Daily Brief Japan: Nikkei 225, SanBio Co Ltd, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Longs on Next Low
SanBio (4592 JP): Better-Than-Expected Operating Loss in FY23; Product Approval Expected in FY24
Sustainability Reporting Is Expected to Share Valuable Information, Not PR Magazine Type Information

Longs on Next Low

SPX and NKY top short picks near term but new low attempts will see the immediate down leg exhaust. Yield decline is exhausting.
Increasing oversold readings set the stage for some key low on weakness. Euro bank range is 92 to 108.
Taiwan remains our top long in Asia. Trading bounce lows in ASX, Korea and Europe look attractive/viable.

SanBio Co Ltd (4592 JP) recorded operating loss of ¥7.9B for FY23, better than guidance of ¥8.1B. For FY24, the company guided for operating loss of ¥4.6B, in-line with consensus.
SanBio’s cash position improved with cash and cash equivalents of ¥6.7B at the end of FY23, up from ¥4.6B at the end of the previous fiscal year.
The company aims to obtain approval of its lead candidate SB623 as a treatment for chronic motor deficit from traumatic brain injury during the current fiscal year.

Japanese companies are keen on obtaining ISO certifications, so it’s relatively easy for companies that have obtained these certifications to ensure the comprehensiveness of sustainability information by disclosing such information.
It’s useful to know the degree to which management recognized the challenges and the leadership that management could exercise in solving those challenges, rather than laundry list of self-praise information.
For management to recognize issues and implement initiatives at global level, it’s expected to hire a head who is sensitive to global initiatives and work with him/her to resolve issues.

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