In today’s briefing:
- Taking Advantage of Terumo (4543) Weakness And After-Offering Flow
- Seiren (3569) | Synthetic Leather, Real Growth
- Geechs (7060 Jp) – 1Q Follow-Up
- Trial Holdings IPO Lockup – Large Number of Small Holders Hold Around US$400m of Stock
Taking Advantage of Terumo (4543) Weakness And After-Offering Flow
- Terumo Corp (4543 JP) was able to hang in well after the announcement, up until the day or two before pricing date, then the shares were walloped into Pricing.
- After pricing, they have fallen and erased most of the discount. That’s an opportunity.
- The shares have underperformed Peers, and there is flow to come. This deal was, as advertised, smaller than it first appeared.
Seiren (3569) | Synthetic Leather, Real Growth
- Activist investor, Oasis Management, recently disclosed that they had taken a significant 6.3% stake in the company
- I suspect that Oasis don’t need to be overly aggressive with this one. Given the fundamental outlook, we see the financial model delivering double digit earnings growth
- After a strong Q1 report, we expect an upward revision to guidance. The stock is cheap at <11x earnings. We see over 30% upside
Geechs (7060 Jp) – 1Q Follow-Up
- 1Q FY2025/3 results review: On August 9th, 2024, Geechs Inc. (hereafter, the “Company”) announced its 1Q FY2025/3 earnings results.
- Net sales fell 2.0% YoY to ¥5,825 mn, EBITDA rose 7.2% YoY to ¥107 mn, and operating profit rose 175.8% YoY to ¥80 mn.
- The sharp rise in operating profit was attributable to the sale of G2 Studios (previous Game business) at the end of FY2024/3, which prevented 1Q FY2025/3 operating profit from being dragged down by the business as it did in 1Q FY2024/3, when it recorded an operating loss of ¥74 mn.
Trial Holdings IPO Lockup – Large Number of Small Holders Hold Around US$400m of Stock
- Trial Holdings (5882 JP) raised around US$259m in Mar 2024. Its IPO lockup is set to expire soon.
- TH operates a network of retail stores in Japan that offer one-stop shopping under its everyday low price (EDLP) model.
- In this note, we will talk about the lockup dynamics and possible placement.
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