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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sanyo-special-steel-co-ltd" target="_blank" data-smartkarma-citation="entities:15900:1" rel="noopener">Sanyo Special Steel (5481 JP)</a> has recommended <a href="https://www.smartkarma.com/entities/nippon-steel-corporation" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel Corporation (5401 JP)</a>’s tender offer at JPY2,750, a 37.4% premium to the last close.</li>
<li>The offer is light, implying a P/B of 0.67x, below the midpoint of the IFA DCF range, below the Board's requested price, and unattractive compared to peer multiples. </li>
<li>The lack of an irrevocable and unattractive offer suggests that satisfying the minimum acceptance condition is likely challenging. This situation requires activism to force a bump.   </li>
</ul>



Sanyo Special Steel (5481 JP) has recommended Nippon Steel Corporation (5401 JP)’s tender offer at JPY2,750, a 37.4% premium to the last close.
The offer is light, implying a P/B of 0.67x, below the midpoint of the IFA DCF range, below the Board's requested price, and unattractive compared to peer multiples. 
The lack of an irrevocable and unattractive offer suggests that satisfying the minimum acceptance condition is likely challenging. This situation requires activism to force a bump.   


Sanyo Special Steel (5481 JP): Nippon Steel (5401 JP)’s Light Tender Offer Begs for Activism

Nippon Investment Bespoke Research UK Ltd

Nippon Investment Bespoke Research UK

Equity Bottom-Up

<ul>
<li>FY24 GUIDANCE WAS REVISED.</li>
<li>POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.</li>
</ul>


FY24 GUIDANCE WAS REVISED.
POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.


Daido Steel Co., Ltd (5471 JP) Research Update

<ul>
<li>FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。</li>
</ul>


FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。


大同特殊鋼株式会社 (5471JP)　リサーチアップデート

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/daido-steel-co-ltd" target="_blank" data-smartkarma-citation="entities:10140:1" rel="noopener">Daido Steel (5471 JP)</a> on 30 November announced a Tender Offer to buy shares in subsidiary <a href="https://www.smartkarma.com/entities/nippon-seisen-co-ltd" target="_blank" data-smartkarma-citation="entities:8034:1" rel="noopener">Nippon Seisen (5659 JP)</a> to take them to 50.1-51.0%. They have 43% now.</li>
<li>This is a small tender offer, but the subsidiary jumped through the corporate governance independent committee hoops and comes up "neutral" on a price well below mid-point DCF.</li>
<li>It's an interesting small-cap partial offer to start 2022. Will likely trade tight.</li>
</ul>



Daido Steel (5471 JP) on 30 November announced a Tender Offer to buy shares in subsidiary Nippon Seisen (5659 JP) to take them to 50.1-51.0%. They have 43% now.
This is a small tender offer, but the subsidiary jumped through the corporate governance independent committee hoops and comes up "neutral" on a price well below mid-point DCF.
It's an interesting small-cap partial offer to start 2022. Will likely trade tight.


Daido Steel Partial Tender Offer to Go to 50+% on Nippon Seisen (5659) Subsidiary

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

<p style="text-align: justify;">We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several international markets that are breaking out to new highs or making bullish inflections since our previous <em>Int’l Compass </em>(10/31/19). While developments continue to lean bullish, global equities have rallied substantially since the start of October, making it perfectly reasonable to expect some consolidation of recent gains which would allow for a more meaningful move higher.</p>

We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several international markets that are breaking out to new highs or making bullish inflections since our previous Int’l Compass (10/31/19). While developments continue to lean bullish, global equities have rallied substantially since the start of October, making it perfectly reasonable to expect some consolidation of recent gains which would allow for a more meaningful move higher.

Global Equity Strategy: The Pause that Refreshes?

Japan

DAIDO STEEL CO., LTD. manufactures and markets specialty steel products for automobiles, electronics, and construction use.  The Company also provides engineering services for industrial furnaces and waste disposal facilities, and develops various types of alloy metals.

Price Gauge
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Daido Steel (5471 JP)

Sanyo Special Steel (5481 JP): Nippon Steel (5401 JP)’s Light Tender Offer Begs for Activism

The offer is light, implying a P/B of 0.67x, below the midpoint of the IFA DCF range and unattractive compared to peer multiples. This needs...

Arun George

Daido Steel Co., Ltd (5471 JP) Research Update

FY24 GUIDANCE WAS REVISED. POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.

Nippon Investment Bespoke Research UK

大同特殊鋼株式会社 (5471JP)　リサーチアップデート

FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。

Nippon Investment Bespoke Research UK

Daido Steel Partial Tender Offer to Go to 50+% on Nippon Seisen (5659) Subsidiary

Daido Steel announced a small tender to buy 7-8% of Nippon Seisen to take them from 43% to 50-51% of the shares. That is about 22% of Real World...

Travis Lundy

Global Equity Strategy: The Pause that Refreshes?

We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sanyo Special Steel (5481 JP): Nippon Steel (5401 JP)’s Light Tender Offer Begs for Activism

The offer is light, implying a P/B of 0.67x, below the midpoint of the IFA DCF range and unattractive compared to peer multiples. This needs...

Arun George

Daido Steel Co., Ltd (5471 JP) Research Update

FY24 GUIDANCE WAS REVISED. POST FY24 GROWTH SCENARIO REMAIN UNCHANGED.

Nippon Investment Bespoke Research UK

大同特殊鋼株式会社 (5471JP) リサーチアップデート

FY24業績ガイダンスは下方修正。来期以降の成長シナリオは変わらず。

Nippon Investment Bespoke Research UK

Daido Steel Partial Tender Offer to Go to 50+% on Nippon Seisen (5659) Subsidiary

Daido Steel announced a small tender to buy 7-8% of Nippon Seisen to take them from 43% to 50-51% of the shares. That is about 22% of Real World...

Travis Lundy

Global Equity Strategy: The Pause that Refreshes?

We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several...

Vermilion Research

大同特殊鋼株式会社 (5471JP)　リサーチアップデート