In today’s briefing:
- Fujitsu (6702) Buyback Just Getting Started
- Negative EVs: JOYY & Sohu’s Steep Discount To Net Cash
- DeNA (2432) Buyback – Accretive on a Low Leverage Business Which Will Grow In Time
- 2023 Major IPOs Pipeline in Korea
- EQD | SPX Index/NDX Index : Big Data Week Coming Up-We Look at What Is Priced In
- Net Protections Holding IPO Lock-Up – PE Owner Is Free to Shed Its Remaining Stake
- Intuit Inc: The SeedFi Acquisition & Other Drivers
Fujitsu (6702) Buyback Just Getting Started
- On 28 April 2022, with full-year earnings, Fujitsu Ltd (6702 JP) announced a buyback programme to buy back up to 12mm shares (6.11% of shares out) for up to ¥150bn
- That was when the shares were ¥18,540. The shares popped 10% in 2 days. Then fell 25% into end-September. Yesterday, they announced they’d bought back 1.9mm shares in November.
- Those were the first shares bought back under the Programme. And that leaves 4 months and a lot of stock to buy.
Negative EVs: JOYY & Sohu’s Steep Discount To Net Cash
- Screening US-listed China plays with negative EV and positive tailing EBITDA generates eight names.
- Of these companies, only two are expected to be EBITDA positive in FY22.
- They are JOYY (YY US) and Sohu.com (SOHU US). This insight looks at both names.
DeNA (2432) Buyback – Accretive on a Low Leverage Business Which Will Grow In Time
- DeNA (2432 JP) announced in June a buyback programme to buy up to ¥15bn of stock over the next nine months. They are two-thirds the way through.
- At current pace, they should finish by end-Jan or early Feb, then cancel 8mm shares, leading to a small TOPIX selldown likely in March or April.
- The company remains cash and securities rich (net cash, after-tax value of securities, and equity affiliates are 100% of market cap). And growth lines will slowly claw their way positive.
2023 Major IPOs Pipeline in Korea
- This is our 8th “Annual Edition of the Major Korean IPOs Pipeline Preview” at Smartkarma!
- This insight will feature 50 of the biggest potential IPOs in Korea in 2023.
- The overall IPO market in Korea is likely to continue to be weak in 1H 2023, although there are some potential for a rebound in 2H 2023.
EQD | SPX Index/NDX Index : Big Data Week Coming Up-We Look at What Is Priced In
- Next week is the last big week of data releases for the year
- With CPI data and also a FED meeting there is lots of potential volatility to come
- We look at what is priced in to the derivatives market and suggest some trade ideas
Net Protections Holding IPO Lock-Up – PE Owner Is Free to Shed Its Remaining Stake
- Net Protections (7383 JP), a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
- As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
- In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.
Intuit Inc: The SeedFi Acquisition & Other Drivers
- Intuit had a successful first quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
- TurboTax also had a strong finish with a number of improvements introduced and tested during the quarter.
- Intuit is also developing its own bill-pay feature for QuickBooks and intends to make it available in the future.
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