YB new stock pitches (Wed, Apr 22)

VBNK (new position): Canadian digital bank at 1x BV, 9x P/E transitioning to U.S. entity. RPP model (point-of-sale loan cash flows) scales zero-loss funding into 30x larger U.S. market at +150bps NIM vs Canada. Real Bank Tokenized Deposits (RBTD) pilot launching 2026 w/ regulatory tailwinds (GENIUS/CLARITY Acts). Conservative case: $13B RPP assets by 2031 = 30-60% earnings yield. Bull case: $100B+ RBTD deposits = 50x+ upside. DRT Cyber sale adds C$1-1.60/share. Founder-CEO owns 5%, 30yr track record, zero credit losses. U.S. expansion costs rolling off, index inclusion catalyst. Illiquidity discount from 40% concentrated ownership reversing. Base case 5x/35% IRR over 5yrs on RPP alone; RBTD optionality free.

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Art Vivant (TYO: 7523), a Japanese company selling limited-edition art prints and anime-style works through traveling exhibitions, trades at ¥1,480 (market cap ¥13.3 billion) below the failed ¥1,670 MBO price, representing an adjusted net-net at ¥1,708/share (NCAV plus investments of ¥15.55 billion) and roughly 11x FY25 P/E with a 4% dividend yield. The company controls the full value chain from artist sourcing to after-sales service, operates a smaller hot yoga business, and runs a profitable finance arm for installment payments. Q3 operating profit of ¥2.55 billion already exceeds full-year guidance of ¥2.1 billion, with Q3 marking the highest quarterly operating profit in at least 25 years of data, though management maintains guidance expecting Q4 expenses and adjustments. Founder Katsumi Nozawa's ¥1,670/share takeover bid launched August 29, 2025 failed after activist Hiroyuki Maki (CEO of Buffalo Inc., which appreciated 400% over two years under his shareholder-friendly policies including buybacks and dividends) disclosed a 33.97% stake on October 24, 2025 and refused to tender; Maki has since aggressively purchased shares in the open market—even above ¥2,100 in November 2025—building a 40.13% position at approximately ¥1,677 average cost with stated purpose evolving from 'friendly shareholder' to 'acquire management control and participate in management' by December 11, 2025. Artist Mago Nagasaka disclosed a 7.16% stake on March 30, 2026 after purchasing a 2.73% block at ¥1,680 (12% premium to market), bringing combined holdings of founder (36%), activist (40%), and artist (7%) to roughly 83%, creating a very tight float. The investor has taken a 2x average basket-sized long position, betting that either the company remains listed with improving fundamentals (supported by anime culture tailwinds) reflected in the share price while collecting 4% dividends, or gets taken private above the ¥1,670 tender price, though a take-under remains possible.

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Unitika Ltd (TYO: 3103) is a Japanese glass fiber and polymer supplier specializing in ultra-thin, low-CTE (coefficient of thermal expansion) glass fabrics essential for AI semiconductor packaging substrates and PCBs, which prevent warping in large AI dies—a problem traditional E-glass or organic substrates cannot solve at scale. The company has developed the world's thinnest glass fabrics and holds process integration IP with qualification lock-in advantages versus scale leader Nittobo and new entrants like Asahi Kasei and Taiwanese competitors. Supply remains tight through 2027 according to TrendForce and Digitimes, with Nittobo booked through end-2026 and new capacity from its Nan Ya partnership not online until H2 2027 at earliest, creating sustained pricing power for qualified suppliers like Unitika. Q3 FY2026 results showed sales of ¥95.6 billion (+2.2% YoY) and operating profit of ¥9.0 billion (doubled YoY) driven by vigorous AI-related demand for ultra-thin Low-CTE and E-glass fabrics, with FY2026 guidance of ¥110 billion sales and ¥9.5 billion profit. The company plans to establish mass-production technologies for AI semiconductor package substrates in FY2025 with full-scale sales from FY2026, benefiting from multi-year AI tailwinds as hyperscaler spending sustains orders into 2027. Unitika has completed REVIC-backed restructuring including debt relief and divestments, which amplifies margin tailwinds from AI-driven volume and pricing despite portfolio contraction. Catalysts include May 14 FY2026 results and pricing/qualification wins, while risks include small scale limiting market impact, execution risk, cyclical electronics exposure, potential new-entrant supply relief by late 2027, and lack of pure-play AI exposure.

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