In today’s briefing:
- TOPIX Inclusions: Who Is Ready (Apr 2023)
- Temenos (TEMN SW): World’s No.1; Improving Fundamentals; M&A Candidate
- Zhejiang Supcon Technology GDR Listing – Momentum Has Been Strong and Not a Large Deal to Process
- Comms Group (ASX:CCG) – Domestic Restructure to Boost FY24+
- Comms Group Limited – Domestic Restructure to Boost FY24+
TOPIX Inclusions: Who Is Ready (Apr 2023)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- In the last two months, Amvis Holdings Inc (7071 JP), AXXZIA Inc (4936 JP), and Sosei Group (4565 JP) have confirmed their moves to the Prime Market.
- These names appeared in our lists (A or B) of candidates with high “readiness” for TOPIX Inclusions in our recent insights.
Temenos (TEMN SW): World’s No.1; Improving Fundamentals; M&A Candidate
- Overall, the sentiments are extremely negative with most sell-side analysts having a Sell/Neutral rating on the stock.
- We believe either A) Revenue and earnings growth will pick up under the new management team, or B) Temenos will be taken over by some private equity firm.
- While revenue growth has remained subdued, the company’s moat remains intact in our view.
Zhejiang Supcon Technology GDR Listing – Momentum Has Been Strong and Not a Large Deal to Process
- Zhejiang Supcon Technology (688777 CH) is looking to raise around US$347m in its Swiss GDR listing. Huatai and CLSA are bookrunners on the deal.
- The firm is offering 12.5m GDRs (1 GDR to 2 ordinary A-shares) for sale, at a 8.1-10.8% discount to last close on the A-share leg.
- The deal is a relatively small one for the firm to digest, representing just 5.9 days of three month ADV on its A-share leg.
Comms Group (ASX:CCG) – Domestic Restructure to Boost FY24+
- The company has announced a restructure of its domestic retail business following a review that identified excess resourcing levels.
- The result is an estimated 20 redundancies and annualised cost saving of $2m at the EBITDA line
- We have upgraded our forecasts from FY24 and our valuation has increased as well.
Comms Group Limited – Domestic Restructure to Boost FY24+
- Comms Group Ltd (ASX:CCG) has announced a restructure within its domestic retail business following a review that identified excess resourcing levels.
- The result is an estimated 20 redundancies and an annualised cost saving of $2m at the EBITDA line.
- Guidance for FY23 EBITDA of $5.0m+ (RaaS $5.1m) remains intact for FY23.
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