In today’s briefing:
- [Japan Activism] Murakami Owns ~42% and Company Announces 31.3% Buyback
- [Japan Buyback] Sankyo (6417) – Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE
- GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large
- Automotive & Industrial Semiconductors Part 2: Is It the Bottom, Finally? Time to Buy?
- Chiba Kogyo Bank (8337 JP): Full-year FY03/25 flash update
- Takeda Pharmaceutical (4502 JP): FY25 Went Well; Near Term Headwinds To Keep FY26 Subdued
- Full-year FY03/25 flash update and upward revision to performance targets in the medium-term business plan
- Daiichikosho (7458 JP): Full-year FY03/25 flash update
- AZ-Com Maruwa Holdings (9090 JP): Full-year FY03/25 flash update
- Medinet Co Ltd (2370 JP): 1H FY09/25 flash update
[Japan Activism] Murakami Owns ~42% and Company Announces 31.3% Buyback
- With earnings today (which beat guidance), Mitsui Matsushima (1518 JP) announced upbeat guidance for next year, a very large dividend hike from ¥130/share to ¥230/share, and a Very Large Buyback.
- The buyback is ¥20bn (vs ¥47bn market cap) or 3.5mm shares (31.3%). It starts 2 June. Astute Murakami trackers may recognise the potential pattern here.
- If the company buys back all 3.5mm shares at just below book, EPS of ¥756 = 12.9% ROE and PER of 7.8x. Even up 30% from here that isn’t super-rich.
[Japan Buyback] Sankyo (6417) – Starts Buying Bigly. Again. Re-Levered It Has A Super-High ROE
- On 12 May 2025, Sankyo Co Ltd (6417 JP) announced earnings (Revenue -3.7%yoy, OP +1.5%, Net Profit +0.4%) with guidance for March 2026 showing Revs, OP, and NP all falling.
- OP and NP would fall 14.4% and 18.5% respectively. The dividend is expected to fall ¥10 to ¥90/share which would be a 41.6% payout ratio.
- The company also announced a BIG BUYBACK – Up to ¥60bn buying up to 30.0mm shares (13.66%), starting today and going through 31 March 2026.
GENDA Placement – Good Track Record & Sort off Well Flagged but Relatively Large
- GENDA (9166 JP), along with a selling shareholder, is looking to raise around US$190m to partly fund its M&A.
- Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Automotive & Industrial Semiconductors Part 2: Is It the Bottom, Finally? Time to Buy?
- Revenues are hitting the bottom in 1Q25, most firms mention sequential growth in 2Q, sometimes YoY growth. Trends depend on specific firms, mentions of both Auto and Industrial recovering.
- Gross / operating profit recovery could take a bit longer as inventory and price concessions could negate revenue growth for a couple of quarters.
- 2 categories of stocks: the cheap ones (NXP, Onsemi, Renesas, STMicro) and the expensive stocks (Analog Devices, Infineon, Microchip, Texas Instruments). I’d go with Renesas and Texas Instruments.
Chiba Kogyo Bank (8337 JP): Full-year FY03/25 flash update
- Consolidated ordinary income reached JPY56.9bn (+4.3% YoY), with ordinary profit at JPY10.7bn (+4.2% YoY) for FY03/25.
- Non-consolidated core gross profit declined 5.4% YoY to JPY37.5bn, while expenses increased JPY597mn YoY to JPY25.3bn.
- The capital adequacy ratio improved to 9.18% non-consolidated and 9.19% consolidated, with risk-weighted assets declining.
Takeda Pharmaceutical (4502 JP): FY25 Went Well; Near Term Headwinds To Keep FY26 Subdued
- Takeda Pharmaceutical (4502 JP) announced FY25 result, with revenue and operating profit being in-line with guidance. Revenue grew 7.5% YoY, driven by continued strong momentum from Growth and Launch Products.
- Takeda guided for its FY26 outlook of lower sales and higher margins, reflecting near term headwinds amid cost control.
- Continued strong performance of its Growth and Launch product portfolio, ripe late-stage pipeline, and expected margin improvement from FY26 envisage long-term growth prospect of the company.
Full-year FY03/25 flash update and upward revision to performance targets in the medium-term business plan
- From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
- In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
- For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).
Daiichikosho (7458 JP): Full-year FY03/25 flash update
- Revenue grew to JPY153.0bn (+4.3% YoY), with net income rising to JPY18.2bn (+44.6% YoY) due to decreased taxes.
- Operating profit declined to JPY17.9bn (-3.5% YoY) due to increased personnel and depreciation expenses from capital investment.
- FY03/26 forecasts revenue of JPY162.7bn (+6.3% YoY) with operating profit remaining flat due to higher costs.
AZ-Com Maruwa Holdings (9090 JP): Full-year FY03/25 flash update
- The company reported FY03/25 revenue of JPY208.4bn (+4.9% YoY) and operating profit of JPY11.0bn (-20.8% YoY).
- The company forecasts FY03/26 revenue of JPY220.0bn (+5.6% YoY) and operating profit of JPY11.9bn (+8.5% YoY).
- The medium-term management plan targets FY03/28 revenue of JPY280.0bn (+34.4% vs. FY03/25) and operating profit of JPY20.0bn (+82.3%).
Medinet Co Ltd (2370 JP): 1H FY09/25 flash update
- Sales increased by 1.3% YoY to JPY405mn, with operating loss widening to JPY756mn due to higher SG&A expenses.
- In the Specified Cell Products Manufacturing Business, sales were JPY300mn, supported by stable orders and new manufacturing.
- Regenerative medicine segment loss narrowed to JPY217mn due to reduced R&D expenses after discontinuing α-GalCer/DC development.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
