Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Last September in the release of its new Mid-Term Management Plan, Toyota Group member <a href="https://www.smartkarma.com/entities/aisin-corp" target="_blank" data-smartkarma-citation="entities:11809:1" rel="noopener">Aisin (7259 JP)</a> announced a plan to cut cross-holdings to zero. <a href="https://www.smartkarma.com/entities/jtekt-corp" target="_blank" data-smartkarma-citation="entities:12197:1" rel="noopener">JTEKT Corp (6473 JP)</a> followed suit.</li>
<li>It started with a selldown of <a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso Corp (6902 JP)</a>, then <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>, now <a href="https://www.smartkarma.com/insights/big-aisin-7259-offering-sets-stage-for-first-toyota-group-full-unwind" target="_blank" rel="noopener">Aisin</a>. Last FY, Toyota Group cos reduced crossholdings by ¥870bn. This year will be more.</li>
<li>Attached below is a general breakdown of Toyota Group cross-holdings, discussion of cross-holding policies, and analysis of what is next, and what is not.</li>
</ul>


Last September in the release of its new Mid-Term Management Plan, Toyota Group member Aisin (7259 JP) announced a plan to cut cross-holdings to zero. JTEKT Corp (6473 JP) followed suit.
It started with a selldown of Denso Corp (6902 JP), then Toyota Industries (6201 JP), now Aisin. Last FY, Toyota Group cos reduced crossholdings by ¥870bn. This year will be more.
Attached below is a general breakdown of Toyota Group cross-holdings, discussion of cross-holding policies, and analysis of what is next, and what is not.


Toyota Group Cross-Holding Structure Primer - Holdings, Unwind Progress, Buyback Policies, Etc

Equity Long-Short

Mo Aziz

Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) / Equity Bottom-Up

NTT (Nippon Telegraph & Telephone) (9432 JP)

<ul>
<li>FY26F dividend of ¥5.4/share marks the 16th straight annual increase since 2011, backed by a fresh ¥200bn buyback to March 2027 on top of ¥5.7tn repurchased since inception.</li>
<li>Management pushed the ¥4tn EBITDA target out three years to FY2030, funding a ¥12tn AI-infrastructure capex bet (AIOWN) — the key swing factor for the stock.</li>
<li>We initiate BUY, ¥170 TP (13.5x FY26F P/E): NTT trades near trough multiples on record cash generation, with capital returns held firm despite the capex-driven target delay.</li>
</ul>


FY26F dividend of ¥5.4/share marks the 16th straight annual increase since 2011, backed by a fresh ¥200bn buyback to March 2027 on top of ¥5.7tn repurchased since inception.
Management pushed the ¥4tn EBITDA target out three years to FY2030, funding a ¥12tn AI-infrastructure capex bet (AIOWN) — the key swing factor for the stock.
We initiate BUY, ¥170 TP (13.5x FY26F P/E): NTT trades near trough multiples on record cash generation, with capital returns held firm despite the capex-driven target delay.


NTT Inc. (TSE: 9432) — The Cheapest Way to Play Japan's AI Infrastructure Build

<ul>
<li>This morning, the <a href="https://asia.nikkei.com/Business/Business-deals/NTT-to-make-NTT-Data-wholly-owned-unit-via-tender-offer-worth-up-to-20bn" target="_blank" rel="noopener">Nikkei</a> says <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (Nippon Telegraph &amp; Telephone) (9432 JP)</a> has decided, 5 years after taking Docomo private, to buy out minorities in <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a>. </li>
<li>NTT owns 58%. The article suggests a "30-40% premium" (¥3,900-4,200) "is likely", with the parent spending ¥2-3trln (¥3,380-5,060) on the deal. The numbers are a bit all over the place.</li>
<li>It will go limit up today to ¥3,492. A deal should be announced today after the close when NTT Data reports earnings. There's a cool index event too.</li>
</ul>


This morning, the Nikkei says NTT (Nippon Telegraph &amp; Telephone) (9432 JP) has decided, 5 years after taking Docomo private, to buy out minorities in NTT Data Corp (9613 JP). 
NTT owns 58%. The article suggests a "30-40% premium" (¥3,900-4,200) "is likely", with the parent spending ¥2-3trln (¥3,380-5,060) on the deal. The numbers are a bit all over the place.
It will go limit up today to ¥3,492. A deal should be announced today after the close when NTT Data reports earnings. There's a cool index event too.


NTT (9432) To Overpay To Take Over NTT Data (9613) Subsidiary?

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

Asia Real Estate News Tracker, Asia Real Estate Tracker

Asia Real Estate Tracker

Asia Real Estate News Tracker

Tracking developments across Asia's regional real estate markets

Thematic (Sector/Industry)

<ul><li>GIC plans to divest $1 billion in stakes from private equity funds amid notable market shifts.</li><li>In Australia, the merger of pension funds Aware and Prime Plan results in a combined value of $179 billion.</li><li>Centurion's $268 million bid for a dormitory site and a $450 million bid by tycoon cousins highlight Singapore's real estate activity.</li></ul>

GIC plans to divest $1 billion in stakes from private equity funds amid notable market shifts.In Australia, the merger of pension funds Aware and Prime Plan results in a combined value of $179 billion.Centurion's $268 million bid for a dormitory site and a $450 million bid by tycoon cousins highlight Singapore's real estate activity.

Asia Real Estate Tracker (06-Aug-2026): GIC sells $1B in private equity fund stakes, APAC news.

Japan

Nippon Telegraph and Telephone Corporation provides a variety of telecommunication services, including telephone, telegraph, leased circuits, data communication, terminal equipment sales, and related services. The Company provides both local and long distance telephone services within Japan.

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NTT (Nippon Telegraph & Telephone) (9432 JP)

Toyota Group Cross-Holding Structure Primer - Holdings, Unwind Progress, Buyback Policies, Etc

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NTT (9432) To Overpay To Take Over NTT Data (9613) Subsidiary?

It looks like NTT will take over NTT Data. That is big news, but not entirely unexpected. It will probably be too expensive. It will create an...

Travis Lundy

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

Toyota, Toyota Industries and Denso are tag teaming to unwind some of their stake in Aisin, in a deal worth over US$1bn. While the timing of the...

Sumeet Singh

Asia Real Estate Tracker (06-Aug-2026): GIC sells $1B in private equity fund stakes, APAC news.

GIC plans to sell $1 billion in private equity stakes as Australia’s Aware and Prime Plan merge, while significant bids for real estate sites...

Asia Real Estate Tracker

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