In today’s briefing:
- Global Foods Creators (7559) – Another Stupidly Cheap MBO With Rigged DCF
- Takeda Pharma (4502) – Strong Results
- Quiddity JPX-Nikkei 400 Rebal 2025: End-Jan 2025 Ranks
- Takeda Pharmaceutical (4502 JP): Strong Q3 Result Triggers Guidance Raise; ¥100B Buyback Announced
- Hagihara Industries Inc. (7856 JP) Research update
- Anritsu Corp (6754 JP): Q3 FY03/25 flash update
- Is the Decline in Number of Listed Companies the Beginning of a Shift to Value-Creating Management?
- Financial Products Group Co (7148 JP): Q1 FY09/25 flash update
- M&A Capital Partners (6080 JP): Q1 FY09/25 flash update
- Okinawa Cellular Telephone: Q3 FY03/25 flash update, revision of full-year earnings forecasts
Global Foods Creators (7559) – Another Stupidly Cheap MBO With Rigged DCF
- Today after the close, Global Food Creators (7559 JP) announced that the CEO would sell his 1.23% of the company into an MBO by a company he set up.
- The family company which owns 27%, and he would fund the takeover of the other 73% with 1% equity taken from his share sale, and 99% bank loans.
- The TOB is at 0.65x book for a cash-rich company. Liquidate the cash and the rest is being taken over at 0.33x book. Aaaaargh.
Takeda Pharma (4502) – Strong Results
- Today Takeda Pharmaceutical (4502 JP) announced earnings which will mean last year was the trough, not this year. The pipeline looks OK too.
- The company also announced a ¥100bn buyback and a change of CEO. The buyback has a big number, but it isn’t particularly exciting.
- All in all, there’s positive news here, but it is all much of a muchness, but as it is a nine-figure buyback in 3mos, we take a look.
Quiddity JPX-Nikkei 400 Rebal 2025: End-Jan 2025 Ranks
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
- The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
- Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-January 2025.
Takeda Pharmaceutical (4502 JP): Strong Q3 Result Triggers Guidance Raise; ¥100B Buyback Announced
- Takeda Pharmaceutical (4502 JP) reported better-than-expected performance in Q3FY25, with 3% revenue growth to ¥1,144B, driven by continued strong momentum from Growth and Launch Products. All key parameters beat estimates.
- Takeda has upgraded its full year outlook for growth, reflecting strong year-to-date product performance and OPEX efficiencies, as well as revised foreign exchange assumptions. Takeda has also announced ¥100B buyback.
- Continued strong performance of its Growth and Launch product portfolio, ripe late-stage pipeline, and expected margin improvement from FY26 envisage long-term growth prospect of the company.
Hagihara Industries Inc. (7856 JP) Research update
- Hagihara Industries reported FY24 (Oct year-end) earnings results on 10 December with FY24 operating profit [OP] of ¥2,097mil (+6.0% YoY) on sales of ¥33,118mil (+6.0% YoY) versus an OP target of ¥2,200mil (+11.2% YoY) on sales of ¥32,000mil (+2.4% YoY).
- While sales overshot the firm’s guidance, OP fell short due to costs associated with a core system renewal and real estate acquisition tax incurred on the Kasaoka Factory.
- Management is guiding for FY25 1H OP of ¥1,160mil (-8.8% YoY) on sales of ¥16,780mil (+2.5% YoY), and FY25 OP of ¥2,400mil (+14.4% YoY) on sales of ¥34,000mil (+2.7% YoY).
Anritsu Corp (6754 JP): Q3 FY03/25 flash update
- Orders reached JPY81.9bn (+2.3% YoY), revenue JPY80.8bn (+3.9% YoY), with operating profit at JPY6.4bn (+24.4% YoY).
- Strong demand in the food industry increased segment operating profit by 126.3% YoY, with OPM rising 4.0pp YoY.
- Full-year FY03/25 forecast remains unchanged; progress stands at 70.3% for revenue and 58.4% for operating profit.
Is the Decline in Number of Listed Companies the Beginning of a Shift to Value-Creating Management?
- While the number of listed companies worldwide has been on a declining trend, the TSE has experienced growth in market capitalization, but growth in market capitalization has been slow.
- TSE requested companies to raise their P/B, but admits that many companies have yet to reach this goal and that it’ll take considerable time to change to such management style.
- Shareholder proposals are increasing. This could hasten the shift to value-creating management, or companies that find it burdensome as a cost of listing may choose to go private.
Financial Products Group Co (7148 JP): Q1 FY09/25 flash update
- In Q1 FY09/25, revenues increased by 14.6% YoY, while operating and recurring profits decreased by 7.7% and 7.4% respectively.
- The Leasing Fund Business reported a 26.5% YoY revenue decline, with a segment profit margin of 87.7%, down 1.2pp YoY.
- The International Real Estate Fund Business achieved a 356.6% YoY revenue increase, with a gross profit margin of 90.6%, up 8.5pp YoY.
M&A Capital Partners (6080 JP): Q1 FY09/25 flash update
- Revenue in Q1 FY09/25 reached JPY7.3bn, a 131.8% YoY increase, driven by higher average fees per deal.
- Operating profit and recurring profit both increased by 465.1% YoY to JPY3.3bn, with net income rising 465.7% YoY.
- The company revised its dividend policy, increasing the payout ratio target to 30%, raising FY09/25 dividends to JPY51.84.
Okinawa Cellular Telephone: Q3 FY03/25 flash update, revision of full-year earnings forecasts
- For Q3 FY03/24, operating revenue was JPY62.4bn (+6.8% YoY), with net income JPY9.5bn (-1.0% YoY).
- Capex for Q3 FY03/25 was JPY4.2bn, a 34.4% YoY decrease, with 66.3% progress against the full-year plan.
- FY03/25 forecast revised: revenue JPY83.0bn (+6.4% YoY), operating expenses JPY65.5bn (+7.4% YoY), dividend JPY120/share.
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