In today’s briefing:
- Toshiba (6502) – Now We Have “That One Piece Of News”
- Straits Times Index (STI) Rebalance Preview: Impact of Yangzijiang Shipbuilding Spin-Off
- Toshiba – Market Reaction to Proposal Solicitation News Is a Great Short Opportunity
- Adi Sarana Armada (ASSA IJ) – Mobility, Logistics, and the Digital Economy
Toshiba (6502) – Now We Have “That One Piece Of News”
- Toshiba announced that it will start a sale process by offering info, and running a two-round “strategic alternative” process. Info and non-binding proposals followed by due dili and binding proposals.
- For me, this seems like “That One Piece Of News” which is required to make the range jump, and to get people into Now-We-Are-Going-To-Get-A-Deal.
- We may not, of course, and it will be a long, complicated road. But this is a step change. Starting a beauty contest is a big deal.
Straits Times Index (STI) Rebalance Preview: Impact of Yangzijiang Shipbuilding Spin-Off
- Yangzijiang Shipbuilding (YZJSGD SP) is trading ex-spinoff today and is trading at S$0.85/share versus the last close of S$1.54/share, implying a price of S$0.69/share for Yangzijiang Financial Holding Ltd (YZJFH).
- At the last prices, Yangzijiang Shipbuilding (YZJSGD SP) will remain in the FTSE Straits Times Index (STI) (STI INDEX) while Yangzijiang Financial Holding (YZJFH) will be deleted on 4 May.
- To avoid index deletion, Yangzijiang Financial Holding (YZJFH) will need to trade at S$0.825/share or higher and that would result in the deletion of Comfortdelgro Corp (CD SP).
Toshiba – Market Reaction to Proposal Solicitation News Is a Great Short Opportunity
- Toshiba announced yesterday that they would be soliciting proposals on strategic alternatives specifically mentioning privatisation.
- The stock is up 3.5% on the news and had been up as much as 6.5% in a very weak market despite the news being well foreshadowed.
- At the current price we believe there could be limited scope for a significant premium and much downside if tech turns over.
Adi Sarana Armada (ASSA IJ) – Mobility, Logistics, and the Digital Economy
- Adi Sarana Armada (ASSA IJ) booked a strong set of FY2021 results with sales growing by +68% and net profit by +64%, driven by a strong performance from logistics business.
- Anteraja now makes up 54% of sales and broke even in FY2021, delivering an average of 650,000 parcels per day in 2021, expected to rise to 1.5m by December 2022.
- Adi Sarana Armada (ASSA IJ) is a proxy for mobility through car leasing, online and offline used car sales through Autopedia, and last-mile deliveries through Anteraja.
Before it’s here, it’s on Smartkarma
