In today’s briefing:
- Toyota – So About That Whole Tesla Being Years Ahead of The Competition in Autonomous Thing…
- AT Group (8293 JP) MBO – Looks Fully Priced But A Closer Look Is Warranted
- Seven & I’s Response: Dispels Accusations But Gives in to ValueAct’s Demands
- Square Enix – A Beat, A Bump and More to Come
- Daifuku (6383) To Take Out Minorities in Subsidiary Contec (6639)
- Suzuki – Steady but Nothing Special
Toyota – So About That Whole Tesla Being Years Ahead of The Competition in Autonomous Thing…
- We have pointed out previously that the hype surrounding Tesla’s FSD system was delusional.
- We have always regarded their differentiating factor as simply being a greater risk tolerance for endangering the lives of their customers.
- However, some automakers are actually making efforts to improve safety… and they actually know what they are doing.
AT Group (8293 JP) MBO – Looks Fully Priced But A Closer Look Is Warranted
- The CEO and family leader Yamaguchi-san is launching an MBO to take out one of the largest Toyota dealers out there.
- Optically, it looks fully-priced, with significant net debt and a 74% takeover premium. A closer look is, however, warranted.
- This is large enough (despite illiquidity) to be interesting, and it could get interestinger.
Seven & I’s Response: Dispels Accusations But Gives in to ValueAct’s Demands
- Seven & I Holdings (3382 JP) is down 2.71% today following the company’s response to ValueAct’s public letter.
- We think this share price move is unwarranted and driven by a false interpretation that Seven & I’s response is a rebuttal.
- Therefore, we would be using this as an opportunity to add more Seven & I shares.
Square Enix – A Beat, A Bump and More to Come
- We said that we expected MMO Final Fantasy XIV to drive a strong beat and FY OP towards ¥70bn rather than consensus’ ¥55bn.
- With 3Q OP of ¥21.0bn easily beating consensus at ¥14.4bn we believe we are nicely on track.
- Oh and there were some tidbits about NFTs which should get some segments of the market interested.
Daifuku (6383) To Take Out Minorities in Subsidiary Contec (6639)
- Daifuku Co Ltd (6383 JP) today (4 Feb) announced it would take out TSE-2 industrial computing/IoT subsidiary Contec Co Ltd (6639 JP) in a tender offer at 55% premium.
- That looks nice, and should have been expected at some point. But it is only half-generous.
- The shareholder structure tells you how this is likely to end up.
Suzuki – Steady but Nothing Special
- Suzuki reported its 3QFY22 results on Friday with revenue of ¥901bn (+8.8% QoQ, -0.5% YoY) and OP of ¥47.5bn implying an OPM of 5.3% compared to 5.3% in 2QFY22.
- The reported revenue and OP were 3.8% and 5.9% higher than the consensus estimates respectively.
- The company revised its full year revenue guidance to ¥3,400bn (¥200bn up from the previous guidance), while OP guidance remained unchanged on ¥170bn.
Before it’s here, it’s on Smartkarma
