In today’s briefing:
- Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿
- Shibaura Electronics (6957 JP): Yageo’s (2327 TT) Hostile Preconditional Tender Offer at JPY4,300
- Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- ID Holdings (4709 JP) – All-Round Positive Performance
- Chugoku Marine Paints (4617 JP): Q3 FY03/25 flash update
- Shinmaywa Industries (7224 JP): Q3 FY03/25 flash update
- Dream Incubator (4310 JP): Q3 FY03/25 flash update
- Taiyo Holdings (4626 JP): Q3 FY03/25 flash update
- Tocalo Co Ltd (3433 JP): Q3 FY03/25 flash update
- Almedio Inc (7859 JP): Q3 FY03/25 flash update
Taiwan’s Yageo (2327 TT) Announces Hostile Tender on Shibaura Electronics (6957 JP) – I Have 🍿🍿
- Today, Taiwanese passive components maker Yageo Corporation (2327 TT) announced its Board had approved the launching of a Tender on Shibaura Electronics (6957 JP).
- It turns out YAGEO approached them in October, Shibaura stonewalled for 3mos, required an NDA to meet, and refused to budge. METI Corporate Takeover Guidelines were likely ignored.
- This could set off a flurry of activity including competition, an auction, promises of dividends, and who knows what. It will be exciting but it’s not C&F.
Shibaura Electronics (6957 JP): Yageo’s (2327 TT) Hostile Preconditional Tender Offer at JPY4,300
- Yageo Corporation (2327 TT) announced a hostile preconditional tender offer for Shibaura Electronics (6957 JP) at JPY4,300 per share, a 37.2% premium to the last close.
- The offer is preconditional on regulatory approvals (Japan, Taiwan) and Board recommendation (can be waived). The offer is scheduled to start on 7 May.
- The offer represents an all-time high. The Board has three options: facilitate a friendly offer, find a white knight bidder or launch an ambitious MTM plan to thwart the offer.
Japan CorpGovReports: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Feb25), TSE Updates
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 171 new CGRs were filed since 31-Dec-2024. Our tools show every report, links to every document, and now a new diff file tool. Input a name, see the changes.
- A surprising number of smaller companies have yet to file a MCoCC/SP Awareness report. As cross-holdings get sold down, I expect they will become activists targets in 2025.
ID Holdings (4709 JP) – All-Round Positive Performance
- OP growth re-acceleration – ID Holdings is executing its growth strategy and generating positive returns, with Q1-3 FY3/25 results showing OP growth re-accelerating 30.3% YoY.
- Performance has been robust across all business segments, and there has been definitively high growth in IT Infrastructure and Cybersecurity, Consulting, and Training, with the underlying theme being high demand for the company’s DX transformation services.
- The market environment remains robust, and the company continues to allocate capital to strengthen IT security services with the 21.39% acquisition of Broadband Security (4398) in January 2025, which we view as a positive driver for future growth.
Chugoku Marine Paints (4617 JP): Q3 FY03/25 flash update
- CMP’s cumulative Q3 FY03/25 sales reached JPY96.1bn, driven by marine and industrial paints, despite container paint declines.
- Operating profit increased to JPY11.6bn, with improved GPM, despite higher raw material and transportation costs.
- CMP revised its FY03/25 forecast upwards, expecting JPY130.0bn sales and JPY13.5bn net income, citing foreign exchange gains.
Shinmaywa Industries (7224 JP): Q3 FY03/25 flash update
- Revenue increased YoY due to growth in Special Purpose Truck and Parking Systems, despite Industrial Machinery decline.
- Operating profit rose YoY, driven by revenue growth, selling price revisions, and yen depreciation benefits.
- Full-year FY03/25 forecast revised with a JPY5.0bn revenue decrease, maintaining profit projections despite market challenges.
Dream Incubator (4310 JP): Q3 FY03/25 flash update
- In Q3 FY03/25, consolidated sales were JPY4.5bn (+19.8% YoY), with operating profit of JPY173mn and net income of JPY97mn.
- Business Production segment sales reached JPY3.8bn (+10.3% YoY), with operating profit of JPY568mn (+15.2% YoY).
- Venture Capital segment sales were JPY726mn (+117.4% YoY), with operating profit of JPY405mn, reversing prior losses.
Taiyo Holdings (4626 JP): Q3 FY03/25 flash update
- Cumulative Q3 FY03/25 sales increased 16.2% YoY, with Electronics segment sales at JPY62.7bn and Medical segment at JPY24.6bn.
- Electronics segment profit rose 37.4% YoY to JPY17.0bn, driven by yen depreciation and high-value-added product sales.
- Taiyo Holdings revised FY03/25 forecasts, raising Electronics segment sales to JPY81.2bn and profit to JPY21.4bn.
Tocalo Co Ltd (3433 JP): Q3 FY03/25 flash update
- Q3 FY03/25 sales reached JPY39.9bn (+14.7% YoY), driven by a 16.8% YoY increase in Thermal Spraying.
- Consolidated recurring profit for Q3 FY03/25 rose 30.3% YoY to JPY8.8bn, with RPM improving 2.7pp to 22.0%.
- FY03/25 earnings forecast revised upwards: sales JPY54.0bn, recurring profit JPY11.8bn, annual dividend JPY65.0 per share.
Almedio Inc (7859 JP): Q3 FY03/25 flash update
- Almedio’s FY03/25 forecast revised down due to lower-than-expected orders and project delays, impacting revenue and profits.
- Insulation Materials business faces revenue decline from postponed orders and competition, affecting FY03/25 financial projections.
- Nanomaterials business experiences revenue and profit declines due to project evaluation delays and reduced selling prices.
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