Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today, the day before the previously extended <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> Partial Tender Offer for <a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One Inc (2412 JP)</a> was due to expire, M3 extended it another 20 days.</li>
<li>
<a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a> several days ago extended their expected start date by weeks - from mid-January to early February. </li>
<li>The wording in the new <a href="https://corporate.m3.com/assets.ctfassets.net/1pwj74siywcy/4uecKStlttjhRmZYyPSB6C/944bc5119e67c0b1780c24aac8936476/Public_E_20240116.pdf" target="_blank" rel="noopener">document</a> from M3 is curious. It bears examination. As does the strategy positioning and choice of each of the participants. </li>
</ul>


Today, the day before the previously extended M3 Inc (2413 JP) Partial Tender Offer for Benefit One Inc (2412 JP) was due to expire, M3 extended it another 20 days.

Dai Ichi Life Insurance (8750 JP) several days ago extended their expected start date by weeks - from mid-January to early February. 
The wording in the new document from M3 is curious. It bears examination. As does the strategy positioning and choice of each of the participants. 


<ul>
<li>Today post-close, life insurer <a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life Insurance (8750 JP)</a> announced plans to launch a Tender Offer to buy out all minorities in <a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One Inc (2412 JP)</a> at ¥1,800/share. </li>
<li>M3's Partial (55%) Tender at ¥1,600/share ending next week is obviously a question. </li>
<li>This is GREAT news for M&amp;A in Japan. It's good for holders of Benefit One and <a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a> too.</li>
</ul>


Today post-close, life insurer Dai Ichi Life Insurance (8750 JP) announced plans to launch a Tender Offer to buy out all minorities in Benefit One Inc (2412 JP) at ¥1,800/share. 
M3's Partial (55%) Tender at ¥1,600/share ending next week is obviously a question. 
This is GREAT news for M&amp;A in Japan. It's good for holders of Benefit One and Pasona Group (2168 JP) too.


Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

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.

Equity Bottom-Up

<ul>
<li>In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.</li>
<li>Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. </li>
<li>On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.</li>
</ul>


In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.
Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. 
On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.


A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Cummin's earnings +8.9% a good read for DC related power plays.</li>
<li>Weakness for Nintendo on an earnings miss could be a good chance to buy ahead of new Switch announcement.</li>
<li>JMDC sets a good tone for medical data related plays including M3 and Medley.</li>
</ul>


Cummin's earnings +8.9% a good read for DC related power plays.
Weakness for Nintendo on an earnings miss could be a good chance to buy ahead of new Switch announcement.
JMDC sets a good tone for medical data related plays including M3 and Medley.


Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

<ul>
<li>Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.</li>
<li>Good set of numbers for Advantest should buck this trend, although upside may be capped.</li>
<li>Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?</li>
</ul>


Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.
Good set of numbers for Advantest should buck this trend, although upside may be capped.
Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?


Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

Japan

M3, Inc. supplies medical information services for doctors through the Internet. The Company also supports marketing of pharmaceutical companies and medical equipment manufacturers.

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M3 Inc (2413 JP)

Benefit One (2412): The Plot Thickens

Dai-Ichi Life extended its "expected Tender launch" by a couple of weeks about 5 days ago. That went past M3's TOB end. BenefitOne asked them to...

Travis Lundy

Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

Dai Ichi Life launches a last-minute overbid for all of Benefit One (2412), gazumping the M3 deal. This puts Benefit One's Board in a quandary. But...

Travis Lundy

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

We take a look back at our conviction calls from 2020 and 2021 to assess performance and put the strong start to our 2022 names in context.

Mio Kato

Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Andrew Jackson

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Benefit One (2412): The Plot Thickens

Dai-Ichi Life extended its "expected Tender launch" by a couple of weeks about 5 days ago. That went past M3's TOB end. BenefitOne asked them to...

Travis Lundy

Dai-Ichi Life (8750) Proposes a Full Takeover of Benefit One (2412), Overbidding M3

Dai Ichi Life launches a last-minute overbid for all of Benefit One (2412), gazumping the M3 deal. This puts Benefit One's Board in a quandary. But...

Travis Lundy

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

We take a look back at our conviction calls from 2020 and 2021 to assess performance and put the strong start to our 2022 names in context.

Mio Kato

Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

​Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Andrew Jackson

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

​Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...