to potential for the stock in the long term. 
• Improvements to ROE, and profit margins alongside good visibility on profits with backlogs in the JPY 14T range indicate limited risks for the company in the near future.
• A directional DEC26 option trade may be the right strategy to gain exposure on the stock.  

• The complete divestment of Nippon Paper’s 30.02% stake in Lintec represents a critical structural break, driven by Nippon Paper’s urgent balance sheet restructuring under its Medium-term Business Plan 2030 and accelerated by TSE capital efficiency mandates.
• To cushion the resulting 60x average daily volume supply shock, Lintec’s massive ¥30 billion buyback (representing up to 10.55% of outstanding shares) is a defensive necessity to prevent severe share price depreciation, but it also signals a permanent shift in management’s capital allocation towards return on equity (ROE) targets.
• While Lintec holds a highly profitable, dominant 30.0% global market share in semiconductor back grinding process tapes, its legacy Paper and Converted Products segments remain structurally impaired—evidenced by a ¥7.73 billion impairment loss in 2025—and will require hard hurdle rate enforcement to spin off or restructure.

• Toyota Motor Corporation reported a fiscal year 2026 operating income of JPY 3.8 trillion, aligned with prior guidance despite headwinds from U.S. tariffs and inflationary pressures.
• The company achieved consolidated vehicle sales of approximately 9.6 million units, a 2.5% increase year-over-year, bolstered by strong demand in Japan and North America.
• Electrified vehicle sales, driven predominantly by hybrid electric vehicles (HEVs), exceeded 5 million units for the first time, contributing significantly to overall sales growth.

• Lintec Corp (7966 JP) is a maker of printed adhesives, stickers, seals, labels, barcodes strips, etc. They also do adhesives for optical products and LCDs/electronics. That’s 80-90% of OP.
• Nippon Paper Industries Co L (3863 JP) owns 32%. Today they announced they are selling 30%, worth ¥112bn or so at last price. It’s big. 60x ADV. 
• Lintec today announced Q1 earnings, which are probably a trifle light. They also announced a buyback of up to 10.55% of shares to mitigate the impact of the offering. Better.

• Nippon Paper Industries Co L (3863 JP) is looking to raise US$600m in an upcoming secondary sale of shares in Lintec Corp (7966 JP).
• This sale is part of Nippon Paper’s balance sheet optimization plans, as laid out in their medium term plan 2030.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Lintec Corp (7966 JP) has announced a secondary offering of 17.1 million shares (19.7 million including overallotment), valued at around US$0.6 billion (US$0.7 billion including overallotment).
• The offering will enable Nippon Paper Industries Co L (3863 JP), the largest shareholder, to sell all its directly owned shares.
• The offering, as a percentage of outstanding shares, is the sixth-highest, and, in terms of ADV, the fifth-highest among large Japanese placements since 2021.

• Keisei Electric Railway Co (9009 JP) is the main beneficiary of the Narita Airport capacity expansion. More travelers means a higher ridership rate. 
• It now trades at 12x PER, share price normalized post COVID. Trades at a discount compared to Shinkansen operator like East Japan Railway Co (9020 JP) 
• The short-term impact may be a little negative, but the mid- to long-term should be very positive. 

Key points (machine generated)

• Towns Co., Ltd. reported a 22.9% decline in sales to 14,369 million yen and a 49.2% drop in operating profit to 4,200 million yen for the fiscal year ending June 2026.
• The decline is primarily due to a significant contraction in the domestic market for single COVID-19 test kits, where the company holds a 42% market share.
• Despite the downturn, the market for influenza test kits grew nearly 20%, and sales for the fiscal year ending June 2027 are projected to rise by 16.4%.

