In today’s briefing:
- FTSE EPRA Nareit Developed Asia Preview: Adds, Close Adds & Misses for June
- Toyo Construction Comes Out Fighting Against YFO, But Sincerely.
- Rakuten (Neutral) – Follow-Up on Q1 Results and Thoughts on a Securities Listing
- Arteria Networks (Buy) – Q4 21 Results Reaction: Between a Rock and a Hard Place
- Ibiden (4062 JP): Guidance Looks Too High, but Dropping Toward an Entry Point
FTSE EPRA Nareit Developed Asia Preview: Adds, Close Adds & Misses for June
- The FTSE EPRA Nareit Index June rebalance will use data from 23 May. The changes will be announced on 1 June and implemented at the close on 17 June.
- Potential inclusions at the review include Ichigo Inc (2337 JP) and LOTTE Reit Co Ltd (330590 KS) while there is a possibility of Digital Core REIT (DCREIT SP) being added.
- Mapletree North Asia Commercial Trust‘s NPI from Developed Markets is 72% making it ineligible for index inclusion, while Frasers Hospitality Trust‘s drop has taken it out of the inclusion list.
Toyo Construction Comes Out Fighting Against YFO, But Sincerely.
- As discussed in the last insight, there was the possibility that YFO was jumping the gun. From the near 100+ pages released by Toyo Construction (1890 JP) today, they did.
- TC accused YFO of being “dishonest” in its attitude and actions, from the “reasons” stated in its Large Shareholder Report and market purchases to YFO’s Murakami-san’s previous interactions.
- What TC doesn’t yet understand is that when a company is in play, if a “market check” comes in, that’s OK. Investors are not hurt by a higher bid.
Rakuten (Neutral) – Follow-Up on Q1 Results and Thoughts on a Securities Listing
- The end of Rakuten free plans is unlikely to have a major industry read across although the end of loyalty point chasing should help save on promotional costs
- Mobile erosion has likely peaked but full-year losses for FY22 will be higher than last year. We expect the progression to profitability to be modest
- Listing the securities business is a positive as it surfaces fintech value but allocating proceeds from valuable asset sales to funding mobile is not
Arteria Networks (Buy) – Q4 21 Results Reaction: Between a Rock and a Hard Place
- Q4 results and FY22 guidance largely in-line with consensus and Redex expectations
- Shares trade at a discount to peers but should command a premium on potential mid-term growth prospects and lack of mobile exposure
- That may reflect relative size as Arteria lacks the scale and liquidity to attract interest from investors in search of defensive names
Ibiden (4062 JP): Guidance Looks Too High, but Dropping Toward an Entry Point
- Share price down 35% since last December, probably because FY Mar-23 guidance seems over-optimistic. Gearing to falling demand and rising costs is high.
- Sales and profits should eventually rebound as 5G smart phone and data center related demand continue to grow, and after new capacity comes on line in 2024.
- First rate IC substrate and printed wiring board technology, and sound finances, make the company a candidate for long-term investment.
Before it’s here, it’s on Smartkarma
