Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

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

NTT (Nippon Telegraph & Telephone) (9432 JP)

<ul>
<li>NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data</li>
<li>The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data</li>
<li>Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11</li>
</ul>


NTT and NTT Data will reorganize overseas assets into a new operating company run through NTT Data
The transaction results in little change for consolidated results at NTT Group although segment reporting may change and it will buy up to ¥100bn more of NTT Data
Restructuring could help unlock the potential of Dimension Data which has been a consistent laggard since NTT acquired it in FY11


NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

<ul>
<li>NTT has raised financial guidance by 1-2% on upside at subsidiary NTT Data</li>
<li>A corresponding increase in the FY21 dividend from ¥110 to ¥115 provides a near-term reward for shareholders</li>
<li>We are raising our target price from ¥3,600 to ¥4,000 and remain at Buy</li>
</ul>


NTT has raised financial guidance by 1-2% on upside at subsidiary NTT Data
A corresponding increase in the FY21 dividend from ¥110 to ¥115 provides a near-term reward for shareholders
We are raising our target price from ¥3,600 to ¥4,000 and remain at Buy


NTT (Buy) - Q3 21 Results Reaction: NTT Data Drives Beat and Raise with Dividend Boost

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Recruit announced a buyback of up to 34 million shares in an own share tender offer to take place at a price below the current market price.</li>
<li>This kind of tender offer is almost always meant for Japanese corporate holders as it rarely makes sense for others to participate.</li>
<li>This is mildly EPS accretive, BVPS decretive, quite ROE accretive, but Recruit can't really use this method for the rest of its cross-holdings.</li>
</ul>


Recruit announced a buyback of up to 34 million shares in an own share tender offer to take place at a price below the current market price.
This kind of tender offer is almost always meant for Japanese corporate holders as it rarely makes sense for others to participate.
This is mildly EPS accretive, BVPS decretive, quite ROE accretive, but Recruit can't really use this method for the rest of its cross-holdings.


Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>A positive earnings surprise for Fast Retailing and Microsoft’s acquisition of Activision Blizzard hitting Sony have hurt the performance of our skew trade. </li>
<li>Despite this, the dramatic fall in the Nikkei means it is now outperforming the Nikkei since we first suggested the trade. </li>
<li>Looking forward we expect recent volatility to be absorbed over time and we retain conviction on our picks.</li>
</ul>


A positive earnings surprise for Fast Retailing and Microsoft’s acquisition of Activision Blizzard hitting Sony have hurt the performance of our skew trade. 
Despite this, the dramatic fall in the Nikkei means it is now outperforming the Nikkei since we first suggested the trade. 
Looking forward we expect recent volatility to be absorbed over time and we retain conviction on our picks.


TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei

<ul>
<li>We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.</li>
<li>Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. </li>
<li>Given that, we quite like the risk-reward skew on offer here.</li>
</ul>


We update on our TOPIX-Nikkei Skew Trade again as we head into the end of the year with markets remaining choppy.
Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. 
Given that, we quite like the risk-reward skew on offer here.


We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

Japan

NTT Data Corporation mainly provides large scale system integration and networking system services. System integration involves data transmission system design, sales, leasing, and services.  Network System Services include internet related and linked computer networks, and data provision and management of data. The Company is a subsidiary of Nippon Telegraph & Telephone Corporation.

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NTT Data Corp (9613 JP)

NTT (Buy) - An Exciting Day for Data but Not Much Has Changed

NTT Data jumped as much as 17% on reports of a joint NTT press conference only to give it all back. NTT isn't buying Data minorities but efforts to...

Kirk Boodry

NTT (Buy) - Q3 21 Results Reaction: NTT Data Drives Beat and Raise with Dividend Boost

NTT has boosted full-year guidance and the dividend on solid financial results from NTT Data. We are raising our target price and remain at Buy.

Kirk Boodry

Recruit (6098) Buyback - Big, But Meh...

Recruit announced a buyback of up to 34 million shares in an own share tender offer to take place at a price near a 52-week low. Three major...

Travis Lundy

TOPIX-Nikkei Skew Trade Hit by Sony and Fast Retailing but Outperforming Nikkei

Volatility in Fast Retailing and Sony have hurt the performance of our skew trade but looking forward we expect recent volatility to be absorbed...

Mio Kato

We Like the TOPIX-Nikkei Skew Trade Into End of Year Liquidity Drops

Given likely drops in liquidity but continued choppiness in markets we feel that liquidity risk will be important over the next 2-3 weeks. Given...

Mio Kato

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