Category

Industrials

Oct 03
0

Daily Brief Industrials: Hyosung Heavy Industries Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

By Brian Freitas

  • 85% of the way through the review period, there could be 4 adds and 5 deletes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
  • The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.
  • The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 03
0

Daily Brief Industrials: Hyosung Heavy Industries Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

By Brian Freitas

  • 85% of the way through the review period, there could be 4 adds and 5 deletes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
  • The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.
  • The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 02
0

Daily Brief Industrials: Young Poong Precision, Namoi Cotton Co Operative, Tokyo Metro, Aica Kogyo, Nasdaq-100 Stock Index, KULR Technology Group , Daiseki Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Choi Family Launches a Counter Tender Offer for Young Poong Precision
  • Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow
  • Namoi Cotton (NAM AU): Well Played LDC
  • Tokyo Metro (9023 JP) IPO: Valuation Insights
  • Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings
  • Young Poong Precision (036560 KS): Choi’s Opening Salvo
  • Still No Decisive Breakout as SPX Tests 5783 Resistance; Ideal Time to Shift to Defensives
  • KULR Technology Group Inc.
  • KULR Technology Group Inc.
  • Daiseki Co Ltd (9793 JP): 1H FY02/25 flash update

Choi Family Launches a Counter Tender Offer for Young Poong Precision

By Douglas Kim

  • Choi family has launched a counter tender offer for Young Poong Precision at the tender offer price of 30,000 won (20% higher than MBK’s 25,000 won tender offer price). 
  • The tender offer involves a plan to acquire 3,837,500 shares (24.36% of outstanding shares) of Young Poong Precision.
  • All eyes are on the court’s decision on the injunction application for ‘prohibition of acquisition of treasury stocks by Korea Zinc’, which is expected to be announced on 2 October.

Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow

By Sanghyun Park

  • Choi aims to acquire 3.84 million shares (24.36%) of Young Poong Precision at ₩30,000 each, with a tender period from October 2 to November 1, managed by Hana Securities.
  • Seoul Economic Daily may not be as prominent, but they reliably scoop this type of news, making it likely Choi will announce their counter-tender for Young Poong Precision tomorrow.
  • MBK targets the full 49.14% stake, while the Choi family seeks about half, creating proration risk, which may still make MBK’s lower offer more appealing to shareholders.

Namoi Cotton (NAM AU): Well Played LDC

By David Blennerhassett

  • A$0.77/Share. That’s Louis Dreyfus Company (LDC)’s revised unconditional bid. Plus it now holds 47.66% after Samuel Terry Asset Management, Namoi’s largest shareholder, tendered into the revised term.
  • Expect Namoi Cotton Co Operative (NAM AU)‘s board to shortly back LDC’s Offer. LDC’s Offer is $0.02/share above Olam Agri’s conditional bid.
  • After LDC first approached Namoi in November last year, this is now done. Expect Olam to tender its stake, and fold its tent. 

Tokyo Metro (9023 JP) IPO: Valuation Insights

By Arun George

Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings

By Travis Lundy

  • On Monday, 30 September, shareholders of US$1.4bn market cap chemicals and housing materials supplier Aica Kogyo (4206 JP) announced a Secondary Share Sale. It’s small at 2% of market cap.
  • The Offering is 2.1mm shares including greenshoe. The company also raised its H1 dividend guidance slightly (¥53/share to ¥56/share) and announced a buyback which should cover 57% of the offering.
  • It’s a small deal. There are a lot more cross-holdings behind that but the company is cash-rich and the company is very cheap/underlevered on an LBO basis.

Young Poong Precision (036560 KS): Choi’s Opening Salvo

By David Blennerhassett

  • The Choi family have launched a Tender Offer to acquire 3.937mn shares (25%) of Young Poong Precision (036560 KS) (YPP) at ₩30,000/share,  20% above MBK/Young Poong (000670 KS)‘s revised terms.
  • YPP’s key attraction is its 1.85% stake in Korea Zinc (010130 KS), which is the ultimate prize in this tussle between the Choi and Jang families. 
  • Choi’s Offer runs from today (2nd October) to 21 October. There is no minimum acceptance threshold. If successful, the Choi’s stake increases to 60.45% from 35.45% currently.  

