In today’s briefing:
- Ashimori Industry (3526 JP): Murakami Outlines His Case
- Pacific Industrial (7250 JP): Effissimo Rears Its Head
- Metaplanet Placement: A Look at Other Treasury Play Issuances and Performance
- Japan Post Bank- Adding Some Sizzle with a Move into Digital Currencies!
- Q1 Follow-Up – Japan System Techniques (4323 JP) – August 25, 2025
- MEC Co., Ltd (4971 JP): Research Update
- Q1 Follow-Up – MIGALO HOLDINGS (5535 JP) – August 26, 2025
- What Is More Important in Promoting “Effective Investor Relations”?
Ashimori Industry (3526 JP): Murakami Outlines His Case
- Takateru Murakami, Yoshiaki Murakami’s son, has increased his Ashimori Industry (3526 JP) to an 18.36% ownership ratio at an average buy-in price of JPY4,154.28 vs. the JPY4,140 tender offer.
- Crucially, in today’s disclosure, Takateru Murakami outlines the rationale for his stake building, which centres on the book value being materially understated if certain land were revalued at market rates.
- Maintaining current terms is increasingly not a viable option. Toyoda Gosei (7282 JP) is likely to pursue a strategy of either increasing its offer or lowering the minimum acceptance condition.
Pacific Industrial (7250 JP): Effissimo Rears Its Head
- Effissimo reported a 5.87% ownership ratio in Pacific Industrial (7250 JP). The average buy-in price of JPY2,235.91 per share is 9.1% above the JPY2,050 MBO offer.
- Effissimo buying significantly above terms is justifiable as the offer implied a P/B of 0.71x. Effissimo is agitating for either a bump or an opportunity to participate in the back-end.
- With the offer closing on 8 September and shares trading 16.9% above terms, the Ogawas have little choice but to revise terms.
Metaplanet Placement: A Look at Other Treasury Play Issuances and Performance
- Metaplanet (3350 JP) is looking to raise around US$1bn from a primary placement.
- The deal is a relatively small one, representing 4.8 days of the stock’s three month ADV, despite being 22.8% of total shares outstanding.
- In this note, we look at Metaplanet and its peers.
Japan Post Bank- Adding Some Sizzle with a Move into Digital Currencies!
- The bank is starting to perform both absolutely and relative to both the Topix and the Megabanks
- The core thesis is intact as Net Interest Income improves from a changed asset mix
- The move into digital currencies is groundbreaking for this institution
Q1 Follow-Up – Japan System Techniques (4323 JP) – August 25, 2025
- Japan System Techniques (hereafter, the Company) announced its Q1 FY2026/3 results: Key consolidated figures included net sales of JPY 7,039 mn (+11.8% YoY), operating profit of JPY 493 mn (+73.8% YoY), ordinary profit of JPY 509 mn (+59.9% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 321 mn (+77.8% YoY).
- The DX & SI business, the package business, and the medical big data business all achieved double-digit increases in both net sales and profit YoY.
- A record high is expected to continue, with net sales forecast at JPY 32,000 mn (+9.1% YoY), operating profit at JPY 3,590 mn (+12.6% YoY), ordinary profit at JPY 3,660 mn (+12.1% YoY), and net profit for the year at JPY 2,770 mn (+13.4% YoY).
MEC Co., Ltd (4971 JP): Research Update
- While MEC’s (4971 JP) FY25 (Dec year-end) 1H sales fell short of guidance by 2.2% to ¥9,387mil (+5.7% YoY), OP improved +3.3% YoY to ¥2,440mil, coming in 8.5% above the firm’s guidance of ¥2,250mil.
- This was primarily due to less than expected SG&A spending – something the firm had flagged in an earlier release.
- Net profit [NP] was revised from ¥1,450mil (-23.2% YoY) to ¥1,893mil (+0.2% YoY), thanks to the receipt of a subsidy from the Ministry of Economy, Trade and Industry [METI] specifically for smaller sized companies to support growth investment.
Q1 Follow-Up – MIGALO HOLDINGS (5535 JP) – August 26, 2025
- On August 7, MIGALO HOLDINGS Inc. (hereafter, the Company) announced its Q1 FY2026 (April–June) earnings results.
- Net sales increased 4.4% YoY to JPY 14,272 mn, and operating profit increased 23.1% YoY to JPY 975 mn.
- As shown below, progress toward the Company’s full-year forecast got off to a roughly on-schedule start, with 23.8% of net sales and 34.8% of operating profit achieved.
What Is More Important in Promoting “Effective Investor Relations”?
- Most companies appointed IR officers and hold some sort of briefing for analysts and investors, but briefings for overseas investors and explanations by the CEO himself are still insufficient.
- It is valuable to have a direct Q&A session with the CEO about the feasibility of the business plan’s commitments and planned values, and the formulation process.
- There are still many companies that are reluctant to hold meetings between independent outside directors and investors, and such companies are missing out on an opportunity to create value.
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