Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

Equity Bottom-Up

Lifenet Insurance Company / Equity Bottom-Up

Lifenet's management has successfully turned around the company's new business from stalling, and more initiatives are currently underway to drive its future growth.The company is still only trading at 0.8x P/EV. Although its valuation multiple is richer than the traditional life insurers in Japan, we view that it doesn't make sense for Lifenet, which had significant new business growth compared to those traditional life insurers, to trade below its EV.  The management announced its new embedded value target in the medium term. Our calculations showed a base case IRR of 21%if the company can achieve the target in 5 years.Key concerns centered around Lifenet's tech capability and profitability.

Lifenet's management has successfully turned around the company's new business from stalling, and more initiatives are currently underway to drive its future growth.The company is still only trading at 0.8x P/EV. Although its valuation multiple is richer than the traditional life insurers in Japan, we view that it doesn't make sense for Lifenet, which had significant new business growth compared to those traditional life insurers, to trade below its EV.  The management announced its new embedded value target in the medium term. Our calculations showed a base case IRR of 21%if the company can achieve the target in 5 years.Key concerns centered around Lifenet's tech capability and profitability.

Lifenet: A Rejuvenated InsurTech Story in Japan

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/gree-inc" target="_blank" data-smartkarma-citation="entities:17135:1" rel="noopener">Gree Inc (3632 JP)</a> is an online media business and game developer (Switch and Facebook Messenger) and does a hodgepodge of other businesses. It has its good points, but nobody would call it a category killer or call it dominant in any way. And the stock has had a somewhat lacklustre 10 years. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/232/890/original/Screenshot+2021-09-30+at+9.05.23+PM.png?1633007148" class="editor-image img-responsive" data-smartkarma-image-id="232890"></figure></section>But it has its strong points, and it announced the exercise of one of those today.More below the fold.

Gree Inc (3632 JP) is an online media business and game developer (Switch and Facebook Messenger) and does a hodgepodge of other businesses. It has its good points, but nobody would call it a category killer or call it dominant in any way. And the stock has had a somewhat lacklustre 10 years. But it has its strong points, and it announced the exercise of one of those today.More below the fold.

<ul>
<li>Today, with Q1 earnings, which I found less than great, <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI Corp (9433 JP)</a> announced a Tender Offer Buyback to repurchase up to 64,102,500 shares for up to ¥250.03175bn.</li>
<li>The Tender Offer - at ¥3900/share vs Last at ¥4,271/share (designed for cross-holding unwinds) - goes from 31-July through 28-August. It fills the 83.3% of the buyback programme announced 11-May.</li>
<li>
<a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a> has announced it would sell ¥250bn of shares into this Tender Offer. This is less interesting than it looks. The whole thing is.</li>
</ul>


Today, with Q1 earnings, which I found less than great, KDDI Corp (9433 JP) announced a Tender Offer Buyback to repurchase up to 64,102,500 shares for up to ¥250.03175bn.
The Tender Offer - at ¥3900/share vs Last at ¥4,271/share (designed for cross-holding unwinds) - goes from 31-July through 28-August. It fills the 83.3% of the buyback programme announced 11-May.

Toyota Motor (7203 JP) has announced it would sell ¥250bn of shares into this Tender Offer. This is less interesting than it looks. The whole thing is.


KDDI (9433) - Own Share Tender Offer, Toyota To Sell (Gasp!)

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.

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments: <a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a> and <a href="https://www.smartkarma.com/entities/zeekr-intelligent-technology-holding" target="_blank" data-smartkarma-citation="entities:36785:1" rel="noopener">ZEEKR (ZK US)</a> IPOs.</li>
<li>Event-Driven developments: <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>, <a href="https://www.smartkarma.com/entities/chilled-frozen-logistics-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40987:1" rel="noopener">Chilled &amp; Frozen Logistics Holdings (9099 JP)</a>, <a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a>, <a href="https://www.smartkarma.com/entities/mimasu-semiconductor-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:5531:1" rel="noopener">Mimasu Semiconductor Industry (8155 JP)</a>, <a href="https://www.smartkarma.com/entities/austal-ltd" target="_blank" data-smartkarma-citation="entities:14420:1" rel="noopener">Austal Ltd (ASB AU)</a>. </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L'Occitane (973 HK), Chilled &amp; Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU). 


Weekly Deals Digest (05 May) - L'Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>With <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota (7203 JP)</a> having sold some of its stake in <a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso</a>, <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI</a> and <a href="https://www.smartkarma.com/entities/harmonic-drive-systems-inc" target="_blank" data-smartkarma-citation="entities:10238:1" rel="noopener">Harmonic Drive</a> this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.</li>
<li>Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.</li>
<li>In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.</li>
</ul>


With Toyota (7203 JP) having sold some of its stake in Denso, KDDI and Harmonic Drive this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.
Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.
In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.


Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

Japan

KDDI CORPORATION provides mobile communication services and sells mobile devices.  The Company also is a broadband provider.

KDDI Corp (9433 JP)

Lifenet: A Rejuvenated InsurTech Story in Japan

Activist investor (Effissimo Capital) has been gradually increasing and building its stake in Lifenet to 18.03% (mid-Oct) and has become the...

Alec Tseung

Greeeee... Wheeeee.....!

Gree is not a great gaming stock, and not a great online media stock. But it IS cheap. It has a huge amount of cash, and an interesting VC...

Travis Lundy

Weekly Deals Digest (05 May) - L'Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

Last week, notable developments occurred in Event-Driven (L'Occitane, CF Logistics, KFC Japan, Mimasu Sem, Austal) and ECM (HD Hyundai Marine, ZEEKR).

Arun George

Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

With Toyota having sold some of its stake in Denso, KDDI and Harmonic Drive this year, it has set the ball rolling for unwinding its cross...

Sumeet Singh

Lifenet: A Rejuvenated InsurTech Story in Japan

Activist investor (Effissimo Capital) has been gradually increasing and building its stake in Lifenet to 18.03% (mid-Oct) and has become the...

Alec Tseung

Greeeee... Wheeeee.....!

Gree is not a great gaming stock, and not a great online media stock. But it IS cheap. It has a huge amount of cash, and an interesting VC...

Travis Lundy

KDDI (9433) - Own Share Tender Offer, Toyota To Sell (Gasp!)

KDDI has announced a tender offer to fulfil 83% of their original buyback program. Toyota will sell. This looks more important, governance-wise,...

Travis Lundy

Weekly Deals Digest (05 May) - L'Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

Last week, notable developments occurred in Event-Driven (L'Occitane, CF Logistics, KFC Japan, Mimasu Sem, Austal) and ECM (HD Hyundai Marine, ZEEKR).

Arun George

Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

With Toyota having sold some of its stake in Denso, KDDI and Harmonic Drive this year, it has set the ball rolling for unwinding its cross...

Sumeet Singh