Still No Decisive Breakout as SPX Tests 5783 Resistance; Ideal Time to Shift to Defensives

By Joe Jasper

  • $SPX remains below 5783, the upper-end of important target/resistance area we’ve discussed for a month+ (5670-5783). 5670 was prior all-time high set in July, while 5783 is 2% above 5670.
  • It’s hard to call it a “decisive” breakout if SPX isn’t even 2% above its prior high.  In 2007, SPX made a top after climbing 1-2% above its prior high.
  • The 2007 topping analog has tracked the current market almost perfectly, with similar backdrops to today including new Fed cutting cycle, recession indicators going off, yield curve un-inverting, defensives outperforming

KULR Technology Group Inc.

By Zacks Small Cap Research

  • KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
  • Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
  • It is also applying its zero-vibration technology to fans in commercial markets which could be a large revenue opportunity.

KULR Technology Group Inc.

By Zacks Small Cap Research

  • KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
  • Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
  • It is also applying its zero-vibration technology to fans in commercial markets which could be a large revenue opportunity.

Daiseki Co Ltd (9793 JP): 1H FY02/25 flash update

By Shared Research

  • Consolidated 1H sales decreased by 8.3% YoY to JPY32.8bn, meeting the company’s target of JPY32.7bn.
  • Consolidated operating profit for 1H decreased by 5.5% YoY to JPY7.3bn, exceeding the target of JPY6.7bn.
  • Net income attributable to owners of the parent increased by 2.1% YoY to JPY4.9bn, surpassing company forecasts.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 02
0

Daily Brief Industrials: Young Poong Precision, Namoi Cotton Co Operative, Tokyo Metro, Aica Kogyo, Nasdaq-100 Stock Index, KULR Technology Group , Daiseki Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Choi Family Launches a Counter Tender Offer for Young Poong Precision
  • Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow
  • Namoi Cotton (NAM AU): Well Played LDC
  • Tokyo Metro (9023 JP) IPO: Valuation Insights
  • Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings
  • Young Poong Precision (036560 KS): Choi’s Opening Salvo
  • Still No Decisive Breakout as SPX Tests 5783 Resistance; Ideal Time to Shift to Defensives
  • KULR Technology Group Inc.
  • KULR Technology Group Inc.
  • Daiseki Co Ltd (9793 JP): 1H FY02/25 flash update

Choi Family Launches a Counter Tender Offer for Young Poong Precision

By Douglas Kim

  • Choi family has launched a counter tender offer for Young Poong Precision at the tender offer price of 30,000 won (20% higher than MBK’s 25,000 won tender offer price). 
  • The tender offer involves a plan to acquire 3,837,500 shares (24.36% of outstanding shares) of Young Poong Precision.
  • All eyes are on the court’s decision on the injunction application for ‘prohibition of acquisition of treasury stocks by Korea Zinc’, which is expected to be announced on 2 October.

Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow

By Sanghyun Park

  • Choi aims to acquire 3.84 million shares (24.36%) of Young Poong Precision at ₩30,000 each, with a tender period from October 2 to November 1, managed by Hana Securities.
  • Seoul Economic Daily may not be as prominent, but they reliably scoop this type of news, making it likely Choi will announce their counter-tender for Young Poong Precision tomorrow.
  • MBK targets the full 49.14% stake, while the Choi family seeks about half, creating proration risk, which may still make MBK’s lower offer more appealing to shareholders.

Namoi Cotton (NAM AU): Well Played LDC

By David Blennerhassett

  • A$0.77/Share. That’s Louis Dreyfus Company (LDC)’s revised unconditional bid. Plus it now holds 47.66% after Samuel Terry Asset Management, Namoi’s largest shareholder, tendered into the revised term.
  • Expect Namoi Cotton Co Operative (NAM AU)‘s board to shortly back LDC’s Offer. LDC’s Offer is $0.02/share above Olam Agri’s conditional bid.
  • After LDC first approached Namoi in November last year, this is now done. Expect Olam to tender its stake, and fold its tent. 

Tokyo Metro (9023 JP) IPO: Valuation Insights

By Arun George

Aica Kogyo (4206) – Small Offering Chips Away At Cross-Holdings

By Travis Lundy

  • On Monday, 30 September, shareholders of US$1.4bn market cap chemicals and housing materials supplier Aica Kogyo (4206 JP) announced a Secondary Share Sale. It’s small at 2% of market cap.
  • The Offering is 2.1mm shares including greenshoe. The company also raised its H1 dividend guidance slightly (¥53/share to ¥56/share) and announced a buyback which should cover 57% of the offering.
  • It’s a small deal. There are a lot more cross-holdings behind that but the company is cash-rich and the company is very cheap/underlevered on an LBO basis.