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

• De Facto Independence Realized via Rebranding and Parent Exit: The transition from the “Hitachi” name to LANDCROS Corporation in April 2027, coupled with Hitachi Ltd.’s complete exit through the sale of its remaining 21,462,310 shares on August 19, 2026, marks the end of parent-subsidiary constraints. This allows the company to operate with unprecedented agility, though it faces a near-term capital headwind with a ¥34.0 billion defensive share buyback to absorb the supply overhang.
• Shifting from Closed Ecosystems to Open Automation: Rather than fighting Caterpillar and Komatsu in a capital-intensive race to build a closed proprietary automation stack, the company is betting on open architecture. The strategic partnership with Pronto signed on July 16, 2026, integrated with the Wenco fleet management system, offers brownfield mine operators a highly flexible, OEM-agnostic alternative that lowers the barrier to entry for automated haulage systems (AHS).
• Aggressive Post-Deere Infrastructure Rebuild in the Americas: Rebuilding an independent dealer network from Newnan, Georgia, since the 2022 Deere split has been highly cash-absorbent. The company is actively mitigating these distribution gaps through targeted regional expansions, such as the newly formed Hitachi Construction Machinery Latin America SpA in Chile aiming for ¥150 billion in revenue by FY2030, and the July 23, 2026 Letter of Intent with Yanmar Holdings to co-develop compact equipment.

• Total mobile revenue growth and communication facility usage efficiencies boost earnings – The company had a strong start to FY3/27, with OP surging to ¥5.83bn (+25.6% YoY) on sales of ¥22bn (+6.8% YoY).
• Initiatives to prioritize customer LTV (Lifetime Value) – including measures for long-term subscribers – enhanced customer loyalty and drove a third straight quarter in churn declines.
• Price revisions also helped growth. These factors were augmented by communication facility usage efficiencies and one-off factors such as declining retroactive settlements, raising OPM 4 percentage points to 26.5%. 

Key points (machine generated)

• GDEP Advance (TSE: 5885) is a Tokyo-based company focused on AI system incubation, expecting a 27% revenue increase by May 2027.
• The company provides advanced server machines and solutions for AI, visualization, and big data challenges.
• GDEP partnered with NVIDIA in 2007 and went public on the Tokyo Stock Exchange in June 2023.

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

• Listing means validating corporate value through market value, and choosing listing market expands opportunities to increase market value. Companies changing markets to maintain listing that lead to declining market value.
• When transitioning to a market with lower trading liquidity, strategies for maintaining and increasing market value (shareholder value) after the market change should also be discussed in the board meetings.
• Since maintaining a public listing, delisting, or changing stock exchanges are matters that affect shareholder interests, conducting thorough discussions is one of the board directors’ fiduciary duties.

Key points (machine generated)

• Geekly, a recruitment agency for IT, web, and gaming sectors, is expected to achieve record performance by May 2027.
• The company uses its proprietary ‘OLG’ system for effective talent-employer matching and has a diverse customer acquisition strategy.
• Growing demand for IT professionals and a successful listing on the Tokyo Stock Exchange in February 2026 have contributed to Geekly’s business expansion.

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

• This morning, Baudroie (4413 JP) and Bain Capital announced an MBO whereby the existing major executives and shareholders sell to Bain and then reinvest. 
• The deal is at a 1% premium to last. The Board recommends minorities tender. the fair value model the Board looked at is faulty. 
• But the execs/directors/optionholders/crossholders combination basically gets this deal past the two-thirds hurdle without anyone active tendering. If the GPIF tenders, it’s done. Not a great example of improved Japanese governance. 

• Baudroie (4413 JP) has recommended a Bain-sponsored MBO at JPY2,970, a 1.0% premium to the undisturbed price of JPY2,942.  
• While the offer is above the midpoint of the IFA DCF valuation range and attractive relative to peer multiples, it is 7.8% below the 3-month high of JPY3,220.
• A competing offer is unlikely, as the founding shareholders did not accept a fiduciary-out clause. The deal is tough to block because of the low minimum acceptance threshold.  

• Hitachi Ltd (6501 JP) is looking to raise around JPY116bn(US$730m) via a cleanup in Hitachi Construction Machinery(6305 JP), comprising 21.46m shares(~10.1% of voting rights), as per the company’s press release.
• Hitachi Construction Machinery Co (HCMC) is a Japanese company that designs, manufactures, sells, and services construction and mining equipment.
• In this note, we will talk about the possible deal dynamics.

