In today’s briefing:
- Merger Arb Mondays (07 Apr) – Seven & I, Makino, HKBN, OneConnect, Dada, Insignia, Domain, Dropsuite
- Komeri (8218) Rare, Tariff-Proof Domestic Growth Idea at a Steep Discount
- Nikkei Index Options Weekly Mar 31 – Apr 04): Volatility Elevated, Put Demand Surges
- Political Problems Are Preventing a Solution to the Problem of Declining Birthrates
- Zuiko Corp (6279 JP): Full-year FY02/25 flash update
Merger Arb Mondays (07 Apr) – Seven & I, Makino, HKBN, OneConnect, Dada, Insignia, Domain, Dropsuite
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Seven & I Holdings (3382 JP), Insignia Financial (IFL AU), ENN Energy (2688 HK), OneConnect Financial Technology (OCFT US), Smart Share Global (EM US), Soundwill Holdings (878 HK).
- Lowest spreads: Sinarmas Land (SML SP), Makino Milling Machine Co (6135 JP), Millennium & Copthorne Hotels Nz (MCK NZ), Shibaura Electronics (6957 JP), Tonami Holdings (9070 JP).
Komeri (8218) Rare, Tariff-Proof Domestic Growth Idea at a Steep Discount
- Komeri plans to expand their addressable market by 75% and to double their current market share to 21%.
- Same store sales of the company’s Pro Stores rose an average of more than 7% in the past 8 quarters, and selling area is expanding at more than 25% annually.
- Yet Komeri trades at just 11x earnings, compared to about 16x for Topix and 18x for the median retail stock.
Nikkei Index Options Weekly Mar 31 – Apr 04): Volatility Elevated, Put Demand Surges
- Volatility percentiles are flashing, and we explore what recent price action could signal for the week ahead.
- Put activity surged, with especially heavy interest on Thursday and Friday and concentrated in short dates expiries.
- We highlight the potential for equity market volatility to spill over into currency markets.
Political Problems Are Preventing a Solution to the Problem of Declining Birthrates
- Eliminating income limits on child allowances seems to be the right policy because the wealthier families have more children. However, it lacks viewpoints toward the growing number of unmarried people.
- It seems effective to solve the problem of the growing income disparity and the child-rearing/housework being disproportionately placed on women, and taking appropriate measures for those who desire diverse lifestyles.
- Policies don’t reach the ever-increasing number of singles. Rather than solutions to declining birthrate, priority is given to policies that distribute money to those who are more certain to vote.
Zuiko Corp (6279 JP): Full-year FY02/25 flash update
- FY02/25 revenue was JPY20.0bn (-8.2% YoY), with a net loss of JPY788mn, impacted by declining sales in Japan and China.
- FY02/26 revenue is projected at JPY22.0bn (+10.3% YoY), with expected operating profit of JPY1.0bn and EPS of JPY31.0.
- ZUIKO’s medium-term plan targets FY02/28 revenue of JPY30bn+, with JPY8.0bn from new businesses, and OPM of 8.1%.
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