Young Poong Precision (036560 KS): Choi’s Opening Salvo

By David Blennerhassett

  • The Choi family have launched a Tender Offer to acquire 3.937mn shares (25%) of Young Poong Precision (036560 KS) (YPP) at ₩30,000/share,  20% above MBK/Young Poong (000670 KS)‘s revised terms.
  • YPP’s key attraction is its 1.85% stake in Korea Zinc (010130 KS), which is the ultimate prize in this tussle between the Choi and Jang families. 
  • Choi’s Offer runs from today (2nd October) to 21 October. There is no minimum acceptance threshold. If successful, the Choi’s stake increases to 60.45% from 35.45% currently.  

Still No Decisive Breakout as SPX Tests 5783 Resistance; Ideal Time to Shift to Defensives

By Joe Jasper

  • $SPX remains below 5783, the upper-end of important target/resistance area we’ve discussed for a month+ (5670-5783). 5670 was prior all-time high set in July, while 5783 is 2% above 5670.
  • It’s hard to call it a “decisive” breakout if SPX isn’t even 2% above its prior high.  In 2007, SPX made a top after climbing 1-2% above its prior high.
  • The 2007 topping analog has tracked the current market almost perfectly, with similar backdrops to today including new Fed cutting cycle, recession indicators going off, yield curve un-inverting, defensives outperforming

KULR Technology Group Inc.

By Zacks Small Cap Research

  • KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
  • Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
  • It is also applying its zero-vibration technology to fans in commercial markets which could be a large revenue opportunity.

KULR Technology Group Inc.

By Zacks Small Cap Research

  • KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
  • Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
  • It is also applying its zero-vibration technology to fans in commercial markets which could be a large revenue opportunity.

Daiseki Co Ltd (9793 JP): 1H FY02/25 flash update

By Shared Research

  • Consolidated 1H sales decreased by 8.3% YoY to JPY32.8bn, meeting the company’s target of JPY32.7bn.
  • Consolidated operating profit for 1H decreased by 5.5% YoY to JPY7.3bn, exceeding the target of JPY6.7bn.
  • Net income attributable to owners of the parent increased by 2.1% YoY to JPY4.9bn, surpassing company forecasts.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 01
0

Daily Brief Industrials: Ana Holdings, Shinsegae Eng & Construction, Doosan Robotics , Tokyo Metro, Sanwa Holdings, Credit Bureau Asia, ZTO Express Cayman , Plug Power Inc, Roper Technologies, ITT and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity JPX-Nikkei 400 Rebal 2025: End-Sep 2024 Ranks
  • Shinsegae E&C (034300 KS)’s Delisting Offer
  • End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024
  • Tokyo Metro IPO – Thoughts on Valuation
  • Sanwa Holdings (5929) | Revolving Door of Activist Influence
  • Give Credit Where Credit Is Due
  • Logistics Shift to Quality Amid Evolved Ecommerce Plans
  • Plug Power Inc.: Expanded Production Capacity and Green Hydrogen Plant Projects Drive Our Optimism! – Major Drivers
  • Roper Technologies Inc.: Enhanced Product Integration and SaaS Solutions Catalyzing Growth! – Major Drivers
  • ITT Inc.: Will The Acquisition of kSARIA Be A Game Changer? – Major Drivers

Quiddity JPX-Nikkei 400 Rebal 2025: End-Sep 2024 Ranks

By Janaghan Jeyakumar, CFA

  • 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 2025 based on trading data as of end-September 2024.

Shinsegae E&C (034300 KS)’s Delisting Offer

By David Blennerhassett

  • Construction services play Shinsegae E&C (034300 KS) has announced a Tender Offer from E Mart  (139480 KS) for 27.33% of shares out, at ₩18,300/share, a 14% premium to undisturbed.
  • E Mart holds 70.46% – and the company holds 2.21% in treasuries – therefore, E Mart  requires ~22% of the remaining ~27% held by minorities to tender and force delisting. 
  • Super clean deal.  E Mart will acquire all shares tendered. The Offer  kicks off today, and closes on the 29th October. There is no minimum tendering % condition.

