In today’s briefing:
- [Japan CorpGov] TSE “Mgmt Conscious” Reports (Sep25), TSE Presents Interesting Feedback
- Donki’s PPI Aims for Market Leadership with 550 More Stores
- Minebea Mitsumi (6479 JP): Capital Discipline Over Reach — But at What Cost?
- Sumitomo Corp (8053 JP) – Air Lease Deal Creates Global No. 2 in Aircraft Leasing
- Do Managers Who Give Small Amounts of Shareholder Return to Have Other Objectives?
- Q3 Follow-Up – Japan Business Systems (5036 JP) – September 5, 2025
- Q2 Follow-Up – D. Western Therapeutics Institute (DWTI) (4576 JP) – September 4, 2025
[Japan CorpGov] TSE “Mgmt Conscious” Reports (Sep25), TSE Presents Interesting Feedback
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 216 new CGRs filed in Aug-2025 (after 783 in July, 1,389 in June). Our tools show every report, links to every document, and a diff-file tool. Input name, see changes.
- The JPX Council of Experts met on 2 Sep (and 9 July before that). The parent-sub changes are slow to come. 2 Sep docs may be worth reading in parts.
Donki’s PPI Aims for Market Leadership with 550 More Stores
- Having lost out to Trial in acquiring Seiyu, PPI’s new president last month announced an aggressive new strategy.
- PPI will hugely expand through a roll out of a completely new chain of up to 300 supermarkets and the addition of 250 more Don Quijote stores.
- Don Quijote continues to outperform thanks to strong support from both locals looking for cheaper essentials and inbound tourists, as well as improving performance abroad.
Minebea Mitsumi (6479 JP): Capital Discipline Over Reach — But at What Cost?
- Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
- Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
- Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.
Sumitomo Corp (8053 JP) – Air Lease Deal Creates Global No. 2 in Aircraft Leasing
- Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
- The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
- Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.
Do Managers Who Give Small Amounts of Shareholder Return to Have Other Objectives?
- If large companies that posted conservative outlook for FY3/2026 revise their guidance upwards amid weakening of Japanese Yen, there is an expectation that the decline in ROE will be smaller.
- More companies are strengthening shareholder returns, but a few companies can maintain high enough ROE to create value by hiring large higher shareholder returns to have impact on ROE.
- In order to raise ROE to a level that creates value, it is necessary to make investments and shareholder returns to have much impact on ROE.
Q3 Follow-Up – Japan Business Systems (5036 JP) – September 5, 2025
- On the back of brisk 1H performance and strong profit recovery led by Cloud Integration Business including NEXTSCAPE, JBS revised up full-term consolidated net sales by 10.0% to +17.1% YoY, OP by 31.6% to +63.3% YoY (OPM from 3.8% → 4.5%), and profit attributable to owners of parent by 35.1% to +230.1% YoY.
- In addition to management successfully turning around profitability of Cloud Integration Business, this also reflects the underlying strong business environment from ongoing demand for DX investment in the cloud, AI and security.
- Strong results momentum continued in Q3, as can be seen from the teal-colored bars in the two graphs below representing the quarterly trend of FY25/9 consolidated net sales and OP.
Q2 Follow-Up – D. Western Therapeutics Institute (DWTI) (4576 JP) – September 4, 2025
- SIR believes DWTI has entered an exciting new phase given significant advances in pipeline development achieved over the last year.
- Key advances included: 1) publishing favorable topline results of in-house developed glaucoma treatment [H- 1337] Phase IIb US trials (strong prospects as “first choice as a second-line drug”),
- 2) commenced joint development Japan Phase II clinical trials of regenerative cell therapy [DWR-2206] with ActualEyes, and successfully completed all transplants…
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