In today’s briefing:
- Toyota Industries (6201 JP): A Rumoured Privatisation with Several Unknowns
- Toyota (7203 JP) Tactical Outlook Following Toyota Industries (6201 JP) Privatization Rumors
- Astellas Pharma (4503 JP): Strong FY25 Result; Cost Optimization to Boost FY26 Profit on Flat Sales
- Sodick (6143) – From Turnaround to Transformation Towards Growth
- Chori Co Ltd (8014 JP): Full-year FY03/25 flash update
- Financial Products Group Co (7148 JP): 1H FY09/25 flash update
- Hurdles to Shareholder Proposal Passage Are Still High, but the Announcement Effect Is Significant
Toyota Industries (6201 JP): A Rumoured Privatisation with Several Unknowns
- Toyota Industries (6201 JP) shares were set to hit the daily upper limit of JPY16,225 due to press reports of a privatisation bid valuing it at JPY6 trillion.
- Toyota Industries confirmed receiving a going-private proposal from a special purpose company, while Toyota Motor (7203 JP) said it is considering all possibilities, including a partial investment.
- There are still several unknowns, including the price, the identity of the offeror, potential irrevocable commitments, the financing structure, and the timeline.
Toyota (7203 JP) Tactical Outlook Following Toyota Industries (6201 JP) Privatization Rumors
- Toyota Motor (7203 JP) said in a Tokyo stock exchange filing on Saturday that it is exploring the possibility of investing in a potential buyout of key supplier Toyota Industries.
- Bloomberg reported Friday that Toyota Motor (7203 JP) Chairman Akio Toyoda and his family proposed acquiring Toyota Industries (6201 JP) in a possible 6 trillion yen ($42 billion) transaction.
- The stocks of both companies were rising on Monday, this insight focus on tactical positioning on Toyota Motor:the stock appears very OVERBOUGHT according to our models.
Astellas Pharma (4503 JP): Strong FY25 Result; Cost Optimization to Boost FY26 Profit on Flat Sales
- Astellas Pharma (4503 JP) has announced strong FY25 performance, with all key parameters surpassing guidance, while FY26 guidance is a mix of positives and negatives.
- Astellas has guided for FY26 revenue of ¥1,930B, up 1% YoY. While strategic brands are expected to grow by double and triple-digit, Xtandi is expected to report 5% revenue decline.
- FY26 core operating profit is guided at ¥410B, up 5% YoY, driven by cost optimization effort. Core net profit for FY26 is expected to increase 3% YoY to ¥304B.
Sodick (6143) – From Turnaround to Transformation Towards Growth
- It has been an active 12 months for Sodick as it delivered a strong turnaround in FY12/24 driven by structural reform, appointed new President and CEO Yuji Akutsu, and affirmed growth prospects on both the Food Machinery segment and new products such as laser processing machines, metal 3D printers, and ultra-high-precision machining centers.
- Ongoing structural reforms focus on reducing reliance on China, enhancing profitability through business and product selection based on market dynamics, and rebuilding global production and sales systems to adapt to yen depreciation and evolving customer demand.
- Overseas expansion and providing “turnkey” solutions remain high priorities to build sustainable growth.
Chori Co Ltd (8014 JP): Full-year FY03/25 flash update
- In FY03/25, sales rose 1.3% YoY to JPY311.5bn, with net income reaching a record JPY11.7bn.
- Operating profit declined 3.6% YoY due to increased SG&A expenses, while pre-tax profit rose 11.0% YoY.
- For FY03/26, sales are projected to increase by JPY18.5bn, with a slight decrease in pre-tax profit expected.
Financial Products Group Co (7148 JP): 1H FY09/25 flash update
- In 1H FY09/25, revenues increased by 25.2% YoY, while operating profit decreased by 3.6% YoY.
- The Leasing Fund Business saw a 7.1% YoY revenue decline, with a segment profit margin decrease of 5.3pp YoY.
- The International Real Estate Fund Business achieved a 134.6% YoY revenue increase, with a gross profit margin rise of 6.5pp YoY.
Hurdles to Shareholder Proposal Passage Are Still High, but the Announcement Effect Is Significant
- There’re signs, with domestic institutional investors gradually becoming more willing to consider shareholder proposals. However, the hurdle to passage is still high, as shareholder proposals weren’t approved at March AGMs.
- Regarding proposals that are easy for domestic institutional investors to mechanically approve/disapprove, such as the number of independent directors and female directors, companies are expected to raise the level formally.
- Since the announcement effect of shareholder proposals is significant, it is expected that companies that did not pass shareholder proposals this time will launch initiatives to strengthen shareholder returns.
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