In today’s briefing:
- SMC (6273) Buyback – Small Short Sharp
- Persol Holdings Placement – Selldown by Cross-Shareholder
- Dentsu BIG Buyback – Both Larger and Smaller Than It Appears
- Conviction Call Dowa – On Track for a Blowout and Growth Next Year
- Nihon: False Recording of Sales Leads to More Than 40% Drop; Can Nihon Regain Investor Confidence?
SMC (6273) Buyback – Small Short Sharp
- SMC Corp (6273 JP) announced better Q3 and an upward revision to still-below consensus for this year. Consensus is for up-and-to-the-right the next few years (but implied Q4 looks light).
- The company raised its dividend so now it is 1% yield.
- And the company announced a small but intriguing buyback. If you own the stock or trade in the space, it is worth understanding
Persol Holdings Placement – Selldown by Cross-Shareholder
- Kelly Services Inc A (KELYA US) aims to raise around US$200m via selling its 3.8% stake in Persol Holdings (2181 JP).
- Kelly Services mentioned that it was looking to end its cross-shareholding with Persol Holdings in its earnings announcement. The two share a JV in PersolKelly.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
Dentsu BIG Buyback – Both Larger and Smaller Than It Appears
- Yesterday 14 February, Dentsu announced bte profits, and guidance for 2022 which appears in-line to slightly strong in terms of revenue, slightly weak/conservative in terms of IFRS/GAAP OP.
- The company also announced what appears to be a BIG buyback.
- Looks are deceiving, but somehow not, but there are catches in both directions. If you have a flow axe, it is worth knowing the flow details.
Conviction Call Dowa – On Track for a Blowout and Growth Next Year
- Dowa Holdings’ 3Q numbers PBT beat consensus by 18% putting the company on track to hit out ¥84bn FY target though its upward revision was only to ¥72.5bn.
- A new concrete recycling facility, recovering rhodium prices and a rebound in silver powder sales should help momentum going forward.
- We believe the current price implies sustainable PBT generation of under ¥40bn creating a lot of upside potential.
Nihon: False Recording of Sales Leads to More Than 40% Drop; Can Nihon Regain Investor Confidence?
- Nihon M&A Center (2127 JP) reported 3QFY03/2021 results yesterday alongside publication of investigation report over false recording of sales contracts on the internal system between FY03/2019 to 2QFY03/2021.
- The company announced on 20th December 2021 that it has commenced an investigation over the above issue and postponed the announcement of its 3Q results.
- Revenue for 3QFY03/2021 increased 14.6% YoY to JPY10.85bn (vs consensus JPY12bn) while OP dropped 5.1% YoY to JPY4.0bn (vs consensus JPY6.0bn).
Before it’s here, it’s on Smartkarma