End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024

By Douglas Kim

  • We discuss the end of the mandatory lock-up periods for 39 stocks in Korea in October 2024, among which four are in KOSPI and 35 are in KOSDAQ.
  • These 39 stocks on average could be subject to further selling pressures in October and could underperform relative to the market.
  • The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in October are Korea Zinc, Doosan Robotics, and Kolon TissueGene. 

Tokyo Metro IPO – Thoughts on Valuation

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about valuations.

Sanwa Holdings (5929) | Revolving Door of Activist Influence

By Mark Chadwick

  • ValueAct Capital took a significant 5.9% stake in Sanwa. Dalton Investments has also been a shareholder, but had most recently sold down to under 5% in June
  • Sanwa Holdings (5929 JP)  presents an attractive investment opportunity rooted in its strong global market position, undervalued stock price, and growth potential
  • We see 30% upside, based off historical revenue growth, 11% EBIT margins, and an exit multiple of 12.5x (global peers).

Give Credit Where Credit Is Due

By The Mikro Kap

  • The company is headquartered in Singapore and listed under the ticker $TCU.SI

  • As the name implies, CBA is a credit bureau business that operates across Asia.

  • It currently has operations in Singapore, Malaysia, Cambodia, and Myanmar, with plans to expand in China and Vietnam shortly.

Logistics Shift to Quality Amid Evolved Ecommerce Plans

By Robert McKay

  • Amid fierce low-price competition in 1H24, low-end couriers  benefited from merchant demand for cheap logistics. However, new platform policies suggest greater emphasis on quality logistics and O2O in 2H24;
  • The shift towards higher-end logistics is manifesting through O2O. Spearheaded by Meituan, O2O is an experiment to copy Coupang’s business model in China. We believe there is a sizable market;
  • We see ZTO as best positioned amid the changing environment, JDL least impacted, with J&T and SFE in the least favorable positions.

Plug Power Inc.: Expanded Production Capacity and Green Hydrogen Plant Projects Drive Our Optimism! – Major Drivers

By Baptista Research

  • Plug Power’s latest financial earnings for the second quarter of 2024 showcase a complex mix of achievements and ongoing challenges.
  • The company’s progress in the hydrogen economy reflects both substantial strategic advances and areas where market conditions have tempered growth expectations.
  • Positively, Plug Power has achieved significant milestones in scaling up its hydrogen production capabilities.

Roper Technologies Inc.: Enhanced Product Integration and SaaS Solutions Catalyzing Growth! – Major Drivers

By Baptista Research

  • Roper Technologies recently disclosed their financial performance for the second quarter of 2024, with the presentation focused on solid quarterly achievements and updating fiscal guidance.
  • The company, a diversified technology firm, visually demonstrated its continual growth and groundwork for future investments particularly simplifying operational processes and broadening its market presence through strategic acquisitions.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

ITT Inc.: Will The Acquisition of kSARIA Be A Game Changer? – Major Drivers

By Baptista Research

  • ITT’s 2024 second quarter earnings call reflected a robust period of growth and strategic positioning bolstered by significant commercial wins and streamlined operations.
  • The tone conveyed by CEO Luca Savi and CFO Emmanuel Caprais revealed a company making deliberate strides in expanding its market foothold, particularly within high-margin, high-growth sectors.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Oct 01
0

Daily Brief Industrials: Ana Holdings, Shinsegae Eng & Construction, Doosan Robotics , Tokyo Metro, Sanwa Holdings, Credit Bureau Asia, ZTO Express Cayman , Plug Power Inc, Roper Technologies, ITT and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity JPX-Nikkei 400 Rebal 2025: End-Sep 2024 Ranks
  • Shinsegae E&C (034300 KS)’s Delisting Offer
  • End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024
  • Tokyo Metro IPO – Thoughts on Valuation
  • Sanwa Holdings (5929) | Revolving Door of Activist Influence
  • Give Credit Where Credit Is Due
  • Logistics Shift to Quality Amid Evolved Ecommerce Plans
  • Plug Power Inc.: Expanded Production Capacity and Green Hydrogen Plant Projects Drive Our Optimism! – Major Drivers
  • Roper Technologies Inc.: Enhanced Product Integration and SaaS Solutions Catalyzing Growth! – Major Drivers
  • ITT Inc.: Will The Acquisition of kSARIA Be A Game Changer? – Major Drivers

Quiddity JPX-Nikkei 400 Rebal 2025: End-Sep 2024 Ranks

By Janaghan Jeyakumar, CFA

  • 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 2025 based on trading data as of end-September 2024.