• The best ROIC in the wafer group (14.5%) does not trade at the best multiple — the PVC business imposes a conglomerate discount; the silicon recovery removes the justification.
• FY2025’s 14.4% profit fall was two independent cycle troughs — Asian PVC and wafer destocking — arriving simultaneously; Q1 FY2026 confirmed both are passing, management calls supply constrained.
• Initiating BULLISH, fair value ¥7,300 (11.5x FY2027E EBITDA); 14.4% capital upside plus 2.0% yield; 23 October H1 result is the catalyst to quantify the Electronics Materials recovery.

• SUMCO has publicly tied new 300mm capacity to substantial price increases; every LTA in the current cohort expires 2027–28; consensus models zero uplift.
• Management has publicly conditioned new capacity on substantial price increases; contracts expire 2027–28; consensus models zero pricing uplift — the LTA option costs nothing at the current price.
• Initiating BULLISH, top pick in the group; fair value ¥4,200 (9.0x FY2028E EBITDA of ¥184bn); ¥44bn mechanical recovery is the floor — the pricing option is everything above it.

• MORITO CO., LTD. (hereafter, the Company) posted consolidated net sales of JPY 33,068 mn (+28.1% YoY), operating profit of JPY 2,058 mn (+31.2% YoY), ordinary profit of JPY 2,162 mn (+26.4% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,645 mn (-29.9% YoY).
• Progress against the full-year earnings forecast remains solid as of H1, with both net sales and profits exceeding 50%.
• SIR believes that steadily expanding into new growth areas while maintaining its solidly profitable structure could contribute to medium- to long-term corporate value enhancement.

• Revenue increased by 4.4% YoY to JPY22.9bn, driven by higher shipments of second-generation smart meters in Japan.
• Operating profit rose 79.7% YoY to JPY1.8bn, with profitability improvements in Japan and cost-cutting measures in the UK.
• Net income attributable to owners surged 238.0% YoY to JPY1.2bn, partly due to the absence of prior restructuring losses.

Key points (machine generated)

• Property Technologies anticipates double-digit operating profit growth by November 2026 due to effective inventory processing and procurement strategies.
• The company focuses on regenerating second-hand houses and condominiums, targeting both first-time buyers and affluent clients with premium offerings.
• Property Technologies also constructs custom homes and utilizes AI for operational optimization, operating the real estate portal ‘KAITRY’ and offering SaaS services.

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)

• SIGMAXYZ Holdings Inc. reported record highs in operating profit (¥6,064 million, up 7.6%) and ordinary profit (¥6,351 million, up 8.1%) for FY3/26, despite a 9.4% decline in revenue.
• The company plans to shift focus from large-scale to mid-sized projects, expecting a revenue growth of 6.2% to ¥25,300 million for FY3/27.
• SIGMAXYZ is exploring a partnership with Core Concept Technologies Inc. to enhance digital transformation in manufacturing and is committed to increasing dividends and acquiring treasury shares.

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)

• Tokai achieved record highs in sales and operating profit for the fiscal year ending March 2026, with sales of 159,664 million yen and operating profit of 9,382 million yen.
• The company attributes its success to effective business development in the healthcare sector, especially due to an aging population.
• Tokai is pursuing mergers and acquisitions in the home care industry and operates in three main segments: Health Life Services, Pharmacy Services, and Environmental Services.

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

• Japan System Techniques Co., Ltd. (hereafter, the Company) is a fully independent system integrator.
• For FY2027/3, the Company targets a 16th consecutive year of revenue growth and a 12th consecutive year of profit growth, both set to reach record highs.
• SIR sees significant medium- to long-term re-rating potential as structural reforms advance steadily and a rising mix of recurring revenue and changes in the earnings structure become apparent.

