Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note, we will talk about the positive and negative aspects of the deal</li>
</ul>


Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note, we will talk about the positive and negative aspects of the deal


Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

Senior Bank Analyst - Japanese Banks, Windamee Research

J. Brian Waterhouse

Senior Bank Analyst - Japanese Banks

Windamee Research

Japanese Banks

Equity Bottom-Up

Mitsubishi UFJ Financial (MUFG) / Equity Bottom-Up

<ul>
<li>Interim results for <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a> were little short of stellar: 92% of full-year guidance achieved in 1H FY3/2022.</li>
<li>NP rose ¥380.6 billion to ¥781.4 billion (+95.0% YoY) due to a ¥17.9 billion writeback, equity-related gains of ¥126.0 billion and ¥65.1 billion from investments, primarily <a href="https://www.smartkarma.com/entities/morgan-stanley" target="_blank" data-smartkarma-citation="entities:1122:1" rel="noopener">Morgan Stanley (MS US)</a>.</li>
<li>MUFG has raised its dividend to ¥28/share, raised full-year guidance by ¥200 billion to ¥1.050 trillion, announced a ¥150 billion buyback and the cancellation this month of 300 million shares.</li>
</ul>


Interim results for Mitsubishi UFJ Financial (MUFG) (8306 JP) were little short of stellar: 92% of full-year guidance achieved in 1H FY3/2022.
NP rose ¥380.6 billion to ¥781.4 billion (+95.0% YoY) due to a ¥17.9 billion writeback, equity-related gains of ¥126.0 billion and ¥65.1 billion from investments, primarily Morgan Stanley (MS US).
MUFG has raised its dividend to ¥28/share, raised full-year guidance by ¥200 billion to ¥1.050 trillion, announced a ¥150 billion buyback and the cancellation this month of 300 million shares.


Mizuho Financial Group / Equity Bottom-Up

<ul>
<li>1H FY3/2022 consolidated net profits of ¥385.65 billion were not only +78.9% YoY but were also the highest 1st half consolidated net profits produced by the group in 7 years.</li>
<li>Key drivers of the much-improved results included better net interest and fee income, lower GAE expenses and much-reduced credit costs.</li>
<li>MHFG trails all six of its peers in terms of YoY price performance; MHFG remains mired in computer systems-related issues that do nothing to enhance its reputation for operational reliability.</li>
</ul>


1H FY3/2022 consolidated net profits of ¥385.65 billion were not only +78.9% YoY but were also the highest 1st half consolidated net profits produced by the group in 7 years.
Key drivers of the much-improved results included better net interest and fee income, lower GAE expenses and much-reduced credit costs.
MHFG trails all six of its peers in terms of YoY price performance; MHFG remains mired in computer systems-related issues that do nothing to enhance its reputation for operational reliability.


Mizuho Financial Group (8411 JP):  Defying the Skeptics

Sumitomo Mitsui Financial Group / Equity Bottom-Up

<ul>
<li>Interim FY3/2022 results for SMFG (8316 JP) were good, with improvement in core earnings in both 1Q and 2Q, together with a sharp reduction in credit costs, driving the results.</li>
<li>Consolidated net profits of ¥456.06 billion were not only up +68.8% over 1H FY3/2021 but represented 76% of SMFG’s original full-year guidance.</li>
<li>FY guidance is raised from ¥600 billion to ¥670 billion.  The dividend has been raised from ¥190ps to ¥210ps.  SMFG has announced a ¥100bn share buyback.</li>
</ul>


Interim FY3/2022 results for SMFG (8316 JP) were good, with improvement in core earnings in both 1Q and 2Q, together with a sharp reduction in credit costs, driving the results.
Consolidated net profits of ¥456.06 billion were not only up +68.8% over 1H FY3/2021 but represented 76% of SMFG’s original full-year guidance.
FY guidance is raised from ¥600 billion to ¥670 billion.  The dividend has been raised from ¥190ps to ¥210ps.  SMFG has announced a ¥100bn share buyback.


The last day of September.  The end of the first half of the financial year.  A particularly busy day for bankers, with a surge in banking transactions as customers close out the half-year.  The FSA breathing down your neck for the multiple systems failures you have already had this year.  The last thing you need on this day is another systems failure.  But that is exactly what happened yesterday afternoon.  That makes eight straight systems failures since February 2021 for Mizuho Bank and the embattled management team of <a href="https://www.smartkarma.com/entities/mizuho-financial-group-inc" target="_blank" data-smartkarma-citation="entities:219:1" rel="noopener">Mizuho Financial Group (8411 JP)</a>, the latest mishap coming only one week after the FSA issued a Business Correction Order to the bank and the holding company in respect of the previous systems failures.  Mizuho’s reputation with the financial authorities will not have been enhanced by this latest revelation.Caveat Emptor! (May the Buyer Beware!) remains our advice to would-be investors in this enormous but problematic banking group.

The last day of September.  The end of the first half of the financial year.  A particularly busy day for bankers, with a surge in banking transactions as customers close out the half-year.  The FSA breathing down your neck for the multiple systems failures you have already had this year.  The last thing you need on this day is another systems failure.  But that is exactly what happened yesterday afternoon.  That makes eight straight systems failures since February 2021 for Mizuho Bank and the embattled management team of Mizuho Financial Group (8411 JP), the latest mishap coming only one week after the FSA issued a Business Correction Order to the bank and the holding company in respect of the previous systems failures.  Mizuho’s reputation with the financial authorities will not have been enhanced by this latest revelation.Caveat Emptor! (May the Buyer Beware!) remains our advice to would-be investors in this enormous but problematic banking group.

Mizuho Financial Group (8411 JP):  Straight Eight

Japan

Sumitomo Mitsui Financial Group, Inc. manages financial operations for its subsidiaries. The Company provides commercial banking and a variety of financial services.

Sumitomo Mitsui Financial Group (8316 JP)

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Sumitomo Mitsui Financial Group (8316 JP)

Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares...

Sumeet Singh

MUFG (8306 JP): MUFG Way To Go

MUFG has raised its dividend to ¥28/share, raised full-year guidance by ¥200 billion to ¥1.050 trillion, announced a ¥150 billion buyback and the...

J. Brian Waterhouse

Mizuho Financial Group (8411 JP): Defying the Skeptics

1H FY3/2022 consolidated NP of ¥385.65 billion were not only an improvement of +78.9% YoY but were also the highest 1st half consolidated NP...

J. Brian Waterhouse

SMFG (8316 JP): Disciplined Numbers

Interim FY3/2022 results for SMFG (8316 JP) were good, with improvement in core earnings in both 1Q and 2Q, together with a sharp reduction in...

J. Brian Waterhouse

Mizuho Financial Group (8411 JP): Straight Eight

With the FSA breathing down Mizuho's neck for the multiple systems failures already this year, the last thing the bank needed was another one. But...

J. Brian Waterhouse

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52-week Range

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