In today’s briefing:
- 7&I (3382 JP) – Dippity Doo Dah – Irrational Fears, Earnings Vol, But Restructuring Proceeding Apace
- Fuji Soft (9749 JP): KKR Extends Again, Delaying the Inevitable Bump
- Fast Retailing (9983) | Global Growth Shines Amid China Challenges
- Aeon Delight (9787 JP): Q3 FY02/25 flash update
7&I (3382 JP) – Dippity Doo Dah – Irrational Fears, Earnings Vol, But Restructuring Proceeding Apace
- Recent news on the Seven & I Holdings (3382 JP) situation includes better-than-expected possible sale of the SST business, a little headline fear-mongering on national security, and earnings.
- Earnings this year will be volatile vs expectations. Timing (and magnitude) of kitchen-sinking matters. But neither ACT nor you should be buying it based on trough earnings expectations.
- The call transcript is worth listening to. The math on the takeover maths well. This is a buy on dip. Again.
Fuji Soft (9749 JP): KKR Extends Again, Delaying the Inevitable Bump
- KKR has extended the close date of the Fuji Soft Inc (9749 JP) second tender offer period from 9 to 24 January. All other terms remain unchanged.
- KKR unconvincingly tries to criticize the Bain offer and unsurprisingly believes there will not be a tender offer by Bain that investors can tender into.
- Despite KKR’s gamesmanship, it has not declared its offer final. A bump remains necessary as Bain remains resolute in launching its offer. The final winning offer could be around JPY10,000.
Fast Retailing (9983) | Global Growth Shines Amid China Challenges
- Fast Retailing reported significant gains in revenue and profitability for the first quarter of FY2025.
- Strong performances in North America & Europe (+31% YoY), and Asia (+17%), offset challenges in Greater China (-1%)
- Overall revenue and operating profit figures came in marginally stronger than our estimates
Aeon Delight (9787 JP): Q3 FY02/25 flash update
- Sales increased by 4.7% YoY to JPY253.4bn, with operating profit rising 9.2% YoY to JPY11.9bn.
- Profit growth exceeded sales growth due to improved GPM and lower SG&A expenses across five segments.
- The company announced the cancellation of 700,000 treasury shares, representing 1.42% of total outstanding shares.
💡 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
