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.

Equity Capital Markets

<ul>
<li>Since the announcement of the placement, <a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten (4755 JP)</a>’s shares are down -15.7% from the undisturbed price of JPY707 per share (12 May prior to press reports of the placement).</li>
<li>To understand how the shares will trade as the offer is launched, we think it is instructive to look at recent large Japanese placements. Pricing date is likely 24 May.</li>
<li>So far, Rakuten’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.</li>
</ul>


Since the announcement of the placement, Rakuten (4755 JP)’s shares are down -15.7% from the undisturbed price of JPY707 per share (12 May prior to press reports of the placement).
To understand how the shares will trade as the offer is launched, we think it is instructive to look at recent large Japanese placements. Pricing date is likely 24 May.
So far, Rakuten’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese placements tend to secure positive returns.


Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  SPX Caps another winning week - now 4/5 for the year;  Blow out Jobs report but Wages slowing - Goldilocks ? Powell speaks this week as DIS, UBER report.</li>
<li>JAPAN.  NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor;  Inbound resurgence reflecting in skyrocketing hotel rates;  Earnings this week - Watch Softbank</li>
<li>DAILY NUGGETS. NO ROCKING OF THE BOAT - BOJ Deputy Amamiya is set to take the mantle of leadership at the BOJ.</li>
</ul>


OVERSEAS.  SPX Caps another winning week - now 4/5 for the year;  Blow out Jobs report but Wages slowing - Goldilocks ? Powell speaks this week as DIS, UBER report.
JAPAN.  NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor;  Inbound resurgence reflecting in skyrocketing hotel rates;  Earnings this week - Watch Softbank
DAILY NUGGETS. NO ROCKING OF THE BOAT - BOJ Deputy Amamiya is set to take the mantle of leadership at the BOJ.


Good Morning Japan |4 /5 as SPX Weekly Wins Continue;Blow Out NFP Report ! BoJ's Amamiya "THE ONE" ?

<ul>
<li>OVERSEAS: SPX +0.4%DoD +2.7%WoW; Semi run continues with SOX +0.4%DoD +6.2%WoW; Beta and Growth the big WoW winners;  Fed's Bostic leans to 25bp hike; Tesla cuts prices</li>
<li>JAPAN:  NKY Futs -1.3% vs Cash;  JGB 10Yr Yld hits 0.512% despite BOJ 10trn yen buying; USDJPY up to127.87;  DECARBONIZATION: Resonac (Showa Denko) expansion; Toray  expansion; METI CCS roadmap</li>
<li>DAILY NUGGET: Slowing EV sales in China ? Maybe, but its still the largest EV market in the world. We see Nidec as the best way to play.</li>
</ul>


OVERSEAS: SPX +0.4%DoD +2.7%WoW; Semi run continues with SOX +0.4%DoD +6.2%WoW; Beta and Growth the big WoW winners;  Fed's Bostic leans to 25bp hike; Tesla cuts prices
JAPAN:  NKY Futs -1.3% vs Cash;  JGB 10Yr Yld hits 0.512% despite BOJ 10trn yen buying; USDJPY up to127.87;  DECARBONIZATION: Resonac (Showa Denko) expansion; Toray  expansion; METI CCS roadmap
DAILY NUGGET: Slowing EV sales in China ? Maybe, but its still the largest EV market in the world. We see Nidec as the best way to play.


Good Morning Japan |Fed 1 Inflation 0, Fed Wins; Equity Bid Continues; Telsa Cuts Px; BOJ in Focus

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As designed, the JPX-Nikkei400 Index is something of a disaster. It aims to be slightly 'smart' vs other cap-weighted indices like TOPIX, but tracking error vs TOPIX is de minimus.</li>
<li>This year, in week 1, the ADD vs DELETE performance is positive. If we sector-hedge the ADDs vs DELETEs, it's doing even better.</li>
<li>This is probably due to relatively low pre-positioning, and cares. Momentum suggests one could be long ADDs vs DELETEs. And there is the perennial trade to watch out for.</li>
</ul>


As designed, the JPX-Nikkei400 Index is something of a disaster. It aims to be slightly 'smart' vs other cap-weighted indices like TOPIX, but tracking error vs TOPIX is de minimus.
This year, in week 1, the ADD vs DELETE performance is positive. If we sector-hedge the ADDs vs DELETEs, it's doing even better.
This is probably due to relatively low pre-positioning, and cares. Momentum suggests one could be long ADDs vs DELETEs. And there is the perennial trade to watch out for.


2022 JPX Nikkei 400 Rebal Update - Going the Right Way

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.</li>
<li>A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.</li>
<li>Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2022 based on trading data as of end-March 2022.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2022 based on trading data as of end-March 2022.


JPX-Nikkei 400 Rebalance 2022: Leaderboard End-Mar 2022

Japan

Resonac Holdings Corporation manufactures and distributes chemical products. The Company produces synthetic resins, petrochemical products, inorganics, and other related products. Resonac Holdings also produces ceramics, metals, carbon, electronic materials, and other products.

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Resonac Holdings (4004 JP)

Rakuten (4755 JP): The Current Playbook

So far, Rakuten’s shares have mostly followed the pattern of previous large placements. Investors participating in previous large Japanese...

Arun George

Good Morning Japan |4 /5 as SPX Weekly Wins Continue;Blow Out NFP Report ! BoJ's Amamiya "THE ONE" ?

NKY Futs +0.4% vs Cash; Yen weakens to 132 handle as Amimiya forerunner for BOJ Governor; Inbound resurgence reflecting in skyrocketing hotel...

Mark Chadwick

Good Morning Japan |Fed 1 Inflation 0, Fed Wins; Equity Bid Continues; Telsa Cuts Px; BOJ in Focus

Fed 1 Inflation 0, Fed Wins; Equity Bid Continues; Telsa Cuts Px (positive Panasonic); BOJ in Focus. Expect the BOJ to lift JGB buying and do what...

Mark Chadwick

2022 JPX Nikkei 400 Rebal Update - Going the Right Way

JPX Nikkei 400 rebalance is going the right way in the 6 trading days so far, and it wasn't done on Day1 (which was lacklustre). It may be under...

Travis Lundy

JPX-Nikkei 400 Rebalance 2022: Leaderboard End-Mar 2022

A look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2022 based on trading data as of end-March 2022.

Janaghan Jeyakumar, CFA

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52-week Range

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