In today’s briefing:
- Itochu To Take Over Itochu Techno Solutions (CTC (4739 JP)) Just As Growth Jumps
- ITOCHU Techno-Solutions (4739 JP): ITOCHU’s JPY4,325 Tender Offer
- E-Guardian (6050 JP): CHANGE Holdings’ Partial Tender Offer
- Hong Kong CEO & Director Dealings (2 August): Flat Glass, Arts Optical, Sky Light Holdings
- [Hua Hong (1347 HK, BUY, TP HK$34) TP Change]: Valuation Is Attractive Post-Shanghai Listing
- Halodoc Raises $100m Series D in Astra-Led Round
- SBI Affiliate To Buy 45-49% of E-Guardian (6050) In Partial Tender Offer
- Ex-Gojek VP’s Modern Financial Analytics Platform Bunker Secures US$5M
- Intel. PC Recovery Nigh As Incentives No Longer Required To Shift Client CPUs
- Teradyne Inc.: Can The New Archimedes Analytics Solution Be A Game Changer? – Key Drivers
Itochu To Take Over Itochu Techno Solutions (CTC (4739 JP)) Just As Growth Jumps
- Itochu Corp (8001 JP) today announced it had agreed with 61%-owned Itochu Techno Solutions (4739 JP) sub to take over CTC and squeeze out minorities.
- The stock released earnings mid-day, somehow, but not on TDNet until post-close. The stock jumped in the last two hours. The Tender Offer is at a 10% premium to close.
- Growth will be up, and there are lots of financial assets and net receivables so this is 8+x March 2025. Itochu is not overpaying. But there will be no counter.
ITOCHU Techno-Solutions (4739 JP): ITOCHU’s JPY4,325 Tender Offer
- Itochu Techno Solutions (4739 JP) has recommended Itochu Corp (8001 JP)’s tender offer of JPY4,325 per share, an 18.7% premium to the undisturbed price (1 August).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 5.43% ownership ratio.
- The minimum acceptance condition requires a 14% minority acceptance rate. This is doable as the tender price is attractive and equals the 20-year share price high.
E-Guardian (6050 JP): CHANGE Holdings’ Partial Tender Offer
- E Guardian Inc (6050 JP) has announced a partial tender offer and third-party allotment with Change Inc (3962 JP). CHANGE will subscribe for 1.5 million shares at JPY2,099 per share.
- The tender offer is for a minimum of 3.7 million and a maximum of 4.3 million shares at JPY3,000 per share, a 42.9% premium to the undisturbed price.
- The tender offer is reasonable. The minimum acceptance condition requires a 37% minority acceptance rate. A 100% minority participation rate implies a minimum proration is 42.39%.
Hong Kong CEO & Director Dealings (2 August): Flat Glass, Arts Optical, Sky Light Holdings
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- Stocks mentioned in this regular insight include Flat Glass (6865 HK), Arts Optical Intl Hldgs (1120 HK), and Sky Light Holdings Ltd (3882 HK).
[Hua Hong (1347 HK, BUY, TP HK$34) TP Change]: Valuation Is Attractive Post-Shanghai Listing
- We expect Hua Hong to report C1Q23 top-line and non-IFRS net income in-line and (24%) vs. cons., respectively, missing mainly due to one-time costs.
- Hua Hong’s post-A share IPO valuation is cheap at 0.7x P/B, but we expect that weakening industrials demand and a slow recovery to hamper shipments.
- We maintain BUY but cut Hua Hong’s TP to HK$ 34 reflecting lowered wafer shipments estimates for FY24/25. Our TP implies 15x FY24 PE.
Halodoc Raises $100m Series D in Astra-Led Round
- Halodoc, the Indonesia-based healthtech firm, raked in US$100 million in series D funding in a round led by returning investor Astra Digital International, according to a statement.
- This boosts Astra’s total investments in the company to US$135 million. In 2021, the local conglomerate also led the US$80 million series C round of Halodoc.
- With the new capital, Halodoc has raised at least US$258 million, according to Tech in Asia data.
SBI Affiliate To Buy 45-49% of E-Guardian (6050) In Partial Tender Offer
- Today, Change Inc (3962 JP) (30%-owned by SBI Holdings (8473 JP)) announced a Tender Offer to buy 32-36.9% of E-Guardian, followed by a third-party placement to get them to 45-49%.
- Small cap E-Guardian does internet services support, ad processing, cyber security (their fastest growing segment) and top line has been growing.
- The partial offer is big enough to matter, and up 50%. It is worth a look for people who like small cap special sits.
Ex-Gojek VP’s Modern Financial Analytics Platform Bunker Secures US$5M
- Singapore-based startup Bunker, which provides a modern financial analytics platform for SMEs, has secured over US$5 million over two funding rounds.
- The investors include January Capital, Alpha JWC, GFC, Northstar Group, Money Forward, Alpine Ventures, and Patamar Capital.
- Angel investors, namely Chris Lin, Rosemary DeAaragon, Tiger Fang, Gaurav Gupta, Christian Sutardi, Warren Tseng, Jonathan Wong, Nakul Malhotra, and Shaun Hon, also participated.
Intel. PC Recovery Nigh As Incentives No Longer Required To Shift Client CPUs
- Q2’23 revenues of $12.9 billion, down 15% YoY but up ~10% QoQ and handily beating the guided midpoint of $12 billion.
- Q3 outlook for $13.4 billion at the midpoint, up 3.8% sequentially
- Mr Gelsinger envisages a centrino-like era of AI-enabled PCs, starting with Meteor Lake in H2’23. Is this realistic?
Teradyne Inc.: Can The New Archimedes Analytics Solution Be A Game Changer? – Key Drivers
- Teradyne delivered an all-around beat in the previous quarter.
- The company’s performance met expectations, but segment-wise, the test business showed more strength, while robotics faced challenges with softer demand.
- Teradyne also recently introduced the Teradyne Archimedes analytics solution, an open architecture that brings real-time analytics to semiconductor testing.
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