In today’s briefing:
- Rakuten Bank (5838) – 4 Months On, Volume Decay and RB’s Place Among Banks
- Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction
- Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure
- Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! – Financial Forecasts
- Honda Motor Co Ltd: Unveiling the 5 Factors That Will Propel Honda’s Momentum in Coming Quarters! – Major Drivers
Rakuten Bank (5838) – 4 Months On, Volume Decay and RB’s Place Among Banks
- Four months ago, Rakuten Bank (5838 JP) was IPOed too low, then the price went up. It would appear foreign active ownership is relatively high.
- Rakuten Bank stands out with high ROE and earnings growth. Banks stand out because, well, they’re going up.
- Given expected 5yr earnings growth, Rakuten Bank at current price is probably “wrong.” But it has much less “bankness” than most banks, so you have to think about it differently.
Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction
- Daiwa House Industry (1925 JP) is looking to raise US$175m from trimming a portion of its stake in Daiwa House Reit Investment (8984 JP).
- Given that a selldown in the REIT hadn’t been explicitly guided, we would thus argue that the deal here isn’t particularly well flagged.
- Overall, the base deal would represent 4.09% of the REIT’s total outstanding shares, representing 20 days of three month ADV.
Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure
- 2/3 of sales face secular decline in housing demand/shrinking population and the other 1/3 facing weak housing environment due to rising rates
- Competition from private label and weak trends and ratios exist
- The valuation does not seem to reflect the risks highlighted
Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! – Financial Forecasts
- Sony Group Corporation delivered an all-around beat in the previous quarter.
- However, consolidated operating income fell because the Financial Services segment’s operating income fell.
- Software sales for the quarter increased mostly due to the launching of the enticing third-party software and increased PS5 penetration.
Honda Motor Co Ltd: Unveiling the 5 Factors That Will Propel Honda’s Momentum in Coming Quarters! – Major Drivers
- Honda Motor delivered a mixed result in the recent quarter, with revenues below market expectations, but surpassed the analyst consensus regarding earnings.
- Unit sales for Power Products operations fell to 5.645 million units, mostly because of a fall in North America.
- The supply conditions for semiconductors gradually improved throughout the quarter, which led to greater unit sales in the United States year over year.
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