In today’s briefing:
- Max Healthcare Placement – Well Flagged but a Large One to Process
- Nikkiso (6376 JP) BIG Asset Sale Leads to Biggish Buyback
- The Key to Creating Added Value Is to Shift to Management that Values Human Resources
- Telix Pharmaceuticals (TLX AU): Illuccix Launched in US; Large Market Opportunity; Potential to Grow
- Consun Pharmaceutical (1681HK)- High-Priced Acquisition & Good Performance Show Big Upside Potential
Max Healthcare Placement – Well Flagged but a Large One to Process
- Kayak Investments Holding, an affiliate of KKR & Co Inc (KKR US), is planning to raise US$1.18bn from trimming the majority of its stake in Max Healthcare Institute (MAXHEALT IN).
- The deal is a large one and assuming the upsized option is exercised, the offer size would represent 26.83% of outstanding shares and 414.9 days of three month ADV.
- The firm’s financial prospects are decent with analysts in general bullish on the stock. However, the large deal is offered at a tight 0-3.3% discount to last close.
Nikkiso (6376 JP) BIG Asset Sale Leads to Biggish Buyback
- Nikkiso Co Ltd (6376 JP) announced an unusual buyback today. It is worth paying attention.
- In March, Nikkiso announced the sale of a subsidiary to Atlas Copco AB (ATCOA SS), noting the sale proceeds would used to pay down debt (Debt/EBITDA in high single digits).
- The company today announced Q2 earnings, and a large buyback, which should be taken as a positive surprise given the debt load.
The Key to Creating Added Value Is to Shift to Management that Values Human Resources
- I would like to discuss the issues on several interesting points in the report “Vision for Future Human Resources” compiled by the Ministry of Economy, Trade and Industry (METI).
- Both company and employees have seen a gap between the skills they need and the reality, yet neither company nor employees have invested sufficiently. This has led to falling competitiveness.
- Companies need to invest sufficiently in human resources to create added value from management that has been so busy cutting costs that it has saved to invest in human resources.
Telix Pharmaceuticals (TLX AU): Illuccix Launched in US; Large Market Opportunity; Potential to Grow
- Telix Pharmaceuticals (TLX AU) has launched its prostate cancer imaging product, Illuccix in the U.S. in April 2022. The U.S. total addressable market value is estimated at $750 million.
- The U.S. commercial launch of Illuccix is off to a strong start. Illuccix generated revenue of $13.6 million in the U.S. in the ten weeks following first commercial sales.
- Telix is progressing marketing authorization applications for Illuccix in Europe and Canada. The company’s partners are advancing toward Illuccix launch in China and South Korea.
Consun Pharmaceutical (1681HK)- High-Priced Acquisition & Good Performance Show Big Upside Potential
- After a downturn in 2019,Consun has turned things around and achieved amazing results in 2021. Its core business was not affected by VBP. Consun will continue to make further progress.
- Consun is undervalued if compared with industry average, the peers and considering its large cash balance. Share prices have decent upside potential, driven by fundamentals, promising outlook and favorable policies.
- Wanbangde’s intention to acquire Consun’s shares at high price would also be a catalyst. We recommended investors to follow Consun closely, which has certain investment value based on our analysis.
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