In today’s briefing:
- Dai Nippon Printing – Gauging The Upside
- Nippon Yusen – New MidTermPlan = New Shareholder Return Policy
- Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts
Dai Nippon Printing – Gauging The Upside
- Despite the strong performance from Dai Nippon Printing following the announcement of Elliott’s stake we feel upside remains.
- Operating results should benefit from normalisation of the economy and light restructuring potential.
- In addition, we do not see much evidence to suggest that valuations are particularly stretched.
Nippon Yusen – New MidTermPlan = New Shareholder Return Policy
- Today at lunch, Nippon Yusen Kk (9101 JP) released a New Medium-Term Management Plan Presentation (FY2023 to 2026). “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing.”
- It has basic investment plans, including growing scale of ONE container shipping alliance, growing auto logistics, spending on fuel conversions, offshore wind, hydrogen/ammonia, and doing some logistics M&A
- They also plan a new Shareholder Return Policy. That raises minimum dividend, expected payout ratio, and involves ¥200bn of buybacks the next two fiscal years. Read on.
Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts
- Today, Nippon Steel Corporation (5401 JP) and Mitsui & Co Ltd (8031 JP) announced they would launch the TOB to take over Nippon Steel Trading Corporation (9810 JP) starting Monday.
- I wrote about the deal and its parameters in December 2022 in Nippon Steel & Mitsui & Co to Buy Out Nippon Steel Trading (9810) At 87% Premium.
- This gets done easily I expect. Boring, but decent very short-term carry on the bid side.
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