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/cimc-vehicles-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28012:1" rel="noopener">CIMC Vehicle Group Co Ltd (1839 HK)</a> announced the H Share buyback offer, excluding CIMC’s shares, is at HK$7.50, a 16.5% premium to the undisturbed price. The offer is final.</li>
<li>The key condition is approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.  </li>
<li>Excluding the irrevocables, the 90% threshold requires an independent H Shareholder acceptance rate of 77.7%, which could be challenging due to a light offer. Risk/reward unfavourable. </li>
</ul>



CIMC Vehicle Group Co Ltd (1839 HK) announced the H Share buyback offer, excluding CIMC’s shares, is at HK$7.50, a 16.5% premium to the undisturbed price. The offer is final.
The key condition is approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.  
Excluding the irrevocables, the 90% threshold requires an independent H Shareholder acceptance rate of 77.7%, which could be challenging due to a light offer. Risk/reward unfavourable. 


CIMC Vehicles (1839 HK): Min Acceptance Condition a Risk for the Final HK$7.50 Offer

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>Overseas: SPX +0.6%, Nasdaq +0.3%; Illumina +7%, Microsoft -1%, Intel -2%</li>
<li>Today: NKY Futs +0.1% v cash. JPY/$146; Kewpie and Ezaki Glico raising prices; Appier helping Nexon</li>
<li>JapanX: Komatsu Expands Construction Software Arsenal with iVolve Acquisition for Fleet Management Services</li>
</ul>


Overseas: SPX +0.6%, Nasdaq +0.3%; Illumina +7%, Microsoft -1%, Intel -2%
Today: NKY Futs +0.1% v cash. JPY/$146; Kewpie and Ezaki Glico raising prices; Appier helping Nexon
JapanX: Komatsu Expands Construction Software Arsenal with iVolve Acquisition for Fleet Management Services


Ohayo Japan | Five Weeks of Gains; Komatsu Acquires IVolve

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cimc-vehicles-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28012:1" rel="noopener">CIMC Vehicle Group Co Ltd (1839 HK)</a> possible H Share buyback offer, excluding <a href="https://www.smartkarma.com/entities/china-international-marine-cntnrs-gp-ltd" target="_blank" data-smartkarma-citation="entities:11752:1" rel="noopener">China International Marine Cntnrs Gp (2039 HK)</a>’s shares, is HK$7.00, an 8.7% premium to the undisturbed price. </li>
<li>The key condition is approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition.</li>
<li>The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “<em>same or better terms</em>”, suggesting a potential bump.</li>
</ul>



CIMC Vehicle Group Co Ltd (1839 HK) possible H Share buyback offer, excluding China International Marine Cntnrs Gp (2039 HK)’s shares, is HK$7.00, an 8.7% premium to the undisturbed price. 
The key condition is approval by at least 75% of independent H Shareholders (&lt;10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition.
The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “same or better terms”, suggesting a potential bump.


CIMC Vehicles (1839 HK): Possible H Share Buyback Offer

<ul>
<li>After a strong start to the week, Japanese equities ended flat after succumbing to a global tech sell-off. </li>
<li>Tadano was the best performer among Topix names this week. The street is upgrading forecasts post Q2 numbers and full year guidance revision. Makes sense</li>
<li>We highlight stocks that have had significant shareholder changes. Activists continue to increase positions and Oasis goes big on Sagami Rubber</li>
</ul>


After a strong start to the week, Japanese equities ended flat after succumbing to a global tech sell-off. 
Tadano was the best performer among Topix names this week. The street is upgrading forecasts post Q2 numbers and full year guidance revision. Makes sense
We highlight stocks that have had significant shareholder changes. Activists continue to increase positions and Oasis goes big on Sagami Rubber


Japan Weekly | Tadano, JMDC, CyberAgent, JFE, Komatsu

Equity Bottom-Up

<ul>
<li>We turned bullish on Komatsu a year ago and the stock has since returned over 50%.</li>
<li>Komatsu is trading at 10x EV/EBIT versus an historical average of 11x, with a target price of ¥5,100/share.</li>
<li>Komatsu represents a cheaper way to play the theme of onshoring and long-term mining demand from electrification.</li>
</ul>


We turned bullish on Komatsu a year ago and the stock has since returned over 50%.
Komatsu is trading at 10x EV/EBIT versus an historical average of 11x, with a target price of ¥5,100/share.
Komatsu represents a cheaper way to play the theme of onshoring and long-term mining demand from electrification.


Komatsu (6301) | A Winning Bet on Onshoring and Electrification

Japan

KOMATSU LTD. manufactures and sells construction and mining machinery, including excavators, bulldozers, and wheel loaders.  The Company, operating on a global scale, also produces forklift trucks and engineering equipment such as press system.

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

Komatsu Ltd (6301 JP)

CIMC Vehicles (1839 HK): Min Acceptance Condition a Risk for the Final HK$7.50 Offer

The 90% min acceptance condition is a key risk in the context of a light offer. Risk/reward is unfavourable as the downside (9.9% to undisturbed...

Arun George

Ohayo Japan | Five Weeks of Gains; Komatsu Acquires IVolve

Global markets rise, with Illumina surging despite Microsoft and Intel declining. In Japan, Komatsu acquires iVolve to enhance fleet management...

Mark Chadwick

Japan Weekly | Tadano, JMDC, CyberAgent, JFE, Komatsu

Japanese equities started strong but ended flat due to a global tech sell-off. Tadano performed well, following upgrades in forecasts. Activists...

Mark Chadwick

Komatsu (6301) | A Winning Bet on Onshoring and Electrification

Komatsu stock has surged over 50% in a year but remains undervalued, making it an attractive investment for onshoring and mining demand related to...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CIMC Vehicles (1839 HK): Min Acceptance Condition a Risk for the Final HK$7.50 Offer

The 90% min acceptance condition is a key risk in the context of a light offer. Risk/reward is unfavourable as the downside (9.9% to undisturbed...

Arun George

Ohayo Japan | Five Weeks of Gains; Komatsu Acquires IVolve

​Global markets rise, with Illumina surging despite Microsoft and Intel declining. In Japan, Komatsu acquires iVolve to enhance fleet management...

Mark Chadwick

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer

The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “same or...

Arun George

Japan Weekly | Tadano, JMDC, CyberAgent, JFE, Komatsu

​Japanese equities started strong but ended flat due to a global tech sell-off. Tadano performed well, following upgrades in forecasts. Activists...

Mark Chadwick

Komatsu (6301) | A Winning Bet on Onshoring and Electrification

​Komatsu stock has surged over 50% in a year but remains undervalued, making it an attractive investment for onshoring and mining demand related to...

Mark Chadwick

Global markets rise, with Illumina surging despite Microsoft and Intel declining. In Japan, Komatsu acquires iVolve to enhance fleet management...

Japanese equities started strong but ended flat due to a global tech sell-off. Tadano performed well, following upgrades in forecasts. Activists...

Komatsu stock has surged over 50% in a year but remains undervalued, making it an attractive investment for onshoring and mining demand related to...