In today’s briefing:
- Trend Micro (4704 JP): Evaluating the Privatisation Rumours
- Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente
- (Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric
- IHI (7013 JP): Buy Back in for Post-Crash Recovery
- Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers
- Micronics Japan (6871 JP): 1H FY12/24 flash update
- Oat Agrio (4979 JP): 1H FY12/24 flash update
- Advance Create (8798 JP): Q3 FY09/24 flash update
- Tkc Corp (9746 JP): Q3 FY09/24 flash update
Trend Micro (4704 JP): Evaluating the Privatisation Rumours
- Trend Micro Inc (4704 JP) shares rose 14.8% on Friday after Reuters reported that it is exploring a sale after attracting buyout interest.
- The interest is unsurprising due to the weak share price. Since ValueAct disclosed a stake on 8 August 2022, the shares are down 0.7% vs the Nikkei 225’s 23.6% increase.
- The lack of a controlling shareholder and increased cybersecurity M&A activity support the buyout interest. A privatisation price is likely to be around JPY9,000. Valuation is undemanding at last close.
Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente
- The trade in Toyota Motor (7203 JP)‘s Tender offer Buyback is to understand what YOU can do in your particular position.
- Despite Swire Properties (1972 HK)‘s recent share buyback, Swire Pacific (A) (19 HK) is still preferable on a look-through P/B of 0.34x.
- Kirin bumps the Offer for Fancl (4921 JP). Given market gyration, it may represent enough of a switching opportunity to let those who still object in principle to re-allocate elsewhere.
(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric
- I tally 46 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Three new deals were discussed this week on Smartkarma: KKR’s tilt for Fuji Soft (9749 JP); and Itochu’s Tenders Offers for Descente (8114 JP) and C.I. TAKIRON Corporation (4215 JP).
- Key updates took place on Pacific Smiles (PSQ AU), Greatview Aseptic Packaging (468 HK), L’Occitane (973 HK), Fancl Corp (4921 JP), Shinko Electric Industries (6967 JP), and Isetan Singapore (ISET SP).
IHI (7013 JP): Buy Back in for Post-Crash Recovery
- 1Q results supported management’s full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
- Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace & Defense orders were up 35.5% and slightly exceeded sales.
- Our own forecast – above management’s guidance this year with further growth next year – and our share price target are unchanged. 21% potential upside.
Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers
- Toyota Motor Corporation has released its financial results for the fiscal year ended March 2024, providing a comprehensive overview that reflects both the company’s recent successes and its strategic investments towards future growth.
- In fiscal year 2024, Toyota reported robust financial performance with total vehicle sales reaching 9.443 million units, marking a 7.0% increase from the previous fiscal year.
- This growth was largely propelled by escalated sales outside Japan, counterbalancing the dip in domestic sales due to shipment suspensions from Daihatsu Motor Company and Toyota Industries Corporation.
Micronics Japan (6871 JP): 1H FY12/24 flash update
- Consolidated financial results for 1H FY12/24: Sales JPY26.2bn (+54.1% YoY), Operating profit JPY5.8bn (+229.4% YoY), Net income JPY3.7bn (+222.4% YoY).
- Segment sales in Q2: Memory probe card sales JPY12.4bn (+124.1% YoY), Non-memory probe card sales JPY1.3bn (+66.8% YoY).
- Full-year FY12/24 forecast: Sales JPY55.0bn (+43.6% YoY), Operating profit JPY11.6bn (+118.4% YoY), Net income JPY8.3bn (+101.1% YoY).
Oat Agrio (4979 JP): 1H FY12/24 flash update
- Revenue in 1H FY12/24 decreased 4.2% YoY to JPY15.7bn, driven by weak performance in the agrichemicals field.
- Operating profit in 1H FY12/24 decreased 38.5% YoY to JPY2.0bn, impacted by lower revenue and increased expenses.
- Recurring profit and net income attributable to owners of the parent fell over 30% YoY but exceeded forecasts.
Advance Create (8798 JP): Q3 FY09/24 flash update
- Revenue decreased JPY2.2bn YoY (-26.0% YoY) to JPY6.4bn, with significant declines in the Insurance Agency and Media businesses.
- Operating loss decreased JPY26mn YoY to JPY610mn, with notable improvements in the Insurance Agency and Media businesses.
- Full-year forecast revised: Revenue JPY9.5bn, Operating profit JPY200mn, Recurring profit JPY100mn, Net income JPY70mn, EPS JPY3.19.
Tkc Corp (9746 JP): Q3 FY09/24 flash update
- Sales grew 2.4% YoY to JPY55.2bn, with Accounting Firm segment up 3.4% YoY and Local Government segment up 0.5% YoY.
- Operating profit increased 1.9% YoY to JPY13.6bn, with Accounting Firm segment up 2.1% YoY and Local Government segment up 6.4% YoY.
- Net income attributable to owners of the parent decreased 0.7% YoY to JPY9.7bn, despite overall sales and operating profit growth.
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