Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

EXEDY Corporation manufactures drivetrain products for automobiles, industrial vehicles, and construction machinery.  The Company's products include manual clutches, torque converters, power shift transmissions, and hydraulic clutches. Exedy has its subsidiaries in South Korea, Australia, the US and the UK.

<ul>
<li>I wrote last when Exedy was at ¥3,900 and had just announced, good earnings, a sharp div hike, and a huge buyback. The stock reacted well, but not THAT well.</li>
<li>Murakami-San had indeed lifted his stake, and the stock is now climbing again. Presumably, the company is in the market buying. At this price, it depends on what Murakami-san does.</li>
<li>Fat div. Lots of volume to buy in the next several months, but the big story is future measures.</li>
</ul>


I wrote last when Exedy was at ¥3,900 and had just announced, good earnings, a sharp div hike, and a huge buyback. The stock reacted well, but not THAT well.
Murakami-San had indeed lifted his stake, and the stock is now climbing again. Presumably, the company is in the market buying. At this price, it depends on what Murakami-san does.
Fat div. Lots of volume to buy in the next several months, but the big story is future measures.


[JAPAN ACTIVISM] Exedy (7278) - Immediate Results Reaction Was a Damp Squib, But Climbing Now

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

SANTEN PHARMACEUTICAL CO., LTD. produces and sells ophthalmic medicine.  The Company manufactures a variety of products including eye drops and ointments. Santen Pharmaceutical also imports lenses and tools and equipment used by optometrists and produces anti-rheumatic drugs.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/santen-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:8602:1" rel="noopener">Santen Pharmaceutical (4536 JP)</a> witnessed flat revenues while core operating profit and net profit declined in H1FY25. Overseas business grew 6% YoY and remained the main driver.</li>
<li>Santen reiterated FY25 guidance as overseas markets are performing well, reviewed impact of generics in Japan, and continued progress in company-wide cost optimizations.</li>
<li>Santen signed collaboration agreement for ARVN001 suprachoroidal injectable suspension, a treatment for uveitic macular oedema, for exclusive commercialization rights in China, excluding Hong Kong, Macau, and Taiwan.</li>
</ul>



Santen Pharmaceutical (4536 JP) witnessed flat revenues while core operating profit and net profit declined in H1FY25. Overseas business grew 6% YoY and remained the main driver.
Santen reiterated FY25 guidance as overseas markets are performing well, reviewed impact of generics in Japan, and continued progress in company-wide cost optimizations.
Santen signed collaboration agreement for ARVN001 suprachoroidal injectable suspension, a treatment for uveitic macular oedema, for exclusive commercialization rights in China, excluding Hong Kong, Macau, and Taiwan.


Santen Pharmaceutical (4536 JP): Subdued H1 Performance; FY25 Guidance Reiterated; Robust Pipeline

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

IsuPetasys Co., Ltd. manufactures printed circuit boards (PCBs) specializing in high multilayer PCBs.  The Company exports its products to Cisco Systems, Brocade Communications Systems, and Sun Microsystems in the United States.

<ul>
<li>Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of outstanding shares).</li>
<li>About 55% of the capital raise proceeds will be used to acquire a 30.1% stake in <a href="https://www.smartkarma.com/entities/jeio-co-ltd" target="_blank" data-smartkarma-citation="entities:36398:1" rel="noopener">Jeio (418550 KS)</a>. Remaining 45% will be used to invest in Isupetays' core business. </li>
<li>Valuations on Isupetasys are not compelling. Isupetasys is also buying Jeio which has high P/E multiples, which could further result in capital outflow on Isupetasys among some value conscious investors.</li>
</ul>


Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of outstanding shares).
About 55% of the capital raise proceeds will be used to acquire a 30.1% stake in Jeio (418550 KS). Remaining 45% will be used to invest in Isupetays' core business. 
Valuations on Isupetasys are not compelling. Isupetasys is also buying Jeio which has high P/E multiples, which could further result in capital outflow on Isupetasys among some value conscious investors.


Isupetasys Announces a Rights Offering of 32% of Outstanding Shares and Acquisition of Jeio

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets

<ul>
<li>I initially skipped this rights issue due to the tight 15% discount and lack of hedge options, but today’s 20% drop opens up a potential angle worth exploring.</li>
<li>Today’s selloff stems from pushback on ISU Petasys entering the battery business, not just dilution concerns. This means there’s a high chance we’ll see a lot of leftover, unsold shares.</li>
<li>The strategy is to grab stock rights cheaply or go for the public offering. The main risk is whether the 15% spread holds until listing, but the case is strong.</li>
</ul>


I initially skipped this rights issue due to the tight 15% discount and lack of hedge options, but today’s 20% drop opens up a potential angle worth exploring.
Today’s selloff stems from pushback on ISU Petasys entering the battery business, not just dilution concerns. This means there’s a high chance we’ll see a lot of leftover, unsold shares.
The strategy is to grab stock rights cheaply or go for the public offering. The main risk is whether the 15% spread holds until listing, but the case is strong.


ISU Petasys Rights Issue: Today’s Wild Price Action Has Opened up a Fresh Trading Angle

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

<ul>
<li>With the FSS moving fast, Korea Zinc still has time to meet its target. The market started panicking this morning as it looks likely Choi will proceed.</li>
<li>An hour ago, word spread that some Korea Zinc board members were breaking with Choi, causing a stock rebound. Choi’s pushing the raise, but the board’s hesitating.</li>
<li>Choi and the board are set for a high-stakes debate this afternoon on the capital raise, aiming for a final decision by early next week.</li>
</ul>


With the FSS moving fast, Korea Zinc still has time to meet its target. The market started panicking this morning as it looks likely Choi will proceed.
An hour ago, word spread that some Korea Zinc board members were breaking with Choi, causing a stock rebound. Choi’s pushing the raise, but the board’s hesitating.
Choi and the board are set for a high-stakes debate this afternoon on the capital raise, aiming for a final decision by early next week.


The Latest Intel on Today’s Korea Zinc Rollercoaster