Daily Brief Japan: Canon Inc, Softbank Corp, Internet Initiative Japan and more

In today’s briefing:

Canon (7751) – Second Buyback This Year – Last Happened in 2014

Canon Inc (7751 JP) reported Q2 earnings early last week. Shares dropped 4% the next day but closed down only 1%. Now they are above the prior close.
They biked the dividend nicely (was ¥45/share last year, guided to ¥50 this year, but made ¥60/share instead.
And now they have announced another ¥50bn buyback on top of the one announced in May. Fourth time in 14 years a second tranche is announced in one year.

The Ninth Annual JPX Nikkei 400 Index Review was announced on Friday 5 August. There are 36 Inclusions, 34 Deletions. They are mostly in line with Janaghan Jeyakumar, CFA‘s predictions.
The “BIG SELL” is Oriental Land (4661 JP). The “BIG BUY” is Softbank Corp (9434 JP) as he predicted 11 months ago. There are some down-weights from capping.
Oriental Land is also a potential Nikkei 225 Inclusion as discussed in Nikkei 225 Sep22 Annual Review; Data Final, Predictions Unch’d; Strategy Involved.

IIJ posted solid results including double-digit revenue and operating profit growth as corporate DX demand drive cloud and security growth at rates well above larger rivals
Shares sold off 7% after the mid-day announcement which reflects modestly aggressive consensus forecasts and/or disappointment on lack of a guidance raise
The company did announce its second share split in three years which tells us management remains confident on the mid- to long-term track

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