In today’s briefing:
- Otsuka Holdings – Family Co Selldown for ¥56bn – Take It Vs Peers
- Otsuka Holdings Placement – While Enticing Discount, Management Selling Will Raise Eyebrows
- JF Wealth Holdings IPO – Can Get Similar Exposure at Cheaper Valuations
- SBI Sumishin Net Bank IPO: The Investment Case
- Deere & Company: New Dealer Business System & Other Drivers
- Unity Software Inc.: Extended Partnership With Google & Other Drivers
- eBay Inc.: Major Drivers
- Intuit Inc.: Major Drivers
- Reliance Steel & Aluminum Co.: Major Drivers
Otsuka Holdings – Family Co Selldown for ¥56bn – Take It Vs Peers
- Today after the close, one of the very large brokers in Japan (N_m_r_) has a block for sale of Otsuka Holdings (4578 JP).
- It is only 2.4% of total shares out, and as such, it looks small. But it isn’t that small. The shareholder structure is crowded with non-Real World Float holders.
- The discount offered is large compared to absolute and sector-relative volatility.
Otsuka Holdings Placement – While Enticing Discount, Management Selling Will Raise Eyebrows
- Otsuka Estate is looking to raise US$389m via trimming its stake in Otsuka Holdings (4578 JP).
- The deal is a relatively large one on an ADV basis, at 14.6 days of three month ADV.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
JF Wealth Holdings IPO – Can Get Similar Exposure at Cheaper Valuations
- JF Wealth Holdings (9636 HK) is looking to raise US$143m in its Hong Kong IPO.
- JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.
- In this note, we discuss our earnings estimates, and thoughts on valuation.
SBI Sumishin Net Bank IPO: The Investment Case
- SBI Sumishin Net Bank (7163 JP), an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion).
- Founded in 2007, SBI Sumishin Net Bank is owned 50% by SBI Holdings (8473 JP) and 50% by Sumitomo Mitsui Trust Holdings (8309 JP).
- The investment case rests on market share gains, the rude health of the digital bank segment, the nascent BaaS segment turning profitable and ambitious medium-term goals.
Deere & Company: New Dealer Business System & Other Drivers
- Deere managed to deliver an all-around beat in the first quarter of the new fiscal year.
- The equipment operations had a 20% margin in the financial results for the quarter.
- The management expects demand to exceed the industry’s ability to deliver for another year.
Unity Software Inc.: Extended Partnership With Google & Other Drivers
- Unity Software delivered an all-around beat in the last quarter and saw strong user growth and DAUs in its network.
- It was a one-off profitable quarter for the company with improving market share across platforms.
- We give Unity Software a ‘Hold’ rating with a revised target price.
eBay Inc.: Major Drivers
- eBay delivered a solid set of results in the last quarter despite ongoing macro uncertainty and managed an all-around beat.
- In the previous quarter, eBay acquired myFitment and in this quarter, it started making the technology of myFitment accessible to all buyers beginning with the pilot group of P&A sellers.
- During the quarter, eBay scaled up several live events with select sellers.
Intuit Inc.: Major Drivers
- Intuit had another strong quarter managed to deliver an all-around beat with revenues, operating income, and earnings per share rising.
- In the Self-Employed Group and the Small Business, revenue grew during the quarter.
- This quarter, Intuit launched a QuickBooks business network for millions of QuickBooks customers for further digitizing B2B payments in the U.S.
Reliance Steel & Aluminum Co.: Major Drivers
- Reliance Steel & Aluminum had a mixed financial performance in the last quarter of 2022 and missed out on meeting the revenue expectations of Wall Street given the ongoing volatility in metal prices and general economic uncertainty.
- Throughout the fourth quarter, prices fell for the majority of carbon steel, stainless steel, and aluminum products sold.
- We give Reliance Steel & Aluminum Co a ‘Hold’ rating with a revised target price.
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