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>On 31 October, in response to an FT article, <a href="https://www.smartkarma.com/entities/fujitec-co-ltd" target="_blank" data-smartkarma-citation="entities:11686:1" rel="noopener">Fujitec Co Ltd (6406 JP)</a> confirmed that it has received a preliminary non-binding proposal, which the special committee is reviewing.</li>
<li>Fujitec’s shareholder register and relative underperformance compared to its Japanese peers make it ripe for a bid. Potential bidders could include PE and trade buyers.</li>
<li>The TK Elevator takeout multiple would imply a Fujitec offer price of JPY6,100-7,500, a 10.2%-35.6% premium to the last close of JPY5,533.</li>
</ul>


On 31 October, in response to an FT article, Fujitec Co Ltd (6406 JP) confirmed that it has received a preliminary non-binding proposal, which the special committee is reviewing.
Fujitec’s shareholder register and relative underperformance compared to its Japanese peers make it ripe for a bid. Potential bidders could include PE and trade buyers.
The TK Elevator takeout multiple would imply a Fujitec offer price of JPY6,100-7,500, a 10.2%-35.6% premium to the last close of JPY5,533.


Fujitec (6406 JP): Evaluating a Potential Privatisation

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Cummin's earnings +8.9% a good read for DC related power plays.</li>
<li>Weakness for Nintendo on an earnings miss could be a good chance to buy ahead of new Switch announcement.</li>
<li>JMDC sets a good tone for medical data related plays including M3 and Medley.</li>
</ul>


Cummin's earnings +8.9% a good read for DC related power plays.
Weakness for Nintendo on an earnings miss could be a good chance to buy ahead of new Switch announcement.
JMDC sets a good tone for medical data related plays including M3 and Medley.


Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

<ul>
<li>Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.</li>
<li>Good set of numbers for Advantest should buck this trend, although upside may be capped.</li>
<li>Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?</li>
</ul>


Tech sell-off sets a weak tone for Japanese SPE after some big gains yesterday.
Good set of numbers for Advantest should buck this trend, although upside may be capped.
Is the big growth story for Hitachi, now +700% off its CV-19 lows finally over after its earnings and guidance miss?


Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

Equity Capital Markets

Midea Group Co Ltd A / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a> priced its H Share at HK$54.80 to raise HK$31,014 million (US$4.0 billion) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>The H Share listing price implies an AH discount of 21.4% at the A Share price of RMB63.51. This compares to <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home (6690 HK)</a>'s AH discount of 13.8%.</li>
<li>Futu grey market data shows that the H Shares closed 5.1% higher at HK$57.60. Our valuation analysis suggests that the H Share listing price is attractive.</li>
</ul>



Midea Group Co Ltd A (000333 CH) priced its H Share at HK$54.80 to raise HK$31,014 million (US$4.0 billion) in gross proceeds. The H Share will be listed tomorrow.
The H Share listing price implies an AH discount of 21.4% at the A Share price of RMB63.51. This compares to Haier Smart Home (6690 HK)'s AH discount of 13.8%.
Futu grey market data shows that the H Shares closed 5.1% higher at HK$57.60. Our valuation analysis suggests that the H Share listing price is attractive.


Midea Group H Share Listing (300 HK): Trading Debut

<ul>
<li>
<a href="https://www.smartkarma.com/entities/midea-group-co-ltd-a" target="_blank" data-smartkarma-citation="entities:16185:1" rel="noopener">Midea Group Co Ltd A (000333 CH)</a> has launched its H Share listing at HK$52.00-54.80 per share. Pricing will be on 13 September, and the listing on 17 September.</li>
<li>We previously discussed the listing in <a href="https://www.smartkarma.com/insights/midea-group-h-share-listing-latest-updates-points-to-a-business-in-rude-health" target="_blank" data-smartkarma-citation="insights:157653" rel="noopener">Midea Group H Share Listing: Latest Updates Points to a Business in Rude Health</a> and <a href="https://www.smartkarma.com/insights/midea-group-h-share-listing-ah-discount-views" target="_blank" data-smartkarma-citation="insights:157868" rel="noopener">Midea Group H Share Listing: AH Discount Views</a>. </li>
<li>Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.</li>
</ul>



Midea Group Co Ltd A (000333 CH) has launched its H Share listing at HK$52.00-54.80 per share. Pricing will be on 13 September, and the listing on 17 September.
We previously discussed the listing in Midea Group H Share Listing: Latest Updates Points to a Business in Rude Health and Midea Group H Share Listing: AH Discount Views. 
Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.


Midea Group H Share Listing (300 HK): Valuation Insights

Japan

Hitachi, Ltd. manufactures communications and electronic equipment, heavy electrical and industrial machinery, and consumer electronics.  The Company's diverse product line ranges from nuclear power systems to kitchen appliances. Hitachi also operates subsidiaries in the wire and cable, metal, and chemical industries.

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

Hitachi Ltd (6501 JP)

Fujitec (6406 JP): Evaluating a Potential Privatisation

Fujitec is evaluating a preliminary non-binding proposal. Fujitec’s shareholder register makes it ripe for a bid. Potential bidders could include...

Arun George

Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Andrew Jackson

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Fujitec (6406 JP): Evaluating a Potential Privatisation

Fujitec is evaluating a preliminary non-binding proposal. Fujitec’s shareholder register makes it ripe for a bid. Potential bidders could include...

Arun George

Japan Morning Connection: Markets Turning Surprisingly Risk-On Despite the Election Uncertainty

​Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Andrew Jackson

Japan Morning Connection: Apple Suppliers in Focus After a Big Miss by Qorvo

​Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...

Andrew Jackson

Midea Group H Share Listing (300 HK): Trading Debut

The H Share listing and Futu grey market price imply an AH discount of 21.4% and 17.4%, respectively, which is attractive compared to Haier, its...

Arun George

Midea Group H Share Listing (300 HK): Valuation Insights

Midea has launched its H Share listing. Our valuation analysis suggests that the range is attractive, so we would participate in the listing.

Arun George

Cummin's earnings a good read for DC-related power plays. Nintendo's miss may present a buying opportunity before new Switch announcement. JMDC...

Tech sell-off sets weak tone for Japanese SPE after yesterday's gains, however Advantest's strong numbers may provide support. Hitachi's growth...