Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Renesas Electronics / Equity Capital Markets

<ul>
<li>Today after the close, <a href="https://www.smartkarma.com/entities/mitsubishi-electric-corp" target="_blank" data-smartkarma-citation="entities:11171:1" rel="noopener">Mitsubishi Electric (6503 JP)</a> announced the sale of its position in <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a>. That's 50,706,800 shares.  </li>
<li>This is the third large block in four months (Renesas in November for 223mm shares, NEC and Hitachi in January 2024 for 123mm shares).</li>
<li>This is smaller, and reasonably well-flagged. Index demand is longer-dated.</li>
</ul>


Today after the close, Mitsubishi Electric (6503 JP) announced the sale of its position in Renesas Electronics (6723 JP). That's 50,706,800 shares.  
This is the third large block in four months (Renesas in November for 223mm shares, NEC and Hitachi in January 2024 for 123mm shares).
This is smaller, and reasonably well-flagged. Index demand is longer-dated.


Renesas (6723) - YET ANOTHER Clean-Up Block Trade - This Time Mitsubishi Elec

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Since early November 2023 we have been expecting global equities (MSCI ACWI) to stage a year-end rally that would continue into the early part of 2024.</li>
<li>As we progress through the “early part” of 2024, more global indexes and Sectors are breaking out and starting to participate in the upside. This is classic bull market behavior.</li>
<li>Our outlook remains bullish; continue to ride this trend higher, and treat pullbacks as buying opportunities. Actionable Themes: Hong Kong/China, Consumer Discretionary, Industrials, Energy/Coal, and Polish Banks</li>
</ul>


Since early November 2023 we have been expecting global equities (MSCI ACWI) to stage a year-end rally that would continue into the early part of 2024.
As we progress through the “early part” of 2024, more global indexes and Sectors are breaking out and starting to participate in the upside. This is classic bull market behavior.
Our outlook remains bullish; continue to ride this trend higher, and treat pullbacks as buying opportunities. Actionable Themes: Hong Kong/China, Consumer Discretionary, Industrials, Energy/Coal, and Polish Banks


Hong Kong/China Finally Bottoming?; Bullish Outlook Intact; DXY Rolling Over; Buys in Discretionary

<ul>
<li>Last November saw the clean-up trade of INCJ getting out of <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a>. That was 180+mm shares, well over-subscribed.  </li>
<li>Today we have news Hitachi and NEC are getting out of their stakes. That's 123mm shares in an Accelerated Block Offering of about US$2bn. I expect it will go well.</li>
<li>Recent gains in semiconductor stocks globally make this larger discount attractive. I expect a little heaviness but not much. There are index repercussions for international indices.</li>
</ul>


Last November saw the clean-up trade of INCJ getting out of Renesas Electronics (6723 JP). That was 180+mm shares, well over-subscribed.  
Today we have news Hitachi and NEC are getting out of their stakes. That's 123mm shares in an Accelerated Block Offering of about US$2bn. I expect it will go well.
Recent gains in semiconductor stocks globally make this larger discount attractive. I expect a little heaviness but not much. There are index repercussions for international indices.


Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Overseas: SPX +0.7%, Nasdaq +1.1%; Microsoft +2% after OpenAi drama; Nvidia +2%</li>
<li>Today: NKY Futs 0% v cash. JPY 148.4/$; Nikkei Hits 33-Year High Amid Foreign Investment Surge</li>
<li>JapanX: Mitsubishi Electric and Nexperia partner for SiC power semiconductors; SiC tech fuels global green transformation.</li>
</ul>


Overseas: SPX +0.7%, Nasdaq +1.1%; Microsoft +2% after OpenAi drama; Nvidia +2%
Today: NKY Futs 0% v cash. JPY 148.4/$; Nikkei Hits 33-Year High Amid Foreign Investment Surge
JapanX: Mitsubishi Electric and Nexperia partner for SiC power semiconductors; SiC tech fuels global green transformation.


Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>Yesterday about 5 minutes before the close, <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a> went into kehai, rising 8.6%, then falling back to end + 3% on the day. </li>
<li>This morning, the stock opened down 2%, rose 4%, fell 4%, then rose 4%. All in the first 45 minutes. Then it fell back 4% and ended down 2% today.</li>
<li>The proximate cause of all of this was a <a href="https://www.reuters.com/markets/deals/mitsubishi-corp-considering-bid-fujitsus-chip-unit-shinko-electric-sources-2023-10-17/" target="_blank" rel="noopener">Reuters article</a> out 5mins before the close yesterday suggesting <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)</a> is considering bidding for Shinko Electric.</li>
</ul>


Yesterday about 5 minutes before the close, Shinko Electric Industries (6967 JP) went into kehai, rising 8.6%, then falling back to end + 3% on the day. 
This morning, the stock opened down 2%, rose 4%, fell 4%, then rose 4%. All in the first 45 minutes. Then it fell back 4% and ended down 2% today.
The proximate cause of all of this was a Reuters article out 5mins before the close yesterday suggesting Mitsubishi Corp (8058 JP) is considering bidding for Shinko Electric.


Shinko Electric (6967) Update - MitCorp In The Mix?

Japan

NIDEC CORPORATION is the world's leading manufacturer of small precision motors mainly used in HDD and optical disk drives. The company has extended its focus to the home appliance and automotive markets. NIDEC is active in M&A and its subsidiaries include the world's leading manufacturers of LCD panel handling robots and camera shutters.

Nidec Corporation operates as a world's leading manufacturer of motors. The Company produces small precision motors, automotive motors, home appliance motors, commercial and industrial motors, machinery motors, electronic and optical components, and other related products. Nidec supplies its products in home appliances, automotive markets, and other fields.

Fujikura Ltd. manufactures and sells wires and cables such as optical fiber cables and coaxial cables. The Company's products include optical transmission system, electronic materials, and telecommunication cables.

FUJI ELECTRIC CO.,LTD manufactures electric machinery and electronic devices. The Company's products include automatic vending machines, factory automation equipment, and power supplies, as well as information and electronic components such as power semiconductors and integrated circuits (ICs).

Furukawa Electric Co., Ltd. manufactures wires, cables, and metal products. The Company holds patents in optical fiber coating technology and produces optical fiber cables in the United States.  Furukawa Electric's metal products include aluminum cans, air conditioner parts, and shape memory alloys.

USHIO INC. manufactures lamps and optical equipment including projectors for movie theaters.  The Company produces halogen and Houdentou lamps for semiconductor and office automation equipment.  Ushio has subsidiaries in the US, Canada, Germany, Hong Kong, Netherlands, Singapore, South Korea, and Taiwan.

GS Yuasa Corporation is a holding company established through the merger of Yuasa Corp. and Japan Storage Battery Co., Ltd.  The Company manages financial operations for its subsidiaries, which manufactures storage batteries used for automobiles, motorcycles, computers, and lighting equipment.

MABUCHI MOTOR CO., LTD. manufactures and markets small digital camera motors. The Company markets its products to a wide range of users, from audio-visual makers, automobile parts makers, consumer electronics makers, office automation equipment makers, precision machine makers to radio controlled-model cars and video game makers.  Mabuchi's products are produced primarily in China.

DAIHEN Corporation manufactures and repairs a diverse line of transformers, power distribution equipment, welding machines, industrial robots, and semiconductor manufacturing equipment.  The Company also produces other energyrelated equipment such as generators and power monitoring and control systems.

TOYO TANSO CO., LTD. mainly manufactures carbon and graphite products for industrial use.  The Company's main products include isotropic graphite, carbon products for mechanical and electrical applications.

