Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday after the close, <a href="https://www.smartkarma.com/entities/nissin-corp" target="_blank" data-smartkarma-citation="entities:12749:1" rel="noopener">Nissin Corp (9066 JP)</a> announced earnings (down vs last year), guidance (back up partway to last year), and a sale of securities to raise ¥6+bn.</li>
<li>Nissin also announced an employee share incentive plan (¥900mm) and an adjustment to its MTMP from Apr24 to Mar27. Much lower revenues. Same OP. Higher net. Higher Div Payout ratio.</li>
<li>They also announced a really big buyback which should be done by the time people read this. It is really big.</li>
</ul>


Yesterday after the close, Nissin Corp (9066 JP) announced earnings (down vs last year), guidance (back up partway to last year), and a sale of securities to raise ¥6+bn.
Nissin also announced an employee share incentive plan (¥900mm) and an adjustment to its MTMP from Apr24 to Mar27. Much lower revenues. Same OP. Higher net. Higher Div Payout ratio.
They also announced a really big buyback which should be done by the time people read this. It is really big.


Nissin (9066) - Super Big Buyback Race-Walks the Governance Walk - Super Cheap Logistics Biz

<ul>
<li>Last year, <a href="https://www.smartkarma.com/entities/nissin-corp" target="_blank" data-smartkarma-citation="entities:12749:1" rel="noopener">Nissin Corp (9066 JP)</a> started race-walking the good governance walk. The day they released earnings they announced crossholding sales and an overnight 23.61% ToSTNeT-3 Buyback (executed successfully).</li>
<li>They also expected 19% Net Income Growth (to go with accretion), and in November, nearly doubled their dividend on new payout policy (minimum 4% DOE). </li>
<li>Now, Bloomberg reports they are considering going private via a Bain MBO at ¥100bn+ (or a 30% premium). </li>
</ul>


Last year, Nissin Corp (9066 JP) started race-walking the good governance walk. The day they released earnings they announced crossholding sales and an overnight 23.61% ToSTNeT-3 Buyback (executed successfully).
They also expected 19% Net Income Growth (to go with accretion), and in November, nearly doubled their dividend on new payout policy (minimum 4% DOE). 
Now, Bloomberg reports they are considering going private via a Bain MBO at ¥100bn+ (or a 30% premium). 


[Japan M&A] Bloomberg Reports Bain MBO on Nissin (9066) May Come Monday - The Implied Price Is Light

Focus on Smaller Cap Value Names, Altay Capital

Altay Capital

Focus on Smaller Cap Value Names

Long time value investor. Long/Short portfolio that’s always net long (between 30-80%). I have extensive experience in the video game industry as I founded a leading media company in the space, which I have since exited after an acquisition. Gaming companies only make up ~15% of my portfolio, but its a sector where I believe I have an edge. A newsletter about value investing! Mostly focus on smaller cap value names that aren't widely covered.

Equity Bottom-Up

<ul><li>Nissin Corp (TYO 9066) bought back 23.6% of their outstanding shares in a single day on May 10th and also doubled their dividend.</li><li>The result? The stock went up about 39% (up 72% YTD).</li><li>I already had a full sized position in Nissin Corp and despite being up big on it I added to my position at ¥4,265.</li></ul>

Nissin Corp (TYO 9066) bought back 23.6% of their outstanding shares in a single day on May 10th and also doubled their dividend.The result? The stock went up about 39% (up 72% YTD).I already had a full sized position in Nissin Corp and despite being up big on it I added to my position at ¥4,265.

Nissin Corp (9066) - A Dirt Cheap $400m JP Logistics Company...

Thematic (Sector/Industry)

<ul><li>Generated with AI While Japanese stocks have had a banner 2023 and are off to a good start in 2024, the opportunity in Japan remains compelling.</li><li>Especially in the dirt cheap small cap space.</li><li>You can still buy net-nets with 20 years of net income profitability for under 9x earnings , Nichia Steel (TYO 5658) remains a double net-net , and even non net-nets like Nissin (TYO 9066) which announced a big buyback (18% of outstanding shares) trade at 0.</li></ul>

Generated with AI While Japanese stocks have had a banner 2023 and are off to a good start in 2024, the opportunity in Japan remains compelling.Especially in the dirt cheap small cap space.You can still buy net-nets with 20 years of net income profitability for under 9x earnings , Nichia Steel (TYO 5658) remains a double net-net , and even non net-nets like Nissin (TYO 9066) which announced a big buyback (18% of outstanding shares) trade at 0.

<ul>
<li>Today post-close, <a href="https://www.smartkarma.com/entities/nissin-shoji-co-ltd" target="_blank" data-smartkarma-citation="entities:18917:1" rel="noopener">Nissin Shoji (7490 JP)</a> - gasoline retailer and energy company affiliated with <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> - announced the Tsutsui family would conduct an MBO at ¥2,210. </li>
<li>That's a 60% premium, which looks nice, but book value is 185% higher than today's close. Most of the Adjusted EV is receivables and inventory. </li>
<li>The remaining assets are about ¥10-14bn worth of market value of real estate. All told, this is probably worth ¥3,500+ to the right person.</li>
</ul>


Today post-close, Nissin Shoji (7490 JP) - gasoline retailer and energy company affiliated with ENEOS Holdings (5020 JP) - announced the Tsutsui family would conduct an MBO at ¥2,210. 
That's a 60% premium, which looks nice, but book value is 185% higher than today's close. Most of the Adjusted EV is receivables and inventory. 
The remaining assets are about ¥10-14bn worth of market value of real estate. All told, this is probably worth ¥3,500+ to the right person.


[Japan M&A] Nisshin Shoji "MBO" Is An Exercise in Offensively Bad Board Negligence

Japan

NISSIN CORPORATION is a transport company.  The Company provides port-harbor, land, air transport services, and warehousing.  Nissin has operation bases overseas including the United States, China, Europe, and Russia.

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Nissin Corp (9066 JP)

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Nissin Corp (9066) - A Dirt Cheap $400m JP Logistics Company...

Nissin Corp (TYO 9066) bought back 23.6% of their outstanding shares in a single day on May 10th and also doubled their dividend. The result? The...

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[Japan M&A] Nisshin Shoji "MBO" Is An Exercise in Offensively Bad Board Negligence

The Tsutsui family is buying out Nissin Shoji, with 50+ service stations, a load of cash and securities, a pile of real estate, and which under...

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