In today’s briefing:
- [Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block
- Paris Miki (7455 JP): Chairman-Led MBO Likely Done Despite Luxottica’s Unclear Intentions
- Human Made Pre-IPO: A Bathing Ape, Reborn
- Star Micronics (7718 JP): Taiyo Pacific’s Tender Offer at JPY2,210
- [Japan M&A] Taiyo Pacific Offers ¥2,210 for Star Micronics (7718) Completing the Shareholder Ripoff
- Softbank Group (9984 JP): 1H FY03/26 flash update
- SoftBank (9984 JP) Tactical Outlook: What’s Next After NVDA Exit, Wild Swings, and Strong Earnings?
- JX Advanced Metals (5016 JP) — Second Guidance Upgrade; Margin Expansion Accelerates
- Kyokuto Kaihatsu Kogyo Co (7226 JP): 1H FY03/26 flash update
- Asics (7936) | Sustained Growth Momentum with Margin Upside
[Japan M&A] Paris Miki Is Indeed an MBO Target; Luxottica May Complain But Tough To Block
- Today after the close, Paris Miki Holdings (7455 JP) announced the Tane family Holdco would buy out the company in an “MBO” at ¥581, or 4.8x current year EBITDA.
- World famous eyeglass/sunglass manufacturer Luxottica bought 13.8% of the company in the low ¥300s almost stopping about a year ago. They might complain, but Paris Miki is a big outlet.
- This looks like it gets done. The family+crossholders+ESOP+warrants have 65% of the expanded share count. Those who would complain would need to do so soon, and loudly.
Paris Miki (7455 JP): Chairman-Led MBO Likely Done Despite Luxottica’s Unclear Intentions
- Paris Miki Holdings (7455 JP) has recommended a Chairman-led MBO at JPY581, a 48.6% premium to the last close price.
- While the offer is arguably light as it is marginally below book value (P/B of 0.99x), it is above the midpoint of the IFA DCF valuation range.
- The offer represents a 10-year high. Luxottica Group (LUX IM), the second-largest shareholder, has not signalled whether it will tender, but it would struggle to derail the offer.
Human Made Pre-IPO: A Bathing Ape, Reborn
- Human Made (456A JP) aims to raise around US$116m in its Japan IPO.
- Human Made Inc. is a Japan-based apparel and lifestyle company. Its business model centers on producing high-value, limited-supply apparel and goods.
- In this note, we look at the company’s past performance.
Star Micronics (7718 JP): Taiyo Pacific’s Tender Offer at JPY2,210
- Star Micronics (7718 JP) has recommended a tender offer from Taiyo Pacific Partners at JPY2,210, a 29.1% premium to the last close price.
- The offer is arguably light as it is marginally above book value (P/B of 1.09x) and 16% below the midpoint of the target IFA DCF valuation range.
- However, the offer is attractive as it represents an all-time high and is 42.4% above Taiyo’s placement price in May 2025. Unless an activist emerges, this is likely done.
[Japan M&A] Taiyo Pacific Offers ¥2,210 for Star Micronics (7718) Completing the Shareholder Ripoff
- Today after the close, well-known Japan engagement fund Taiyo Pacific Partners announced a deal to buy Star Micronics (7718 JP) for ¥2,210/share. They’ve been involved small-big-small for 20yrs.
- The company launched a new capital plan and MTMP in February. Cash-rich, it needed no money to grow aggressively. So TPP proposed buying a third of the company. Board agreed.
- Despite ActionsToImplementManagementConsciousOfSharePriceAndCostOfCapital announced February, in April-November the Board decided to sell the entire company to TPP at <1x book. This is borderline outrageous. It deserves notice and complaint.
Softbank Group (9984 JP): 1H FY03/26 flash update
- Revenue was JPY3,736.8bn (+7.7% YoY), with net income attributable to owners at JPY2,924.1bn (+190.9% YoY).
- Investment gain was JPY3,926.7bn, including JPY2,156.7bn from OpenAI, with SVF business gaining JPY3,415.5bn.
- Arm segment revenue reached JPY320.3bn (+17.0% YoY), with segment profit increasing 518.4% YoY to JPY23.6bn.
SoftBank (9984 JP) Tactical Outlook: What’s Next After NVDA Exit, Wild Swings, and Strong Earnings?
- Softbank Group (9984 JP) is swinging wildly. On Nov 11, the stock sank -13% after it said it had sold its entire stake in NVIDIA (NVDA US) for $5.83 billion.
- The stock also posted record Q2 earnings on Nov 12, but closed the day down -3.46% (after a strong rally from the 21k bottom). Most gains come from OpenAI investment.
- For sure it’s not easy to hold this stock at the moment, this insight will analyze the next 2-3 weeks’ outlook, support and resistance, according to our quantitative model.
JX Advanced Metals (5016 JP) — Second Guidance Upgrade; Margin Expansion Accelerates
- JX Advanced Metals (5016 JP) — Second Guidance Upgrade; Margin Expansion Accelerates, Momentum Builds
- Focus businesses now contribute nearly half of operating profit, reinforcing structural earnings quality.
- JX Advanced Metals trades at ~22× FY26E P/E and ~13× EV/EBITDA, reflecting premium growth exposure but still below Japanese specialty materials peers (Tokyo Ohka ~26×, Entegris ~45×).
Kyokuto Kaihatsu Kogyo Co (7226 JP): 1H FY03/26 flash update
- Revenue increased by 15.9% YoY to JPY74.2bn, with all segments showing revenue growth and operating profit up 35.1% YoY.
- Extraordinary loss of JPY5.9bn related to the Antimonopoly Act led to a net loss of JPY1.5bn.
- Domestic demand remained firm, with revenue and profit rising YoY due to product price revisions and improved productivity.
Asics (7936) | Sustained Growth Momentum with Margin Upside
- 7th straight quarter of double-digit growth; 3Q revenue +21% y/y to ¥222bn, led by strong EU and Japan performance and steady global expansion.
- Gross margin +110bps to 56.1%, operating margin +320bps to 20.9%; FY OP guidance raised to ¥140bn, share buyback of ¥30bn announced.
- Near-Term share impact limited, but long-term growth underpinned by SportStyle and Onitsuka Tiger; OP could double to ~¥260bn though next MTP cycle.
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