Shinsegae E&C (034300 KS)’s Delisting Offer

By David Blennerhassett

  • Construction services play Shinsegae E&C (034300 KS) has announced a Tender Offer from E Mart  (139480 KS) for 27.33% of shares out, at ₩18,300/share, a 14% premium to undisturbed.
  • E Mart holds 70.46% – and the company holds 2.21% in treasuries – therefore, E Mart  requires ~22% of the remaining ~27% held by minorities to tender and force delisting. 
  • Super clean deal.  E Mart will acquire all shares tendered. The Offer  kicks off today, and closes on the 29th October. There is no minimum tendering % condition.

End of Mandatory Lock-Up Periods for 39 Companies in Korea in October 2024

By Douglas Kim

  • We discuss the end of the mandatory lock-up periods for 39 stocks in Korea in October 2024, among which four are in KOSPI and 35 are in KOSDAQ.
  • These 39 stocks on average could be subject to further selling pressures in October and could underperform relative to the market.
  • The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in October are Korea Zinc, Doosan Robotics, and Kolon TissueGene. 

Tokyo Metro IPO – Thoughts on Valuation

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about valuations.

Sanwa Holdings (5929) | Revolving Door of Activist Influence

By Mark Chadwick

  • ValueAct Capital took a significant 5.9% stake in Sanwa. Dalton Investments has also been a shareholder, but had most recently sold down to under 5% in June
  • Sanwa Holdings (5929 JP)  presents an attractive investment opportunity rooted in its strong global market position, undervalued stock price, and growth potential
  • We see 30% upside, based off historical revenue growth, 11% EBIT margins, and an exit multiple of 12.5x (global peers).

Give Credit Where Credit Is Due

By The Mikro Kap

  • The company is headquartered in Singapore and listed under the ticker $TCU.SI

  • As the name implies, CBA is a credit bureau business that operates across Asia.

  • It currently has operations in Singapore, Malaysia, Cambodia, and Myanmar, with plans to expand in China and Vietnam shortly.

Logistics Shift to Quality Amid Evolved Ecommerce Plans

By Robert McKay

  • Amid fierce low-price competition in 1H24, low-end couriers  benefited from merchant demand for cheap logistics. However, new platform policies suggest greater emphasis on quality logistics and O2O in 2H24;
  • The shift towards higher-end logistics is manifesting through O2O. Spearheaded by Meituan, O2O is an experiment to copy Coupang’s business model in China. We believe there is a sizable market;
  • We see ZTO as best positioned amid the changing environment, JDL least impacted, with J&T and SFE in the least favorable positions.

Plug Power Inc.: Expanded Production Capacity and Green Hydrogen Plant Projects Drive Our Optimism! – Major Drivers

By Baptista Research

  • Plug Power’s latest financial earnings for the second quarter of 2024 showcase a complex mix of achievements and ongoing challenges.
  • The company’s progress in the hydrogen economy reflects both substantial strategic advances and areas where market conditions have tempered growth expectations.
  • Positively, Plug Power has achieved significant milestones in scaling up its hydrogen production capabilities.

Roper Technologies Inc.: Enhanced Product Integration and SaaS Solutions Catalyzing Growth! – Major Drivers

By Baptista Research

  • Roper Technologies recently disclosed their financial performance for the second quarter of 2024, with the presentation focused on solid quarterly achievements and updating fiscal guidance.
  • The company, a diversified technology firm, visually demonstrated its continual growth and groundwork for future investments particularly simplifying operational processes and broadening its market presence through strategic acquisitions.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

ITT Inc.: Will The Acquisition of kSARIA Be A Game Changer? – Major Drivers

By Baptista Research

  • ITT’s 2024 second quarter earnings call reflected a robust period of growth and strategic positioning bolstered by significant commercial wins and streamlined operations.
  • The tone conveyed by CEO Luca Savi and CFO Emmanuel Caprais revealed a company making deliberate strides in expanding its market foothold, particularly within high-margin, high-growth sectors.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 30
0

