In today’s briefing:
- 5 Keys to Unlocking Japanese Superstocks
- Ohayo Japan | US Stocks Retreat; Trump Tariffs Unlawful
- Japan Activist Briefs | Governance Battles and Hidden Asset Plays
- Japan Morning Connection: Tech Battered by Marvell and Dell Misses Ahead of Labor Day Break
- Japan’s Nuclear Reset: Core Equipment Plays and Utility Options
- China Strategy: 1H25 Roundup and Implications for 2H25
- Chinese Developers Expect Greater First Half Losses
- What’s New(S) In Amsterdam – 29 August (Ahold Delhaize | BAM Group | VLK | PostNL | Sif Holding)
5 Keys to Unlocking Japanese Superstocks
- We looked at the 40 companies in Japan that returned the best 5-year relative returns over the past 20 years. The average relative return was 1,965%.
- The most consistent common trait of all these stocks was that most had underperformed the market in the previous 2 years. The average underperformance was -61%.
- Valuation was hugely important, but not the way you’d expect. The stocks often started at a modest discount, but more importantly, they always ended at massive premiums.
Ohayo Japan | US Stocks Retreat; Trump Tariffs Unlawful
- US equities retreated Friday as investors locked in profits, with the S&P 500 down 0.6% and the Nasdaq off 1.2%
- A federal appeals court ruled that most of Donald Trump’s global tariffs were unlawful, finding his use of the International Emergency Economic Powers Act exceeded presidential authority
- Major Tokyo Stock Exchange-listed companies are increasingly appointing outside directors as board chairmen, with 109 companies doing so as of August 2025
Japan Activist Briefs | Governance Battles and Hidden Asset Plays
- Toho: 3D Investment Partners lifted stake to 21.2%, intensifying pressure on governance reforms amid repeated scandals and delayed committee findings.
- Inui: Miri Capital built a 7.3% stake; real estate assets near Ginza could be key catalyst beyond cyclical shipping earnings.
- Nihon Tokushu and Kitagawa: Both trade at low multiples with strong balance sheets; activist stakes suggest potential for event-driven value realisation.
Japan Morning Connection: Tech Battered by Marvell and Dell Misses Ahead of Labor Day Break
- Both Marvell and Dell were out after-market Friday so the reaction in Japan to start may be less severe.
- Sandisk cutting through the static now up for 7th day in a row as sentiment for NAND rises on potential AI growth.
- Kokusai Electric may also see a positive change in tone if the market takes another look at NAND production equipment.
Japan’s Nuclear Reset: Core Equipment Plays and Utility Options
- Japan targets nuclear at 20–22% of power by 2030 under its GX Basic Policy, alongside a major renewables push.
- Electricity demand set to rise 35–50% by 2050, with data centers tripling consumption by 2034.
- Leaders: MHI (~10% nuclear revenue) and IHI (~5%) stand out as equipment winners; Kansai, Kyushu add steady utility exposure.
China Strategy: 1H25 Roundup and Implications for 2H25
- 1H25 earnings of our coverage are generally weaker than expected, with a 5.9% growth; for 2H25, the consensus forecasts point to a further slowdown to 4%.
- The Chinese airlines, Shanghai Electric Group (2727 HK), Sany Heavy Equipment (631 HK), and China Travel International Investment (308 HK) exhibit the best YoY growth in 2H25.
- Container shipping and trade-related companies like COSCO Shipping Holdings (1919 HK), and Orient Overseas International (316 HK) are expected to see earnings plunge in 2H25.
Chinese Developers Expect Greater First Half Losses
- Several Hong Kong-listed Chinese property giants said they expect deepening losses for the first half of the year, as they delivered fewer houses, saw their margins shrink, and their assets lost value.
- Country Garden Holdings Co. Ltd. predicts its net loss will come in between 18.5 billion yuan ($2.6 billion) and 21.5 billion yuan, compared with a 15.1 billion yuan deficit last year, according to a Friday exchange filing.
- The company delivered about 74,000 units of housing in the first half, down from more than 150,000 in the same period last year. It also said asset impairments expanded from the year before.
What’s New(S) In Amsterdam – 29 August (Ahold Delhaize | BAM Group | VLK | PostNL | Sif Holding)
- Ahold Delhaize | expands collaboration with Instacart Supermarket News reports that Ahold Delhaize USA is expanding its partnership with Instacart by adopting the FoodStorm order management system across select banners, including Food Lion, Giant and Martin’s.
- The platform streamlines ordering for made-to-order items such as bakery platters, deli trays, desserts, and floral arrangements, offering customers flexible options to order online, by phone, or in-store.
- FoodStorm’s self-service tools and purchase history access improve convenience and personalization, while creating efficiencies for store teams.
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