In today’s briefing:
- Shimano (7309) | The Hangover
- Next Corporate Governance Code Revision May Further Dissolve Parent-Subsidiary Listings
Shimano (7309) | The Hangover
- Shimano reported Q1 results post close. Operating profit fell 26% YoY and full year guidance was cut 21%
- We believe that sales in 2023 have simply reverted back to trend. We expect sales to grow in 2024 as underlying demand drivers remain intact
- With the stock down 9% over the past year, we believe the market has discounted the profit revision. We see good value at 17x EV/EBIT
Next Corporate Governance Code Revision May Further Dissolve Parent-Subsidiary Listings
- As statements of reasonableness are disclosed with respect to subsidiary listings that are less than reasonable, further elimination of parent-subsidiary listings is expected to progress.
- The issue of parent-subsidiary listings will to come under further scrutiny, as no fundamental solution can be expected even if formal system for ensuring independence of a subsidiary is established.
- Extending disclosure to affiliate relationships is a commendable step forward not only for minority shareholders of dependent companies, but also for shareholders of the listed parent company.
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