Daily Brief Industrials: Toshiba Corp, Toyo Construction, HEICO Corp and more

In today’s briefing:

Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec
(Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.
HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec

Tactically, it isn’t attractive owning Toshiba (6502 JP) at 1% spread. Expect it to trade wider. There is still a fair bit of stock to come down the pipe.
Because of significant business overlap, CK Infrastructure Holdings (1038 HK) looks very similar to Power Assets Holdings (6 HK). And CKI is coming up cheap on my monitor versus PAH.
There is less fundamental alpha to Rakuten Bank (5838 JP) than before and more “just keep it because it is going up“-ness to the trade.

I tally 46 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals this week: Bain’s Offer for System Information (3677 JP) and DCM’s for Keiyo Co Ltd (8168 JP). An Offer for Haitong International Securities (665 HK) appears imminent.
Key updates took place for: Invocare Ltd (IVC AU), Liontown Resources (LTR AU), ENM Holdings (128 HK) and Toyo Construction (1890 JP),

HEICO Corporation managed to exceed the revenue and earnings expectations of Wall Street.
These results primarily represent a 12% quarterly consolidated organic net sales growth and the impact of acquisitions.
In the quarter, The Flight Support Group’s net sales grew 23% to $405 million, up from $330.3 million in the third quarter of fiscal 2022.

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