Daily Brief Japan: Sun Corp, Soft99 Corp, Fast Retailing, Bell System24 Holdings Inc, Softbank Group, SGX Rubber Future TSR20, Loadstar Capital and more

• Today after the close, Value Act reported that it owned 7.87% of shares outstanding in Sun Corp (6736 JP) and it may make proposals to management. 
• This has been trading cheaply (and I pointed it out on 13 Aug and 12 Sep). Cellebrite DI (CLBT US) is up 35% in those 8 weeks. Sun Corp +50%.
• ValueAct had owned 4.9+% for at least a few months before, but now it has gone public. They were likely in already under a different name in March, now public.

• The Soft99 Corp (4464 JP) Board has responded to Effissimo’s allegations. As expected, the Board accuses Effissimo of stating half-truths. 
• The Board’s missive indirectly suggests that incremental acceptances since October 1 have been tepid, KeePer has not tendered, and the MBO is struggling to meet the minimum tendering condition. 
• The two likeliest outcomes are 1) the MBO succeeds at current terms with KeePer likely joining BidCo, and 2) both offers fail. The risk/reward is unattractive at the last close. 

• Today after the close, Soft99 Corp (4464 JP)‘s Board issued a statement on “Our View” of Effissimo’s “Our View” Press Release. It’s bad.   
• But it points out the “weaknesses” that Effissimo’s Tender Offer Press Release had as it concerns a counterbid. And that tells you how Effissimo should amend their Tender Offer docs.
• Soft99 Board’s response is interesting. It asks Effissimo to not be coercive (i.e. bid for 50%+) in response to the MBO Bid’s coerciveness. Not a winning argument but not impossible.

• Guidance slightly ahead: FY8/26 outlook modestly above consensus at both revenue and operating profit, signalling continued steady growth.
• Global strength offsets China: Expanding international markets and yen tailwinds continue to drive profitability, plus an end to lingering China weakness?
• Valuation supportive: Trading below historical averages on EBIT and P/E, offering global exposure at a reasonable multiple.

• In 1H FY02/26, revenue was JPY73.1bn (+1.5% YoY) with operating profit at JPY5.9bn (+23.0% YoY).
• Revenue from SC operations was JPY62.6bn (+1.0% YoY) and SB operations JPY10.4bn (+5.4% YoY).
• Gross profit in 1H FY02/26 was JPY13.6bn (+6.5% YoY) with a GPM of 18.5% (+0.9pp YoY).

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Softbank Group
• The UST curve twisted flatter slightly yesterday, albeit there were few material catalysts. The yield on the 2Y UST rose 2 bps to 3.58%, while that on the 10Y UST was unchanged at 4.12%. Equities rebounded from Tuesday’s dip, with the S&P 500 and Nasdaq up 0.6% and 1.1%, respectively.
• The September FOMC meeting minutes showed that most officials “judged that it likely would be appropriate to ease policy further over the remainder of this year”.

• Highlights    • Market shift from premium to mid-tier brands   • Profit vs volume strategy hurting premium brands   • Mid-Tier brands expanding globally There is a lot of uncertainty around the ongoing tire demand and supply situation.
• The first thing to note is that while demand is growing slightly, the distribution of sales between premium tire makers and less well-known brands is changing.
• The transfer of market share away from the premium tire makers is rapid and appears to be accelerating.

• Loadstar Capital is unique among listed Japanese real estate peers in its use of leverage, velocity of capital deployment, and shareholder alignment.
• We believe the Company is much more akin to a real estate private equity fund in its approach towards capital allocation and focus on asset monetization.
• Importantly, Loadstar’s founder, Mr. Tatsushi Iwano, continues to hold 20% of the Company, reflecting management’s alignment with shareholders and belief that Loadstar can continue to sustain its growth. 

Key points (machine generated)

• IID, Inc. reported its first net profit increase in four years for FY6/25 despite a decline in net sales and operating profit.
• The company operates two segments: Creator Platform Business and Creator Solutions Business, facing challenges in the latter.
• For FY6/26, IID expects a 5.2% increase in net sales and a 30.5% rise in operating profit, focusing on M&A, AI monetization, and shareholder benefits.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• TANABE CONSULTING GROUP CO., LTD. achieved record-high net sales and profits in 2025, its 68th year in business.
• The company’s success is driven by effective business development and M&A initiatives as part of a diversification strategy.
• TCG provides tailored consulting services to upper mid-sized enterprises, focusing on management strategies, operational execution, and digital transformation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.