Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

Nec Networks & System Integr / Equity Bottom-Up

<ul><li>Orders increased by 9.0% YoY, with DX Solutions up 20.8% YoY, Network Solutions down 2.9% YoY, and Environmental & Social Solutions up 0.1% YoY.</li><li>Revenue rose 10.9% YoY, with DX Solutions up 11.3% YoY, Network Solutions down 8.8% YoY, and Environmental & Social Solutions up 9.5% YoY.</li><li>Operating profit increased 25.8% YoY, with DX Solutions up 7.5% YoY, Network Solutions up 9.7% YoY, and Social & Environmental Solutions up 39.0% YoY.</li></ul>

Orders increased by 9.0% YoY, with DX Solutions up 20.8% YoY, Network Solutions down 2.9% YoY, and Environmental & Social Solutions up 0.1% YoY.Revenue rose 10.9% YoY, with DX Solutions up 11.3% YoY, Network Solutions down 8.8% YoY, and Environmental & Social Solutions up 9.5% YoY.Operating profit increased 25.8% YoY, with DX Solutions up 7.5% YoY, Network Solutions up 9.7% YoY, and Social & Environmental Solutions up 39.0% YoY.

Nec Networks & System Integr (1973 JP): 1H FY03/25 flash update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Nec Networks & System Integr / Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/nec-corp" target="_blank" data-smartkarma-citation="entities:17084:1" rel="noopener">NEC Corp (6701 JP)</a> announced a long-expected and "arbitraged" takeover of <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a> after the latter reported a delay in earnings and great numbers.</li>
<li>The premium is a bit light, and the internal mechanics to NEC are highly favourable. This was always going to happen this way. It's a pity it took so long.</li>
<li>This gets done easily as active foreign owners, arbs, and crossholders will sell into it, and only 15.3% is needed to get this over the hump.</li>
</ul>


Today, NEC Corp (6701 JP) announced a long-expected and "arbitraged" takeover of Nec Networks &amp; System Integr (1973 JP) after the latter reported a delay in earnings and great numbers.
The premium is a bit light, and the internal mechanics to NEC are highly favourable. This was always going to happen this way. It's a pity it took so long.
This gets done easily as active foreign owners, arbs, and crossholders will sell into it, and only 15.3% is needed to get this over the hump.


NEC Parent Tender Offer for NEC Network & SysInt (1973 JP) - Long Expected, Low Premium (¥3250)

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nec-corp" target="_blank" data-smartkarma-citation="entities:17084:1" rel="noopener">NEC Corp (6701 JP)</a> at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).</li>
<li>The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. </li>
<li>While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. </li>
</ul>



Nec Networks &amp; System Integr (1973 JP) has recommended a tender offer from NEC Corp (6701 JP) at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).
The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. 
While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. 


NESIC (1973 JP): NEC (6701 JP)’s JPY3,250 Tender Offer

<ul><li>Q1 progress rates versus full-year forecast: 25.7% for orders, 21.7% for revenue, 8.2% for operating profit, 8.4% for net income.</li><li>Orders: JPY97.5bn (+1.0% YoY); Revenue: JPY79.1bn (+10.4% YoY); Operating profit: JPY2.4bn (+113.2% YoY); Net income: JPY1.5bn (+734.1% YoY).</li><li>Segment performance: DX Solutions orders +18.6% YoY, Network Solutions orders -3.3% YoY, Environmental & Social Solutions orders -11.9% YoY.</li></ul>

Q1 progress rates versus full-year forecast: 25.7% for orders, 21.7% for revenue, 8.2% for operating profit, 8.4% for net income.Orders: JPY97.5bn (+1.0% YoY); Revenue: JPY79.1bn (+10.4% YoY); Operating profit: JPY2.4bn (+113.2% YoY); Net income: JPY1.5bn (+734.1% YoY).Segment performance: DX Solutions orders +18.6% YoY, Network Solutions orders -3.3% YoY, Environmental & Social Solutions orders -11.9% YoY.

Nec Networks & System Integr (1973 JP): Q1 FY03/25 flash update

Haitong Securities Co Ltd (H) / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/beijing-capital-grand-ltd" target="_blank" data-smartkarma-citation="entities:18241:1" rel="noopener">Beijing Capital Grand (1329 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>, <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>, <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a>. 
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/platinum-asset-management" target="_blank" data-smartkarma-citation="entities:914:1" rel="noopener">Platinum Asset Management (PTM AU)</a>, <a href="https://www.smartkarma.com/entities/silverlake-axis-ltd" target="_blank" data-smartkarma-citation="entities:14150:1" rel="noopener">Silverlake Axis (SILV SP)</a>, <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a>, <a href="https://www.smartkarma.com/entities/t-gaia-corp" target="_blank" data-smartkarma-citation="entities:8339:1" rel="noopener">T Gaia Corp (3738 JP)</a>, <a href="https://www.smartkarma.com/entities/elematec-corp" target="_blank" data-smartkarma-citation="entities:2866:1" rel="noopener">Elematec Corp (2715 JP)</a>. </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Seven &amp; I Holdings (3382 JP), Beijing Capital Grand (1329 HK), Shanghai Henlius Biotech (2696 HK), Canvest Environmental Protection Group (1381 HK), Greatview Aseptic Packaging (468 HK). 

Lowest spreads: Platinum Asset Management (PTM AU), Silverlake Axis (SILV SP), Nec Networks &amp; System Integr (1973 JP), T Gaia Corp (3738 JP), Elematec Corp (2715 JP). 


Merger Arb Mondays (04 Nov) - Haitong, Canvest, Capital Grand, Capitol, Fuji Soft, NESIC, Elematec

Japan

NEC Networks & System Integration Corporation designs, constructs, and maintains communication systems.  The Company's services include system integration services for digital switching, local area network (LAN), and mobile communication systems.  NEC Networks & System Integration also constructs information infrastructure and intelligent building facilities.

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Nec Networks & System Integr (1973 JP)