In today’s briefing:
- M3 (2413 JP) – Building Up After the Crash: Know Your ABCs (Activist, Buyback, Cash)
- ASICS (7936 JP) | Broad-Based Beat & Raise
- Appier (4180) | Margin Break-Out Confirms Structural Re-Rating Case
- Mitsui & Co (8031 JP) Vs Inpex (1605 JP): Quant-Driven Pair Trade
- Asahi Intecc (7747 JP): FY26 Ends on Strong Note; FY27 Guidance Initiation; MTM Plan Revised Upward
- Piala (7044 JP): 1H FY12/26 flash update
- Raqualia Pharma (4579 JP): 1H FY12/26 flash update
- Doesn’t the Revised Corporate Governance Code Amount to Giving Listed Companies a Free Pass?
M3 (2413 JP) – Building Up After the Crash: Know Your ABCs (Activist, Buyback, Cash)
- M3 Inc (2413 JP) fell 85+% from 2021 highs to spring 2026 lows. We’re not that far off that level now. Earnings a week+ ago sent shares tumbling.
- The company is now trading just above 20x earnings with 15% CAGR targeted organic revenue growth over the next five years plus inorganic growth expected from M&A.
- M3 now has its ABCs. An Activist. A Buyback. And Cash. And it has growth at lower multiples than peers.
ASICS (7936 JP) | Broad-Based Beat & Raise
- ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance
- Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%
- The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.
Appier (4180) | Margin Break-Out Confirms Structural Re-Rating Case
- Q2 revenue grew +24.6% YoY to ¥12.9bn, while gross margin broke through 60% for the first time (+4.0ppts YoY to 60.1%), with operating margin up 3.7ppts to 11.5%.
- US & EMEA remained the standout, accelerating to +59% organic growth on enterprise wins, while NEA (72% of revenue) held a steady +33% organic pace
- Shares jumped +15% post-results to ¥1,132, still leaving the stock at ~2.1x FY26 sales and ~11x FY26 EBITDA guidance for a business now guiding to +69% operating income growth.
Mitsui & Co (8031 JP) Vs Inpex (1605 JP): Quant-Driven Pair Trade
- Context: The Inpex (1605 JP) vs. Mitsui & Co (8031 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlight: Going long Mitsui & Co (8031 JP) and short Inpex (1605 JP) targets a 5% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Asahi Intecc (7747 JP): FY26 Ends on Strong Note; FY27 Guidance Initiation; MTM Plan Revised Upward
- Asahi Intecc (7747 JP) reported solid result for FY26, with all key parameters beating guidance. Strong overseas demand and favorable exchange rate fluctuation (yen depreciation) drove the performance.
- Asahi Intecc expects both medical and device divisions to grow supported by expanding demands centered in overseas market. For FY27, the company guided for double-digit growth for all key parameters.
- Asahi Intecc has revised upward the numerical targets for the final fiscal year (FY30) of its medium-term management plan, due to steady market improvement and favorable Fx.
Piala (7044 JP): 1H FY12/26 flash update
- Revenue reached JPY9.0bn, a 7.6% YoY increase, achieving 46.7% of the full-year company forecast.
- Operating profit was JPY112mn, a 190.1% YoY increase, surpassing the initial 1H forecast of JPY4mn.
- Marketing DX Business recorded JPY6.8bn revenue and JPY523mn segment profit, while Business Creation Business had a JPY12mn loss.
Raqualia Pharma (4579 JP): 1H FY12/26 flash update
- Operating revenue decreased 5.2% YoY, with a JPY339mn operating loss, reflecting absence of upfront and milestone payments.
- Royalties increased 14.4% YoY to JPY1.2bn, driven by strong tegoprazan sales in South Korea and global rollout.
- The company expects JPY4.0bn operating revenue for FY12/26, with JPY3.0bn from RaQualia and JPY1.0bn from FIMECS.
Doesn’t the Revised Corporate Governance Code Amount to Giving Listed Companies a Free Pass?
- Under the revised Corporate Governance Code, improvements are expected only from 6.9% companies that disclosed information on or after their AGM. For all other companies, compliance has become voluntary targets.
- Investors want to change the record date so that AGM is held in July or later, when AGMs aren’t concentrated. It’s the companies that are stubbornly refusing to do so.
- While continuing to avoid facing shareholders, it is hard to imagine that the company can engage with investors. Investors, in turn, should press the company more strongly on this issue.
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