In today’s briefing:
- MBK Partners Plans to Launch a Tender Offer for Makino Milling Machine
- Keisei Electric (9009) | Neither Hidden nor Structurally Mispriced
- Medical Data Vision Co., Ltd. (3902 JP): Research Update
- Yutori Doubles Sales Again
- What the Tokyo Market Needs Is a Metabolism and Replacement with Motivated Managers
MBK Partners Plans to Launch a Tender Offer for Makino Milling Machine
- MBK Partners plans to launch a tender offer for Makino Milling Machine (6135 JP) at 11,751 yen per share by early December to take over the controlling ownership.
- The key long-term investment case for Makino is that it is one of the best companies in the world for making advanced machine tools that are increasingly becoming more sophisticated.
- One could make the argument that this may not the final offer and some investors may require slightly higher prices in order to make the deal final.
Keisei Electric (9009) | Neither Hidden nor Structurally Mispriced
- Keisei’s OLC stake distorts valuation optics, but is already transparently priced by the market.
- Activist criticism over “true” ROE reflects accounting semantics, not hidden inefficiency.
- Core business plus OLC stake offers modest returns; upside exists, but hardly suggestive of chronic long-term underperformance
Medical Data Vision Co., Ltd. (3902 JP): Research Update
- Medical Data Vision [MDV] reported FY25 Q1 (Dec year-end) results with sales coming in largely in line with the firm’s guidance while operating profit [OP] was higher than expected.
- The firm produced Q1 gross profit [GP] of1,085mil (+3.8% YoY) and OP of ¥17mil (-67.6% YoY) on sales of ¥1,532mil (+10.4% YoY).
- Ther firm’s profit targets remain unchanged, guiding for FY25 OP of ¥2,600mil and RP of ¥2,500mil.
Yutori Doubles Sales Again
- Yutori is still a small business but is sometimes dubbed the Zozo of youth fashion, which is probably why Zozo bought a share in the online mall.
- And it’s proving a good bet, with sales doubling last year and a lot more expansion to come.
- Thanks in part to investment in retail stores but also its uncanny ability to spot youth trends.
What the Tokyo Market Needs Is a Metabolism and Replacement with Motivated Managers
- The background for raising the maintaining listing criteria was that the current criteria are loose and that many companies aren’t motivated to grow because they consider IPO to be goal.
- Too long time horizons and previous listing maintenance criteria that might have been manageable did not create a sense of urgency for the company to grow.
- There’s concern that quality of standard market, to which companies that fail the criteria migrate, will deteriorate, and the entire market will need metabolism and replacement of management through M&A.
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