In today’s briefing:
- Hitachi Transport Is the Eventy Energizer Bunny
- Sony – EV Partnership Is Excellent for Sony but Highlights Honda’s Struggles
- Three Ways of Settling Nexon Inheritance Tax Payment: Each Way’s Ramifications
- Hino – Some Uncertainty, Probably an Overreaction, But Still Not Worth Bottom Fishing
Hitachi Transport Is the Eventy Energizer Bunny
- Hitachi Transport System (9086 JP) has been “virtually” for sale since October 2019 but it did not pop when others did then. But SG and HTS “consciously uncoupled” in 2020.
- Mid-Year last year saw news HTS was entertaining offers, which didn’t go anywhere but newer news suggests Round 2 of a new course of bidding is done.
- And the stock keeps on going up and up and up.
Sony – EV Partnership Is Excellent for Sony but Highlights Honda’s Struggles
- Sony and Honda announced today they would form a strategic alliance in the mobility field.
- Honda will be responsible for manufacturing and after sales while Sony will handle imaging, sensing, telecommunication, network and entertainment technologies.
- This helps Sony maintain its asset light model and is also positive for Honda but we do feel that it makes Honda look a little lost in the changing world.
Three Ways of Settling Nexon Inheritance Tax Payment: Each Way’s Ramifications
- There are three ways families can settle inheritance tax: 1. payment in Kind, 2. direct sale of the NXC stake, and 3. NXC sells its stake in Nexon Japan.
- They have different ramifications from an investment point of view, and the third option is probably the one that the market desires most.
- If the family goes for the third option, they will likely sell all of NXC’s Nexon Japan stake (47.89%), which will lead to a TOB to Nexon Japan minority shareholders.
Hino – Some Uncertainty, Probably an Overreaction, But Still Not Worth Bottom Fishing
- Hino announced during market hours that it was being probed for falsifying exhaust data prompting a 14.8% drop in the stock price.
- At its press conference the company revealed that up to 116k vehicles were affected and roughly 35% of domestic production would be halted.
- Some uncertainty remains and valuations after the fall are reasonable rather than exceedingly cheap so we would be hesitant to bottom fish here.
Before it’s here, it’s on Smartkarma
