In today’s briefing:
- Tencent To Acquire Nexon? Time and Price Lining Up for a Final Deal?
- Kitazato IPO: Domestic Market Challenged by Structural Changes; Limited Prospect in Overseas Market
- 3 D Matrix Ltd (7777 JP): Full-year FY04/25 flash update
- Cyberdyne (7779 JP) – Ongoing Improvement in Reducing Operating Loss
- Raccoon Holdings, Inc. (3031 JP): Full-year FY04/25 flash update
Tencent To Acquire Nexon? Time and Price Lining Up for a Final Deal?
- Tencent has been interested in acquiring Nexon for more than six years. However, the timing and price were not right for such a deal to take place in the past.
- The higher probability scenario is for Kim’s family members to sell when the timing and price is right. This time around, a $15 billion could be the right price.
- Late founder Kim’s family members own a 44.4% stake in Nexon through NXC Corp and its affiliate NXMB BV. Kim’s wife and daughters own a 67.6% stake in NXC Corp.
Kitazato IPO: Domestic Market Challenged by Structural Changes; Limited Prospect in Overseas Market
- Kitazato (368A JP) will debut on the Tokyo Stock Exchange’s Prime market on June 25th, with existing shareholders offering 14m shares at an indicative price range of ¥1,300-1,340 per share.
- Given a structurally challenging domestic market, Kitazato has expanded its operations globally, however, its overseas operations have seen very limited traction over the years.
- With growth rates expected to plateau, dividends are the only enticing thing and we think the IPO should be priced at a discount to compensate for the concerns.
3 D Matrix Ltd (7777 JP): Full-year FY04/25 flash update
- Operating revenue increased 51.1% YoY to JPY6.9bn, driven by strong sales of absorbable local hemostat TDM-621.
- The company reported an operating loss of JPY1.2bn, narrowing by JPY961mn YoY, with a recurring loss of JPY2.5bn.
- FY04/26 forecast anticipates JPY9.3bn operating revenue, JPY400mn operating profit, and JPY301mn net income attributable to owners.
Cyberdyne (7779 JP) – Ongoing Improvement in Reducing Operating Loss
- Cleared two major hurdles, accelerating the path to profitability – Management executed a large-scale restructuring of the U.S. subsidiary RISE Healthcare Group (RHG) and completed the divestiture of the underperforming LeyLine business.
- These actions have materially contributed to narrowing operating losses and advancing the group’s overall turnaround.
- Overseas drove the growth of the Product Rental business – FY results showed strong overseas performance in the Product Rental segment, led by demand from Ukraine and Malaysia.
Raccoon Holdings, Inc. (3031 JP): Full-year FY04/25 flash update
- Raccoon Holdings achieved 5.0% YoY revenue growth in FY04/25, with EC and Financial businesses rising 6.9% and 2.4% respectively.
- Operating profit increased 121.3% YoY, driven by reduced advertising expenses and increased personnel costs, resulting in a 20.6% OPM.
- Revenue for FY04/26 is projected at JPY6.7bn (+10.5% YoY), with EC and Financial businesses growing 10.1% and 11.1% respectively.
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