In today’s briefing:
- NH Foods Placement: Clean up by Norinchukin Bank; Unrelated Buyback May Buffer Deal
- SoftBank (9984 JP): Challenged by Portfolio Concentration and JPY Strength
- Daiseki Co Ltd (9793 JP): Q1 FY02/26 flash update
- Chinese Tire Giants Accelerate Global Expansion Amid Trade Barriers
- Q4 Follow-Up – Tsubakimoto Kogyo (8052 JP)
NH Foods Placement: Clean up by Norinchukin Bank; Unrelated Buyback May Buffer Deal
- A group of shareholders are looking to raise US$333m from selling their respective stakes in Nh Foods Ltd (2282 JP) .
- While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
- In this note, we will talk about the placement and run the deal through our ECM framework.
SoftBank (9984 JP): Challenged by Portfolio Concentration and JPY Strength
- SoftBank group (SBG) relies increasingly on Arm’s premium valuation for NAV growth, with SBG shares having benefited from their high correlation to those of Arm Holdings
- JPY-USD FX strengthened recently, with the potential for BoJ monetary tightening and Fed easing set to accentuate this trend; SBG is USD asset heavy, and JPY heavy in its liabilities
- The Vision Funds are slowly seeing IPO exits for private companies; in essence, we see that SBG shares are challenged by (geo)political, concentration, currency and market risks
Daiseki Co Ltd (9793 JP): Q1 FY02/26 flash update
- Daiseki’s Q1 FY02/26 sales rose 7.2% YoY to JPY17.9bn, with operating profit declining 1.9% YoY to JPY3.8bn.
- Daiseki Co.’s FY02/25 sales reached JPY38.5bn, driven by increased recycled fuel shipments, despite flat wastewater intake.
- DES’s FY02/25 sales declined 17.4% YoY to JPY19.9bn, with operating profit down 19.3% YoY to JPY2.3bn.
Chinese Tire Giants Accelerate Global Expansion Amid Trade Barriers
- Linglong Tire’s new plants in Brazil, Kenya and Anhui in China
- Yongsheng Rubber to take advantage of Morocco’s FTA with West
- CNTR’s car tire facility to come up at Alexandria in Egypt
Q4 Follow-Up – Tsubakimoto Kogyo (8052 JP)
- Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) announced its Full-year FY2025/3 results on May 8, 2025.
- The Company achieved record-high orders, sales, and profits across the board, along with a record order backlog.
- Both net sales and all levels of profit exceeded initial forecasts. This is due to conservative assumptions about the pace of reducing its large order backlog.
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