In today’s briefing:
- IHI (7013) | Boeing Orders Take Off
- Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers
- Daiei Kankyo IPO Trading – Peers Have Been Correcting
- Is Effective Reform Only Possible After Future Problems with High-Risk Companies?
IHI (7013) | Boeing Orders Take Off
- Boeing’s stock price is recovering sharply as it benefits from recent multi-billion-dollar order wins
- Japanese stocks (IHI, MHI, KHI & Subaru) are highly geared into the Boeing supply chain
- We highlight IHI as a top pick on this thematic and believe aero-engine revenues will continue to recover, driving a stock re-rating
Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers
- Skymark Airlines (9204 JP) raised US$242m in its Japan IPO. Skymark Airlines (SA) is a Japanese low-cost airline, being the third largest domestic airline according to the company.
- SA began its operations in Japan as a domestic airline and gradually increased the number of routes offered to passengers. However, it has a mired history of bankruptcy.
- In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.
Daiei Kankyo IPO Trading – Peers Have Been Correcting
- Daiei Kankyo (9336 JP) , a waste management company, raised around US$314m in its Japan IPO.
- Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business
- In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.
Is Effective Reform Only Possible After Future Problems with High-Risk Companies?
- Large audit firms focus on more profitable business and improving the profitability of their audit services. Consequently, high-risk firms that have been withdrawn from large firms flow to small-and-medium-sized firms.
- “Enhancement of governance, including third-party evaluation function” is crucial to ensure that the audit firm has system to oversee and objectively determine the appropriateness of audit process and audit opinion.
- Smaller audit firms will comply with the guidelines just for show, but only when future problems with high-risk firms arise will effective reforms be made in accordance with the guidelines.
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