IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/arteria-networks-corp" target="_blank" data-smartkarma-citation="entities:27807:1" rel="noopener">ARTERIA Networks Corp (4423 JP)</a> has recommended <a href="https://www.smartkarma.com/entities/marubeni-corp" target="_blank" data-smartkarma-citation="entities:7463:1" rel="noopener">Marubeni Corp (8002 JP)</a> and <a href="https://www.smartkarma.com/entities/secom-co-ltd" target="_blank" data-smartkarma-citation="entities:11405:1" rel="noopener">Secom Co Ltd (9735 JP)</a>’s tender offer of JPY1,980 per share, a 54.1% premium to the undisturbed price.</li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 16.61% ownership ratio.</li>
<li>The offer is conditional on Chinese and Japanese regulatory approvals. The minimum acceptance condition requires a 33% minority acceptance rate. This is doable as the tender price is attractive. </li>
</ul>



ARTERIA Networks Corp (4423 JP) has recommended Marubeni Corp (8002 JP) and Secom Co Ltd (9735 JP)’s tender offer of JPY1,980 per share, a 54.1% premium to the undisturbed price.
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 16.61% ownership ratio.
The offer is conditional on Chinese and Japanese regulatory approvals. The minimum acceptance condition requires a 33% minority acceptance rate. This is doable as the tender price is attractive. 


Arteria Networks (4423 JP): JPY1,980 Tender Offer from Marubeni and SECOM

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>Favorable industry trends like work from home and expanding mobile data usage are helping drive Arteria revenue growth</li>
<li>Headline profits are down but core OP is up when one-time gains last year are stripped out and quarterly results will start to look better in H2 when fully lapped</li>
<li>Management says macro concerns such as inflation and power costs are manageable and FY targets remain unchanged</li>
</ul>


Favorable industry trends like work from home and expanding mobile data usage are helping drive Arteria revenue growth
Headline profits are down but core OP is up when one-time gains last year are stripped out and quarterly results will start to look better in H2 when fully lapped
Management says macro concerns such as inflation and power costs are manageable and FY targets remain unchanged


Arteria Networks (Buy) - Q2 22 Results Reaction: Core Business Growth Intact

<ul>
<li>
<a href="https://www.smartkarma.com/entities/arteria-networks-corp" target="_blank" data-smartkarma-citation="entities:27807:1" rel="noopener">ARTERIA Networks Corp (4423 JP)</a> posted Q1 22 results in line with expectations</li>
<li>7% revenue growth was the highest in five quarters whilst core segment growth was the best since 2019, supported by work from home demand and data volume growth</li>
<li>Operating income is down YoY as it laps one-time gains a year ago - this has been well-flagged by management and consensus</li>
</ul>



ARTERIA Networks Corp (4423 JP) posted Q1 22 results in line with expectations
7% revenue growth was the highest in five quarters whilst core segment growth was the best since 2019, supported by work from home demand and data volume growth
Operating income is down YoY as it laps one-time gains a year ago - this has been well-flagged by management and consensus


Arteria Networks (Buy) - Q1 22 Results Reaction: In-Line Quarter Includes 7% Revenue Growth

<ul>
<li>Q4 results and FY22 guidance largely in-line with consensus and Redex expectations</li>
<li>Shares trade at a discount to peers but should command a premium on potential mid-term growth prospects and lack of mobile exposure</li>
<li>That may reflect relative size as Arteria lacks the scale and liquidity to attract interest from investors in search of defensive names</li>
</ul>


Q4 results and FY22 guidance largely in-line with consensus and Redex expectations
Shares trade at a discount to peers but should command a premium on potential mid-term growth prospects and lack of mobile exposure
That may reflect relative size as Arteria lacks the scale and liquidity to attract interest from investors in search of defensive names


Arteria Networks (Buy) - Q4 21 Results Reaction: Between a Rock and a Hard Place

<ul>
<li>Q3 21 results were in line for revenue and beat on profitability as a lack of mobile exposure drove financial outperformance versus larger peers</li>
<li>Operating KPIs were steady so Q4 top-line performance should be similar and the company is on track to meet FY financial targets</li>
<li>Shares are down 13% YTD v flat to up for Japan telcos overall and trade at a discount to the sector where a premium seems deserved</li>
</ul>


Q3 21 results were in line for revenue and beat on profitability as a lack of mobile exposure drove financial outperformance versus larger peers
Operating KPIs were steady so Q4 top-line performance should be similar and the company is on track to meet FY financial targets
Shares are down 13% YTD v flat to up for Japan telcos overall and trade at a discount to the sector where a premium seems deserved


Arteria Networks (Buy) - Q3 21 Results Reaction: Profitability Beat Should Help with Recent Weakness

Japan

ARTERIA Networks Corporation provides telecommunication services. The Company offers internet connection, virtual private network construction, colocation, mobile connection, mobile device management, optical fiber network construction, and other services.

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ARTERIA Networks Corp (4423 JP)

Arteria Networks (4423 JP): JPY1,980 Tender Offer from Marubeni and SECOM

The offer is conditional on Chinese and Japanese regulatory approvals. The minimum acceptance condition requires a 33% minority acceptance rate....

Arun George

Arteria Networks (Buy) - Q2 22 Results Reaction: Core Business Growth Intact

The impact of one-time gains last year on FY22 profit growth obscures steady progress in the core business which remains a steady grower

Kirk Boodry

Arteria Networks (Buy) - Q1 22 Results Reaction: In-Line Quarter Includes 7% Revenue Growth

Arteria results were as expected as WFH tailwinds and growth in data volumes supported the top line. Operating profit fell as it lapped year-ago...

Kirk Boodry

Arteria Networks (Buy) - Q4 21 Results Reaction: Between a Rock and a Hard Place

Arteria posted solid results but remains range bound as scale and liquidity may be insufficient for investors looking for safety in volatile markets.

Kirk Boodry

Arteria Networks (Buy) - Q3 21 Results Reaction: Profitability Beat Should Help with Recent Weakness

Arteria beat on Q3 profitability and is on track to meet its full-year guidance even as shares have underperformed relative to larger peers and...

Kirk Boodry

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