Daily Brief Japan: SBI Shinsei Bank, Nikkei 225, Tsuruha Holdings, JFE Holdings, Geechs Inc, Itoki Corp, Kyowa Kirin Co Ltd, Isamu Paint, Smk Corp, Sysmex and more

• The SBI Shinsei Bank (8303 JP) IPO is due to be priced on 8 December and start trading on 17 December 2025.
• I have been reluctant to write because of my general lack of excitement regarding the IPO and its after-market prospects. It is, as a friend says, “neither here nor there.”
• But as the bank was my High Conviction Long trade for 2021, 2022, and 2023 and I wrote about the events in the interim, I thought I should opine.

• Sustained pressure from the JPX initiative targeting firms trading below P/B is forcing enhanced capital returns (buybacks and dividends), creating opportunity across both indices.
• BoJ’s shift to a positive rate environment is fundamentally restoring Net Interest Income and profitability to the Financials sector, positioning the TOPIX, in particular, for outperformance.
• AI/Tech Sector Dominance: The Nikkei 225 is driven by high-tech firms. This concentration, led by high-priced high weighted stocks like Advantest and Softbank Group, provides high-beta AI exposure

• The Tsuruha and Welcia merger before the year’s close, backed by Aeon, is targeting ¥50 billion in cost savings over three years. 
• As well as the massive economies of scale, consolidated procurement, revamped private brands and a unified points and customer‑ID strategy are central to this.
• However, weak food offerings, legacy stores and IT complexity still threaten sustainable profit recovery as is the question of who will be in charge.

• BPSL JV gives JFE a scalable India platform, shifting long-term growth away from a stagnant Japan market.
• Balance-Sheet impact is manageable, with optional liquidity from the ¥500 bn JSW stake.
• Valuation deeply discounted at 0.5× P/B and US$525/t despite rising mix, India optionality, and multi-year earnings normalization.

• On November 13, Geechs Inc. (hereafter, “the Company”) announced its Q2 FY2026/3 (Jul-Sep) earnings results.
• Net sales rose 2.5% YoY to JPY 6,518 mn, EBITDA rose 86% YoY to JPY 278 mn, and operating profit rose 124.9% YoY to JPY 253 mn.
• In addition to steady expansion of the core Japan IT Human Resources Matching Business (hereafter, “Japan IT HRM Biz”), faster-than-expected profitability in the IT Human Resources Matching Business, Overseas (hereafter, “Overseas IT HRM Biz”) and stronger-than-planned growth in the Seed Tech business contributed to results. 

• Structural demand meets sustained value creation – The role of the office is undergoing a structural shift—driven by talent attraction, hybrid work, wellness, and technology.
• As a key domestic player in office design and furniture, we believe Itoki is well-positioned to benefit from this structural theme.
• Post-COVID demand momentum remains steady, supported by rising investment in human capital, persistent labour shortages, and limited new office supply. 

• Kyowa Kirin Co Ltd (4151 JP) announced that ziftomenib is now commercially available in the U.S. Company will be eligible for 50% profit sharing from drug sales in the U.S.
• Rocatinlimab, under Phase 3 trials, represents a potentially novel upstream approach for the management of mild to severe atopic dermatitis. It is also undergoing Phase 3 trials for Prurigo nodularis.
• 2026 will be an inflection point. Ziftomenib results will slowly fall in place. Positive results of rocatinlimab and new manufacturing facilities has potential to play out in long term.

• Isamu Paint is a specialized Japanese manufacturer with a primary focus on high-quality automotive refinish paints, complemented by industrial and architectural coatings.
• The company exhibits solid financial health, characterized by consistent revenue and net income growth over the past three years, alongside a strong balance sheet indicated by a high resilience score.
• Valuation appears attractive, with the company trading at a significant discount to its larger peers on key metrics like P/E and EV/EBITDA, suggesting a potential value opportunity for investors.

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Key points (machine generated)

• SMK Co., Ltd. reported an operating loss in the first half of the fiscal year ending March 2026, but its net loss improved.
• The company, celebrating its centenary in April 2025, is a key manufacturer of electronic components in Japan.
• SMK maintains a competitive edge by focusing on high-functionality custom products and has a 65.1% overseas sales ratio.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Sysmex is a global leader in the in-vitro diagnostics (IVD) market, with a dominant position in the hematology segment and a strong presence in urinalysis and hemostasis. The company’s business model is driven by the sale of diagnostic instruments and the recurring revenue from high-margin reagents.
• Growth is supported by favorable long-term trends, including aging populations, rising prevalence of chronic diseases, and increasing healthcare access in emerging markets. Sysmex is strategically focused on expanding its footprint in these high-growth regions, particularly in Asia.
• While the company has a strong track record of revenue growth and profitability, it faces challenges from intensifying competition, pricing pressure from healthcare cost-containment measures, and the need for continuous innovation to maintain its technological edge.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.