Daily Brief Japan: BASE Inc, Kakaku.com Inc, SUMCO Corp, Resona Holdings, Intellex, ABC Mart, Movin’ Strategic Career, ProjectCompany Inc, Japan Property Management Center, Anges Mg Inc and more

• When SBI launched its partial tender for 20% of BASE Inc (4477 JP) at the end of last month, they wanted to buy ~42.5% of the Max Real World Float.
• That was at ¥340, a small premium to where the stock was trading, and a 17% discount to where another partial tender last year got only 7-8% of MRWF.
• I think the dynamic here favours being long. Pro-ration expectations are misplaced I think.

• Bain/LY revised their Kakaku.com Inc (2371 JP) offer to JPY3,597 (JPY3,720 for KDDI share buyback), 2.2% premium to the previous JPY3,520 offer but a 2.3% discount to EQT/DG’s JPY3,680 offer.
• Bain/LY (4689 JP)’s latest offer underwhelms and could backfire if KDDI Corp (9433 JP) and possibly Oasis decide to end this long-running saga by accepting the marginally lower EQT/DG offer.
• While there remain arguments for continued escalation, the “winning” offer is unlikely to exceed the last close (JPY3,820). It’s time to head for the exit. 

• We are upgrading our existing facilities and any discussions with customers at this point are based on the capacity that we believe is possible as a result of such upgrades.
• Demand is likely to exceed supply for more than three years, because of such supply constraints. In terms of the price level,  prices would need to be dramatically higher.
• We have no plans whatsoever to restart the Yoshinogari project. At current price levels, it is not viable. All costs are rising now, with Japan potentially headed for more inflation

• Market expectations are for a 25bps rate hike to 1.25% at the BoJ monetary policy meeting this week; we expect BoJ to follow the US Federal Reserve’s 25bp hike today
• We take profits on Yokohama removing it from the buy list among our bigger caps universe; we keep Resona Holdings on the buy list along with Kyoto Financial
• Resona is best geared to rising rates, and we expect it to deliver higher returns going forward; Kyoto stands out with its high equity holdings relative to its market capitalisation

Key points (machine generated)

• Intellex Holdings focuses on renovating and selling used condominiums and has seen significant revenue growth.
• The company was established in December 2025 and is listed on the Tokyo Stock Exchange’s Standard Market.
• For the fiscal year ending May 2026, Intellex reported consolidated sales of 58,471 million yen, a 30.5% increase, with an ordinary profit of 2,346 million yen.

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• ABC Mart aims to have 50 Oshman’s stores by 2031. 
• The plan is to build out Run & Fitness, a new, smaller concept designed for shopping malls and to appeal to more female customers through yoga and Pilates.
• The investment is part of wider plans to broaden ABC Mart’s business beyond footwear and firmly into the still growing sports market, both in Japan and around Asia.

Key points (machine generated)

• Movin Strategic Career is rapidly growing in high-end recruitment, especially in consulting sectors like IT, M&A, and private equity.
• The company benefits from a favorable market with high demand for hiring and an increase in AI consulting roles.
• Its unique business model focuses on expanding career advisors and using proprietary systems, leading to significant revenue growth.

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Key points (machine generated)

• FISCO Ltd. projects a positive outlook for Project Holdings (TSE: 9246) for the fiscal year ending December 2026, with stronger performance expected in the second half.
• Project Holdings focuses on Digital Transformation (DX) and supports clients from planning to execution of their DX strategies.
• Interim results show a significant revenue increase, with sales reaching 3,180 million yen, reflecting a 20.0% growth.

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• The revised Sunrise Capital tender offer at ¥2,270 is a highly structured compromise that utilizes a post-transaction treasury share buyback of Hikari Tsushin’s 8.69% stake, effectively lowering the upfront funding burden for Sunrise while offering public minorities a modest premium and higher deal certainty.
• JPMC’s asset-light master-lease model relies on a network of over 1,400 local construction partners, which makes it uniquely resilient to direct corporate takeovers (which would dissolve this partner ecosystem due to competitive conflicts) but highly sensitive to localized, relationship-based landlord acquisition bottlenecks.
• Regulatory constraints under the Rental Housing Management Business Act of 2020 have severely restricted JPMC’s ability to unilaterally reduce guaranteed rents under Article 32 of the Land and Building Leases Act, shifting the operational reality of rent renegotiations from a straightforward contractual right to a highly litigious, reputationally risky process monitored by the MLIT.

Key points (machine generated)

• AnGes, founded in 1999 from Osaka University, focuses on gene medicine for diseases with limited treatments.
• The company plans to apply for approval and contracts for its HGF gene therapy product by September 2026, aiming for a U.S. market launch in early 2027.
• AnGes has acquired EmendoBio Inc. for genome editing technology and established a clinical research lab for newborn screening in Japan.

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