Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>The tech-heavy Nasdaq rose by +0.65%, powered by a 2% gain in Nvidia's share price</li>
<li>Top Japanese companies agreed to an average wage increase of 5.58% during the annual shunto labor talks in March, the largest in 33 years</li>
<li>Denso announced it will sell 78,127,800 shares, or 4.4%, of Renesas Electronics, more than half of its 8.6% stake.</li>
</ul>


The tech-heavy Nasdaq rose by +0.65%, powered by a 2% gain in Nvidia's share price
Top Japanese companies agreed to an average wage increase of 5.58% during the annual shunto labor talks in March, the largest in 33 years
Denso announced it will sell 78,127,800 shares, or 4.4%, of Renesas Electronics, more than half of its 8.6% stake.


Ohayo Japan | Nasdaq Record High Ahead of Nvidia Results

Founder & Managing Director, AIR Control Tower, AIR Control Tower

Neil Glynn

Founder & Managing Director, AIR Control Tower

AIR Control Tower

AIR Control Tower is an independent research and analysis platform. Its mission is to provide impactful insight and analysis across the global airline industry at a company and market level via detailed financial models to aid decision making for key stake holders at a time when risks have seldom, if ever, been higher and the global sector grapples with the imperative of funding de-carbonisation. Unique analysis forecasting global carrier-level earnings/cash flows, and restructuring/de-leveraging prospects, is designed to dynamically assess the health of the industry, predict surprises and identify potential requirements for third party support.

Insights on the global airline industry

Equity Bottom-Up

Deutsche Lufthansa Aktiengesellschaft provides passenger and cargo air transportation services worldwide. The Company offers flight and connection programs in North America, Scandinavia, and Asia. Deutsche Lufthansa also provides travel agency, catering, and aircraft maintenance services.

<ul>
<li>We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.</li>
<li>We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic</li>
<li>This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.</li>
</ul>


We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.
We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic
This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.


European Airlines – The Ravages of Increased Earnings Seasonality

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

Hansol Logistics Co., Ltd. provides domestic and international logistic services including loading and unloading, storing, and forwarding services. The Company also operates an Internet-based shopping mall.

<ul>
<li>After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.</li>
<li>The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.</li>
<li>We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.</li>
</ul>


After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.
The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.
We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.


Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Singapore Post Limited is the national postal service provider in Singapore. The Company provides domestic and international postal and courier services including end-to-end integrated mail solutions covering data printing, letter-shopping, delivery and mailroom management, and others. Singapore Post also offers end-to-end e-commerce logistics solutions.

<p>The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. We believe expansion into the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce and review of postal services in constructive engagement with the regulator. Implementing the March 2024 strategic review recommendations could help unlock value. We believe there is c 50% upside in the share price.</p>

The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. We believe expansion into the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce and review of postal services in constructive engagement with the regulator. Implementing the March 2024 strategic review recommendations could help unlock value. We believe there is c 50% upside in the share price.

Singapore Post - Transformation to global logistics player unnoticed

European Event-Driven Analyst

Jesus Rodriguez Aguilar

International Distributions Services / Event-Driven

International Distributions Services plc provides postal and delivery services. The Company offers letter and parcel delivery services. International Distributions Services serves consumers, sole traders, SMEs, large businesses, and access operators worldwide.

International Distributions Services (IDS LN)

<ul>
<li>The UK Chancellor stated that any bid for <a href="https://www.smartkarma.com/entities/international-distributions-services-plc" target="_blank" data-smartkarma-citation="entities:22115:1" rel="noopener">International Distributions Services (IDS LN)</a>  (Royal Mail owner) would be thoroughly evaluated for national security considerations to prevent any risks to essential infrastructure.</li>
<li>The Board is "minded to accept" the improved 370p takeover proposal (4.8x EV/Fwd NTM EBITDA) from Czech billionaire Daniel Kretinsky's EP Group, should a formal bid is made.</li>
<li>The improved proposal seems fair. GLS is profitable, while Royal Mail aims break-even by March2025e. Concerns about potential developments post-offer pose a potential political issue. Gross spread is 13.5%.</li>
</ul>


The UK Chancellor stated that any bid for International Distributions Services (IDS LN)  (Royal Mail owner) would be thoroughly evaluated for national security considerations to prevent any risks to essential infrastructure.
The Board is "minded to accept" the improved 370p takeover proposal (4.8x EV/Fwd NTM EBITDA) from Czech billionaire Daniel Kretinsky's EP Group, should a formal bid is made.
The improved proposal seems fair. GLS is profitable, while Royal Mail aims break-even by March2025e. Concerns about potential developments post-offer pose a potential political issue. Gross spread is 13.5%.


EP Group/IDS (Royal Mail): Politically Sensitive

Industrials
Industrials Insights

Ohayo Japan | Nasdaq Record High Ahead of Nvidia Results

Nasdaq rises with Nvidia leading, Japanese companies agree to significant wage increase, Denso to sell shares in Renesas Electronics.

Mark Chadwick

European Airlines – The Ravages of Increased Earnings Seasonality

Deep dive into winter loss-making for the European airline sector, with structural changes due to corporate traffic loss and inflation. These...

Neil Glynn

Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics. The tender offer...

Douglas Kim

Singapore Post - Transformation to global logistics player unnoticed

The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have...

Edison Investment Research

EP Group/IDS (Royal Mail): Politically Sensitive

The UK Chancellor will thoroughly evaluate any bid for International Distributions Services to prevent risks to essential infrastructure, while...

Jesus Rodriguez Aguilar

Ohayo Japan | Nasdaq Record High Ahead of Nvidia Results

​Nasdaq rises with Nvidia leading, Japanese companies agree to significant wage increase, Denso to sell shares in Renesas Electronics.

Mark Chadwick

European Airlines – The Ravages of Increased Earnings Seasonality

Deep dive into winter loss-making for the European airline sector, with structural changes due to corporate traffic loss and inflation. These...

Neil Glynn

Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics. The tender offer...

Douglas Kim

Singapore Post - Transformation to global logistics player unnoticed

The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have...

Edison Investment Research

EP Group/IDS (Royal Mail): Politically Sensitive

​The UK Chancellor will thoroughly evaluate any bid for International Distributions Services to prevent risks to essential infrastructure, while...

Jesus Rodriguez Aguilar

Nasdaq rises with Nvidia leading, Japanese companies agree to significant wage increase, Denso to sell shares in Renesas Electronics.

The UK Chancellor will thoroughly evaluate any bid for International Distributions Services to prevent risks to essential infrastructure, while...