In today’s briefing:
- KKR Deal for Alps Logistics (9055) Appears Imminent
- Nippon Yusen (9101) – Another Big Buyback Announced, But Details Matter
- Mitsubishi Heavy (7011) | Flying High
KKR Deal for Alps Logistics (9055) Appears Imminent
- There was a news article I missed in late February saying Alps Alpine (6770 JP), parent of Alps Logistics (9055 JP) was in the process of selling the logistics unit.
- A deal made sense for a strategic given the upcoming “2024 Problem”. Pre-close, headlines blared, the stock popped 12%, now we’re at double the end-February price.
- Late in the evening,Alps Logistics said it had received a bid from Logisteed but nothing had been decided. This morning we have a few more details, but nothing concrete
Nippon Yusen (9101) – Another Big Buyback Announced, But Details Matter
- Last May, Nippon Yusen Kk (9101 JP) announced buybacks of ¥200bn over 2 years. In August, they changed it to say ¥200bn in the next nine months.
- That helped support the stock through early March. It was big, and a decent percentage of ADV. Today, they announced earnings and guidance and another ¥100bn buyback through April 2025.
- Earnings were OK. Guidance is a little low vs the Street. The stock popped 5% from where it was trading. Lower impact vs 2023. More cross-holder overhang consideration.
Mitsubishi Heavy (7011) | Flying High
- MHI’s stock fell 7% following the announcement of results. Guidance for FY3/25 missed analyst expectations
- Even so, MHI remains a key beneficiary of the global shift to clean energy and national policies aimed at bolstering national security
- We remain bullish. The stock has performed well this year and but 13x EV/EBIT seems reasonable given the structural drivers
💡 Before it’s here, it’s on Smartkarma
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