Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Dai Nippon Printing / Equity Capital Markets

<ul>
<li>Today after the close <a href="https://www.smartkarma.com/entities/dai-nippon-printing-co-ltd" target="_blank" data-smartkarma-citation="entities:19388:1" rel="noopener">Dai Nippon Printing (7912 JP)</a> announced 16 corporate and financial entities would be selling cross-held shares in a ~US$240mm equity offering.</li>
<li>The stock has gotten shellacked (relatively speaking given structurally low volatility) since three weeks ago. There's a reason for that. But it makes it cheaper. </li>
<li>This offering is only 10% of the cross-held total. There's more to come. But there is more outbound cross-holding to sell too. There's value here.</li>
</ul>


Today after the close Dai Nippon Printing (7912 JP) announced 16 corporate and financial entities would be selling cross-held shares in a ~US$240mm equity offering.
The stock has gotten shellacked (relatively speaking given structurally low volatility) since three weeks ago. There's a reason for that. But it makes it cheaper. 
This offering is only 10% of the cross-held total. There's more to come. But there is more outbound cross-holding to sell too. There's value here.


Dai-Nippon Printing (7912) - The First Equity Offering by Cross-Holders - Small And Lots More To Go

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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.

<ul>
<li>A group of shareholders are looking to raise US$214m from selling their respective stakes in <a href="https://www.smartkarma.com/entities/dai-nippon-printing-co-ltd" target="_blank" data-smartkarma-citation="entities:19388:1" rel="noopener">Dai Nippon Printing (7912 JP)</a>.</li>
<li>While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>


A group of shareholders are looking to raise US$214m from selling their respective stakes in Dai Nippon Printing (7912 JP).
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.


Dai Nippon Placement - Share Buyback Should Aid Deal Performance

Event-Driven

<ul>
<li>At end-January 2023 it became clear activist Elliott Management had set its sights on <a href="https://www.smartkarma.com/entities/dai-nippon-printing-co-ltd" target="_blank" data-smartkarma-citation="entities:19388:1" rel="noopener">Dai Nippon Printing (7912 JP)</a>. The stock popped and people got bullish.</li>
<li>I warned about the "complicated" nature of gains going forward <a href="https://www.smartkarma.com/insights/dai-nippon-printing-7912-activism-results-going-forward-are-complicated" target="_blank" rel="noopener">here</a>. Three weeks later they announced details of including ¥100bn of buybacks per year for 3yrs. That's discussed <a href="https://www.smartkarma.com/insights/dai-nippon-printing-7912-whoop-there-it-is-100bn-buyback-in-a-year-300bn-in-3yrs" target="_blank" rel="noopener">here</a>.</li>
<li>I rarely write bearishly about a huge buyback program but from next day open, over 1yr, total return has been 4.9%. Stage 2 starts 11 March with ¥50bn through end-Sep24. </li>
</ul>


At end-January 2023 it became clear activist Elliott Management had set its sights on Dai Nippon Printing (7912 JP). The stock popped and people got bullish.
I warned about the "complicated" nature of gains going forward here. Three weeks later they announced details of including ¥100bn of buybacks per year for 3yrs. That's discussed here.
I rarely write bearishly about a huge buyback program but from next day open, over 1yr, total return has been 4.9%. Stage 2 starts 11 March with ¥50bn through end-Sep24. 


Dai-Nippon Printing (7912) - Whoomp There It Is! Part Deux

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Dai Nippon Printing is a 150-year-old Japanese industrial conglomerate with a focus on niche growth businesses and a history of cross-shareholding sales and share repurchases</li><li>The company has a dominant position in its highest earning segments and is undervalued at 5-6x forward P/E, potentially offering significant upside in the future</li><li>Originally founded as Shueisha in 1876, DNP has evolved from a printing company to a diversified business with a strong emphasis on research and development.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Dai Nippon Printing is a 150-year-old Japanese industrial conglomerate with a focus on niche growth businesses and a history of cross-shareholding sales and share repurchasesThe company has a dominant position in its highest earning segments and is undervalued at 5-6x forward P/E, potentially offering significant upside in the futureOriginally founded as Shueisha in 1876, DNP has evolved from a printing company to a diversified business with a strong emphasis on research and development.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Dai Nippon Printing (7912) - Friday, Apr 26, 2024

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Dai Nippon Printing’s announcement that it would double its RoE target in its next MTP was a pleasant surprise. </li>
<li>Together with saucy hints that future buybacks could be the biggest in its history this has propelled the stock to a post-2007 high. </li>
<li>We think Elliott has found an easy win here and consider this likely to end as a standout success for activism in Japan.</li>
</ul>


Dai Nippon Printing’s announcement that it would double its RoE target in its next MTP was a pleasant surprise. 
Together with saucy hints that future buybacks could be the biggest in its history this has propelled the stock to a post-2007 high. 
We think Elliott has found an easy win here and consider this likely to end as a standout success for activism in Japan.


Dai Nippon Printing – Activism On Easy Street

Japan

DAI NIPPON PRINTING CO., LTD. offers printing services for commercial and industrial use.  The printing items include information media such as books, periodicals, and text books, wrapping paper and containers, stationeries, and advertising medium.  The Company provides design and production services as well.  Dai Nippon Printing also produces soft drinks including Coca Cola.

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Dai Nippon Printing (7912 JP)

Dai-Nippon Printing (7912) - The First Equity Offering by Cross-Holders - Small And Lots More To Go

Dai Nippon Printing shares fell recently when Elliott fell out of the top 10 shareholders. Now there is a small secondary offset by a buyback. It's...

Travis Lundy

Dai-Nippon Printing (7912) - Whoomp There It Is! Part Deux

A year ago, DNP promised ¥300bn of buybacks over 3yrs. They did ¥100bn in 1yr. Now they've announced ¥50bn for the next 6mos. But there is a lot of...

Travis Lundy

Dai Nippon Printing (7912) - Friday, Apr 26, 2024

Dai Nippon Printing is a 150-year-old Japanese industrial conglomerate with a focus on niche growth businesses and a history of cross-shareholding...

Value Investors Club

Dai Nippon Printing – Activism On Easy Street

Elliott's investment in Dai Nippon Printing looks to us like an excellent selection for its high probability of success and the trade is already...

Mio Kato

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dai-Nippon Printing (7912) - The First Equity Offering by Cross-Holders - Small And Lots More To Go

Dai Nippon Printing shares fell recently when Elliott fell out of the top 10 shareholders. Now there is a small secondary offset by a buyback. It's...

Travis Lundy

Dai Nippon Placement - Share Buyback Should Aid Deal Performance

A group of shareholders are looking to raise US$214m from selling their stakes in Dai Nippon Printing. In this note, we will talk about the...

Clarence Chu

Dai-Nippon Printing (7912) - Whoomp There It Is! Part Deux

A year ago, DNP promised ¥300bn of buybacks over 3yrs. They did ¥100bn in 1yr. Now they've announced ¥50bn for the next 6mos. But there is a lot of...

Travis Lundy

Dai Nippon Printing (7912) - Friday, Apr 26, 2024

Dai Nippon Printing is a 150-year-old Japanese industrial conglomerate with a focus on niche growth businesses and a history of cross-shareholding...

Value Investors Club

Dai Nippon Printing – Activism On Easy Street

Elliott's investment in Dai Nippon Printing looks to us like an excellent selection for its high probability of success and the trade is already...

Mio Kato