In today’s briefing:
- Renesas (6723 JP) – On Top of Peer-Beating Growth, and Valuation… Watch for Buybacks
- Euglena (2931 JP) | Flying High on Sustainable Aviation Fuel
- Beenos Valuation: SOTP Suggests Plenty of Upside Potential
- Rakuten (4755 JP) | Time to Cover the Shorts
Renesas (6723 JP) – On Top of Peer-Beating Growth, and Valuation… Watch for Buybacks
- A bit over a year ago Renesas Electronics (6723 JP) announced its transaction to buy Dialog Semiconductor (DLG GR) for €4.8bn (roughly ¥624bn) and the transaction closed end-August 2021.
- In September, Renesas announced a “Progress Update” covering various business segments, expectations for supply in the sector, and eventual “shareholder return” policy.
- This past week the Nikkei carried an article talking about a possible stock buyback later this year. I explore.
Euglena (2931 JP) | Flying High on Sustainable Aviation Fuel
- Euglena could be the most important sustainable aviation fuel company in Japan and a world leader in using micro algae as a feedstock
- The company looks set to become the largest provider of SAF in Japan by 2025
- Assuming the company can hit its commercial SAF production target, we think the stock could easily double
Beenos Valuation: SOTP Suggests Plenty of Upside Potential
- Leading up to the GoTo IPO, Beenos Inc (3328 JP) shares rallied more than 80% to ¥2,364 per share, possibly expecting substantial listing gains from the “conservatively” priced GoTo IPO.
- GoTo (GOTO IJ) opened around 18% above its IPO price on 11th April 2022, but Beenos fell by around 7% and 8% on 11th and 12th April 2022 respectively.
- It may be too late to ride the GoTo IPO rally, but exposure to a high-profile company like GoTo brings visibility, resulting in a much narrower NAV discount.
Rakuten (4755 JP) | Time to Cover the Shorts
- We have a non-consensus Bullish call on Rakuten and see over 60% upside to the share price
- The key driver will be a recovery in the Mobile Business
- We expect losses to gradually improve as roaming fees and customer acquisition costs start to decline
Before it’s here, it’s on Smartkarma
