Daily Brief Japan: JTEC Corp/Osaka, Tsuruha Holdings, Technopro Holdings and more

In today’s briefing:

JTEC Corp (3446 JP) – Continued Uplift in Performance
Last Week in Event SPACE: Tsuruha/Welcia Merger, Mayne Pharma, Canvst, Insignia Financial
TechnoPro (6028 JP): A Good Privatisation Candidate

JTEC Corp (3446 JP) – Continued Uplift in Performance

Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science & Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.
The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.
Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term.

Glass Lewis has now joined ISS in recommending holders vote against the Tsuruha Holdings (3391 JP)/Welcia Holdings (3141 JP) merger, presumably as it relates to the ratio.
Mayne Pharma (MYX AU), ASIC AND Cosette have effectively signed off on the Scheme Booklet’s veracity. That should be assuring to investors.
Canvest Environmental Protection Group (1381 HK)‘s Scheme comfortable got up – despite a last minute hiccup – and poor governance – to adjourn the meeting.

Technopro Holdings (6028 JP) shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.
Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target.
The precedent is Bain’s privatisation of Outsourcing Inc (2427 JP) at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple.

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