IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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.

Equity Capital Markets

SBI Sumishin Net Bank  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-sumishin-net-bank" target="_blank" data-smartkarma-citation="entities:34572:1" rel="noopener">SBI Sumishin Net Bank (7163 JP)</a>, an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion). </li>
<li>Founded in 2007, SBI Sumishin Net Bank is owned 50% by <a href="https://www.smartkarma.com/entities/sbi-holdings-inc" target="_blank" data-smartkarma-citation="entities:10928:1" rel="noopener">SBI Holdings (8473 JP)</a> and 50% by <a href="https://www.smartkarma.com/entities/sumitomo-mitsui-trust-holdings-inc" target="_blank" data-smartkarma-citation="entities:19450:1" rel="noopener">Sumitomo Mitsui Trust Holdings (8309 JP)</a>.</li>
<li>The investment case rests on market share gains, the rude health of the digital bank segment, the nascent BaaS segment turning profitable and ambitious medium-term goals. </li>
</ul>



SBI Sumishin Net Bank (7163 JP), an online bank in Japan, has revived its listing plans to raise up to US$440 million (vs the 2022 target of US$1 billion). 
Founded in 2007, SBI Sumishin Net Bank is owned 50% by SBI Holdings (8473 JP) and 50% by Sumitomo Mitsui Trust Holdings (8309 JP).
The investment case rests on market share gains, the rude health of the digital bank segment, the nascent BaaS segment turning profitable and ambitious medium-term goals. 


SBI Sumishin Net Bank IPO: The Investment Case

<ul>
<li>
<a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP)</a>/JPH has announced the offering of up to 1.1 billion shares in <a href="https://www.smartkarma.com/entities/japan-post-bank-co-ltd" target="_blank" data-smartkarma-citation="entities:838:1" rel="noopener">Japan Post Bank (7182 JP)</a>/JPB to reduce its stake from 89.00% to 59.95%.</li>
<li>JPB will carry out a ToSTNeT-3 buyback (maximum of JPY70 billion) and an on-market buyback (maximum of JPY80 billion). JPH can sell additional shares into the ToSTNeT-3 buyback.</li>
<li>For long-term investors, JPB’s forward P/B of 0.47x and yield of 4.41% are attractive to peers. JPB’s current price ratio is undemanding vs TOPIX Banks ETF and JPH.</li>
</ul>



Japan Post Holdings (6178 JP)/JPH has announced the offering of up to 1.1 billion shares in Japan Post Bank (7182 JP)/JPB to reduce its stake from 89.00% to 59.95%.
JPB will carry out a ToSTNeT-3 buyback (maximum of JPY70 billion) and an on-market buyback (maximum of JPY80 billion). JPH can sell additional shares into the ToSTNeT-3 buyback.
For long-term investors, JPB’s forward P/B of 0.47x and yield of 4.41% are attractive to peers. JPB’s current price ratio is undemanding vs TOPIX Banks ETF and JPH.


Japan Post Bank (7182 JP): Japan Post Holdings to Sell Down a Third of Its Stake

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As a follow-on to <a href="https://www.smartkarma.com/insights/topix-october-2022-rebal-big-names-with-big-flows" target="_blank" data-smartkarma-citation="insights:81835" rel="noopener">TOPIX October 2022 Rebal - BIG Names with BIG Flows</a> which discussed ¥2.1trln a side flows overall, this insight analyses and proposes intra-sector baskets.</li>
<li>In general, the sector-neutral BUYs vs SELLs baskets of all names where Index Shares change by 10% or more have seen BUYs sharply outperform SELLs in the past three weeks.</li>
<li>Look for pre-positioning unwinds so trading BUY vs SELL baskets which have bucked the trend, banks and chemicals - might be worthwhile. Otherwise, pick your spots. Use the flow.</li>
</ul>


As a follow-on to TOPIX October 2022 Rebal - BIG Names with BIG Flows which discussed ¥2.1trln a side flows overall, this insight analyses and proposes intra-sector baskets.
In general, the sector-neutral BUYs vs SELLs baskets of all names where Index Shares change by 10% or more have seen BUYs sharply outperform SELLs in the past three weeks.
Look for pre-positioning unwinds so trading BUY vs SELL baskets which have bucked the trend, banks and chemicals - might be worthwhile. Otherwise, pick your spots. Use the flow.


TOPIX October 2022 Rebal - Buy/Sell Baskets (May the Flow Be Ever In Your Favour)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chukyo-bank-ltd" target="_blank" data-smartkarma-citation="entities:20132:1" rel="noopener">Chukyo Bank (8530 JP)</a> and <a href="https://www.smartkarma.com/entities/aichi-bank-ltd" target="_blank" data-smartkarma-citation="entities:15259:1" rel="noopener">Aichi Bank (8527 JP)</a> have decided to join forces to become the largest regional lender in the Nagoya area. </li>
<li>This is probably driven by MUFJ's efforts to rid itself of non-core assets, but in doing so, it is allowing for an accretive structure for minorities.</li>
<li>This ends up being a cheap bank on a slightly complicated pro-forma basis.</li>
</ul>



Chukyo Bank (8530 JP) and Aichi Bank (8527 JP) have decided to join forces to become the largest regional lender in the Nagoya area. 
This is probably driven by MUFJ's efforts to rid itself of non-core assets, but in doing so, it is allowing for an accretive structure for minorities.
This ends up being a cheap bank on a slightly complicated pro-forma basis.


