In today’s briefing:
- Olam’s Demerger: The Sum Is Probably Greater Than The Whole
- HUGE Suruga Bank (8358 JP) Buyback
- Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Hyundai Heavy IPO Lock-Up – Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well
- Japan Post Holdings – Gaming Out a Five Bagger
Olam’s Demerger: The Sum Is Probably Greater Than The Whole
- The High Court of Singapore has now sanctioned the proposed restructuring of Olam International (OLAM SP) and the proposed listing of OFI Group.
- Entitlement in respect of the Scheme will close on the 11 March. The last day of trading is the 9 March. The listing of OFI is expected in the 2Q22.
- With many grain/agri prices touching record highs amid war in Ukraine, boasting an upstream supply is not a bad thing. But the timing of OFI’s listing could work both ways.
HUGE Suruga Bank (8358 JP) Buyback
- In 2018, Suruga Bank got itself in trouble, the shares fell 80% or more in a year-plus. In 2019 they took a big hit, and the Okano family sold out.
- Nojima Corp (7419 JP) bought the shares -85% from the peak. Now they are selling those shares, plus the ones they already owned. Down nearly 10% from where they bought.
- This is an instant 15+% boost to BVPS and 22+% boost to EPS. That’s great. But that may be where greatness stops.
Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10
- Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.
- They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.
- There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV & an average daily trade value of +₩5.0B.
Hyundai Heavy IPO Lock-Up – Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well
- Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.
- Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding & Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.
- In this note, we will talk about the upcoming lock-up expiry, along with recent updates.
Japan Post Holdings – Gaming Out a Five Bagger
- We have articulated why we believe Japan Post Bank and Japan Post Insurance could have 100%+ upside.
- We further believe that Japan Post Holdings also offers very significant upside potential.
- His comes not just from its subsidiaries’ performance but also improvements in post office profitability and shrinking of the holdco discount.
Before it’s here, it’s on Smartkarma
