In today’s briefing:
- HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- Plane Crash at Haneda Airport; Negative for Japan Airport Terminal and Japan Airlines
- Ushio (6925 JP): Tie-Up with Applied Materials Adds to Long-Term Potential
- Quiddity JPX-Nikkei 400 Rebal 2024: End-Dec 2023
- Eisai Co Ltd (4523 JP): Why Performance Reversal Is Not Expected in Near-Term
HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- Under the requirements of the Amended Mongolian Banking Law (Feb 2021), Khan Bank (KHAN MO) needed to IPO. It did, and HS Holdings (8699 JP)‘s stake fell to 49.77%.
- It was de-consolidated. They were locked up for 6mos. The look-through financials are easier now. The company has bought back stock and trades at <0.5x book.
- But the Mongolian Banking Law required one more thing. All D-SIBs had to get all shareholders below 20% by 31 December 2023. It’s not clear that happened.
Plane Crash at Haneda Airport; Negative for Japan Airport Terminal and Japan Airlines
- Japan Airline’s Flight JL516 operated by a two-year-old Airbus A350-900 burst into flames upon landing at Haneda Airport, apparently hitting a small Japanese Coast Guard aircraft
- 379 passengers and crew were safely evacuated, but five of six crew on a Japanese coast guard aircraft were unaccounted for
- Haneda Airport runaways are all closed, aircraft heading to Haneda are diverted to other airports or flights aborted altogether
Ushio (6925 JP): Tie-Up with Applied Materials Adds to Long-Term Potential
- Ushio has tied up with Applied Materials (AMAT) to develop lithography systems for package substrates using AMAT’s Digital Lithography Technology.
- This should keep the focus on Ushio’s more advanced technologies (which also include EUV mask inspection light sources) and its potential to rebound with the semiconductor cycle.
- The shares have dropped back 10% since mid-December, providing an entry point. 3Q results are scheduled to be announced on February 9.
Quiddity JPX-Nikkei 400 Rebal 2024: End-Dec 2023
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the rankings of the potential ADDs/DELs every month.
- Below is a look at potential ADDs/DELs for the JPX-Nikkei 400 Index Rebal to come in August 2024 based on trading data as of end-December 2023.
Eisai Co Ltd (4523 JP): Why Performance Reversal Is Not Expected in Near-Term
- Eisai Co Ltd (4523 JP) shares corrected more than 60% from highs over the disappointment from Alzheimer’s disease drug Leqembi. During H1FY24, Leqembi reported revenue of just ¥400M ($3M).
- With approximately 40% revenue contribution, anti-cancer drug Lenvima is the top selling drug of Eisai. In the U.S., Lenvima patent protection will start to expire in US in October 2025.
- In December, Eisai has submitted a marketing authorization application in Japan for tasurgratinib for biliary tract cancer. If approved, tasurgratinob will be a late entrant in a crowded market.
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