In today’s briefing:
- [Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO
- More Accurate Context Behind Tencent’s Nexon Moves Reported by Bloomberg
- Denso Corp(6902 JP)–Value Zone, Upgraded Growth Outlook, Sooner Resolution of Cross-Holding Overhang
- Sumitomo Pharma (4506 JP): Positive Momentum Persists, New Agreements Adds Steam
- i-mobile Co Ltd (6535 JP): Q3 FY07/25 flash update
- GiG Works (2375 JP): 1H FY10/25 flash update
- CellSource (4880 JP): 1H FY10/25 flash update
- Nippo Ltd. (9913 JP): Research Update
[Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO
- On the 10th of June, Toyota Motor (7203 JP) subsidiary Hino Motors Ltd (7205 JP) and Mitsubishi-Fuso Truck & Bus Company announced their long-awaited integration plans. We have a deal.
- An agreement was signed in 2023, but Hino got in big trouble for falsifying testing data on gasoline engine emissions/efficiency. Hino took a hit in 2023, then 2025. Talks advanced.
- The deal announced suggests Toyota has thrown itself and Hino minorities under the proverbial Fuso bus. It’s VERY odd. But… it deserves a look because 2026 will see a re-IPO.
More Accurate Context Behind Tencent’s Nexon Moves Reported by Bloomberg
- Government aims to sell 30.6% NXC stake by 2027 for ₩4T tax revenue, offering NXC a buyback or selling with management control to attract bidders.
- The family won’t buy back the 30.6% stake but may allow partial management rights, with Tencent eyeing that stake—not a full $15B Nexon buyout as Bloomberg suggested.
- Tencent’s targeting that stake chunk only, no control shift, so no mandatory tender offer triggered—at least for now.
Denso Corp(6902 JP)–Value Zone, Upgraded Growth Outlook, Sooner Resolution of Cross-Holding Overhang
- Cross-Holding Overhang Easing:Denso Corp (6902 JP) accelerates exit from Toyota Industries stake via tender offer, unlocking capital and aligning with capital efficiency and governance reforms.
- Profitability Set to Improve: FY2026 profit outlook strong, driven by reduced quality-related costs, better operating leverage, and ongoing cost controls post fuel pump recall.
- Valuation Comfort with Growth Drivers: Stock trades below historical average P/E; SDV, electrification, and semiconductor focus positions Denso well for re-rating amid sector tailwinds.
Sumitomo Pharma (4506 JP): Positive Momentum Persists, New Agreements Adds Steam
- Sumitomo Pharma (4506 JP) and Knight Therapeutics (GUD CN) entered into exclusive license and supply agreements to commercialize Myfembree, Orgovyx, and vibegron in Canada.
- Sumitomo Pharma and Novo Nordisk A/S (NOVOB DC) have entered into a co-promotion agreement in Japan for Ozempic subcutaneous injection.
- Streamlining efforts and scouting for new revenue streams augurs well. Sumitomo stock remains in contention, up 27% in last 5 days.
i-mobile Co Ltd (6535 JP): Q3 FY07/25 flash update
- Cumulative Q3 FY07/25 revenue was JPY18.7bn (+14.2% YoY), operating profit JPY4.0bn (+6.5% YoY), net income JPY2.9bn (+11.5% YoY).
- Consumer Service segment revenue reached JPY16.8bn (+18.2% YoY), with a segment profit of JPY3.9bn (+11.3% YoY).
- Online Advertising segment revenue was JPY1.8bn (-13.3% YoY), segment profit JPY121mn (-61.7% YoY), with promotion costs JPY319mn (-14.7% YoY).
GiG Works (2375 JP): 1H FY10/25 flash update
- GiG Works reported a recurring loss due to decreased revenue and JPY115mn crypto asset valuation losses, despite higher net income from share sales gains.
- The On-demand Economy business saw a decline in revenue and profit, while the Sharing Economy business experienced growth in both.
- The FY10/25 forecast anticipates revenue growth in System Solutions and Sharing Economy, with a dividend of JPY2 per share.
CellSource (4880 JP): 1H FY10/25 flash update
- Revenue decreased by 18.3% YoY, with operating profit down 93.9% YoY, and net income down 96.3% YoY.
- Contract processing orders totaled 10,303, declining 8.5% YoY, impacting revenue from contract processing services by 10.6% YoY.
- SG&A expenses decreased by 12.2% YoY, with a gross profit margin decline of 7.9pp to 56.1%, raising the SG&A-to-revenue ratio.
Nippo Ltd. (9913 JP): Research Update
- Nippo produced record earnings in FY24, with OP of ¥1,970mil (+2.7% YoY) on sales of ¥44,890mil (+7.1% YoY).
- Thanks primarily to solid growth in order for print circuit boards [PCBs] used in generative AI servers and wafer polishing jigs manufactured in Nippo’s Okinawa factory, sales landed above the firm’s guidance of ¥42,000mil.
- FY25 is the final year of Nippo’s medium-term plan [MTP] which calls for an OP target of ¥2,000mil.
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