Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it appears the market has gotten even weaker. I am sure our friends from Drewry have experienced this as well. A few key details below on rates that have gone even further south than 2009.In recent weeks we understand from friends that some markets in Intra-Asia have gone into negative pricing.This means that lines have to try to recoup some of their losses…

Container Shipping Industry Last Few Weeks Factoring in Doomsday

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MS-Japan in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Shimizu, Kioxia, Mitsui &amp;, Mitsubishi, Nissan Motor, Eneos, Honda Motor.</li>
</ul>


We analysed the earning revision of component stocks of MS-Japan in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Shimizu, Kioxia, Mitsui &amp;, Mitsubishi, Nissan Motor, Eneos, Honda Motor.


MS-Japan Index Earning Revision (Mar): Shimizu, Kioxia, Mitsui &, Mitsubishi, Nissan Motor, Eneos

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

Somboon Advance Technology / Equity Bottom-Up

<ul><li>We view SAT as the most exposed to the US–Iran conflict, given its key customers (Toyota, Mitsubishi) have the highest export exposure to the Middle East.</li><li>If the situation in the Middle East is prolonged, we expect SAT's profit to have a downside of approximately 4%, to Bt775mn (+6% YoY).</li><li>SAT is a safe stock for investors seeking high dividend returns, with a yield of up to 11% per year. As the share price has corrected after the Bt1.20/share dividend payout, it has begun to offer attractive upside. We therefore upgrade our recommendation from Neutral to Outperform with an unchanged fair value of Bt16.</li></ul>

We view SAT as the most exposed to the US–Iran conflict, given its key customers (Toyota, Mitsubishi) have the highest export exposure to the Middle East.If the situation in the Middle East is prolonged, we expect SAT's profit to have a downside of approximately 4%, to Bt775mn (+6% YoY).SAT is a safe stock for investors seeking high dividend returns, with a yield of up to 11% per year. As the share price has corrected after the Bt1.20/share dividend payout, it has begun to offer attractive upside. We therefore upgrade our recommendation from Neutral to Outperform with an unchanged fair value of Bt16.

SOMBOON ADVANCE TECHNOLOGY Plc. (SAT): Short-Term Risks, Long-Term Appeal Driven by Dividends

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/itochu-shokuhin-co-ltd" target="_blank" data-smartkarma-citation="entities:14985:1" rel="noopener">Itochu Shokuhin (2692 JP)</a> has recommended an offer from <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> at JPY13,000, a 3.6% premium to last close and a 39.8% premium to the undisturbed price (13 November).</li>
<li>While the offer represents an all-time high, it is light compared to precedent transactions, Sapphireterra’s fair value and below the midpoint of the special committee IFA DCF valuation range.</li>
<li>However, tendering by crossholders and a few retail holders will satisfy the minimum (14.20% ownership ratio). Therefore, this is a done deal.</li>
</ul>



Itochu Shokuhin (2692 JP) has recommended an offer from Itochu Corp (8001 JP) at JPY13,000, a 3.6% premium to last close and a 39.8% premium to the undisturbed price (13 November).
While the offer represents an all-time high, it is light compared to precedent transactions, Sapphireterra’s fair value and below the midpoint of the special committee IFA DCF valuation range.
However, tendering by crossholders and a few retail holders will satisfy the minimum (14.20% ownership ratio). Therefore, this is a done deal.


Itochu-Shokuhin (2692 JP): Itochu (8001 JP)’s Tender Offer Is Light but Done

<ul>
<li>We analysed the earning revision of component stocks of TOPIX CORE 30 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Sony, Hoya, Toyota Motor, SoftBank, Honda Motor, Tokyo Electron, Tokio Marine, Sumitomo Mitsui Financial.</li>
</ul>


We analysed the earning revision of component stocks of TOPIX CORE 30 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Sony, Hoya, Toyota Motor, SoftBank, Honda Motor, Tokyo Electron, Tokio Marine, Sumitomo Mitsui Financial.


TOPIX CORE 30 Index Earning Revision (Feb): Sony, Hoya, Toyota Motor, SoftBank, Honda Motor

Japan

Mitsubishi Corporation is a general trading company.  The Company has business groups such as New Business Initiatives, IT & Electronics, Fuels, Metals, Machinery, Chemicals, Living Essentials, and Professional Services.  Mitsubishi diversifies by satellite communications through a joint venture.

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Mitsubishi Corp (8058 JP)

Container Shipping Industry Last Few Weeks Factoring in Doomsday

My updates back in December to reiterate the negative in containers (and bulk) and anticipated a weak 2016, to be sure. But in recent weeks it...

Charles De Trenck

MS-Japan Index Earning Revision (Mar): Shimizu, Kioxia, Mitsui &, Mitsubishi, Nissan Motor, Eneos

We analyzed MS-Japan's consensus for Mar 2026 and highlighted changes of EPS in Shimizu, Kioxia, Mitsui &, Mitsubishi, Nissan Motor, Eneos, Honda...

Ke Yan, CFA, FRM

SOMBOON ADVANCE TECHNOLOGY Plc. (SAT): Short-Term Risks, Long-Term Appeal Driven by Dividends

We view SAT as the most exposed to the US–Iran conflict, given its key customers (Toyota, Mitsubishi) have the highest export exposure to the...

Krungthai XSpring

Itochu-Shokuhin (2692 JP): Itochu (8001 JP)’s Tender Offer Is Light but Done

The shares have traded marginally above terms since the deal was announced. In response to this, Itochu has announced irrevocables representing 1.5...

Arun George

TOPIX CORE 30 Index Earning Revision (Feb): Sony, Hoya, Toyota Motor, SoftBank, Honda Motor

We analyzed TOPIX CORE 30's consensus for Feb 2026 and highlighted changes of EPS in Sony, Hoya, Toyota Motor, SoftBank, Honda Motor, Tokyo...

Ke Yan, CFA, FRM

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