In today’s briefing:
- Mitsui & Co (8031) Buyback – Big Profit, Big Div, Big Buyback, Some Index Selling
- Toshiba (6502) – Funding Deadline Risk Was Known 6+ Weeks Ago
- Deep Dive: Komatsu (6301, KMTUY)
Mitsui & Co (8031) Buyback – Big Profit, Big Div, Big Buyback, Some Index Selling
- Mitsui & Co Ltd (8031 JP) on 1 November reported its results for H1 2022. H1 Revenue +37.1%yoy, OP+27.2%yoy, NP+33.2%yoy to ¥539bn. Full-year NP forecast +22.5% to ¥980bn.
- Mitsui raised its dividend forecast (previously scheduled to rise from ¥105/share to ¥120/share) to ¥130/share and announced a ¥140bn buyback, adding to the ¥100bn announced in May completed in September.
- The first ¥58.6bn was done in a ToSTNeT-3 buyback. Now there is another ¥79.4bn to go. There’s also a fair bit of index selling the next 6mos.
Toshiba (6502) – Funding Deadline Risk Was Known 6+ Weeks Ago
- There are several bits of news in the past few weeks indicating financing commitments might not meet the 7 Nov deadline. Principal among them the JIC/JIP split many weeks ago.
- That suggested the 30 Sep and subsequent deadlines would be delayed. And it appears we now have the reason for it, and that is another cause of financing commitment delay.
- This development suggests activists have another quiver in their arrow should privatisation not succeed. Toshiba has cheapened in the meantime.
Deep Dive: Komatsu (6301, KMTUY)
- Industrials have been quite resilient this year. Their stocks prices have run up as sector earnings fared better-than-expected, and as investors have looked for safety under the cover of ‘real economy’ stocks during a year in which tech is down big.
- You may think that the train has left the station already with blue chip industrials like Caterpillar and Deere.
- They’re certainly trading near all time highs! But hold on. There is one train which hasn’t left yet, and that is Komatsu.
💡 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