In today’s briefing:
- Katakura (3001 JP) MBO/Tender Fails
- Mitsui Fudosan Logistics Park (3471 JP): Strong DPU Accretion Could Trigger Outperformance Vs Peers
- Capcom – Monster Hunter Rise PC Launches Even as Stock Hits 12 Month Low
- Nippon Paint Placement Quick Update – Better Positioned After Delivering the Largest Correction
- Japan’s Governance: How Far Corporate Governance Has Progressed in 2021? (4) – Change in ROA and ROE
- Komeda Holdings (3543): Robust Earnings and Store Openings
Katakura (3001 JP) MBO/Tender Fails
- The Katakura (3001 JP) MBO has failed. Nearly 60% tendered but I expect 85-90% of that 60% came from corporate and financial crossholders.
- A new activist is in at ¥2,350/share, and that activist wants a higher price.
- It is not clear there is a lot of downside here, but it is not clear what drives it up near-term either.
Mitsui Fudosan Logistics Park (3471 JP): Strong DPU Accretion Could Trigger Outperformance Vs Peers
- Yesterday after the close, Logistics JREIT Mitsui Fudosan Logistics Park Inc (3471 JP) (“MFLP”) announced a follow-on equity offering to fund part of their recently announced property acquisition.
- The primary offer quantity is 32,380 units. In addition, there will also be an over-allotment quantity of 1,620 units. The total size of this offering could be roughly ¥20bn (~US$175mn).
- Below is a closer look at the details of this offering and the potential of this offering to trigger strong secondary market performance in the following weeks.
Capcom – Monster Hunter Rise PC Launches Even as Stock Hits 12 Month Low
- Early last year we very wrongly called Capcom as our top short-term pick as we expected an earnings blowout in 1QFY22.
- The blowout duly came with OP 37% above clueless sell side expectations and… the stock tanked.
- Almost a year later the stock languishes 28% lower just as the PC version of Monster Hunter Rise launches.
Nippon Paint Placement Quick Update – Better Positioned After Delivering the Largest Correction
- A group of shareholders of Nippon Paint Holdings, plan to raise around US$1.4bn via selling nearly 6% of the stock.
- We covered most aspects of the deal in our previous note, Nippon Paint Holdings Placement – Nothing particularly exciting, needs to correct.
- In this note, we will talk about the updates and share price movement since then.
Japan’s Governance: How Far Corporate Governance Has Progressed in 2021? (4) – Change in ROA and ROE
- I suspect that there are other incentives for companies to improve their corporate governance practices (especially board practices) than improved performance (improved ROA and ROE).
- Companies that improved ROA used cash raised on B/S from increased profits to return profits to shareholders through increased dividends, but still lacked conviction in using cash for future growth.
- It is inferred that companies with higher ROE tend to use cash to buy back their own shares.
Komeda Holdings (3543): Robust Earnings and Store Openings
- Komeda Holdings (3543) announced 3Q FY2/22 results (IFRS). The impression continues to be positive.
Monthly data announced by the company shows that the positive trend of wholesale sales continued in December (which is included in 4Q).
- Our impression is that store openings are progressing ahead of the company’s plan of 940-950 total stores at the end of FY2/22.
Before it’s here, it’s on Smartkarma
