Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Enplas (6961) ENORMOUS Buyback With Longer-Term Implications

Quiddity Advisors

Event-Driven

<div><p><a href="https://www.smartkarma.com/entities/enplas-corp" target="_blank" data-smartkarma-citation="entities:14524:1" rel="noopener">Enplas Corp (6961 JP)</a> makes plastics. They also have a variety of technological solutions which improve semiconductor performance. 5+years ago, their  biggest segment was their "optical" business which had 50% OPMs, but that has declined over the years to be a bit over 13% of revenues and OP has dropped commensurately. Now the plastics and semiconductors business are roughly similar in revenue size for the remaining 87%, the plastics business has made net zero OP over the past five years, and the semiconductor-related business has substantially lower margins than the optics business had. </p></div><div><p>It has been a real comedown. The company hit the jackpot in its optical business from 2013-2018 and now it is back where it stood 8 years ago in profit terms. </p></div><div>
<p>But the company has been buying shares back. Since the start of the fiscal year, they have bought back 42% of the Real World Float. Now they are aiming at roughly 19% of what is remaining with another buyback announced today. By end of February the active float in this name will have been cut by half in a year.</p>
<p>They are NOT playing around.</p>
<p>Much more below the fold.</p>
</div>

Enplas Corp (6961 JP) makes plastics. They also have a variety of technological solutions which improve semiconductor performance. 5+years ago, their  biggest segment was their "optical" business which had 50% OPMs, but that has declined over the years to be a bit over 13% of revenues and OP has dropped commensurately. Now the plastics and semiconductors business are roughly similar in revenue size for the remaining 87%, the plastics business has made net zero OP over the past five years, and the semiconductor-related business has substantially lower margins than the optics business had. It has been a real comedown. The company hit the jackpot in its optical business from 2013-2018 and now it is back where it stood 8 years ago in profit terms. 
But the company has been buying shares back. Since the start of the fiscal year, they have bought back 42% of the Real World Float. Now they are aiming at roughly 19% of what is remaining with another buyback announced today. By end of February the active float in this name will have been cut by half in a year.
They are NOT playing around.
Much more below the fold.


Enplas (6961) - Yet Another BIG Buyback, Longer-Term Implications Still There