Chukyo (8530) + Aichi (8527) Bank to Create Aichi Fin'l Group - Interesting Structure Adds Value

Senior Bank Analyst - Japanese Banks, Windamee Research

J. Brian Waterhouse

Senior Bank Analyst - Japanese Banks

Windamee Research

Japanese Banks

Equity Bottom-Up

Most of Japan’s 77 TSE-listed regional banking entities are expected to announce their interim results from 10-12 November this year, but <a href="https://www.smartkarma.com/entities/hachijuni-bank-ltd" target="_blank" data-smartkarma-citation="entities:20244:1" rel="noopener">Hachijuni Bank (8359 JP)</a> has once again announced its interim results well ahead of the rest.  While results comfortably beat initial guidance, there were no surprises thanks to an upward revision to guidance a week ago. Moreover, an examination of those ‘much improved’ numbers shows that the bank was once again heavily reliant on loan-loss reserve write-backs and ‘selling the family silver’ to keep profits up.The stock is currently just +3.0% higher than it was six months ago; most peers are up around +9% over the same period.  Indeed, Hachijuni Bank has been a conspicuous underperformer against the Topix Banks Index for much of CY2021.  Currently trading on a FY3/2022  PER of 8.3x and PBR of 0.21x, the stock is not especially compelling.  The bank’s woefully low RoE and RoA remain serial disincentives for investors, although some 17% of total shares outstanding continue to be held by die-hard foreigners.There are other regional bank stocks (such as <a href="https://www.smartkarma.com/entities/chiba-bank-ltd" target="_blank" data-smartkarma-citation="entities:1048:1" rel="noopener">Chiba Bank (8331 JP)</a>, <a href="https://www.smartkarma.com/entities/shizuoka-bank-ltd" target="_blank" data-smartkarma-citation="entities:4437:1" rel="noopener">Shizuoka Bank (8355 JP)</a> and <a href="https://www.smartkarma.com/entities/fukuoka-financial-group-inc" target="_blank" data-smartkarma-citation="entities:3712:1" rel="noopener">Fukuoka Financial Group (8354 JP)</a> more deserving of investor interest than this one.  For those who are not yet holders of Hachijuni Bank stock, our position is clear: Caveat emptor!  (May the buyer beware!)<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/238/644/original/8359-Hachijuni-2021-1029+8359RelvsTPNBNK.jpg?1635648829" class="editor-image img-responsive" data-smartkarma-image-id="238644"></figure></section>

Most of Japan’s 77 TSE-listed regional banking entities are expected to announce their interim results from 10-12 November this year, but Hachijuni Bank (8359 JP) has once again announced its interim results well ahead of the rest.  While results comfortably beat initial guidance, there were no surprises thanks to an upward revision to guidance a week ago. Moreover, an examination of those ‘much improved’ numbers shows that the bank was once again heavily reliant on loan-loss reserve write-backs and ‘selling the family silver’ to keep profits up.The stock is currently just +3.0% higher than it was six months ago; most peers are up around +9% over the same period.  Indeed, Hachijuni Bank has been a conspicuous underperformer against the Topix Banks Index for much of CY2021.  Currently trading on a FY3/2022  PER of 8.3x and PBR of 0.21x, the stock is not especially compelling.  The bank’s woefully low RoE and RoA remain serial disincentives for investors, although some 17% of total shares outstanding continue to be held by die-hard foreigners.There are other regional bank stocks (such as Chiba Bank (8331 JP), Shizuoka Bank (8355 JP) and Fukuoka Financial Group (8354 JP) more deserving of investor interest than this one.  For those who are not yet holders of Hachijuni Bank stock, our position is clear: Caveat emptor!  (May the buyer beware!)

Hachijuni Bank (8359 JP):  Ahead of the Peloton

Japan

The Chiba Bank, Ltd. is a regional bank based in Chiba Prefecture. The Bank offers general banking services including deposits, loans, and foreign exchange transactions. The Chiba Bank also develops software and provides financial services such as leasing, securities brokerage, letter of credit, and credit cards.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Chiba Bank (8331 JP)

SBI Sumishin Net Bank IPO: The Investment Case

The investment case rests on market share gains, the rude health of the digital bank segment, the nascent BaaS segment turning profitable and...

Arun George

Japan Post Bank (7182 JP): Japan Post Holdings to Sell Down a Third of Its Stake

JPH aims to lower its stake by up to 59.95% of outstanding shares. JPH will buy back shares to provide partial relief from the selling pressure....

Arun George

TOPIX October 2022 Rebal - Buy/Sell Baskets (May the Flow Be Ever In Your Favour)

This companion piece to the first October 2022 FFW Rebalance piece shows both large (>¥5bn) and small (¥1-5bn) intra-sector flows. Using the flows...

Travis Lundy

Chukyo (8530) + Aichi (8527) Bank to Create Aichi Fin'l Group - Interesting Structure Adds Value

Aichi and Chukyo Banks will merge to become top lender in Nagoya ahead of current #1 and cheap good regional Bk of Nagoya. Transaction structure is...

Travis Lundy

Hachijuni Bank (8359 JP): Ahead of the Peloton

Hachijuni Bank's interim results comfortably beat initial guidance, but there were no surprises thanks to an upward revision to earnings guidance a...

J. Brian Waterhouse

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)