In today’s briefing:
- Nippon Yusen (9101) BIG Buyback Announced
- Toshiba (6502 JP): Risk/Reward as 1Q Results and Tender Start Approach
- StubWorld: Takara Holdings Trading “Rich”
- ID Holdings (4709) – Seizing DX Opportunities and Driving Growth
- Full Report – Kantsu (9326 JP)
Nippon Yusen (9101) BIG Buyback Announced
- In March, NYK announced a new Mid-Term Management Plan discussed in Nippon Yusen – New MidTermPlan = New Shareholder Return Policy. They promised a full Shareholder Return Policy in May.
- There was limited new SRP discussion in the 9 May earnings announcement. The MTMP suggested ¥200bn over 2yrs. The (Japanese) earnings announcement did too. Then May ended.
- Now the Buyback Plan is out. ¥200bn over 9mos. That is different. This could move.
Toshiba (6502 JP): Risk/Reward as 1Q Results and Tender Start Approach
- On 28 July, Toshiba Corp (6502 JP) disclosed that JIP delayed the tender start to “sometime in August 2023” vs the target “in the last ten days of July 2023.”
- Toshiba reports 1Q results on 7 August. A solid 1Q will undermine the Board’s recommendation of the offer in part on the premise that the IFA’s DCF valuation is unrealistic.
- The current low spread points to a done deal, partly due to shareholder fatigue. However, risks persist as the rerating of peers continues to chip away at the offer’s attractiveness.
StubWorld: Takara Holdings Trading “Rich”
- On an implied stub and simple ratio, Takara Holdings (2531 JP) is trading rich to 60.9%-held Takara Bio Inc (4974 JP).
- Preceding my comments on Takara are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
ID Holdings (4709) – Seizing DX Opportunities and Driving Growth
- Strategic shifts continue to reap rewards–IDHoldings’Q1 FY3/2024 performance demonstrated a continuation of the robust results experienced in FY3/2023, with DX remaining the core demand driver.
- Business segment sales in System Management, IT Infrastructure, and Cybersecurity, Consulting, and Training grew strongly YoY, demonstrating that the company’s efforts to remodel its business have been successful to better support and serve its customers.
- We have kept our earnings estimates unchanged for FY3/2024 and beyond, with the expectation that high-margin DX demand will continue, driving continued profitability improvements in the business.
Full Report – Kantsu (9326 JP)
- Logistics companies serving the high-growth e-commerce industry are likewise showing strong growth.
- Kantsu is a specialist in warehouse logistics, undertaking the entire upstream logistics process, from order processing to delivery.
- The company has also created a highly profitable business by selling its in-house IT systems, which it developed to boost efficiency, to external customers.
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