In today’s briefing:
- Updated Tool for TSE “Mgmt Conscious of Capital Cost/Stock Price” And New Presentation/CaseStudies
- Screen Holdings (7735): Share Price Straight Up, Financials Not so Simple
- Index Rebalance & ETF Flow Recap: N225, ASX, STAR50, NIFTY50, KRX New Deal, UOL SP, Korea Passive
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: QV Equities, Orecorp, Benesse, Glosel, Outsourcing
- Weekly Deals Digest (04 Feb) – Benefit One, Benesse, Outsourcing, Glosel, Hollysys, OreCorp, QVE
- Isn’t It Hypocritical to Request a P/B Raising Measure While Continuing the Listed Subsidiary IPO?
- Last Week in Event SPACE: Benefit One, Guoco, Outsourcing, Hang Lung, Hollysys, Dalek
Updated Tool for TSE “Mgmt Conscious of Capital Cost/Stock Price” And New Presentation/CaseStudies
- In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
- The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links. On Feb 1, the TSE put out a presentation and set of case studies.
- Designed to present the “Investor’s Point of View”, they have unexpectedly worthwhile advice/commentary for corporates. The TSE appears to be trying hard to prompt serious consideration rather than box-ticking.
Screen Holdings (7735): Share Price Straight Up, Financials Not so Simple
- The share price was up 4.4% on Friday – and up 2.3x since the end of October – raising forward valuations to the high side of their usual range.
- Management raised FY Mar-24 operating profit guidance slightly after 3Q results that were strong YoY but flat QoQ. 4Q should be better as finished goods inventory is shipped.
- Operating efficiency has improved and a new semiconductor up-cycle has begun, but the numbers suggest caution. Take profits and reassess.
Index Rebalance & ETF Flow Recap: N225, ASX, STAR50, NIFTY50, KRX New Deal, UOL SP, Korea Passive
- The review period for a global index and a bunch of local indices ended last week. The announcement of the changes will be made in 1 week to 4 weeks.
- Strike Energy (STX AU) will replace Costa Group Holdings (CGC AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 8 February.
- The inflows to mainland China ETFs continue for another week. There were big inflows to iShares India ETF (INDA US) and Ishares India Small-Cap (SMIN US).
(Mostly) Asia-Pac Weekly Risk Arb Wrap: QV Equities, Orecorp, Benesse, Glosel, Outsourcing
- I tally 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- One new deals discussed this week on Smartkarma: The all-scrip Offer for QV Equities Ltd (QVE AU) from WAM Leaders Ltd (WLE AU).
- Key updates took place on: Orecorp Ltd (ORR AU), Benesse Holdings (9783 JP), Glosel (9995 JP) and Outsourcing Inc (2427 JP).
Weekly Deals Digest (04 Feb) – Benefit One, Benesse, Outsourcing, Glosel, Hollysys, OreCorp, QVE
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Amer Sports (AS US) is up 15% since listing. Ola Electric (1700674D IN) and FirstCry (0172540D IN) IPOs.
- Event-Driven developments – Benefit One Inc (2412 JP), Benesse Holdings (9783 JP), Glosel (9995 JP), Outsourcing Inc (2427 JP), Hollysys Automation Technologies (HOLI US), QV Equities Ltd (QVE AU).
Isn’t It Hypocritical to Request a P/B Raising Measure While Continuing the Listed Subsidiary IPO?
- Since the introduction of the Corporate Governance Code, the hurdle for listed companies to fulfill their responsibilities has become higher, which is why more managers are choosing to go private.
- While some of companies with large market capitalizations that overseas investor engagement extends to are showing promise for change, many others are failing to step up management to create value.
- TOPIX’s rise has been mainly driven by an increase in the number of companies rather than an increase in stock prices. The market should become higher in quality through de-listing.
Last Week in Event SPACE: Benefit One, Guoco, Outsourcing, Hang Lung, Hollysys, Dalek
- As totally expected, Dai Ichi Life Insurance (8750 JP) extended its expected start date for the Tender Offer on Benefit One Inc (2412 JP).
- The possibility of a fourth Offer attempt by the Queks is raised as Elliott surprisingly exits its position in Guoco Group Ltd (53 HK).
- Outsourcing Inc (2427 JP) is eminently bumpable, But unless investors force the issue, don’t expect a bump.
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