In today’s briefing:
- Shibaura Electronics (6957 JP): Minebea Secures Further Irrevocables as It Ponders a Revised Offer
- IHI Corp (7013 JP): Global Index Inclusion in May
- Sysmex Corp (6869 JP): The US Tariff Wound Would Not Be Deep Enough
- The Key Is to Solve the Root Problem of Women Leaving Their Jobs Due to the Bias of Family Work
- Furukawa (5715 JP) – Course-Correcting for Growth
Shibaura Electronics (6957 JP): Minebea Secures Further Irrevocables as It Ponders a Revised Offer
- In response to Yageo Corporation (2327 TT)’s revised JPY5,400 offer, Shibaura Electronics (6957 JP) has asked Minebea Mitsumi (6479 JP) if it intends to revise its terms.
- Minebea is reviewing its offer and has disclosed additional irrevocables from the founder’s family and MUFG. Total irrevocables represent a 15.83% ownership ratio.
- On April 22, Yageo issued a public letter to change the narrative regarding the Board’s concerns. There is an increasing likelihood that Minebea will return with a revised offer.
IHI Corp (7013 JP): Global Index Inclusion in May
- IHI Corp (7013 JP) has had a monster rally over the last year with the stock price tripling over the period. That could now result in a global index inclusion.
- IHI Corp (7013 JP) has outperformed its peers over the last year but still trades cheaper than the average and median of its peers on quite a few valuation metrics.
- The appears to be a lot of positioning in the stock, but we see a similar pattern in its peers too. There could be some upside over the near term.
Sysmex Corp (6869 JP): The US Tariff Wound Would Not Be Deep Enough
- Sysmex Corp (6869 JP) earns 26% of total revenue from Americas. During 9MFY25, revenue from Americas increased 13% YoY to ¥96B.
- The U.S. President Trump has proposed 10% baseline import tariffs on medical devices. Although Trump announced a 90-day pause on most reciprocal tariffs, the respite seems to be temporary.
- Sysmex is exposed to tariff for instruments only as reagents are produced locally. Instrument sales in the Americas account for 5–6% of revenue, so tariff impact would be negligible.
The Key Is to Solve the Root Problem of Women Leaving Their Jobs Due to the Bias of Family Work
- In many cases, women are promoted as non-statutory executive officers, and there’re very few women in positions where they can be involved in making decisions about the company’s management policies.
- The bias toward women in family work, such as childbirth and child rearing, leads to women leaving workforce, and their shorter tenure has resulted in fewer women in managerial positions.
- Female executives who have been appointed after overcoming various difficulties and gaining “experience” are loss to the company, as they face the wall of homogeneity of the senior male community.
Furukawa (5715 JP) – Course-Correcting for Growth
- With a 150-year track record, Furukawa operates in Machinery and Materials production.
- Machinery focuses on heavy equipment for infrastructure, mining, and crushed stone, while electrolytic copper and byproducts have traditionally led Materials.
- The company is undergoing a strategic shift, prioritizing higher-margin Machinery growth while significantly reducing unprofitable electrolytic copper exports.
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