In today’s briefing:
- Toshiba (6502) – Iffy Earnings, Worse Projections, A Special Div, But Privatisation Process Proceeds
- HUGE Wacoal (3591) Buyback – Buyback Structure Unknown But Interesting Possibilities Exist
- Sakata Inx (4633) HUGE Buyback Makes Things Interesting
- Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- Toshiba – Special Dividend Not Enough To Offset Negatives
- Last Week in Event SPACE: NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma
Toshiba (6502) – Iffy Earnings, Worse Projections, A Special Div, But Privatisation Process Proceeds
- Toshiba announces meh-to-weak earnings and surprisingly conservative revenue guidance for next year given better order books and backlog and much higher USD/yen.
- The company announced a slightly higher March 2022 dividend (giving money to past shareholders) and a big special dividend and higher March 2023 dividend.
- The Privatisation Proposal Process continues. It may get a result, or not. New director choices will wait. Now we start a quiet period where privatisation news competes with analyst bearishness.
HUGE Wacoal (3591) Buyback – Buyback Structure Unknown But Interesting Possibilities Exist
- On Friday, Wacoal Holdings (3591 JP) announced earnings, adoption of IFRS this year (US GAAP til now), dividends, a div hike and higher earnings this year, and a HUGE buyback.
- The buyback is for up to 5.5mm share (8.95% of shares) spending up to ¥10bn.
- Given the structure of the shareholder base, this opens up interesting possibilities.
Sakata Inx (4633) HUGE Buyback Makes Things Interesting
- Sakata Inx Corp (4633 JP) and Toyo Ink Sc Holdings (4634 JP) are finally getting around to unwinding the rest of their cross-holdings from their decision 5yrs ago.
- This is highly accretive. +10% on EPS this year on a weighted average basis and +16.8% on a spot basis.
- The reason is good governance and capital efficiency. A side effect is it shifts the shareholder structure more in favor of economic investors.
Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- Maxell Ltd (6810 JP) has been restructuring itself and the cost-cutting and rationalising of sales efforts and regions has led to post-relisting record OP.
- But another (non-cash) write-off this past year has led to the third year of net losses in a row.
- The company has, however, taken its actual cashflows and turned them into a large buyback
Toshiba – Special Dividend Not Enough To Offset Negatives
- Toshiba reported results on Friday which were just a touch above their revised February guidance at ¥3.35trn in revenue and ¥159bn in OP.
- Guidance was poor with revenue of ¥3.3trn below consensus ¥3.4trn and OP of ¥170bn noticeably below consensus’ ¥202bn.
- The nomination of directors was also postponed and some segments showed a marked deterioration in profitability.
Last Week in Event SPACE: NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma
- The NTT (9432 JP) / NTT Data (9613 JP) transaction is a little complicated, but the end goal appears, like before, to push operating control below holdcos on the chain.
- Both Link Administration (LNK AU) and Dye & Durham tanked over the unfortunate timing of an ACCC delay and MAC disconnect – before a price recovery to close the week.
- MCB says the AGL Energy Ltd (AGL AU) de-merger plan is bad, and now analysts say it is “underwhelming.” Duh. But the alternative? Underwhelming too, but less independent.
Before it’s here, it’s on Smartkarma
