In today’s briefing:
- DISCO Corporation (TSE: 6146) – From Abrasive Wheels to AI Packaging Champion
- Nidec (6594 JP): Wait for Hard Numbers
- Asian Dividend Gems: Mars Group Holdings
- (Mostly) Asia-Pac M&A: Peak Rare Earths, Yutaka Giken, Shibaura, Johns Lyng, Ainsworth, Ashimori
DISCO Corporation (TSE: 6146) – From Abrasive Wheels to AI Packaging Champion
- DISCO is the global leader in wafer dicing and grinding, holding ~70–80% market share in critical back-end semiconductor tools.
- Anagement is expanding capacity via the Gohara Plant (FY2028) and upgrading innovation at the Haneda R&D Center (FY2025–27) to secure its edge in hybrid bonding, PLP, and stealth dicing.
- Revenues are projected to grow ~11% CAGR to FY2028, with EPS potentially reaching ¥1,500, but the stock trades at a premium ~33x FY26E P/E.
Nidec (6594 JP): Wait for Hard Numbers
- Nidec dropped 22% on Thursday following management’s decision to establish an independent committee to investigate accounting irregularities. It bounced back nearly 5% on Friday, but finished the week down 20%.
- In June, the Company received approval to postpone submitting its FY Mar-25 securities report until September 26. In July, it released incomplete 1Q results while postponing full disclosure.
- Without correct numbers, we can only guess at the full impact of the accounting irregularities and their effect on management.
Asian Dividend Gems: Mars Group Holdings
- Mars Group Holdings has three main business units including Amusement related (including pachinko/pachislot peripherals), Smart Solutions, and Hotels/restaurants related.
- It trades at P/E of 8.5x, P/B of 0.8x, and EV/EBITDA of 2.3x. Net cash is 48% of its market cap.
- Its sales, gross profit, and operating profit increased by 180%, 146%, and 680%, respectively from FY22 to FY25. However, it had a disappointing results in FY1Q26.
(Mostly) Asia-Pac M&A: Peak Rare Earths, Yutaka Giken, Shibaura, Johns Lyng, Ainsworth, Ashimori
- I tally 45 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
- Two new deals were discussed on Smartkarma this week: Peak Rare Earths (PEK AU) and Yutaka Giken (7229 JP).
- Key updates/news took place on Johns Lyng (JLG AU), Ainsworth Game Technology (AGI AU), Shibaura Electronics (6957 JP), Ashimori Industry (3526 JP), and Pacific Industrial (7250 JP).
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