Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On Firday 23 August, <a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP)</a> announced that three cross-holders would sell about 4.6% of the shares out in a secondary sale. </li>
<li>MS&amp;AD was expected. Toyota was probably expected. Yamaha Corp is a bit of a surprise. But it also frees up Yamaha Motor to sell down cross-holdings (top 2 are Toyota/Yamaha).</li>
<li>Given the price/guidance/dividend yield and limited size, this should be quite easy to place.</li>
</ul>


On Firday 23 August, Yamaha Motor (7272 JP) announced that three cross-holders would sell about 4.6% of the shares out in a secondary sale. 
MS&amp;AD was expected. Toyota was probably expected. Yamaha Corp is a bit of a surprise. But it also frees up Yamaha Motor to sell down cross-holdings (top 2 are Toyota/Yamaha).
Given the price/guidance/dividend yield and limited size, this should be quite easy to place.


Yamaha Motors (7272 JP) - Secondary Offering as Toyota Sells Down - Easy To Digest

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, we looked at a number of upcoming listings in India.</li>
<li>There was a revival in placement flows during the week, after a lull over the past few weeks.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we looked at a number of upcoming listings in India.
There was a revival in placement flows during the week, after a lull over the past few weeks.


ECM Weekly (26th Aug 2024) - Zomato, Colowide, Star Asia, Yamaha, 99Speed, Hero Fin, Bajaj Housing

<ul>
<li>A group of shareholders aims to raise around US$330m via selling around 3.6% of <a href="https://www.smartkarma.com/entities/yamaha-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:7411:1" rel="noopener">Yamaha Motor (7272 JP).</a>
</li>
<li>This will be another cross-shareholding unwind and hence, won’t be a huge surprise, although the stock hasn’t been doing particularly well lately.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


A group of shareholders aims to raise around US$330m via selling around 3.6% of Yamaha Motor (7272 JP).

This will be another cross-shareholding unwind and hence, won’t be a huge surprise, although the stock hasn’t been doing particularly well lately.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Yamaha Motors Placement - A Relatively Small Cross-Shareholding Unwind

<ul>
<li>The ¥500bn Offering of Honda shares is now priced (¥1,664.5/share) making it ¥497.46bn. Bookbuilding for retail - 80% of the book - is now. The price today closed at ¥1,665/share. </li>
<li>The Offering has follow-on "non-discretionary" demand which is non-negligible. It is worth understanding the amounts and timing.</li>
<li>The lockups and non-discretionary demand, along with Honda's relative cheapness as a large cap OEM and likely upcoming offerings on competitors means it has support.</li>
</ul>


The ¥500bn Offering of Honda shares is now priced (¥1,664.5/share) making it ¥497.46bn. Bookbuilding for retail - 80% of the book - is now. The price today closed at ¥1,665/share. 
The Offering has follow-on "non-discretionary" demand which is non-negligible. It is worth understanding the amounts and timing.
The lockups and non-discretionary demand, along with Honda's relative cheapness as a large cap OEM and likely upcoming offerings on competitors means it has support.


Big Honda (7267) Offering - Flow Timing Matters

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Yamaha Motors had blow-out 1Q results. The 20% share price rally since then suggests much of the good news is in the price</li>
<li>We are concerned that deteriorating macro-economic conditions in the US due to higher interest rates could derail demand for marine engines and boats</li>
<li>The stock price of US peer, Brunswick has already started to correct. Yamaha now trades at a premium valuation</li>
</ul>


Yamaha Motors had blow-out 1Q results. The 20% share price rally since then suggests much of the good news is in the price
We are concerned that deteriorating macro-economic conditions in the US due to higher interest rates could derail demand for marine engines and boats
The stock price of US peer, Brunswick has already started to correct. Yamaha now trades at a premium valuation


Yamaha Motors (7272) | Choppy Waters Ahead

Japan

Yamaha Motor Co., Ltd. manufactures motorcycles.  The Company also produces motor vehicle engines for Toyota Motor Corp. and Ford Motor Co.  Yamaha Motor's specialty products include motor boats, snowmobiles, golf carts, and electric power generators.  Yamaha Motor sells products in Japan, North America, Europe, Asia, and South America.

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Yamaha Motor (7272 JP)

Yamaha Motors (7272 JP) - Secondary Offering as Toyota Sells Down - Easy To Digest

Toyota and Yamaha Corp and MS&AD will sell down 4.6% of Yamaha Motors, which has not bounced as much as peers from the USDJPY and equity selldown....

Travis Lundy

ECM Weekly (26th Aug 2024) - Zomato, Colowide, Star Asia, Yamaha, 99Speed, Hero Fin, Bajaj Housing

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Yamaha Motors Placement - A Relatively Small Cross-Shareholding Unwind

A group of shareholders aims to raise around US$330m via selling around 3.6% of Yamaha Motor (7272 JP). In this note, we talk about the deal dynamics.

Sumeet Singh

Big Honda (7267) Offering - Flow Timing Matters

The Honda Offering is BIG at ¥500bn but over time, the net overhang is substantially reduced by behavioural expectations, passive buying, a...

Travis Lundy

Yamaha Motors (7272) | Choppy Waters Ahead

Yamaha Motors stock price could be susceptible to signs of weakness in end-consumption, particularly for the high-margin marine segment. We turn...

Mark Chadwick

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