Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

<ul><li>In 1H FY03/25, orders were JPY108.7bn (+18.3% YoY), revenue JPY100.7bn (+8.1% YoY), operating profit JPY9.0bn (+41.2% YoY).</li><li>The company maintained its full-year forecast for FY03/25, attributing strong 1H performance to fulfilled order backlogs.</li><li>Enterprise business orders were JPY27.8bn (+13.1% YoY), revenue JPY28.7bn (+19.1% YoY), operating profit JPY3.0bn (+86.9% YoY).</li></ul>

In 1H FY03/25, orders were JPY108.7bn (+18.3% YoY), revenue JPY100.7bn (+8.1% YoY), operating profit JPY9.0bn (+41.2% YoY).The company maintained its full-year forecast for FY03/25, attributing strong 1H performance to fulfilled order backlogs.Enterprise business orders were JPY27.8bn (+13.1% YoY), revenue JPY28.7bn (+19.1% YoY), operating profit JPY3.0bn (+86.9% YoY).

Net One Systems (7518 JP): 1H FY03/25 flash update

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Today (6 Nov) <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> and <a href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a> that the former would launch a tender offer tomorrow to buy out the latter. </li>
<li>Unusually among recent takeovers, there is no large incumbent strategic or founding shareholder. This is pure corporate LBO. Synergies are obvious, but not counted. The multiple is low. </li>
<li>The pricing is a bit low, perhaps PE firms were not invited to compete. Or perhaps there's something else. Totally non-transparent. Simple deal... But it has issues. </li>
</ul>


Today (6 Nov) Scsk Corp (9719 JP) and Net One Systems (7518 JP) that the former would launch a tender offer tomorrow to buy out the latter. 
Unusually among recent takeovers, there is no large incumbent strategic or founding shareholder. This is pure corporate LBO. Synergies are obvious, but not counted. The multiple is low. 
The pricing is a bit low, perhaps PE firms were not invited to compete. Or perhaps there's something else. Totally non-transparent. Simple deal... But it has issues. 


SCSK Tender Offer for Independent Net One Systems (7518) - Potential Problems

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 href="https://www.smartkarma.com/entities/net-one-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:1279:1" rel="noopener">Net One Systems (7518 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/scsk-corp" target="_blank" data-smartkarma-citation="entities:19996:1" rel="noopener">Scsk Corp (9719 JP)</a> at JPY4,500, 25.9% premium to the undisturbed price of JPY3,574 (5 November).</li>
<li>The tender offer runs from 7 November to 18 December (30 business days), with payment commencing from 25 December. The offer is marginally below the all-time high. </li>
<li>The offer is attractive compared to precedent transactions, peer multiples, and historical trading ranges. The shareholder register is open, which facilitates the deal.  </li>
</ul>



Net One Systems (7518 JP) has recommended a tender offer from Scsk Corp (9719 JP) at JPY4,500, 25.9% premium to the undisturbed price of JPY3,574 (5 November).
The tender offer runs from 7 November to 18 December (30 business days), with payment commencing from 25 December. The offer is marginally below the all-time high. 
The offer is attractive compared to precedent transactions, peer multiples, and historical trading ranges. The shareholder register is open, which facilitates the deal.  


Net One Systems (7518 JP): SCSK (9719 JP)’s JPY4,500 Tender Offer

Nec Networks & System Integr / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/nec-corp" target="_blank" data-smartkarma-citation="entities:17084:1" rel="noopener">NEC Corp (6701 JP)</a> at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).</li>
<li>The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. </li>
<li>While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. </li>
</ul>



Nec Networks &amp; System Integr (1973 JP) has recommended a tender offer from NEC Corp (6701 JP) at JPY3,250, 21.5% premium to the undisturbed price of JPY2,675 (28 October).
The tender offer runs from 30 October to 11 December (30 business days), with payment commencing from 18 December. The offer represents an all-time high. 
While below the midpoint IFA DCF range, the offer is attractive vs peer multiples and historical trading ranges. This is a done deal. 


NESIC (1973 JP): NEC (6701 JP)’s JPY3,250 Tender Offer

<ul><li>In Q1 FY03/25, orders were JPY61.3bn (+22.6% YoY), revenue was JPY45.6bn (+7.1% YoY), and operating profit was JPY3.8bn (+129.9% YoY).</li><li>Orders in the Enterprise market were JPY12.7bn (+9.8% YoY), revenue was JPY13.3bn (+25.7% YoY), and operating profit was JPY1.3bn (+163.3% YoY).</li><li>In the Public market, orders were JPY26.6bn (+40.8% YoY), revenue was JPY11.2bn (-6.4% YoY), and operating profit was JPY398mn (+60.5% YoY).</li></ul>

In Q1 FY03/25, orders were JPY61.3bn (+22.6% YoY), revenue was JPY45.6bn (+7.1% YoY), and operating profit was JPY3.8bn (+129.9% YoY).Orders in the Enterprise market were JPY12.7bn (+9.8% YoY), revenue was JPY13.3bn (+25.7% YoY), and operating profit was JPY1.3bn (+163.3% YoY).In the Public market, orders were JPY26.6bn (+40.8% YoY), revenue was JPY11.2bn (-6.4% YoY), and operating profit was JPY398mn (+60.5% YoY).

Net One Systems (7518 JP): Q1 FY03/25 flash update

Japan

Net One Systems Co., Ltd. designs, installs, maintains and supports computer network systems.  The company also installs computer security related products and integrated audio visual data communication environment system by applying IP (Internet Protocol) technology.  Net One Systems builds virtualized data center environment as well.

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Net One Systems (7518 JP)