In today’s briefing:
- Big Aisin (7259) Offering Sets Stage for First Toyota Group Full Unwind
- EQD | The Nikkei’s Rally May Be About To Restart
- Weekly Deals Digest (30 Jun) – China TCM, Henlius, Midea RE, MMG, Aisin, Sanil, Shift Up
- (Mostly) Asia-Pac M&A: TCM, Henlius Bio, Mideal Real Estate, Malaysia Airports, S Line, Best World
- End of Mandatory Lock-Up Periods for 55 Companies in Korea in July 2024
- Japan Weekly | IHI, Sumi Pharma, Toho, Sawai, JEOL
- Last Week in Event SPACE: Keisei Electric, China Merchants, Great Eastern, Jardine Matheson/JCNC
- Sanil Electric IPO: The Bull Case
- Polestar Automotive Holding UK: A Tale Of An Enhanced Product Mix and Margin Improvement Strategy! – Major Drivers
- Tencent Music Entertainment Group: How Are They Enhancing User Engagement through Artificial Intelligence? – Major Drivers
Big Aisin (7259) Offering Sets Stage for First Toyota Group Full Unwind
- Today (27 June 2024) after the close, Aisin (7259 JP) announced three Toyota Group companies (Toyota, Toyota Industries, and Denso) would sell shares in Aisin in a ¥180bn offering.
- This is ALL of Denso’s holdings, 63% of Toyota Industries stake, and ~12% of Toyota’s stake. Separately, Aisin announced a 17mm share (6.3%) ¥100bn buyback and a 3:1 split Oct1.
- The recent yuho shows us the progress of Aisin’s promised selldown of crossholdings. There are three large chunks left. One is easy. The climb to capital allocation credibility easier too.
EQD | The Nikkei’s Rally May Be About To Restart
- The Nikkei 225 Index rallied last week, and closed the week up.
- Although slightly overbought, our models are not pointing to a SHORT opportunity here.
- If the index pulls back this coming week, it may be a good idea to BUY, in order to take advantage of a possible reprise of the rally.
Weekly Deals Digest (30 Jun) – China TCM, Henlius, Midea RE, MMG, Aisin, Sanil, Shift Up
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: MMG (1208 HK) rights issue, Aisin (7259 JP) placement, Sanil Electric (062040 KS) IPO, and Shift Up (462870 KS) IPO.
- Event-Driven developments: China Traditional Chinese Medicine (570 HK), Shanghai Henlius Biotech (2696 HK), Midea Real Estate Holding (3990 HK), Best World International (BEST SP).
(Mostly) Asia-Pac M&A: TCM, Henlius Bio, Mideal Real Estate, Malaysia Airports, S Line, Best World
- I tally 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- One. new deal was discussed this week: Shanghai Henlius Biotech (2696 HK)‘s cash/scrip Offer. Midea Real Estate Holding (3990 HK) also fielded a “Partial Scheme”.
- Key updates took place on: China Traditional Chinese Medicine (570 HK), Malaysia Airports Holdings (MAHB MK), S Line Co Ltd (9078 JP), Best World International (BEST SP) .
End of Mandatory Lock-Up Periods for 55 Companies in Korea in July 2024
- We discuss the end of the mandatory lock-up periods for 55 stocks in Korea in July 2024, among which 6 are in KOSPI and 49 are in KOSDAQ.
- These 55 stocks on average could be subject to further selling pressures in July and could underperform relative to the market.
- The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in July include Lunit, Mezzion Pharma, and DS Dansuk.
Japan Weekly | IHI, Sumi Pharma, Toho, Sawai, JEOL
- U.S. economy: Mixed signals with Q1 GDP growth revised up to 1.4%, driven by business investment and trade, while jobless claims hit a high, raising unemployment concerns.
- Japan’s Nikkei 225: Strong performance, up 986 yen for the week, fueled by major stock rebounds and IPO interest, despite dollar-yen depreciation to 161 yen.
- Market outlook: Nikkei up 2.2% in June, nearing 40,000 yen; cautious sentiment prevails with U.S. markets closed on July 4th and UK elections ahead
Last Week in Event SPACE: Keisei Electric, China Merchants, Great Eastern, Jardine Matheson/JCNC
- No surprise: Keisei Electric Railway (9009 JP) shareholders voted down Palliser’s proposal. If the vote was close, Palliser may ups its rhetorical game, and takes a harder stance.
- Argyle failed to boot one CMCDI (133 HK) director. They’ll next target the management agreement renewal; and agitate the company buy back 20% of shares outstanding at 90% of NAV.
- The Offeror now has 90.16% in Great Eastern Holdings (GE SP) – so this will get suspended at the close of the Offer.
Sanil Electric IPO: The Bull Case
- Sanil Electric (062040 KS), a Korean industrial transformer manufacturer, is seeking to raise up to US$165 million.
- The IPO is a pure primary raise of 7.6 million shares at an IPO price range of KRW24,000-30,000. Book building will run from 9 to 15 July.
- The bull case rests on US-led rapid revenue growth, high barriers to entry, good revenue visibility, improving margins, top-quartile margin performance and modest leverage.
Polestar Automotive Holding UK: A Tale Of An Enhanced Product Mix and Margin Improvement Strategy! – Major Drivers
- Polestar presented a mixed but broadly positive financial picture in the third quarter of 2023.
- The company, known for its focus on electric vehicles, reported record third-quarter deliveries of 13,976 units, marking a significant 51% increase from the previous year.
- This robust performance can be attributed to a positive product and channel mix and the initial rollout of the Polestar 2’s model year ’24, illustrating a strong consumer demand for Polestar’s offerings.
Tencent Music Entertainment Group: How Are They Enhancing User Engagement through Artificial Intelligence? – Major Drivers
- Tencent Music Entertainment Group, a leading player in China’s music streaming industry, started the year 2024 with some substantial financial and operational achievements, reflecting its continued emphasis on a dual-engine strategy of content richness and platform optimization.
- However, not all indicators were uniformly positive, revealing certain challenges and strategic pivots.
- On the upside, Tencent Music reported a marked increase in its subscriber base, adding a record 6.8 million net subscribers during the quarter, which pushes the total count to 113.5 million music-paying users.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
