Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

O Ta Precision Industry Co / Equity Bottom-Up

<ul>
<li>O Ta Precision Industry is a company based in Taiwan that mainly makes golf clubs for global golf equipment branded companies including Titleist, PXG, Mizuno, and Honma.</li>
<li>O-Ta Precision's dividend yield averaged 9.2% annually from 2019 to 2022. Its annual dividend payout averaged 68.5% in the same period.</li>
<li>We like the company's strong niche in the golf club OEM/ODM business with excellent list of customers with its its historically high dividend payout ratio and dividend yields. </li>
</ul>


O Ta Precision Industry is a company based in Taiwan that mainly makes golf clubs for global golf equipment branded companies including Titleist, PXG, Mizuno, and Honma.
O-Ta Precision's dividend yield averaged 9.2% annually from 2019 to 2022. Its annual dividend payout averaged 68.5% in the same period.
We like the company's strong niche in the golf club OEM/ODM business with excellent list of customers with its its historically high dividend payout ratio and dividend yields. 


Asian Dividend Gems: O-Ta Precision Industry

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>Back on the 25 June, outdoor leisure products manufacturer <a href="https://www.smartkarma.com/entities/bestway-global-holding-inc" target="_blank" data-smartkarma-citation="entities:26012:1" rel="noopener">Bestway Global Holding (3358 HK)</a> received a privatization <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0625/2021062502329.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme from founder/chairman/CEO Zhu Qiang. Zhu controls 54.3% of Bestway via Great Success Enterprises Holdings Limited (the Offeror), and offered HK$4.38/share (in cash), a 27% premium to last close. The Offer Price would not be increased. Any dividend declared and paid from hereon would be netted from the Offer price.</p>
</div>
<div>
<p>Together with concert parties, Zhu controls 77.81% of shares out, therefore disinterested shareholders hold 22.19%. The headcount test applies as Bestway is Cayman-incorporated.</p>
</div>
<div>
<p>This looked done.</p>
<p>The Scheme Doc was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0822/2021082200115.pdf" target="_blank" rel="noopener">dispatched</a> last night - one day ahead of my earlier estimate. Court Meeting will be held on the 15 September with expected payment on or before the 19 October. </p>
<p>Expect the spread to narrow in this morning - say $4.25-4.30 - although this is not a particularly liquid arb situation. The IFA also says the Offer is fair. </p>
</div>


Back on the 25 June, outdoor leisure products manufacturer Bestway Global Holding (3358 HK) received a privatization Offer by way of a Scheme from founder/chairman/CEO Zhu Qiang. Zhu controls 54.3% of Bestway via Great Success Enterprises Holdings Limited (the Offeror), and offered HK$4.38/share (in cash), a 27% premium to last close. The Offer Price would not be increased. Any dividend declared and paid from hereon would be netted from the Offer price.


Together with concert parties, Zhu controls 77.81% of shares out, therefore disinterested shareholders hold 22.19%. The headcount test applies as Bestway is Cayman-incorporated.


This looked done.
The Scheme Doc was dispatched last night - one day ahead of my earlier estimate. Court Meeting will be held on the 15 September with expected payment on or before the 19 October. 
Expect the spread to narrow in this morning - say $4.25-4.30 - although this is not a particularly liquid arb situation. The IFA also says the Offer is fair. 


Bestway Global (3358 HK): Scheme Doc Out. Court Meeting On Sept 15th

<div>
<p>Outdoor leisure products manufacturer <a href="https://www.smartkarma.com/entities/bestway-global-holding-inc" target="_blank" data-smartkarma-citation="entities:26012:1" rel="noopener">Bestway Global Holding (3358 HK)</a> has received a privatization <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0625/2021062502329.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme from founder/chairman/CEO Zhu Qiang.</p>
<p>Zhu, who directly controls 54.3% in Bestway via Great Success Enterprises Holdings Limited (the Offeror), is offering HK$4.38/share (in cash), a 27% premium to last close. The Offer Price will not be increased. Any dividend declared and paid from hereon will be netted from the Offer price.</p>
<p>Zhu plus concert parties control 77.81% of shares out, implying disinterested shareholders hold 22.19%. Therefore the blocking stake at the forthcoming Scheme Meeting is 2.219% or 23.49mn shares.</p>
<p>The headcount test applies as Bestway is Cayman incorporated.</p>
<div>
<p>This looks done.</p>
<p>More below the fold.</p>
</div>
</div>


Outdoor leisure products manufacturer Bestway Global Holding (3358 HK) has received a privatization Offer by way of a Scheme from founder/chairman/CEO Zhu Qiang.
Zhu, who directly controls 54.3% in Bestway via Great Success Enterprises Holdings Limited (the Offeror), is offering HK$4.38/share (in cash), a 27% premium to last close. The Offer Price will not be increased. Any dividend declared and paid from hereon will be netted from the Offer price.
Zhu plus concert parties control 77.81% of shares out, implying disinterested shareholders hold 22.19%. Therefore the blocking stake at the forthcoming Scheme Meeting is 2.219% or 23.49mn shares.
The headcount test applies as Bestway is Cayman incorporated.

