In today’s briefing:
- Weekly Deals Digest (11 Jun) – Toshiba, Chindata, Yitai Coal, Eoflow, Estia, Origin, Amman Mineral
- Asia Macro Chart Trajectory
- Rohm (6963 JP): Taking the Long View
- Benesse Holdings (9783): Time to Cover
- Advisors’ Disclosure Is Inadequate and Other Companies May Have Similar Cases
Weekly Deals Digest (11 Jun) – Toshiba, Chindata, Yitai Coal, Eoflow, Estia, Origin, Amman Mineral
- 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 – Amman Mineral Internasional (1416286D IJ), Tata Technologies (TATATECH IN), JD Industrials (2231713D CH) IPOs.
- Event-Driven developments – Toshiba Corp (6502 JP), Chindata Group (CD US), Eoflow (294090 KS), Inner Mongolia Yitai Coal Company Ltd (3948 HK), Estia Health (EHE AU), Origin Energy (ORG AU).
Asia Macro Chart Trajectory
- Macro charts for US 10yr yield, Nikkei (bull), Kospi 200 (bear), HSI (bear) and Nifty (bull) featured. Taiwan falls into the bull camp.
- Cycle: Bullish above SPX 4,200 (rally failure if back below this pivot level). NDX trendline buy support at 13,950. Risk that tech is stretched near term.
- Asia is well positioned for gains once we get through some overbought readings. HK and Korea the weak links.
Rohm (6963 JP): Taking the Long View
- Share price performance has been strong in spite of pressure on margins from heavy investment in power semiconductors for electric vehicles.
- Management’s medium-term targets are ambitious, but could be achieved in a reasonably favorable economic environment.
- Projected valuations compare favorably with historical ranges. The primary risk to investors appears to be over-optimism.
Benesse Holdings (9783): Time to Cover
- Benesse Holdings (9783 JP) share price has fallen 18% annually since 4 years ago with PER going from 55x to 14x
- The structural decline in the main business remains although the smaller business has shown some improvement.
- Japan has received a lot of investors interest recently and Benesse could pick up some investor interest too.
Advisors’ Disclosure Is Inadequate and Other Companies May Have Similar Cases
- Corporate governance report and securities report were inadequate because it was not possible to get a complete picture of how many advisors other than ex-CEOs were involved in the company.
- Mitsubishi Electric, which has suffered scandals, has revealed that “senior advisors” have been involved in its management. However, it is possible that advisors influence management at other companies as well.
- The ex-CEO isn’t necessarily in charge of industry association activities, the compensation of the advisors is undisclosed, and Mitsubishi Electric still has a ways to go in improving management transparency.
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