Daily Brief Japan: Fuji Soft Inc, TSE Tokyo Price Index TOPIX, Kyocera Corp and more

In today’s briefing:

(Mostly) Asia-Pac M&A: Shibaura, Tecnos, Insignia Fin., Fosun Tourism, Fuji Soft, Shin Kong/Taishin
Investors Are Disappointed that ROE Is Not Improving, yet Companies Can’t Disclose to Improve It
Last Week in Event SPACE: Kyocera, WH Group/Smithfield, CNBM, Japan Eyewear, Core Concept Tech

(Mostly) Asia-Pac M&A: Shibaura, Tecnos, Insignia Fin., Fosun Tourism, Fuji Soft, Shin Kong/Taishin

Companies with high stock price valuations are often characterized by high foreign shareholdings and high return on capital, and valuations cannot be raised simply by disclosure without improving profitability.
Companies that proactively disclosed to TSE requests were those with large market capitalization and high foreign ownership. They usually try to use their cash effectively for investment and shareholder returns.
Raising profit margin is the best way to improve capital profitability. It’s clear that challenge lies in restructuring the business portfolio and reorganizing the industry, which few companies could do.

You could label Kyocera Corp (6971 JP)“BULLISH” because the stock goes up rather than down; but you could easily label this BEARISH because the prospects aren’t exciting.
WH Group (288 HK)spins off Smithfield Foods (SFD US) – below the prior expected price range. Pricing looks full here.
As China National Building Material (3323 HK)‘s Partial Offer heads towards the pointy end, do you buy, and/or borrow, and tender; short outright; or short tender?

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