In today’s briefing:
- Toshiba – Thoughts On The Tender Opinion
- Assessing KT’s MSCI Re-Inclusion in May QCIR with Foreign Room Finally Hitting 15%
- Toyota Industries: Guilty As Charged. But Excessively Punished
- Porsche Automobile Holding: FY 22 Results and Discount
Toshiba – Thoughts On The Tender Opinion
- Toshiba released documents on the tender and a notice that the FY end dividend would be cancelled shortly after our last report was published.
- They are interesting in that the Special Committee’s opinions are relatively frank but details on the valuation process are almost non-existent.
- In addition, the information regarding other bids and alternatives was a little surprising to us.
Assessing KT’s MSCI Re-Inclusion in May QCIR with Foreign Room Finally Hitting 15%
- It is virtually certain that KT’s foreign rooms will exceed 15% today or tomorrow. This month, foreign net sales of 200-300k are continuing almost every day.
- Assuming the Cutoff of the MSCI Korea Standard to be 2.7 trillion won and setting the float rate to 25%, KT beats the hurdles quite comfortably.
- If KT achieves re-inclusion with a 25% float rate, a passive inflow worth 140 billion won is expected to occur. This is a 3.55x ADTV.
Toyota Industries: Guilty As Charged. But Excessively Punished
- Toyota Industries (6201 JP), one of the world’s leading forklift manufacturers, has admitted to fabricating the results of parts testing, forcing some forklift shipments to be halted.
- TICO has decided to suspend the shipping of three models of forklifts equipped with the suspect engines, which account for ~6% of total forklift sales (in terms of count).
- Shares, quite rightly, have taken a hit. But this correction appears excessive.
Porsche Automobile Holding: FY 22 Results and Discount
- Net debt of Porsche SE (HoldCo) amounted to €6,672 million, as a result from the debt financing of around €7.1 billion to purchase ordinary shares of Porsche AG (operating company).
- Porsche SE trades at a 49.2% discount to NAV, but maintaining the dividend involves maintaining the net debt position and its detrimental effect on value.
- The attractiveness of Porsche SE shares has been reduced as a result of the acquisition of the Porsche AG stake, still the discount is massive, even accounting for litigation risk.
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