In today’s briefing:
- Japan Excellent (8987) Has Been Most Excellent. It Should Still Be.
- Last Week in Event SPACE: Toshiba, United Tractor, Recruit, Tyro Payments, DTAC/True, Bank Of Kyoto
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: Tyro, Fengxiang, Singapore Medical, Shinsei Bank, True/DTAC
- Prime Market Should Raise Market Cap Standards. Companies Should Take Measures to Raise Valuations
Japan Excellent (8987) Has Been Most Excellent. It Should Still Be.
- Two months ago I wrote about a possible “Sustained Flow Event” on Japan Excellent (8987 JP). Since then, the stock has outperformed every other Office REIT. It’s up since then.
- Outperformance within Office REITs has been a minimum of 5.9%, and a maximum of ~17% vs the biggest peer, with an average and median outperformance of 10.8% and 9.2% respectively.
- There is no reason to think it won’t continue, but the Japan Excellent story is idiosyncratic.
Last Week in Event SPACE: Toshiba, United Tractor, Recruit, Tyro Payments, DTAC/True, Bank Of Kyoto
- Toshiba (6502 JP) investors should look at process and understand the difference between this one and others. Some news is not news, other than telling you the dance has started.
- United Tractors (UNTR IJ) is cheap. It appears to be running at 6x 2022 earnings. This is not abnormal for a cyclical at the end of the cycle.
- Westpac Banking (WBC AU) confirms its interest in Tyro Payments (TYR AU), but still nothing firm.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Tyro, Fengxiang, Singapore Medical, Shinsei Bank, True/DTAC
- There are 45 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- I see no new deals discussed on Smartkarma this week.
- Key updates took place for Tyro (TYR AU), Shandong Fengxiang (9977 HK), Singapore Medical (SMG SP), Shinsei Bank (8303 JP), and True (TRUE TB) / Total Access Communication (DTAC TB).
Prime Market Should Raise Market Cap Standards. Companies Should Take Measures to Raise Valuations
- There is a discrepancy between the prime market concept and the listing criteria of 10 billion yen in tradable market capitalization.
- The most significant effect of the market restructuring was the elimination of parent-subsidiary listings, but companies are reluctant to discuss matters not explicitly addressed in the corporate governance code.
- Increasing market capitalization is not an overnight solution, but companies should study the initiatives advanced by companies that have increased valuations and implement those initiatives.
💡 Before it’s here, it’s on Smartkarma
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