• Leading Pure-Play HESaaS Provider in Japan: Photosynth Inc (4379 JP) has established a dominant market position in cloud-based access control and smart lock solutions through its proprietary Akerun Access Intelligence platform, pioneering the Hardware-Enabled Software-as-a-Service (HESaaS) business model across commercial, residential, and institutional sectors.
• Substantial Operating Inflection and Cash Flow Expansion: The company has successfully transitioned from an investment-heavy growth phase to structural profitability, delivering a 3-year Revenue CAGR of 19.28% and an EPS CAGR of 35.74%, supported by expanding EBITDA margins (~15-16% in recent quarters) and robust free cash flow generation (JPY 309.10M in FY2025).
• Attractive Valuation with Strategic TAM Expansion: Trading at an attractive 1.3x EV/Sales and 8.8x EV/EBITDA, Photosynth possesses significant multi-year growth runway fueled by Japan’s corporate digital transformation (DX) tailwinds, labor shortages driving demand for unmanned facility management (Migakun BPaaS), and strategic residential access partnerships via MIWA Akerun Technologies.

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

• PPIH’s FY06/26 sales increased 8.8% YoY, driven by increased customer traffic and discretionary product demand, achieving 100.4% of sales forecast.
• The company forecasts a 5.6% YoY sales growth, focusing on customer traffic, private-brand strategy, and pricing measures amid rising costs.
• Olympic Group, a newly consolidated subsidiary, targets doubling sales to JPY200.0bn and achieving a 6.0% OPM within five years.

• Although the number of individual shareholders has increased—partly due to a rising number of companies implementing stock splits—the proportion of shares held by individuals has hardly risen at all.
• While the ownership of other investor groups have remained flat, that of foreign corporations has continued rising. Listed companies are increasingly forced to pay close attention to overseas investors’ shareholdings.
• While the shareholding ratio of corporations has been steadily declining, share buybacks have increased. This suggests that the unwinding of cross-shareholdings between corporations and financial institutions is likely to continue.

• Q1-2 FY12/26 results exceeded expectations, accompanied by an upward revision to FY guidance.
• We believe that strong order visibility and structural demand from AI- related data center investment provide increasing confidence in a positive and stable medium-term earnings trajectory.
• We have raised our estimates to reflect sustained growth in both Machine Tools and Industrial Machinery, led primarily by China. 

• Japan System Techniques Co., Ltd. (hereafter, 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.
• It is posting record profits on the back of growth in prime projects and a strong market share in education DX, among other factors.

• Startia Holdings, Inc. (hereafter, the Company) announced its Q1 (Apr–Jun) FY2027/3 results on August 7.
• The Company reported net sales of JPY 6,041 mn (+7.2% YoY), operating profit of JPY 705 mn (+18.9% YoY), ordinary profit of JPY 706 mn (+19.8% YoY), and net profit of JPY 502 mn (+25.0% YoY).
• In Q1, costs rose as the Group welcomed 73 new graduate recruits in April; nevertheless, both sales and operating profit progressed in line with the initial plan, delivering solid results.

• AS ONE flexed its procurement muscles and kept plastic consumables on the shelf through a geopolitics-driven shortage, which allowed them to capture a rapid ramp in customer demand, improving engagement with existing customers and drawing in new customers.
• Higher input costs were passed through to customers in a timely manner and demonstrating gross margin durability, which we believe matters more than the record earnings.
• We note particular strength in the Industrial segment, where AS ONE benefited from semiconductor sector demand for cleanroom consumables. 

• Critical Infrastructure Enabler: Iwabuchi Corporation (5983 JP) is a specialized Japanese manufacturer of overhead wiring hardware, electrical transmission fittings, and connection equipment serving electric power utilities, telecommunications carriers, railway operators, and municipal signal systems.
• Improving Operational Performance and Cash Conversion: The company demonstrated strong financial progression in FY2026, generating ¥13.53 billion in revenue (+7.0% YoY), expanding EBITDA margin to 14.20%, and achieving record Free Cash Flow of ¥1.25 billion, supported by structural operating leverage and disciplined working capital control.
• Substantial Value Disconnect and Shareholder Yield: Trading at an attractive 0.7x Price-to-Book (P/B) multiple and an EV/EBITDA of 5.8x with a 2.52% dividend yield (backed by a 3-year dividend CAGR of 13.83%), Iwabuchi offers a compelling deep-value profile poised to benefit from Tokyo Stock Exchange governance reforms targeting capital efficiency.

