In today’s briefing:
- Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March
- HS Holdings (8699 JP) – Huge Q1, Even Better Q2 Ahead, The 2nd To Last Asset Sale… And a Pawnshop?
- Discount Retail Gets Mainstream Support: Yaoko Expands Discount Supermarket
- Daikin (6367) | Keep Cool and Carry On
Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March
- With the review period for the September rebalance of the Nikkei 225 (NKY INDEX) complete, we take a look at the potential inclusions and exclusions for the index.
- The conclusions of the market consultation have been announced and that will mean we switch to a semi-annual rebalance. So we take a look at potential changes in March 2023.
- The announcement of the changes for the next rebalance should be made in the first week of September and will be implemented at the close on 30 September.
HS Holdings (8699 JP) – Huge Q1, Even Better Q2 Ahead, The 2nd To Last Asset Sale… And a Pawnshop?
- Thursday post-close, HS announced Q1 earnings, and Khan Bank Q2 earnings. Both magnificent. Book Value is up HUGE, and combined HS Q1-Khan Q2 is ¥7.7bn – 20% of mkt cap.
- On Friday 29 July, HS Holdings (8699 JP) announced it had sold HS Debt Collection Agency – the last “earning asset” except for the 55% stake in Khan Bank.
- This lifts shadow book value even higher… Deep value with a catalyst. BUT… in an otherwise unannounced postscript to Q1 earnings, HS announced it bought a stake in a… pawnshop?
Discount Retail Gets Mainstream Support: Yaoko Expands Discount Supermarket
- Yaoko opened a discount supermarket last year and added a second in March, using knowhow acquired from the Ave chain it bought in 2017.
- The new store is purpose built to save costs and offer lower prices, and should prove popular as inflation rises, while delivering higher margins than supermarkets typically achieve.
- The format stands in marked contrast to other discounters such as Kobe Bussan (3038 JP)’s Gyomu Super but both formats show that discounters can make more money than other supermarkets.
Daikin (6367) | Keep Cool and Carry On
- We turn bullish on Daikin ahead of Q1 results as we become less concerned about growth risks in China and the US
- Peer results suggest that air conditioner demand is stronger than expected due to record high global temperatures
- Company management has a good track record of pushing through price hikes and cutting costs. We expect the company to beat guidance this year
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
