In today’s briefing:
- [Japan M&A] Nikkei Says Blackstone to Buy TechnoPro Holdings (6028) For “Roughly ¥500bn”
- Shibaura Electronics (6957 JP): Core Designation Does Not Change Yageo’s Calculus
- TechnoPro (6028 JP): Blackstone’s Rumoured Takeunder Offer
- Softbank Group (9984 JP) Outlook (Pre-Earnings Price Range Forecast)
- Hochiki Corp (6745 JP): Q1 FY03/26 flash update
- Takara Standard (7981 JP): Q1 FY03/26 flash update
- Organo Corp (6368 JP): Q1 FY03/26 flash update
- Azbil Corp (6845 JP): Q1 FY03/26 flash update
- Beenos Inc (3328 JP): Q3 FY09/25 flash update
- Decollte Holdings (7372 JP): Q3 FY09/25 flash update
[Japan M&A] Nikkei Says Blackstone to Buy TechnoPro Holdings (6028) For “Roughly ¥500bn”
- There was an article in mid-May saying Technopro Holdings (6028 JP) might be privatised. It is an appropriate candidate. The stock popped 20% immediately, and has since risen another 20%.
- Today’s article follows one which came out ~2 weeks ago with non-sourced editorial content suggesting the price might be 20x EBITDA (i.e. a lot higher).
- Today, an article says Blackstone will buy the firm for “Roughly ¥500bn” which would be 3% down from yesterday. Beware the Nikkei. Beware expectations.
Shibaura Electronics (6957 JP): Core Designation Does Not Change Yageo’s Calculus
- Reuters reports that the Ministry of Finance of Japan reclassified Shibaura Electronics (6957 JP) from a Type 1 (non-designated business sector) to Type 3 (core designated company).
- Reportedly, Yageo’s application was made with a view to Shibaura’s businesses falling under the core category. A blocked deal would set back Prime Minister Ishiba’s goal to improve China relations.
- The change to Shibaura’s designation to core helps explain the elongated approval process, as the Ministry of Finance and Yageo need time to agree on acceptable undertakings.
TechnoPro (6028 JP): Blackstone’s Rumoured Takeunder Offer
- The Nikkei reports that Blackstone (BX US) will launch the tender offer for Technopro Holdings (6028 JP) just below JPY4,900, a 44.6% premium to the undisturbed price.
- While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time high.
- It is unclear if the offer is preconditional on regulatory approvals. Blackstone is likely to secure irrevocables from activists like Orbis to project a secure path to completion.
Softbank Group (9984 JP) Outlook (Pre-Earnings Price Range Forecast)
- Softbank Group (9984 JP) is about to release its earnings on August 7th.
- The stock pulled back last week but this week is rallying. The rally can easily reach Q2 (12416) and Q3 (13003) resistance zones, if the earnings are good.
- If the earnings are disappointing, look for initial support at 11145 (Q3). If earnings are really disappointing, look at 10086 (outliers zone).
Hochiki Corp (6745 JP): Q1 FY03/26 flash update
- Q1 consolidated revenue reached JPY22.4bn, a 7.1% YoY increase, marking the 13th consecutive quarter of growth.
- Operating profit surged approximately 2.2x YoY to JPY1.1bn, with an OPM increase of 2.4pp to 4.8%.
- Orders increased by 8.9% YoY to JPY34.5bn, while the order backlog decreased by 3.0% YoY to JPY39.5bn.
Takara Standard (7981 JP): Q1 FY03/26 flash update
- In Q1 FY03/26, revenue was JPY61.4bn (+7.1% YoY), operating profit JPY4.2bn (+35.8% YoY), net income JPY3.1bn (+48.7% YoY).
- Revenue growth in new detached housing market was JPY19.2bn (+12.6% YoY), driven by higher unit prices and demand.
- Revenue in the remodeling market increased to JPY19.6bn (+0.9% YoY), supported by enhanced product specifications and customer-aligned proposals.
Organo Corp (6368 JP): Q1 FY03/26 flash update
- Organo’s Q1 FY03/26 results: Orders JPY59.6bn (+13.0% YoY), revenue JPY38.1bn (+20.5% YoY), operating profit JPY7.0bn (+73.8% YoY).
- Revised full-year FY03/26 forecast: Orders JPY180.0bn (+19.0% YoY), revenue JPY175.0bn (+7.2% YoY), operating profit JPY34.0bn (+9.3% YoY).
- Electronics industry growth: Semiconductor projects in Taiwan, Japan, US, and increased sales of water treatment chemicals.
Azbil Corp (6845 JP): Q1 FY03/26 flash update
- Q1 FY03/26 sales decreased by 5.3% YoY, but operating profit increased by 22.1% due to price hikes.
- Orders declined due to fewer multi-year renewals, but segment profit rose by 58.7% YoY from profitability measures.
- Orders and sales fell significantly due to Azbil Telstar stake sale, impacting segment profit and margins.
Beenos Inc (3328 JP): Q3 FY09/25 flash update
- Q2 FY09/24 results show a 1.0% YoY decrease in GMV to JPY84.9bn and a 30.7% YoY revenue decline.
- In Q3 FY09/25, GMV increased due to cross-border e-commerce initiatives, despite foreign exchange challenges affecting user demand.
- BEENOS achieved 78.6% of GMV, 76.8% of revenue, 91.2% of operating profit, and 85.4% of net income targets.
Decollte Holdings (7372 JP): Q3 FY09/25 flash update
- The company reported revenue of JPY4.7bn (+8.4% YoY) and operating profit of JPY446mn (+60.3% YoY) in Q3 FY09/25.
- Photo wedding services saw revenue rise by JPY319mn (+7.8% YoY), with photo shoots up 6.7% YoY.
- The fitness gym business experienced a 21.0% YoY revenue drop due to the closure of the Ashiya store.
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