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

• Cosmos Pharmaceutical Corp (a drug store chain operator that sells mostly food) is scaling faster than peers, opening stores organically while maintaining unusually stable per-store operating profit.
• Its food-led discount model creates high traffic, purchasing leverage, and a long runway in Japan’s fragmented packaged-food market.
• Slow, secular decline in RoE is inevitable, but the market is discounting an unrealistically fast pace of decay. Cosmos still has a very long growth runway.

• With OP growth at 102.8% YoY, Q1 FY3/27 results were a positive surprise underpinned by a highly robust performance at the Digital Entertainment segment.
• This was driven by an increase in the paying-user ratio and a rise in ARPU from successful initiatives such as events and IP collaborations for the core ‘MONSTER STRIKE’ title, which appear repeatable in our view.
• All business segments recorded positive EBITDA, and the Sports segment sustained underlying double-digit growth, driven by the domestic Betting business. 

• Ryohin Keikaku has updated forecasts for FY ending August: ¥907 billion in revenues this year at a 10%+ operating margin. 
• Vertical integration of sourcing is driving gross margin expansion, and a ¥1 trillion target with 12% margins is now firmly in sight.
• Overseas growth will be the key however as saturation at home beckons.

• M3’s domestic M&A strategy has undergone a structural pivot from high-margin digital services to asset-heavy physical models, exemplified by the ¥35.00 billion acquisition of a 55.00% controlling stake in ELAN Corporation in October 2024 and the full consolidation of Wiseman Co., Ltd. in July 2026. This shift reflects the growth exhaustion of the core domestic medical platform, where high-margin digital detailing can no longer sustain historically high growth rates. Domestic acquisitions have historically achieved superior operational integration compared to international ventures like MDLinx, which face severe geographic fragmentation and lower structural pricing power.
• The disclosure of a 5.03% activist stake by Oasis Management on August 10, 2026, has broken the historic capital allocation inertia of M3’s management. Oasis is expected to aggressively challenge the status quo, pushing to dismantle the conservative cash hoarding policy that has dragged consolidated ROIC down to 14.72%. The activist’s public filings hint at structural options including a major overhaul of the 20-30% dividend payout ratio, accelerated share buybacks, or even a potential management buyout (MBO) to delist the company.
• The strategic alignment of M3’s primary corporate shareholders, Sony (34.00% stake) and NTT (3.00% stake), is on a hair-trigger. Sony’s historical sell-downs suggest a willingness to monetize non-core technology investments to fund its primary entertainment and gaming segments, while NTT’s stake is tied to commercial integration. The entry of Oasis Management is the likely strategic catalyst that will trigger either a consolidated buyout offer from a strategic partner or a structured exit of Sony’s block.

• 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: In Japan, currently four pair trade opportunities persist across four sectors.
• 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.

• In FY06/26, PSS achieved revenue of JPY5.2bn, operating profit of JPY201mn, and net income of JPY395mn.
• PSS forecasts FY06/27 revenue of JPY5.7bn, with operating profit of JPY350mn and net income of JPY292mn.
• Sales growth is expected from the ELITechGroup agreement, despite anticipated increases in SG&A expenses.

• MegaChips Corp (TYO 6875) is one of several companies in Japan with a large stake in a publicly listed company in the U.S. that dwarfs its own market cap.

• In this case, MegaChips owns ~10% of SITM. Off the top of my head there’s also Sanken Electric (TYO 6707) which owns 32% of ALGM.

• But there’s a reason I’m writing about MegaChips instead of Sanken Electric: the discount is wider AND the remaining operating business is both simpler and better.

• Feedforce Group is a Tokyo-based holding company on the TSE Growth Market built around three segments: Professional Services, a listing/search-advertising agency anchored by subsidiary Anagram; SaaS, subscription tools including the social-login platform Social PLUS; and DX, a Shopify-centered e-commerce build/operate business run through subsidiary Rewire.

• Founded in 2006 by Koji Tsukada, the company IPO’d in 2019 and reorganized into a pure holding structure in 2021.

• For 19 years Feedforce paid no dividend and its DX segment lost money every year it existed.

