In today’s briefing:
- Outsourcing (2427) – The OTHER Arb – That One Neat Trick And Its Weird Risks
- Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?
- Mitsubishi Kakoki Kaisha (6331): Q3 FY03/24 Update
- WORLD HOLDINGS (2429): Full-Year FY12/23 Update
- AZ-COM MARUWA Holdings (9090): 1H FY03/24 Update
- Qunabox Group Pre-IPO Tearsheet
Outsourcing (2427) – The OTHER Arb – That One Neat Trick And Its Weird Risks
- Outsourcing Inc (2427 JP) has been an “interesting” risk arb situation. It was launched as a Cheeky, Opportunistic, Low-Priced MBO. Some bumps after launch turned out to be BAU.
- The stock has not traded above terms since early on in the trade. I expect people are happy to get out. But there is ANOTHER ARB to do here.
- The OTHER ARB is something quite particular to high float, low activism risk arb trades. In some ways better than the traditional arb, but it has some risks.
Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?
- On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.
- It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.
- One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.
Mitsubishi Kakoki Kaisha (6331): Q3 FY03/24 Update
- Mitsubishi Kakoki Kaisha (6331 JP) provides engineering (design, procurement, and construction) services for the buildings of industrial, city gas, and sewage treatment plants.
- In FY03/23, the company booked orders of JPY53.2bn, revenue of JPY44.6bn, operating profit of JPY2.5bn, OPM of 5.7%, and net income attributable to owners of the parent of JPY3.0bn.
- Mitsubishi Kakoki Kaisha, Ltd. announced a revision to its full-year FY03/24 earnings forecast.
WORLD HOLDINGS (2429): Full-Year FY12/23 Update
- World Holdings (2429 JP), established in 1993, primarily provides technical staffing and subcontracting services.
- In FY12/23, revenue was JPY213.7bn, operating profit was JPY10.4bn, recurring profit was JPY10.3bn, and net income attributable to owners of the parent was JPY6.2bn.
- The company’s forecast for FY12/24 calls for revenue of JPY252.1bn, operating profit of JPY9.0bn, recurring profit of JPY8.6bn, and net income attributable to owners of the parent of JPY4.7bn.
AZ-COM MARUWA Holdings (9090): 1H FY03/24 Update
- AZ-Com Maruwa Holdings (9090 JP) is a logistics company specializing in services for retailers.
- In FY03/23, revenue was JPY177.8bn, operating profit was JPY11.4bn, recurring profit was JPY11.9bn, and net income attributable to owners of the parent was JPY7.8bn.
- AZ-COM MARUWA Holdings Inc. announced that it has determined the number of shares to be issued through a third-party allocation.
Qunabox Group Pre-IPO Tearsheet
- Qunabox Group Limited (QUNA HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunner on the deal is Haitong.
- Qunabox Group Limited (Qunabox) is a marketing service provider in China, focusing on outdoor marketing for fast-moving consumer goods (FMCG).
- As per CIC, the firm was the fifth largest FMCG outdoor marketing service provider in China in terms of 2022 sales, with a market share of 0.9%.
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