Daily Brief Industrials: Shinsegae Eng & Construction, Kawasaki Heavy Industries, Canvest Environmental Protection Group, Tokyo Metro, Srg Takamiya and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles
  • Best Outright and Pair Trades for an Ishiba-Led LDP
  • Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac
  • Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb
  • Tender Offer and Taking Private of Shinsegae E&C by E Mart
  • Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25
  • Takamiya (2445 JP) – 1Q Follow-Up

Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles

By Sanghyun Park

  • E Mart Inc is launching a tender offer for 27.33% of Shinsegae Eng & Construction, offering ₩18,300 per share, a 14% premium, from September 30 to October 29.
  • This tender’s got zero cancellation or proration risk since they’re all in to buy every share tendered. That makes it a prime event for close spread tracking and trading opportunities.
  • Emart needs 95% of Shinsegae Construction’s shares to delist, requiring 22% of the remaining 27%. If they can’t get it, a stock swap with Emart shares is likely.

Best Outright and Pair Trades for an Ishiba-Led LDP

By Andrew Jackson

  • Expect continued buying in defense related, as well as banks and life insurance, renewable energy, rails, and medical IT plays with Shigeru Ishiba at the helm. 
  • The Market will be quick to rotate out of names which spiked into Friday’s close on expectation for a Sanae Takaichi win in the LDP election.  
  • Ishiba has been a vocal critic of Abenomics, and his potential policies aimed at higher taxes for investment incomes and capital gains are set to weigh on the Japanese market. 

Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac

By Arun George

Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb

By Brian Freitas

  • Tokyo Metro (9023 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 23 October.
  • At the reported indicative IPO price of JPY 1100/share, Tokyo Metro (9023 JP) will be valued at JPY 639.1bn (US$4.49bn).
  • The stock should be added to one global index on 29 October, to the TOPIX INDEX on 28 November, while another global index inclusion will need to wait till February.

Tender Offer and Taking Private of Shinsegae E&C by E Mart

By Douglas Kim

  • E Mart Inc (139480 KS) is conducting a tender offer of 27.33% of Shinsegae Eng & Construction (034300 KS) (2,126,611 shares) and trying to take the company private afterwards.
  • The tender offer price is 18,300 won, which is 14% higher than the closing price on Friday (27 September).
  • Tender offer is likely to result in higher price of Shinsegae E&C in the near term but it could be difficult for E Mart to take it private this year. 

Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s  shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.

Takamiya (2445 JP) – 1Q Follow-Up

By Sessa Investment Research

  • Takamiya (hereafter, the Company) reported its 1Q FY2025/3 sales of ¥9,745 mn (-1.5% YoY), operating profit of ¥262 mn (-35.8% YoY), ordinary profit of ¥344 mn (-44.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of ¥195 mn (-53.2% YoY).
  • By segment, the Platform Business and Overseas Business saw increases in both sales and profit, while the Rental Business saw sales increase but profit decline, and the Sales Business saw declines in both sales and profit.

  • 1H 2025/3 and the full-year forecast remains unchanged from the initial forecast.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 30
0

Daily Brief Industrials: Shinsegae Eng & Construction, Kawasaki Heavy Industries, Canvest Environmental Protection Group, Tokyo Metro, Srg Takamiya and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles
  • Best Outright and Pair Trades for an Ishiba-Led LDP
  • Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac
  • Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb
  • Tender Offer and Taking Private of Shinsegae E&C by E Mart
  • Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25
  • Takamiya (2445 JP) – 1Q Follow-Up

Emart’s Tender Offer for Shinsegae Construction: Arb Trading Angles

By Sanghyun Park

  • E Mart Inc is launching a tender offer for 27.33% of Shinsegae Eng & Construction, offering ₩18,300 per share, a 14% premium, from September 30 to October 29.
  • This tender’s got zero cancellation or proration risk since they’re all in to buy every share tendered. That makes it a prime event for close spread tracking and trading opportunities.
  • Emart needs 95% of Shinsegae Construction’s shares to delist, requiring 22% of the remaining 27%. If they can’t get it, a stock swap with Emart shares is likely.

