Daily Brief Japan: Toyota Industries, Sumitomo Chemical, Mandom Corp, D.Western Therapeutics Institute Inc., Marubun Corp, Intelligent Wave, Lib Work, Otsuka Holdings, Solvvy and more

• Last month, nearly two dozen global asset managers, through ACGA, submitted a joint letter to the boards of Toyota Industries (6201 JP) and Toyota Motor regarding the tender offer.
• The letter outlined five issues, which distilled down to concerns about a low-balled offer. Their cause is increasingly supported by market movements, which support the case for the bump.
• Recent activism against several low-balled tenders signals that TICO, despite its size, is not immune. My SoTP valuation is JPY19,607, which is 20.3% above the offer price.

• For a change of pace, this insight briefly canvasses a clutch of Holdco’s trading at extreme levels, in both “set-up” and “unwind” territory.
• Preceding the chart/table-heavy insight are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Mandom Corp (4917 JP) yesterday decided to launch a question-response effort for the Murakami-san Group ownership of Mandom shares up to and above 20%. This is a Poison Pill precursor.
• There’s a drawn out set of questions, answers, etc, at the end of which, the Independent Committee will decide that Murakami is a Bad Person and the Poison Pill proceeds.
• Murakami Group is apparently now over 20%. That’s a little tricky. But this looks like a Good Poison Pill. 

• DWTI announced after the close on 11/4 that 84.6% of the Series 13 Share Acquisition Rights (with exercise price adjustment clause) issued on July 31, 2025, have already been exercised in just three months since the issue (see table below). In other words, this leaves only 1.5mn shares, or 3.37% dilution remaining.
• This marks a significant decline in selling pressure going forward, ahead of multiple expected share price catalysts, including 1) China launch of DW-1002 (Brilliant Blue G) for indication ILM staining as an aid for ophthalmic surgeries
• 2) expected H1 2026 US launch of DW-5LBT (lidocaine patch, trade name Bondlido), as a treatment for neuropathic pain after shingles (post-herpetic neuralgia) in adults, and 3) announcement of details of the Japan development plan for new pipeline candidate H-1129 as a treatment for corneal and conjunctival diseases caused by immune disorders.

• Net sales increased 4.2% YoY to JPY102.7bn, driven by strong semiconductor demand and space and defense equipment sales.
• Operating income declined 37.5% YoY to JPY2.7bn due to lower gross profit from decreased agent transactions.
• The company revised its FY03/26 forecast upward, with net sales projected at JPY210.0bn and operating income at JPY7.0bn.

• Orders were JPY3.7bn (-34.3% YoY), order backlog JPY20.2bn (+8.6% YoY), sales JPY3.7bn (+5.7% YoY).
• Operating profit was JPY206mn (-32.4% YoY), recurring profit JPY205mn (-32.7% YoY), net income JPY140mn (-32.9% YoY).
• Sales increased 4.7% YoY in settlement domain, 22.8% in security domain, declined 13.2% in data communication.

Key points (machine generated)

• Lib Work is a HOUSE TECH COMPANY listed on the Fukuoka Stock Exchange Q-Board and Tokyo Stock Exchange Growth Market.
• The company focuses on single-family homes, targeting first-time homebuyers in the Kyushu region and Tokyo through digital marketing.
• Lib Work aims to innovate living with sustainability and technology, with a mission to change lives and create a sustainable future.

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

• Otsuka Holdings (4578 JP) witnessed 5% revenue growth in 9M25, despite negative Fx impact. Mainstay pharmaceutical business (+6.5% YoY) drove revenue. Rexulti and Abilify remained strong.
• Otsuka has revised 2025 guidance upwards on the back of steady progress in Pharma and Nutraceutical business. Overall, 2025 revenue is now expected to be ¥2420B (previous guidance ~ ¥2380B).
• Otsuka’s two top selling drugs are steadily gaining traction, mainly in the U.S. Going ahead, the company is banking on new drugs like sibeprenlimab to further drive growth.

Key points (machine generated)

• Solvvy Inc. projects a 22.3% increase in net sales to ¥8,200 million and a 29.6% rise in operating profit to ¥2,100 million for FY6/26.
• The company, which focuses on recurring revenue business consulting, has improved operational metrics despite a temporary net loss in FY6/25.
• Solvvy plans to implement a progressive dividend policy, raising its dividend to ¥20.0 for FY6/26 to enhance shareholder returns.

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)

• Solvvy Inc. is expected to experience significant growth in sales and profits in FY6/26, with plans for substantial dividend increases.
• The company rebranded after acquiring MEDIA SEEK Inc. and now operates as a consulting firm addressing complex business issues.
• Solvvy’s recurring revenue model includes three segments: Homeworth Tech (HWT) for housing services, ExtendTech (EXT) for renewable energy, and LifeTech (LFT) for system integration projects.

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