Daily BriefsJapan

Japan: Softbank Group, Shinko Electric Industries, JPY, Tokyo Stock Exchange Tokyo Price Index Topix, Ryohin Keikaku and more

In today’s briefing:

  • Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation
  • JPX-Nikkei 400 2022 Rebal: Final Predictions
  • USDJPY Disconnect
  • The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step
  • Ryohin Keikaku (7453) | Oops Something Went Wrong

Softbank Group – Expiration of SenseTime Lock-Up Has Lopped $1.5bn off the VF Valuation

By Kirk Boodry

  • Just as the December quarter was flattered by the last minute IPO of SenseTime Group (20 HK), expiration of the lockup six months later has delivered a corresonding valuation hit
  • Vision Fund is still up on that investment but the public portfolio is flirting with a $10bn loss for the quarter depending on how US shares trade later
  • The discount has improved modestly to 49% from 51% but remains at the high end of the recent range as worries on tech valuations cast a long shadow 

JPX-Nikkei 400 2022 Rebal: Final Predictions

By Janaghan Jeyakumar, CFA

  • JPX-Nikkei 400 is composed of stocks listed on the Tokyo Stock Exchange selected based on multiple metrics relating to size, liquidity, financial performance, and corporate governance.
  • The annual rebalance of the JPX-Nikkei 400 Index takes place in August every year and the cut-off date for the data used for this rebalance is the end of June.
  • In this insight, we take a look at Quiddity’s final predictions for Potential ADDs/DELs for the August 2022 review.

USDJPY Disconnect

By Shyam Devani

  • The slip in US yields has lead the US_Japan yield spread to move lower thereby putting USDJPY out of line with it
  • The danger is that once month end is over, USDJPY may “catch up” by trending down in the short term
  • In addition we see price action developments on USDJPY itself that reflects weakness in the uptrend

The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step

By Aki Matsumoto

  • I would like to discuss the Nikkei article, “Japanese asset management companies have decided to steer against a proposal to elect directors for companies that do not have female directors.
  • The reason why major Japanese investment managers have been reluctant to take action on diversity and governance is likely due to the sales policies of their parent companies,
  • Companies with higher percentage of women directors the boards have higher stock prices. I would like to encourage both investment managers and companies to accelerate their efforts in the future.

Ryohin Keikaku (7453) | Oops Something Went Wrong

By Mark Chadwick

  • Ryohin Keikaku (Muji) slashed its earnings guidance for FY8/22 by 32%
  • The retailer is facing a number of headwinds, only some of which are industry wide
  • We remain bearish as Muji lacks the pricing power to push through higher input costs

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