Japan: Softbank Group, NTT Data Corp, PAL GROUP Holdings Co., Ltd., Torikizoku and more

In today’s briefing:

Softbank Group – Didi Relief and ZME Pain Highlight Multiple Potential Outcomes

Didi shares jumped 24% on reports regulatory relief was at hand. That is good news for Softbank although the halo effect boosting Alibaba had more of a valuation impact
Less noticed but also relevant as a potential outcome is the de-listing of Zhangmen Education which fell 50% Monday and is down 97% for VF in total
Softbank shares trade at a 43% discount to fair value and remain range-bound. Tech market sentiment remains the primary driver and we continue to be cautious

This article updates NTT DATA by referring my earlier article although Hopes of NTT Data becoming a wholly owned subsidiary are far from fulfilled after the May 9th news conference.
My previous article stated reorganization with NTT’s overseas operations is priority to strengthen NTT Data’s overseas business. NTT Data’s stock price is highly valued while NTT Data’s profitability is lacking.
The timing of NTT Data becoming a wholly owned subsidiary will depend solely on how quickly the company can raise its profitability while it focuses more on domestic business.

Not many retailers could boast sales growth of more than 50% last year, especially a retailer from the fashion sector.
Pal Group’s 3Coins managed this thanks to the huge success of the discount fashion to home decor format.
Its success is one more example of the growth in discount chains.

Same-store sales were 1648.4% vs. May 2021 (208.7% for April), 684.1% vs. May 2020 (1979.9% for April), and 83.2% vs. May 2019 (77.2% for April)
Note that both May 2021 and May 2020 were significantly affected by the emergency measures
The number of holidays (weekends and holidays) was one day less than in May 2021 and May 2020, and two more than in May 2019

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