Daily Brief Japan: Kokusai Electric , Soft99 Corp, Integral , Mani Inc, COPRO-HOLDINGS Co Ltd, Softbank Group (ADR), Srg Takamiya and more

• Kokusai Electric (6525 JP) was IPOed too cheap in 2023 after a couple of years in the wilderness and an aborted private sale effort, blocked on antitrust grounds. 
• It nearly tripled, there was an offering announced at ¥5,000+ priced ¥4,500+. Shares fell back to IPO price, then bounced, and we got a July follow-on offering at ¥3,000+.
• I suggested here the back end could be squeezy. It was for a hot minute, then it wasn’t. Now the stock is up 50% in 2 weeks. Watch out!

• Yesterday, Soft99 Corp (4464 JP) announced a slight change in its “Target Opinion Document” after the MBO Bidco extended its TOB by 8 days the day before. 
• The detail was not in the MBO Bidco extension. It was just revealed in an added note on p3 of the Target Opinion. 
• That details matters A LOT to people looking at the Effissimo Overbid. The company’s Board has some serious work ahead. 

Key points (machine generated)

• Integral is a leading Japanese private equity firm with JPY400 billion in assets, focusing on mid-cap investments of $100-$150 million.
• The firm has a strong track record with 27% gross IRR and 2.8x gross MOIC since 2010, and its latest Fund IV was oversubscribed at JPY250 billion.
• Following a public offering in September 2023, Integral’s shares are trading at JPY2700, appearing undervalued with a P/E of 5.5x and expected solid performance in 2025.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Completion of China DIA-BURS recall removes major earnings overhang, with ¥1.2bn FY25 profit impact now fully reflected
• US growth accelerating through MST partnership targeting 10–30% share in ophthalmic knives
• Strong balance sheet with ¥17bn cash offers capacity for strategic investment & cash allocation under new Medium-Term Plan

• Engineer dispatching company aiming to become a technician support platform company COPRO-HOLDINGS. Co., Ltd. (hereafter, the Company) has achieved sales growth for the past 19 years since its establishment, with its construction and plant technician dispatching business accounting for 89.1% of total sales.
• It has been growing its business by supporting diverse work styles and career development for engineers.
• The Company focuses on highly efficient technician hiring by operating its own recruiting websites and implementing a rigorous hiring process. 

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group
• UST yields rose 5-7 bps yesterday, unwinding earlier declines in the aftermath of the Fed’s widely expected 25 bps rate cut. This was as Chairman Jerome Powell struck a cautious tone during the press conference and signalled less support for larger rate decreases.
• The yield on the 2Y UST was up 5 bps at 3.55%, while the yield on the 10Y UST climbed 6 bps to 4.09%. Equities retreated slightly, with the S&P 500 and Nasdaq declining 0.1% and 0.3%, respectively.

• Takamiya (hereafter, the Company) reported net sales of JPY 9,904 mn (+1.6% YoY), operating profit of JPY 204 mn (-22.2% YoY), ordinary profit of JPY 101 mn (-70.5% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 4 mn (-97.8% YoY).
• Gross profit rose to JPY 3,259 mn (+6.3% YoY), and the gross profit margin improved from 31.4% in the same period last year to 32.9%.
• On the other hand, investments in human capital and capital expenditures led to a rise in SG&A expenses, resulting in a decline in the operating profit margin from 2.6% to 2.0% YoY.