Daily BriefsIndustrials

Daily Brief Industrials: Toshiba Corp, SATS, Fujitec Co Ltd, Japan Post Holdings, Hong Kong Hang Seng Index, Sembcorp Marine, Transdigm Group, Enphase Energy and more

In today’s briefing:

  • Toshiba (6502) – Funding Unsecured!  (This Is Getting To Be a Habit)
  • Last Week in Event SPACE: Japan Post, Origin Energy, SATS, China Renaissance, Sembcorp Marine
  • Fujitec (6406 JP): Oasis Scores a Victory in a Tight EGM Vote
  • ECM Weekly (26th Feb 2023) – Japan Post Bank/Holding, Amvis, Pertamina, Zeekr, Honasa, Fangzhou, TVS
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: New Century Resource; AAG Energy; Jiangnan, Nitro, Pushpay
  • TransDigm Group: Major Drivers
  • Enphase Energy Inc: Acquisition of 365 Pronto & Other Drivers

Toshiba (6502) – Funding Unsecured!  (This Is Getting To Be a Habit)

By Travis Lundy

  • A Bloomberg article out Friday evening suggests the JIP Consortium funding plan submitted as the final package to Toshiba Corp (6502 JP) is no longer secure.
  • Apparently Orix Corp (8591 JP), which with ROHM Co Ltd (6963 JP) was planning to invest equity and pref for total ¥300bn, wants to lower its investment to ¥200bn.
  • Other equity tranche participants apparently want to reduce exposure as well. 

Last Week in Event SPACE: Japan Post, Origin Energy, SATS, China Renaissance, Sembcorp Marine

By David Blennerhassett

  • There is no good reason to buy Japan Post Bank (7182 JP)‘s dip until the offering. It’s unlikely to earn the ROE to deserve the PBR it has versus peers.
  • Brookfield and EIG/MidOcean’s revised NBIO will garner Origin Energy (ORG AU) board support; however, the terms are weird and unfair to investors holding fewer than 100k shares. 
  • SATS (SATS SP) rights offer is not actually a surprise. Not at all. Passive funds will exercise. 

Fujitec (6406 JP): Oasis Scores a Victory in a Tight EGM Vote

By Arun George

  • At the Fujitec Co Ltd (6406 JP) EGM, Oasis successfully secured approval for four out of six candidates for outside directors. The tight vote shows that shareholders desire change.
  • Oasis fell short of its nominations constituting up to two-thirds of the Board. However, Oasis-aligned directors will represent 67% of outside directors which still can drive meaningful change.
  • The EGM results will spur optimism that Fujitec can close the performance gap with peers, resulting in a rerating. Fujitec remains attractive on a cash-adjusted P/E basis.    

ECM Weekly (26th Feb 2023) – Japan Post Bank/Holding, Amvis, Pertamina, Zeekr, Honasa, Fangzhou, TVS

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, Pertamina Geothermal Energy‘s listing kicked of what is shaping up to be  a busy 2023 for ASEAN IPOs
  • There were a few placements across the region but the biggest news was of Japan Post Bank (7182 JP)‘s planned selldown by Japan Post Holdings (6178 JP) 

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

(Mostly) Asia-Pac Weekly Risk Arb Wrap: New Century Resource; AAG Energy; Jiangnan, Nitro, Pushpay

By David Blennerhassett


TransDigm Group: Major Drivers

By Baptista Research

  • TransDigm managed to have another strong quarter and delivered an all-around beat.
  • It was another strong quarter with healthy growth in commercial revenues and bookings.
  • We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

Enphase Energy Inc: Acquisition of 365 Pronto & Other Drivers

By Baptista Research

  • Enphase delivered a strong quarter driven by amazing revenues through its microinverters.
  • The company witnessed amazing growth in the gross margin as well as in the operating income.
  • The overall supply environment of the microinverters remains stable throughout the quarter.

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