IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287:1" rel="noopener">ASICS Corp (7936 JP)</a> has announced a secondary offering of up to 85.0 million shares (including overallotment). At the close, the offer, including overallotment, is worth JPY218 billion (US$1.4 billion).</li>
<li>Asics' goal with the secondary offering is to eliminate cross-shareholdings. Asics also announced a material upgrade to full-year forecasts to offset the impact of the offering.</li>
<li>Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 23 and 26 July (likely 23 July).</li>
</ul>



ASICS Corp (7936 JP) has announced a secondary offering of up to 85.0 million shares (including overallotment). At the close, the offer, including overallotment, is worth JPY218 billion (US$1.4 billion).
Asics' goal with the secondary offering is to eliminate cross-shareholdings. Asics also announced a material upgrade to full-year forecasts to offset the impact of the offering.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 23 and 26 July (likely 23 July).


ASICS (7936 JP): A US$1.4 Billion Secondary Offering

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>ASICS is revising up its full year forecasts, now expecting sales to reach a record ¥660 billion , up 15.7% year-over-year. There is a strong currency tail wind. </li>
<li>Still "you gotta be in it to win it.."  ASICS is currently crushing it, while Nike flounders</li>
<li>A large secondary offering will likely hit the share price in the short term; there are two key risks...but it could be a good opportunity to buy. </li>
</ul>


ASICS is revising up its full year forecasts, now expecting sales to reach a record ¥660 billion , up 15.7% year-over-year. There is a strong currency tail wind. 
Still "you gotta be in it to win it.."  ASICS is currently crushing it, while Nike flounders
A large secondary offering will likely hit the share price in the short term; there are two key risks...but it could be a good opportunity to buy. 


ASICS (7936) | Obadele Thompson or Usain Bolt?

<ul>
<li>Asics has demonstrated impressive growth in gross profit margins, as evidenced by 4.3ppt YoY improvement in Q1 to 54.5%</li>
<li>Asics has been successful in growing market share and enhancing its brand strength</li>
<li>For FY2024, we now forecast a 10% YoY increase in sales to ¥628 billion and a 46% rise in OP to ¥79 billion (prev: ¥ 71b)</li>
</ul>


Asics has demonstrated impressive growth in gross profit margins, as evidenced by 4.3ppt YoY improvement in Q1 to 54.5%
Asics has been successful in growing market share and enhancing its brand strength
For FY2024, we now forecast a 10% YoY increase in sales to ¥628 billion and a 46% rise in OP to ¥79 billion (prev: ¥ 71b)


<ul>
<li>On's quarterly results disappoint, triggering a 10% stock drop. Meanwhile, ASICS’ share price is up 43% YTD despite modest performance.</li>
<li>ASICS shareholders advised to consider profit-taking as stock outpaces fundamentals, faces competition from resurging Nike and fast-growing On</li>
<li>On's ambitious growth projections threaten ASICS' market position, with potential market share parity within three years</li>
</ul>


On's quarterly results disappoint, triggering a 10% stock drop. Meanwhile, ASICS’ share price is up 43% YTD despite modest performance.
ASICS shareholders advised to consider profit-taking as stock outpaces fundamentals, faces competition from resurging Nike and fast-growing On
On's ambitious growth projections threaten ASICS' market position, with potential market share parity within three years


<ul>
<li>Asics absolutely smashed the last MTP; this year they have a more measured approach</li>
<li>Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price</li>
<li>Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers</li>
</ul>


Asics absolutely smashed the last MTP; this year they have a more measured approach
Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price
Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers


Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

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ASICS Corp (7936 JP)

ASICS (7936 JP): A US$1.4 Billion Secondary Offering

Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 23 and...

Arun George

ASICS (7936) | Obadele Thompson or Usain Bolt?

ASICS raises sales forecast to record levels, outperforming Nike. Potential share price drop from secondary offering presents buying opportunity.

Mark Chadwick

Asics (7936) | Raising the Bar

Asics shows strong growth in profit margins, market share, and brand strength, with forecasted sales and operating profit increases for FY2024.

Mark Chadwick

Asics (7936) | Pumping the Brakes

On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Mark Chadwick

Asics (7936) | Slow Out of the Blocks

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ASICS (7936 JP): A US$1.4 Billion Secondary Offering

Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 23 and...

Arun George

ASICS (7936) | Obadele Thompson or Usain Bolt?

​ASICS raises sales forecast to record levels, outperforming Nike. Potential share price drop from secondary offering presents buying opportunity.

Mark Chadwick

Asics (7936) | Raising the Bar

​Asics shows strong growth in profit margins, market share, and brand strength, with forecasted sales and operating profit increases for FY2024.

Mark Chadwick

Asics (7936) | Pumping the Brakes

​On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Mark Chadwick

Asics (7936) | Slow Out of the Blocks

​Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

ASICS raises sales forecast to record levels, outperforming Nike. Potential share price drop from secondary offering presents buying opportunity.

Asics shows strong growth in profit margins, market share, and brand strength, with forecasted sales and operating profit increases for FY2024.

On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...