In today’s briefing:
- SBI (8473) Buys Back Into ARUHI (7198) In Partial Tender Offer
- Softbank Group – An Acceleration in Investment Does Not Require a Third Vision Fund
- Premier Anti-Aging: DUO’s Time Is Done, But CANADEL & Clayence Is Taking the Company Forward
- Mismatch Between Documents Needed by Foreign Investors and Those Translated in English by Companies
- Askul Q1 23 Results Reaction: Solid Revenue but OP Down on Front-Loaded Investments
SBI (8473) Buys Back Into ARUHI (7198) In Partial Tender Offer
- Yesterday, SBI Holdings (8473 JP) announced it would launch a tender offer to buy 33.4-51% of Aruhi Corp (7198 JP) at ¥1,500/share – a 48.5% premium to the close.
- ARUHI – Japan’s largest “mortgage bank” – was listed in late 2017. Long ago, its predecessor was named SBI Mortgage. This is SBI buying back in.
- Inside we look at valuations, shareholder structure, pro-ration. There are opportunities here.
Softbank Group – An Acceleration in Investment Does Not Require a Third Vision Fund
- Press reports indicate Softbank Group (9984 JP) is considering a third Vision Fund which seems to conflict with its more defensive posture at Q1 results last month
- Softbank can re-accelerate investment at any time without VF3 so talk of a new fund is not a signal change. Perceptions of private equity value are more important
- And a key message over the last six months is founders are too optimistic and that seems unlikely to shift suddenly. We have updated our SB performance tables below
Premier Anti-Aging: DUO’s Time Is Done, But CANADEL & Clayence Is Taking the Company Forward
- Japan’s number one skin cleansing balm, DUO seems to be in big trouble with monthly sales volume falling by almost 40% over the last 12 months.
- However, Premier Anti-Aging (4934 JP) is making progress with the development of other brands to reduce its dependence on DUO.
- Despite the depressed margins in the near-term, we are quite positive about Premier Anti-Aging’s medium-long term outlook with new brands like CANADEL and clayance showing promising signs for the future.
Mismatch Between Documents Needed by Foreign Investors and Those Translated in English by Companies
- While 90% of the companies listed on the prime market translate some documents into English, very few companies listed on other markets translate their disclosure documents into English.
- There is a mismatch between the documents that prime market listed companies translate into English and the documents that overseas institutional investors require to be translated into English.
- Few companies with high foreign ownerships have translated their annual securities reports, convocation notices (business reports) and corporate governance reports into English, which overseas investors need to translate into English.
Askul Q1 23 Results Reaction: Solid Revenue but OP Down on Front-Loaded Investments
- Askul Corp (2678 JP) posted the best revenue growth in six quarters as both B2B and consumer product sales accelerated
- The corresponding operating income decline of 10% is less welcome but that includes a front-loading of planned growth investments and full year guidance of 1% growth is unchanged
- We are tagging this insight as bearish as headlines of a 10% OP decline might not be as well received as the top-line story
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