Daily Brief Japan: Nidec Corp, Japan Data Science Consortium, Advantest Corp, Elan Corp, Scsk Corp and more

• Nidec (6594 JP)‘s deletion is a LOT of stock to sell. The Ibiden (4062 JP)‘s Nikkei 225 inclusion is huge. It’ll make the stock enormously squeezy for a long while.
• Palliser has a point. LG Chem (051910 KS) should pare down its LG Energy Solution (373220 KS) stake, and buy back shares. Yet, would/will management stubbornly swat away any such proposal?
• The latest twist in the Mayne Pharma (MYX AU) saga as FIRB looks set to ding the transaction if there is a possibility Cosette closes a manufacturing site in Adelaide.

• Explosive revenue growth driven by Japan’s accelerating digital transformation and AI adoption, positioning JDSC as a key player in a burgeoning market.
• Recent pivot to profitability in FY2025 after a period of heavy investment highlights scaling potential, though earnings have been volatile.
• A unique business model leveraging partnerships with industry leaders and academic ties with the University of Tokyo to co-develop and deploy AI solutions, creating a potential competitive advantage.

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• Japanese markets saw Advantest and Nintendo poised for growth, with strategic moves impacting their stock performance.
• The Bank of Japan maintained its policy, influencing the JGB curve and broader market.
• Gold’s favorable environment, driven by global monetary shifts, presents options market opportunities.

• Elan Corp is a market leader in Japan’s growing nursing care support sector, capitalizing on the nation’s super-aged society. Its core business provides rental and laundry services for clothing, towels, and daily necessities to hospital patients and nursing home residents, creating a convenient, all-in-one solution.
• The company has demonstrated a strong and consistent track record of top-line growth, with revenue increasing for 17 consecutive years. This is driven by an expanding network of contracted healthcare facilities and the powerful demographic tailwind of Japan’s aging population.
• Despite robust operational growth, the company’s stock has de-rated from its pandemic-era highs. While revenue and cash flow remain strong, recent financial data indicates pressure on profit margins, a key area for investor monitoring. The valuation now appears more reasonable compared to historical levels and some international peers.

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• I tally 43 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Six new deal was discussed on Smartkarma this week: AUB  (AUB AU), ANE (9956 HK), SCSK (9719 JP), Brainpad (3655 JP), Sumitomo Riko (5191 JP), and Sumitomo Densetsu (1949 JP).
• Key updates/news also took place on: Humm Group (HUM AU), Oneconnect Financial Technology (6638 HK), Hang Seng Bank (11 HK), Ashimori Industry (3526 JP), Restaurant Brands NZ (RBD NZ).