Daily Brief Japan: Tekscend Photomask, Migalo Holdings, Fast Retailing, Sony Financial Group, TSE Tokyo Price Index TOPIX, Mugen Estate, Basis Corporation and more

• Tekscend Photomask (429A JP) is a global leader in semiconductor photomasks. It is seeking to raise up to JPY123 billion (US$828 million). Pricing is on 30 September.
• I previously discussed the IPO in Tekscend Photomask (429A JP) IPO: The Bull Case and Tekscend Photomask (429A JP) IPO: The Bear Case. 
• In this note, I present my forecasts and discuss valuation. My analysis suggests that Tekscend is attractively valued at the IPO price range compared to peer multiples.

• Migalo Holdings (5535 JP) is one of the rare TSE Prime-listed companies which got the boot from TOPIX, stayed in Prime, and is clawing its way back. 
• As of end-March-25, it met all the criteria to stay in Prime and rejoin TOPIX. Now they are launching a primary offering, and this may presage an effort to rejoin. 
• They are adding float and 10% of shares to the pile, in this ¥4.4-5.0bn offering. But instos are net short this stock. 

• In our previous Fast Retailing (9983 JP) insight we identified a potential BUY opportunity ahead of the September 25 rebalance, but the rally failed to materialize. 
• The stock at the moment is oversold, according to our quantitative model, so we would like to review its tactical outlook in this insight.
• Right now, the stock is the most oversold of all the Asian stocks we track, probability of WEEKLY reversal stands at 72%, after last week’s Close.

• Tekscend Photomask (429A JP), a manufacturer and distributor of semiconductor photomasks, aims to raise around US$830m in its Japan IPO.
• TP is a global provider of photomasks and related support services. It has been the leader in the merchant photomask market in terms of sales since 2016.
• We have looked at the company’s past performance in our previous note. In this note, we will  undertake a peer comparison.

• This week, I published a deep dive into Sony’s upcoming spin-off of Sony Financial (SFGI/8729).
• I will be watching the spin-off closely and hoping for selling pressure.
• KBR, Inc. (KBR) announced on September 24, 2025 that it plans to spin off its Mission Technology Solutions (MTS) segment into a separate publicly traded company.

• The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.
• There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.
• Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.

Key points (machine generated)

• Mugen Estate reported record-high sales and profits for the fiscal year ending December 2025.
• The company specializes in investment and residential properties across Japan, managing a diverse portfolio.
• Established in 2014, Mugen Estate transitioned from the Tokyo Stock Exchange Mothers market to the Prime market by 2022.

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• Tekscend Photomask (429A JP)  (429A JP), a manufacturer and distributor of semiconductor photomasks, aims to raise around US$830m in its Japan IPO.
• TP is a global provider of photomasks and related support services. It has been the leader in the merchant photomask market in terms of sales since 2016.
• We have looked at the company’s past performance in our previous note. In this note, we talk about valuations.

Key points (machine generated)

• Basis Corporation, listed as 4068 on the Tokyo Stock Exchange, aims for growth by balancing investments and cost control.
• The company has expanded from mobile engineering to IoT device installation, enhancing living infrastructure.
• Innovations like project management tools and AI have improved efficiency, reducing administrative work time by over 90%.

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