This looks done.
More below the fold.



Bestway Global (3358 HK): Scheme Proposal From Founder

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

<p>The risk of a correction due to a “second wave” of infections has given way to optimism over increased monetary and fiscal stimulus and a potential COVID-19 steroid treatment. For now we view recent weakness as a countertrend move that helped correct the overbought conditions we noted last week. As long as the S&amp;P 500 is above the 2940-2980 support zone we remain bullish and view this as a buyable pullback. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary and Technology.</p>

The risk of a correction due to a “second wave” of infections has given way to optimism over increased monetary and fiscal stimulus and a potential COVID-19 steroid treatment. For now we view recent weakness as a countertrend move that helped correct the overbought conditions we noted last week. As long as the S&amp;P 500 is above the 2940-2980 support zone we remain bullish and view this as a buyable pullback. In today’s report we highlight attractive Groups and stocks within Consumer Discretionary and Technology.

U.S. Equity Strategy: Signs Point To Healthy Pullback Opportunity

<p>The S&amp;P 500 is holding above 3000 and the 200-day MA breakout level. As long as the S&amp;P 500 is above this support level it tells us the bulls are in control. If there is a break below 3000, the next support levels to watch would be 2980 followed by the much bigger 2934.49 (the 61.8% Fib retracement) support level. Similarly, breakouts in the Dow Jones Industrials, small-caps (Russell 2000), mid-caps (Russell Mid Cap, S&amp;P 400), and the MSCI ACWI have held strong and all of these indexes show RS improvement. This is bullish as it indicates improving breadth.</p><p>In today’s report we highlight attractive Groups and stocks within Consumer Discretionary: Sporting Goods/Leisure Products, Casinos &amp; Gaming, Small-Cap, Retailers, Discount/Variety, and Retailers, Sporting Goods.</p>

The S&amp;P 500 is holding above 3000 and the 200-day MA breakout level. As long as the S&amp;P 500 is above this support level it tells us the bulls are in control. If there is a break below 3000, the next support levels to watch would be 2980 followed by the much bigger 2934.49 (the 61.8% Fib retracement) support level. Similarly, breakouts in the Dow Jones Industrials, small-caps (Russell 2000), mid-caps (Russell Mid Cap, S&amp;P 400), and the MSCI ACWI have held strong and all of these indexes show RS improvement. This is bullish as it indicates improving breadth.In today’s report we highlight attractive Groups and stocks within Consumer Discretionary: Sporting Goods/Leisure Products, Casinos &amp; Gaming, Small-Cap, Retailers, Discount/Variety, and Retailers, Sporting Goods.

U.S. Equity Strategy: Bulls Remain In Control

United States

Vista Outdoor Inc. designs, manufactures, and markets consumer products in the outdoor sports and recreation market . The Company has spun-off of Alliant Techsystems Inc.. Vista Outdoor Inc. operates in the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Vista Outdoor (VSTO US)

Asian Dividend Gems: O-Ta Precision Industry

Taiwanese company O-Ta Precision Industry specializes in manufacturing golf clubs for major global brands, with a strong track record of high...

Douglas Kim

Bestway Global (3358 HK): Scheme Doc Out. Court Meeting On Sept 15th

Pitched at the IPO Price, this looks done. Buy within the $4.25-4.30 band. However, this is not a super liquid arb situation.

David Blennerhassett

Bestway Global (3358 HK): Scheme Proposal From Founder

This transaction looks done. I'd buy up to ~$4.20/share, or a 4.3%/12.0% gross/annualised spread, assuming completion early November.

David Blennerhassett

U.S. Equity Strategy: Signs Point To Healthy Pullback Opportunity

The risk of a correction due to a “second wave” of infections has given way to optimism over increased monetary and fiscal stimulus and a potential...

Vermilion Research

U.S. Equity Strategy: Bulls Remain In Control

The S&P 500 is holding above 3000 and the 200-day MA breakout level. As long as the S&P 500 is above this support level it tells us the...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asian Dividend Gems: O-Ta Precision Industry

​Taiwanese company O-Ta Precision Industry specializes in manufacturing golf clubs for major global brands, with a strong track record of high...

Douglas Kim

Bestway Global (3358 HK): Scheme Doc Out. Court Meeting On Sept 15th

Pitched at the IPO Price, this looks done. Buy within the $4.25-4.30 band. However, this is not a super liquid arb situation.

David Blennerhassett

Bestway Global (3358 HK): Scheme Proposal From Founder

This transaction looks done. I'd buy up to ~$4.20/share, or a 4.3%/12.0% gross/annualised spread, assuming completion early November.

David Blennerhassett

U.S. Equity Strategy: Signs Point To Healthy Pullback Opportunity

The risk of a correction due to a “second wave” of infections has given way to optimism over increased monetary and fiscal stimulus and a potential...

Vermilion Research

U.S. Equity Strategy: Bulls Remain In Control

The S&P 500 is holding above 3000 and the 200-day MA breakout level. As long as the S&P 500 is above this support level it tells us the...

Vermilion Research

Taiwanese company O-Ta Precision Industry specializes in manufacturing golf clubs for major global brands, with a strong track record of high...