In today’s briefing:
- Advantest (6857): Sell into the Rebound
- Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina
- Toshiba Bear Targets
- Expected More Companies to Obtain ISO Certification, Which Would Share Disclosure Information Risk
Advantest (6857): Sell into the Rebound
- Advantest’s share price has risen by 21.5% since the beginning of January, but sales and profits are peaking and YoY comparisons are becoming increasingly difficult.
- Competitor Teradyne’s results and guidance give an indication of potential near-term risk, which could be more than 20%.
- Visibility is deteriorating and the longer-term outlook uncertain. We doubt the share price can hold up as profits decline.
Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Pertamina Geothermal (0125738D IJ) raised US$597 million by pricing the IPO at the low end of the price range of IDR875-880 per share.
- Event-Driven developments – Fujitec Co Ltd (6406 JP), Toyo Construction (1890 JP), Keppel Corp (KEP SP), Aag Energy Holdings (2686 HK), Newcrest Mining (NCM AU), Origin Energy (ORG AU).
Toshiba Bear Targets
- Toshiba (6502) exhibits clear bear momentum as the MACD turns down from key trend resistance. A sharp draw down will set up a buying opportunity.
- Near sell resistance to short lies at 4,450. Bear projection come in at 4,185 but the MACD coil suggests an undershoot toward 4,100.
- Macro bet is to buy near spiked lows for a rally to 4,500 and then the bigger 5,000 barrier. Need to see sell volumes deteriorate into weakness.
Expected More Companies to Obtain ISO Certification, Which Would Share Disclosure Information Risk
- Since companies are in the process of raising their own human capital efforts, it’s good to use ISO 30414 certification as an opportunity to see how well they are doing.
- Many companies may believe that ISO will share the risk of information at the time of disclosure with respect to the accuracy of the disclosed information.
- Since perfect information doesn’t seem to be required in the Annual Securities Report for FY3/2023, the information will actually be available for intercompany comparisons starting with that for FY3/2024.
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