Daily Brief Japan: Shift Inc, Pan Pacific International Holdings, Nidec Corp, Kioxia Holdings , JX Advanced Metals, ASICS Corp, S & B Foods Inc, Nisshin Fudosan and more

• Shift Inc (3697 JP) will replace Citizen Watch (7762 JP) in the Nikkei 225 (NKY INDEX) after the close of trading on 30 September.
• BayCurrent Consulting‘s PAF will double from 0.5 to 1 and Sony Financial Holdings (8729 JP) will be deleted from the NKY INDEX following the spin-off from Sony Corp (6758 JP). 
• The index committee has decided not to add Kokusai Electric to the index despite the stock ranking within the top 75. The deletion of Citizen Watch points to sector balance.

• Today, the results of the Nikkei 225 Sep2025 Periodic Review were announced, discussed in [Quiddity Index] Nikkei 225 Sep25 Review: Shift (3697) In, Citizen Watch (7762) Out. Kokusai Misses. 
• That means we can look at the March 2026 Periodic Review with a fair bit of accuracy. 
• It is likely to be the runner-ups in the Sep25 review, though the second-runner-up ADD needs a stock split to have any chance. As always, more below the fold!

• Today, in the latest announcement in 17 years, the Nikkei Index Committee announced there would be only one change to the Nikkei 225 at the 30 Sep close. 
• Shift Inc (3697 JP) is IN. Citizen Watch (7762 JP) is OUT. BayCurrent Consulting (6532 JP) is uplifted. Sony Financial Spin is out 29 Sep. Kokusai Electric (6525 JP)? MIA. 
• In dollar terms it is smallish. In ADV terms there are some big changes. And this puts Kokusai Electric back possibly years. 

• Urgent Regulatory Deadline: Nidec faces a critical deadline of September 26, 2025. Meeting this deadline is crucial to avoid regulatory consequences, including potential “Security on Alert” designation or stock suspension.
• Underlying Strength Amidst Issues: Despite recent compliance issues that have impacted its stock, Nidec maintains a strong position as a global leader in electric motors with diversified revenue, projected growth.
• Potential for Rebound: The current low valuation, may present a buying opportunity for long-term investors if the company successfully addresses its governance issues and restores investor confidence.

• Q1 FY25 revenue fell 20% YoY, but enterprise SSD strength kept EBITDA positive and margins above trough levels.
• Management guides for a strong sequential rebound in Q2–Q3 on AI-driven enterprise demand and normalized PC/smartphone inventories.
• Kioxia trades at ~3–4× EV/EBITDA vs peers on 9–12×, despite higher NAND margins, with the gap driven by cyclicality, tech lag, and shareholder overhang.

• Copper Output Cuts: JX Advanced Metals will reduce electrolytic copper production by ~30kt (~5–8% of capacity) in FY25, with further smelting downscaling by March 2026.
• Margins have collapsed as TC/RCs plunged into negative territory (~–$45/t vs $80/t in 2023), amid concentrate shortages and Chinese overcapacity.
• Smelting will be retained mainly for rare-metal recovery (tantalum, indium, rhenium), while JX doubles down on semiconductor materials and upstream mineral projects.

• Performance Running momentum intact: ~10% global market share, outgrowing Nike, with scope for further share gains.
• Adjacent categories underpenetrated globally; restructuring complete, positioning for accelerated US/Asia expansion.
• Lifestyle brands (SportStyle, Onitsuka Tiger) compounding fast (+40%+ YoY), higher margins, could be the real long-term profit driver.

Key points (machine generated)

• S&B Foods, established in 1923, is a leading Japanese manufacturer of spices and condiments with around 3,000 in-house SKUs.
• The company pioneered the creation of curry powder in Japan, launching the ‘Japanese curry’ category.
• S&B’s iconic ‘Golden Curry’ line is well-known in Japan and is expanding its presence in international markets as it nears its 100th anniversary.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• The author identifies Nisshin Group as a promising undervalued Japanese investment in the real estate sector.
• Nisshin operates in Tokyo, focusing on residential condominiums and rental properties, with a solid business model and consistent profitability.
• Despite stagnant stock performance over two decades, Nisshin has shown modest growth and improving margins, supported by a committed management team.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.