In today’s briefing:
- Nippon Yusen (9101) BIG Buyback Announced
- SF Holding (002352 CH): H-Share Listing & Index Implications
- Toshiba (6502 JP): Risk/Reward as 1Q Results and Tender Start Approach
- Overhang Concerns from Remaining Irum TNC Exchangeable Bonds Conversion on Ecopro BM Shares
- HNI Corporation – 2Q Preview: Adjusting 2QFY23 Estimate for Kimball Closing
- Full Report – Kantsu (9326 JP)
Nippon Yusen (9101) BIG Buyback Announced
- In March, NYK announced a new Mid-Term Management Plan discussed in Nippon Yusen – New MidTermPlan = New Shareholder Return Policy. They promised a full Shareholder Return Policy in May.
- There was limited new SRP discussion in the 9 May earnings announcement. The MTMP suggested ¥200bn over 2yrs. The (Japanese) earnings announcement did too. Then May ended.
- Now the Buyback Plan is out. ¥200bn over 9mos. That is different. This could move.
SF Holding (002352 CH): H-Share Listing & Index Implications
- S.F. Holding (002352 CH) could raise between HK$26-33bn (US$3.4-4.2bn) in its H-share listing depending on the H-shares discount and exercise of the overallotment option.
- The H-shares could get Fast Entry to certain indices and regular entry to others depending on the number of shares that are allotted to cornerstone and/or strategic investors.
- The H-shares will be added to Southbound Stock Connect following the end of the price stabilisation period. Inclusion in the Hang Seng Composite Index will come later.
Toshiba (6502 JP): Risk/Reward as 1Q Results and Tender Start Approach
- On 28 July, Toshiba Corp (6502 JP) disclosed that JIP delayed the tender start to “sometime in August 2023” vs the target “in the last ten days of July 2023.”
- Toshiba reports 1Q results on 7 August. A solid 1Q will undermine the Board’s recommendation of the offer in part on the premise that the IFA’s DCF valuation is unrealistic.
- The current low spread points to a done deal, partly due to shareholder fatigue. However, risks persist as the rerating of peers continues to chip away at the offer’s attractiveness.
Overhang Concerns from Remaining Irum TNC Exchangeable Bonds Conversion on Ecopro BM Shares
- It has been reported in local media that investors in exchangeable bonds issued by Irum TNC converted about 0.24 million shares of EBs into Ecopro BM equity on 26 July.
- There are increasing concerns that the remaining EB could be released into the market in the coming months.
- After the poor 2Q 2023 results, we believe the consensus is likely to reduce sales and profit estimates of Ecopro BM from 2023 to 2025.
HNI Corporation – 2Q Preview: Adjusting 2QFY23 Estimate for Kimball Closing
Ahead of the HNI’s 2QFY23 earnings report on Tuesday, August 8, we are only adjusting our estimates for 2QFY23.
HNI completed its acquisition of Kimball International on June 1.
Our revised 2QFY23 estimate relies on our in-place HNI estimate plus an interpolation of our KBAL estimates for the time owned by HNI (the closing occurred after two months had passed).
Full Report – Kantsu (9326 JP)
- Logistics companies serving the high-growth e-commerce industry are likewise showing strong growth.
- Kantsu is a specialist in warehouse logistics, undertaking the entire upstream logistics process, from order processing to delivery.
- The company has also created a highly profitable business by selling its in-house IT systems, which it developed to boost efficiency, to external customers.
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