Best Outright and Pair Trades for an Ishiba-Led LDP

By Andrew Jackson

  • Expect continued buying in defense related, as well as banks and life insurance, renewable energy, rails, and medical IT plays with Shigeru Ishiba at the helm. 
  • The Market will be quick to rotate out of names which spiked into Friday’s close on expectation for a Sanae Takaichi win in the LDP election.  
  • Ishiba has been a vocal critic of Abenomics, and his potential policies aimed at higher taxes for investment incomes and capital gains are set to weigh on the Japanese market. 

Merger Arb Mondays (30 Sep) – Canvest, Henlius, CPMC, Xingda, Fuji Soft, Capitol, Dyna-Mac

By Arun George

Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb

By Brian Freitas

  • Tokyo Metro (9023 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 23 October.
  • At the reported indicative IPO price of JPY 1100/share, Tokyo Metro (9023 JP) will be valued at JPY 639.1bn (US$4.49bn).
  • The stock should be added to one global index on 29 October, to the TOPIX INDEX on 28 November, while another global index inclusion will need to wait till February.

Tender Offer and Taking Private of Shinsegae E&C by E Mart

By Douglas Kim

  • E Mart Inc (139480 KS) is conducting a tender offer of 27.33% of Shinsegae Eng & Construction (034300 KS) (2,126,611 shares) and trying to take the company private afterwards.
  • The tender offer price is 18,300 won, which is 14% higher than the closing price on Friday (27 September).
  • Tender offer is likely to result in higher price of Shinsegae E&C in the near term but it could be difficult for E Mart to take it private this year. 

Tokyo Metro IPO – Peer Comparison – Pre-COVID to 1Q25

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s  shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • We have looked at the company’s past performance in our previous note. In this note, we will undertake a peer comparison.

Takamiya (2445 JP) – 1Q Follow-Up

By Sessa Investment Research

  • Takamiya (hereafter, the Company) reported its 1Q FY2025/3 sales of ¥9,745 mn (-1.5% YoY), operating profit of ¥262 mn (-35.8% YoY), ordinary profit of ¥344 mn (-44.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of ¥195 mn (-53.2% YoY).
  • By segment, the Platform Business and Overseas Business saw increases in both sales and profit, while the Rental Business saw sales increase but profit decline, and the Sales Business saw declines in both sales and profit.

  • 1H 2025/3 and the full-year forecast remains unchanged from the initial forecast.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 29
0

Daily Brief Industrials: Evergreen Marine Corp, Uber Technologies , Tokyo Metro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way
  • Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE
  • Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way

By Janaghan Jeyakumar, CFA

  • In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
  • I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.
  • The current estimate for one-way flow in December 2024 is US$1.38bn.

Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE

By Caixin Global

  • Uber Technologies Inc. has entered into a partnership with Chinese autonomous driving startup WeRide Corp. to promote self-driving taxis on Uber’s global platform, with the first deployment set to take place in Abu Dhabi by the end of the year, the two companies said Wednesday.
  • Founded in 2017, WeRide develops autonomous driving technology and is testing or deploying it commercially in 30 cities in seven countries.

  • In July 2023, the company was granted the United Arab Emirates’ first and only national license for self-driving vehicles, enabling it to test and operate its autonomous vehicles on public roads across the entire country.

Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

By Arun George

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Sep 29
0

Daily Brief Industrials: Evergreen Marine Corp, Uber Technologies , Tokyo Metro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way
  • Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE
  • Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way

By Janaghan Jeyakumar, CFA

  • In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
  • I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.
  • The current estimate for one-way flow in December 2024 is US$1.38bn.

Uber to Partner With China’s WeRide for Autonomous Vehicles, Beginning in UAE

By Caixin Global

  • Uber Technologies Inc. has entered into a partnership with Chinese autonomous driving startup WeRide Corp. to promote self-driving taxis on Uber’s global platform, with the first deployment set to take place in Abu Dhabi by the end of the year, the two companies said Wednesday.
  • Founded in 2017, WeRide develops autonomous driving technology and is testing or deploying it commercially in 30 cities in seven countries.

  • In July 2023, the company was granted the United Arab Emirates’ first and only national license for self-driving vehicles, enabling it to test and operate its autonomous vehicles on public roads across the entire country.

Weekly Deals Digest (29 Sep) – Tokyo Metro, CR Beverage, K Bank, Fuji Soft, Sun Art, Xingda, Capitol

By Arun George

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free