In today’s briefing:
- [Japan M&A] Minebea Matches YAGEO for Shibaura Elec (6957) At ¥6,200. Presses on Early Cashout
- Shibaura Electronics (6957 JP): Minebea Changes Tack and Matches Yageo’s JPY6,200 Offer
- Appier (4180) | Sustained High-Growth Momentum with Expanding Margins
- SoftBank Group (9984 JP): Our Last Review of Quarterly Data
- Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!
- SailPoint, Inc. (SAIL) Six Month Summary: A Textbook Case of an IPO Overreach
- Roku Boosts User Retention & Revenue With Subscription Bundling Strategy; Will It Work In The Long Term?
- Sun* (4053 JP): 1H FY12/25 flash update
- Itron’s Water Solutions Push – How Is It Tackling Global Scarcity & Winning New Contracts?
- Procore Technologies: Initiation of Coverage- Could Helix Redefine the Future of Construction?
[Japan M&A] Minebea Matches YAGEO for Shibaura Elec (6957) At ¥6,200. Presses on Early Cashout
- After three months of NOT matching YAGEO’s bid for Shibaura Electronics (6957 JP) at ¥6,w00 as YAGEO’s proposal continues its long plod through FEFTA review, Minebea-Mitsumi has now matched ¥6,200.
- Key is that their bid closes before the indicative deadline for YAGEO to receive word on FEFTA approval. They are hoping this bid mollifies the irrevocables and everyone else.
- But if YAGEO cares, it could bump to ¥6,300 tomorrow and extend its tender offer which closes on Monday. But the put option is now struck higher, which de-risks this.
Shibaura Electronics (6957 JP): Minebea Changes Tack and Matches Yageo’s JPY6,200 Offer
- Despite its previous protestations, Minebea Mitsumi (6479 JP) has unexpectedly matched Yageo Corporation (2327 TT)’s JPY6,200 offer for Shibaura Electronics (6957 JP).
- Minebea’s actions suggest that Yageo has a good chance of securing regulatory approval. Otherwise, Minebea could have kept its offer unchanged and patiently waited for the Yageo offer to fail.
- Given the significant sunk costs, Yageo is likely to bump. Without increasing its offer, shareholders will have a greater inclination to tender and help Minebea meet its minimum tendering condition.
Appier (4180) | Sustained High-Growth Momentum with Expanding Margins
- Revenue: JPY 10.3 billion compared to JPY 8.2 billion a year ago, +27% YoY; FX-neutral revenue of JPY 11.0 billion, +35% YoY – fastest growth in eight quarters.
- Gross Margin: 56.1%, up 4.8 percentage points YoY, driven by high-margin products, organic margin improvements, and GenAI-enabled efficiencies.
- Stock continues to offer compelling value at 3.2x revenue – a discount to US peer Braze
SoftBank Group (9984 JP): Our Last Review of Quarterly Data
- With this report, we terminate coverage of SoftBank group (SBG) shares; going forward, our coverage will be concentrated on financial and fintech stocks, with a bias towards Emerging Markets
- SBG shares have rallied hard recently, driven by IPOs of portfolio companies, good IPO prospects for other private companies including PayPay and positive market sentiment towards AI investments
- The group NAV’s discount has narrowed sharply to under 30%; we conclude our coverage with a neutral rating, but we stress that high expectations are baked into this narrow discount
Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!
- When we look at the broader performance of Allegro MicroSystems, the results indicate both positive and challenging aspects of the company’s current situation.
- From a financial perspective, Allegro delivered a solid performance in its first quarter of fiscal year 2026.
- The company reported sales of $203 million and a non-GAAP earnings per share of $0.09, which was above the midpoint of their guidance range.
SailPoint, Inc. (SAIL) Six Month Summary: A Textbook Case of an IPO Overreach
- The IPO priced 60.0 million shares (upsized from 50.0 million) at $23.00, the high end of the upwardly revised $19–$21 range, only to open flat and trade poorly.
- Underwriters failed to properly assess book quality. While the order book was reportedly 20× covered, the aftermarket behavior revealed that much of this “demand” lacked conviction.
- The stock’s underperformance will likely keep momentum buyers on the sidelines until the company strings together multiple quarters of beats and raises.
Roku Boosts User Retention & Revenue With Subscription Bundling Strategy; Will It Work In The Long Term?
- Roku’s second quarter 2025 earnings call reflected a nuanced picture of both progress and ongoing challenges for the company.
- On the positive side, the quarter was highlighted by an 18% year-over-year growth in platform revenue, driven largely by the expansion and diversification of advertising demand, and a robust performance from the newly launched Roku Ads Manager.
- This growth was fueled by significant gains in video advertising, which outpaced the overall U.S. OTT and digital ad markets, pointing to successful integration strategies and product innovations.
Sun* (4053 JP): 1H FY12/25 flash update
- Revenue increased by 8.3% YoY to JPY7.1bn, while operating profit decreased by 42.9% YoY to JPY415mn.
- Number of unique customers grew 10.7% YoY to 228, with enterprise customers at 96 and SMB customers at 132.
- Monthly ARPU rose 2.7% YoY to JPY4,980,000, with enterprise ARPU down 5.1% and SMB ARPU up 2.1%.
Itron’s Water Solutions Push – How Is It Tackling Global Scarcity & Winning New Contracts?
- Itron, Inc. reported its second quarter results for 2025, revealing a mixed set of outcomes that reflect both strengths and challenges facing the company.
- For this period, Itron generated $607 million in revenue, aligning with the projected estimates.
- Impressively, the company set quarterly records for gross margin, operating income, and free cash flow, particularly noting an adjusted EBITDA margin of 14.8% which reflects operational efficiency improvements and a favorable product mix.
Procore Technologies: Initiation of Coverage- Could Helix Redefine the Future of Construction?
- Procore Technologies, Inc. reported its fiscal 2025 Q2 earnings, showcasing a mix of positive performance metrics and ongoing strategic efforts to position itself for future growth in the construction technology industry.
- The company’s revenue grew by 14% year-over-year, reaching $324 million, accompanied by a 13% non-GAAP operating margin.
- This demonstrates solid top-line growth and improvement in efficiency.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
