In today’s briefing:
- [Japan Buybacks] ShinEtsu Chem (4063) – How the FCSR Works
- Many Companies in Japan Are Still Hesitant to Hire the Talent They Need
- Moresco (5018 Jp) – True Value Is Tested in Times of Adversity
- Asahi Intecc (7747 JP): Medical Division Drives 9M Result; FY25 Guidance Raised; Buyback Announced
- Macnica Holdings (3132 JP) – Lingering Weakness in Semiconductors…
[Japan Buybacks] ShinEtsu Chem (4063) – How the FCSR Works
- Late April, Shin Etsu Chemical (4063 JP) announced a huge ¥500bn 200mm shares (10.2%) buyback. That was never ever going to happen. That needed a ¥2500 share price, not ¥4300+.
- But it was big, and started in late May. Today, they announced how. It is a “Japan ASR”, the Nomura version, this time with an interesting twist.
- In response to a couple of reader questions today, I provide a brief overview of how these things work.
Many Companies in Japan Are Still Hesitant to Hire the Talent They Need
- Given the rapid aging of Japan’s population, if the current composition of the board of directors continues, the number of directors will further age in the future.
- A board that embraces diverse age range is likely to embrace people with diverse backgrounds and skillsets, and a diverse board composition is likely to have positive impact on management.
- In Japan, with strong peer pressure, CEOs controlling human resources, % independent directors and female board members in 40% and 15%, many companies are hesitant to hire talent they need.
Moresco (5018 Jp) – True Value Is Tested in Times of Adversity
- In FY2025/2, MORESCO Corporation (hereinafter referred to as “MORESCO” or “the Company”) reported net sales of JPY 34,374 mn (+7.8% YoY), driven by increased sales volumes in Japan and overseas, as well as revision to selling prices.
- Operating profit rose by only 13.6% YoY due to higher R&D expenses, while ordinary profit remained flat, weighed down by a decrease in foreign exchange gains and profits from equity-method investments.
- Profit attributable to owners of parent (hereinafter, net profit) fell by 21.1% YoY owing to a deterioration in extraordinary gains and losses.
Asahi Intecc (7747 JP): Medical Division Drives 9M Result; FY25 Guidance Raised; Buyback Announced
- Asahi Intecc (7747 JP) announced 9MFY25 result, with double-digit growth across all key parameters. Revenue increased 14% YoY to ¥91.8B, driven by 16% growth in medical division.
- The company has raised guidance for FY25 revenue and operating profit and reduced net profit guidance to reflect better-than-expected performance of medical division and booking of impairment loss.
- Asahi will buy back up to 8.8M shares (representing 3.2% of issued shares) for ¥15B. Buyback will be conducted from May 16, 2025 to October 31, 2025.
Macnica Holdings (3132 JP) – Lingering Weakness in Semiconductors…
- Consolidated OP declined in Q4 FY3/25 (-40.7% QoQ), reflecting weakness in Semiconductors due to continued sluggishness in Industrial Equipment and higher SG&A triggered by the consolidation of a subsidiary.
- The segment OP for Semiconductors declined sharply (-68.6% QoQ), lowering the OP margin (Q3 FY3/25 3.4%, Q4 FY3/25 1.1%).
- As a result, the consolidated OP margin also declined (Q3 FY3/25 4.1%, Q4 FY3/25 2.5%).
💡 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
