Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

<ul><li>Foxconn chairman emphasizes collaboration with Nissan, denies interest in takeover, focusing on their partnership.</li><li>SMIC targets automotive growth, facing competition in China's chip market, seeking to expand market share.</li><li>Microip sees 489% revenue growth post-CES success, expanding 'designless' strategy, fueling January success.</li></ul>

Foxconn chairman emphasizes collaboration with Nissan, denies interest in takeover, focusing on their partnership.SMIC targets automotive growth, facing competition in China's chip market, seeking to expand market share.Microip sees 489% revenue growth post-CES success, expanding 'designless' strategy, fueling January success.

Tech Supply Chain Tracker (13-Feb-2025): Foxconn chair denies Nissan takeover, focuses on collaboration.

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<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

<ul>
<li>At the beginning of this month, we got a scoop from Reuters about a US$3bn selldown of <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda Motor (7267 JP)</a> by P&amp;C insurers and others. </li>
<li>We knew this was coming at some point. The FSA had pushed the insurers to unwind cross-holdings, and it is otherwise of the zeitgeist. </li>
<li>It came out as heavily retail-oriented, and the supply/demand details are otherwise interesting. To boot, there is an EPS boost to come.</li>
</ul>


At the beginning of this month, we got a scoop from Reuters about a US$3bn selldown of Honda Motor (7267 JP) by P&amp;C insurers and others. 
We knew this was coming at some point. The FSA had pushed the insurers to unwind cross-holdings, and it is otherwise of the zeitgeist. 
It came out as heavily retail-oriented, and the supply/demand details are otherwise interesting. To boot, there is an EPS boost to come.


The Honda (7267) Offering - Much Easier Than It Looks

<ul>
<li>Just pre-close on 2 July, Reuters carried an article suggesting a ¥500bn secondary offering in <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda Motor (7267 JP)</a> as insurers sold. The stock fell 4% in minutes. </li>
<li>Honda semi-confirmed but it took two days to get to the details, now out. The stock climbed in the meantime. </li>
<li>At launch, this deal is two-thirds covered by buyback + passive demand but the supply is heavily-weighted to retail. Cheaper than it looks, lots of moving parts. Read the details!</li>
</ul>


Just pre-close on 2 July, Reuters carried an article suggesting a ¥500bn secondary offering in Honda Motor (7267 JP) as insurers sold. The stock fell 4% in minutes. 
Honda semi-confirmed but it took two days to get to the details, now out. The stock climbed in the meantime. 
At launch, this deal is two-thirds covered by buyback + passive demand but the supply is heavily-weighted to retail. Cheaper than it looks, lots of moving parts. Read the details!


Big ¥500bn Honda (7267) Offering Is Small

Event-Driven

<ul>
<li>Today just before the close, Reuters came out with an article saying Japan's four major insurers and some financial institutions would offer ¥500bn of shares in a secondary offering.</li>
<li>That implies about 275-280mm shares (insurers hold ~195mm). In May, Honda announced a ¥300bn buyback with earnings, with nothing done so far. </li>
<li>The supply/demand dynamics here are key. There are a lot of moving parts over time. Honda is cheaper than it looks but there are moving parts there too.</li>
</ul>


Today just before the close, Reuters came out with an article saying Japan's four major insurers and some financial institutions would offer ¥500bn of shares in a secondary offering.
That implies about 275-280mm shares (insurers hold ~195mm). In May, Honda announced a ¥300bn buyback with earnings, with nothing done so far. 
The supply/demand dynamics here are key. There are a lot of moving parts over time. Honda is cheaper than it looks but there are moving parts there too.


BIG ¥500bn Honda (7267) Offering Coming?

Japan

Isuzu Motors Limited manufactures and markets trucks and automobile parts. The Company's products include pickup trucks, light/heavy duty trucks, medium and large-sized buses, recreational vehicles, and sport utility vehicles.

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Isuzu Motors (7202 JP)

Tech Supply Chain Tracker (13-Feb-2025): Foxconn chair denies Nissan takeover, focuses on collaboration.

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Tech Supply Chain Tracker

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The Honda (7267) Offering - Much Easier Than It Looks

Honda's mega-offering is not mega. It is two-thirds covered by non-active investor demand over the next two months. 80+% if the stock falls post...

Travis Lundy

Big ¥500bn Honda (7267) Offering Is Small

The big ¥500bn Honda offering is announced. Details and context the buyback and passive demand cover two-thirds of the offering but this is going...

Travis Lundy

BIG ¥500bn Honda (7267) Offering Coming?

A Reuters article today suggested Japanese non-life insurers and other financial holders would combine to launch a ¥500bn secondary offering on...

Travis Lundy

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