• Q1-2 FY12/26 results were somewhat softer than expected, with sales and OP up 8.9% and 9.5% YoY, respectively.
• The Workplace segment recorded a temporary margin dip owing to a higher allocation of shared corporate expenses, primarily ERP integration, DX/R&D (Office 3.0), and logistics.
• In contrast, the Equipment segment, anchored by Dalton, delivered a positive earnings surprise, with OP +43.1% YoY, driven by robust demand across research facilities and semiconductor-related solutions. 

• COPRO-HOLDINGS. Co., Ltd. (hereinafter, “the Company”) generates 90.0% of its net sales from its construction technician dispatching business.
• At the end of FY2026/3, the Company acquired major construction dispatching firms TRYT Inc. and TRYT Engineering Inc., making them wholly owned subsidiaries.
• The current share price is significantly depressed, reflecting the rise in financial leverage from the TRYT acquisition and the projected profit decline for FY2027/3.

• M3 Inc (2413 JP) fell 85+% from 2021 highs to spring 2026 lows. We’re not that far off that level now. Earnings a week+ ago sent shares tumbling. 
• The company is now trading just above 20x earnings with 15% CAGR targeted organic revenue growth over the next five years plus inorganic growth expected from M&A.
• M3 now has its ABCs. An Activist. A Buyback. And Cash. And it has growth at lower multiples than peers. 

• ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance
• Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%
• The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.

• Q2 revenue grew +24.6% YoY to ¥12.9bn, while gross margin broke through 60% for the first time (+4.0ppts YoY to 60.1%), with operating margin up 3.7ppts to 11.5%.
• US & EMEA remained the standout, accelerating to +59% organic growth on enterprise wins, while NEA (72% of revenue) held a steady +33% organic pace
• Shares jumped +15% post-results to ¥1,132, still leaving the stock at ~2.1x FY26 sales and ~11x FY26 EBITDA guidance for a business now guiding to +69% operating income growth. 

• Context: The Inpex (1605 JP) vs. Mitsui & Co (8031 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Mitsui & Co (8031 JP) and short Inpex (1605 JP) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Asahi Intecc (7747 JP) reported solid result for FY26, with all key parameters beating guidance. Strong overseas demand and favorable exchange rate fluctuation (yen depreciation) drove the performance.
• Asahi Intecc expects both medical and device divisions to grow supported by expanding demands centered in overseas market. For FY27, the company guided for double-digit growth for all key parameters.
• Asahi Intecc has revised upward the numerical targets for the final fiscal year (FY30) of its medium-term management plan, due to steady market improvement and favorable Fx.

• Revenue reached JPY9.0bn, a 7.6% YoY increase, achieving 46.7% of the full-year company forecast.
• Operating profit was JPY112mn, a 190.1% YoY increase, surpassing the initial 1H forecast of JPY4mn.
• Marketing DX Business recorded JPY6.8bn revenue and JPY523mn segment profit, while Business Creation Business had a JPY12mn loss.

• Operating revenue decreased 5.2% YoY, with a JPY339mn operating loss, reflecting absence of upfront and milestone payments.
• Royalties increased 14.4% YoY to JPY1.2bn, driven by strong tegoprazan sales in South Korea and global rollout.
• The company expects JPY4.0bn operating revenue for FY12/26, with JPY3.0bn from RaQualia and JPY1.0bn from FIMECS.

• Under the revised Corporate Governance Code, improvements are expected only from 6.9% companies that disclosed information on or after their AGM. For all other companies, compliance has become voluntary targets.
• Investors want to change the record date so that AGM is held in July or later, when AGMs aren’t concentrated. It’s the companies that are stubbornly refusing to do so.
• While continuing to avoid facing shareholders, it is hard to imagine that the company can engage with investors. Investors, in turn, should press the company more strongly on this issue.

• EQT would probably jump higher and Bain would come out above that. Both would aim high to get it done and not lose the asset. Stay long Kakaku.com (2371 JP).
• As Austal Ltd (ASB AU) books losses in response to contractual relief delays (or cancellation altogether[?]), Hanwha steps in with a fair offer for Austal’s US unit.
• The NAV discount has narrowed, and the implied stub is elevated, but at 0.34x forward P/B, Swire Pacific (19 HK) is still a buy.