Bharat Heavy Electricals Limited manufactures power plant equipment. The Company's products include gas turbines, generators, thermal sets, diesel shunters, turbo sets, hydro sets, power transformers, switch gears, circuit breakers and boilers. The Company also manufactures compressors, valves, rectifiers, pumps, capacitors, oil rigs, as well as castings and forgings.

Sungrow Power Supply Company Limited develops, produces, sells and provides services for solar PV inverters, wind power converters and other power supply. The Company also provides system solutions to renewable energy industry users.

NARI Technology Co., Ltd. develops, manufactures and sells automation products for electricity distribution, converting stations, coal-fired power plants, and industrial process. The Company also provides services and system integration.

CG Power and Industrial Solutions Limited manufactures, distributes, installs and services electrical and allied equipment. The Company offers transformers, reactors, switchgear control equipment and accessories, industrial motors, pumps, and communication systems. CG Power and Industrial Solutions serves customers globally. 

Hubbell Incorporated manufactures electrical and electronic products for commercial, industrial, utility, and telecommunications markets.  The Company's products include plugs, receptacles, connectors, lighting fixtures, high voltage test and measurement equipment, and voice and data signal processing components. Hubbell operates in the United States and overseas.

ABB India Limited undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. The Company undertakes projects in the field of energy production, power transmission, transportation, process automation and pollution control. ABB India's products include pollution control equipment, switch gears and high current rectifiers.

Enphase Energy Inc. manufactures solar power solutions. The Company offers solutions to increase productivity and reliability of solar modules.

Havells India Limited manufactures electrical products. The Company's products include building circuit protection equipment, industrial switchgears, energy meters, cables & wires, modular switches, fans and lighting products.

Luxshare Precision Industry Co., Ltd. researches, manufactures and sells connectors. The Company's products are widely used in computers, communication devices, consumer electronics products and automobiles.

AMETEK, Inc. is a global manufacturer of electronic instruments and electromechanical devices. The Company manufactures advanced instruments for process, aerospace, power and industrial markets and is a supplier of electrical interconnects, specialty metals, technical motors and systems, and floor care and specialty motors.

Mitsubishi Electric Corporation develops, manufactures, and markets electronic equipment.  The Company's products include industrial machinery, heavy electric machinery, data communications systems, electronic devices, and consumer electronics.

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Mitsubishi Electric (6503 JP)

Renesas (6723) - YET ANOTHER Clean-Up Block Trade - This Time Mitsubishi Elec

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Vermilion Research

Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Travis Lundy

Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Mark Chadwick

Shinko Electric (6967) Update - MitCorp In The Mix?

Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Renesas (6723) - YET ANOTHER Clean-Up Block Trade - This Time Mitsubishi Elec

Mitsubishi Electric is selling down their stake in Renesas. That is another 2.8% after nearly 7% sold in Jan24 and 12.4% by INCJ in Nov23. Should...

Travis Lundy

Hong Kong/China Finally Bottoming?; Bullish Outlook Intact; DXY Rolling Over; Buys in Discretionary

Hong Kong/China Finally Bottoming?; Bullish Overall Outlook Intact; $DXY Rolling Over; Actionable Themes: Hong Kong/China, Consumer Discretionary,...

Vermilion Research

Renesas (6723 JP) ANOTHER Clean-Up Block Trade as Hitachi/NEC Exit

​Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Travis Lundy

Ohayo Japan | Microsoft Hits All-Time High; Mitsubishi Elec Partners on SiC Chips

​Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Mark Chadwick

Shinko Electric (6967) Update - MitCorp In The Mix?

​Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...

Travis Lundy

Hitachi and NEC are selling their stakes in Renesas Electronics, with an expected value of $2bn, benefiting from the recent surge in semiconductor...

Global stock markets rise, led by Nasdaq and SPX; Microsoft and Nvidia gain after OpenAi controversy; Nikkei reaches a 33-year high due to...

Shinko Electric Industries' stock experienced significant fluctuations after reports emerged that Mitsubishi Corp is considering a bid for the...