Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

NTT (Nippon Telegraph & Telephone) / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> and <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> this morning announced a 1pm joint presser. Imaginations ran wild and NTT went up 12+%.</li>
<li>The reality is more subdued (as it should have been for a during-market-hours-presser) and it involves a restructuring of a small NTT subsidiary which happens to own NTT Data shares.</li>
<li>But it is still positive. It is something of a win-win for both parties.</li>
</ul>



NTT (Nippon Telegraph &amp; Telephone) (9432 JP) and NTT Data Corp (9613 JP) this morning announced a 1pm joint presser. Imaginations ran wild and NTT went up 12+%.
The reality is more subdued (as it should have been for a during-market-hours-presser) and it involves a restructuring of a small NTT subsidiary which happens to own NTT Data shares.
But it is still positive. It is something of a win-win for both parties.


NTT and NTT Data Reshuffle the Deckchairs and Everyone "Wins"

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

<ul>
<li>NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data</li>
<li>The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data</li>
<li>Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11</li>
</ul>


NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data
The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data
Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11


NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sky-perfect-jsat-holdings" target="_blank" data-smartkarma-citation="entities:14097:1" rel="noopener">Sky Perfect Jsat (9412 JP)</a> posted Q4 results and guidance that are ahead of expectations for profitability</li>
<li>The company has unveiled plan to re-leverage and invest more, starting with its recently announced JV with NTT , underscoring its confidence in the potential of the space business</li>
<li>The plan also includes a c. 60% increase in shareholder returns over the next five years, likely through the flexible application of share buybacks</li>
</ul>



Sky Perfect Jsat (9412 JP) posted Q4 results and guidance that are ahead of expectations for profitability
The company has unveiled plan to re-leverage and invest more, starting with its recently announced JV with NTT , underscoring its confidence in the potential of the space business
The plan also includes a c. 60% increase in shareholder returns over the next five years, likely through the flexible application of share buybacks


Sky Perfect JSAT (Buy) - Q4 21 Results Reaction: A Huge Declaration of Confidence

<ul>
<li>There are two days to go until the TOPIX April-end rebalance. </li>
<li>On an average-weighted, sector-neutral basis, the "announcement to event" trade is -0.3% from 7 April to 25 April. The rest of the buy vs sell basket is doing worse.</li>
<li>There should be ¥740bn-ish to buy and sell (each) on Wednesday at the close. If you have trades to execute in Japan, the attached spreadsheet shows where there is opportunity.</li>
</ul>


There are two days to go until the TOPIX April-end rebalance. 
On an average-weighted, sector-neutral basis, the "announcement to event" trade is -0.3% from 7 April to 25 April. The rest of the buy vs sell basket is doing worse.
There should be ¥740bn-ish to buy and sell (each) on Wednesday at the close. If you have trades to execute in Japan, the attached spreadsheet shows where there is opportunity.


<ul>
<li>The April-June TSE FFW Methodology Revision moves favour certain sectors over others. There is nearly ¥500bn of telecom stocks to buy with 60+% of that in four names.</li>
<li>Other factors may support some of the names as well. </li>
<li>There is enough excess buying to warrant trading tilts and keeping fundamental positions even as forward earnings multiples have expanded to multi-year highs.</li>
</ul>


The April-June TSE FFW Methodology Revision moves favour certain sectors over others. There is nearly ¥500bn of telecom stocks to buy with 60+% of that in four names.
Other factors may support some of the names as well. 
There is enough excess buying to warrant trading tilts and keeping fundamental positions even as forward earnings multiples have expanded to multi-year highs.


Strong Telecom Flows in TOPIX FFW Transition Months

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

NTT (Nippon Telegraph & Telephone) (9432 JP)

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NTT (Nippon Telegraph & Telephone) (9432 JP)

NTT and NTT Data Reshuffle the Deckchairs and Everyone "Wins"

NTT and NTT Data Reshuffle the Deckchairs and Everyone Wins. There is likely to be some accounting magic here which could drive BOTH companies'...

Travis Lundy

NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

NTT Data jumped as much as 17% on reports of a joint NTT press conference only to give it all back. NTT isn't buying Data minorities but efforts to...

Kirk Boodry

Sky Perfect JSAT (Buy) - Q4 21 Results Reaction: A Huge Declaration of Confidence

This was a good report with a financial beat and an aggressive investment plan that underscores its confidence in the space segment. A JV with NTT...

Kirk Boodry

TOPIX April Rebalance - Two Days To Go

The TOPIX April-June rebalance for FFW review and Liquidity Factor adjustment sees its first tranche of trades executed Wednesday at the close.

Travis Lundy

Strong Telecom Flows in TOPIX FFW Transition Months

The Telecom Sector is the biggest sector beneficiary of TOPIX FFW flows over the next few months. Still bullish NTT vs the others near-term. All...

Travis Lundy

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