Daily BriefsJapan

Japan: Keyence Corp, KDDI Corp, Money Forward and more

In today’s briefing:

  • Keyence – Showing Its Quality
  • KDDI (Buy): Q1 21 Results – Weak Consumer Offset by Solid Corporate Sales
  • TOPIX Inclusion Trade Summary: July 2021

Keyence – Showing Its Quality

By Mio Kato

Keyence revenue growth surprised to the upside like peers with a 10.7% positive surprise vs. consensus. Just as importantly, OPM was also strong as the unusually high SG&A burden the company has been experiencing over the last two years continues to ease.

KDDI (Buy): Q1 21 Results – Weak Consumer Offset by Solid Corporate Sales

By Kirk Boodry

KDDI posted mixed Q1 results with revenue modestly below expectations but profitability higher. Recent operational trends remain unchanged as demonstrated by 18% growth in new DX business sales but a 3% decline in core mobile communication sales.  Profitability growth stands out especially as KDDI did that whilst lapping the toughest comps for FY20 when emergency coronavirus measures kept marketing spend down. With financial results on track to meet FY21 expectations, we remain at Buy.

TOPIX Inclusion Trade Summary: July 2021

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the monthly performance of the trading opportunities surrounding TOPIX Index Rebalance events. During the month, we witnessed the Inclusion Events of cloud-based business accounting software company Money Forward (3994 JP), water treatment technology company Nomura Micro Science (6254 JP), and printed circuit board manufacturer Meiko Electronics (6787 JP)

Furthermore, as discussed by Travis Lundy in July TOPIX FFW Rebalancing Trade, there were quarterly float adjustments for some constituents of the TOPIX Index which opened up a few trading opportunities. 

Below is a closer look at each of these situations. 

Before it’s here, it’s on Smartkarma