Daily Brief Japan: Makino Milling Machine Co, Broadmedia Corp, Okuma Corp, Miroku Jyoho Service, Poletowin Pitcrew Holdings, Medical Data Vision, Fuluhashi EPO, Japan Material and more

• Makino Milling Machine Co (6135 JP)’s pre-conditional tender offer from MBK Partners is at JPY11,751 per share. The gross spread has increased to 9.9% due to several concerns.
• The wide gross spread reflects the risk in satisfying the precondition, the fallout from the Homeplus saga and breaching the long stop date (16 January 2026).
• While these concerns have merit, there are mitigating factors. The risk/reward is favourable as the upside (9.9% spread) exceeds the downside (6.3% to my estimated deal break price). 

• Today after the close, Broadmedia Corp (4347 JP) announced that UK-based Japan activist AVI and one of its funds would launch a tender offer for just over 10% of shares.
• The Tender Offer comes at a 29.5% premium, and it would take the activist to ~40% – close to board-spilling influence.
• This creates an interesting setup. One wonders whether this is meant to spill the Board post-tender, and whether the Company will seek alternate solutions.

• Okuma Corp (6103 JP) today announced a secondary offering of 5.0mm shares (including greenshoe) from a relatively large number of financial crossholders. 
• That takes out about a third of them and not quite a quarter of the crossholders. There’s more to go. And the register remains “blocked”. 
• It looks headed to retail but this stock is very low volatility and is likely to remain that way. A large buyback to start in January offsets the overhang here.

• Sumitomo Mitsui Trust Bank, MUFG and others are looking to sell around US$104m of Okuma Corp (6103 JP) stock.
• This is a slightly large deal to digest, representing 13.2 days of three month ADV and 6.4% of outstanding stock.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Makino is a globally recognized manufacturer of high-precision, high-quality metal-cutting and electrical discharge machines (EDM), serving demanding industries like aerospace, automotive, and medical.
• The company is currently a subject of M&A speculation, with a tender offer from MBK Partners on the table after a hostile bid from Nidec was withdrawn, creating potential for further bids and stock volatility.
• Financially, Makino has demonstrated revenue growth, but profitability and free cash flow have been inconsistent, reflecting the cyclical nature of the machine tool industry and recent supply chain pressures.

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• Miroku Jyoho Service (MJS) is a dominant player in Japan’s financial and accounting software market, holding a substantial ~25% market share among tax and CPA firms, which provides a stable foundation for growth.
• The company is strategically shifting from a one-time license model to a cloud-based subscription model, aiming to increase recurring revenue and customer lifetime value. This transition is crucial for long-term growth but is currently pressuring profitability margins.
• Fueled by government-led digitalization initiatives, such as the mandatory Qualified Invoice System, MJS is well-positioned to capitalize on the accelerated adoption of ERP and cloud accounting solutions by its core SME customer base.

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• FY01/24 Q4 revenue share was 28.0%, with Q1 lowest at 23.4%; operating profit impacted by allowances.
• FY01/26 forecast revised due to lower order acquisition; revenue at JPY48.5bn, operating profit at JPY279mn.
• Media Contents revenue fell 56.5% YoY; Domestic Solutions revenue increased 4.8% YoY, Overseas Solutions rose 11.2% YoY.

• Medical Data Vision’s [MDV] produced FY25 (Dec year-end) Q3 gross profit [GP] of ¥3,248mil (+6.3% YoY) and operating profit [OP]of ¥95mil (vs FY24 Q3’s operating loss of -¥140mil) on sales of ¥4,650mil (+12.7% YoY).
• FY25 is the last year of the ongoing 3-year medium-term management plan [MTP].
• MDV revised down the FY25 guidance on 14 October from OP of ¥2,600mil (vs a recovery from ¥3mil in FY24) on sales of ¥9,000mil (+52.4% YoY) to OP of ¥490mil on sales of ¥6,860mil (+16.1% YoY).

Key points (machine generated)

• The briefing by Fullhashi EPO Co., Ltd. on December 4, 2025, included key figures like President Naohiko Yamaguchi and Director Toru Ueno.
• The focus was on the company’s Q2 financial results for the fiscal year ending March 2026, highlighting sustainability.
• Fullhashi EPO Co., Ltd. is listed on the Tokyo Stock Exchange and Nagoya Stock Exchange under securities code 9221.

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• Leading Provider of Critical Semiconductor and FPD Manufacturing Solutions: Japan Material is a key supplier of high-purity gas and chemical supply systems, essential for the semiconductor and flat-panel display (FPD) industries. Its business model is built on the complexity and critical nature of these systems, ensuring consistent demand from manufacturers requiring high quality and reliability.
• Strategic Position in a Revitalized Japanese Semiconductor Industry: The Japanese government is actively promoting the domestic semiconductor industry through subsidies and strategic partnerships, aiming to triple domestic semiconductor sales to 15 trillion yen by 2030. This national initiative, coupled with the entry of global giants like TSMC, creates a favorable operating environment and significant growth opportunities for Japan Material.
• Solid Financial Performance and Shareholder Returns: The company has demonstrated a strong track record of revenue and net income growth, with a notable increase in operating and free cash flow in recent years. Japan Material has also consistently increased its dividend, reflecting a commitment to shareholder returns.

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