Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>I tally 39 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.</li>
<li>One new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/paramount-bed-holdings-co-lt" target="_blank" data-smartkarma-citation="entities:17808:1" rel="noopener">Paramount Bed Holdings Co Lt (7817 JP)</a>.</li>
<li>Key updates/news took place on <a href="https://www.smartkarma.com/entities/pointsbet-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29102:1" rel="noopener">PointsBet (PBH AU)</a>, <a href="https://www.smartkarma.com/entities/oneconnect-financial-technology-co-ltd-2e580cf8-6a65-4148-ac1e-f9a8a167856a" target="_blank" data-smartkarma-citation="entities:36656:1" rel="noopener">Oneconnect (6638 HK)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Kangji Medical Instrument (9997 HK)</a>, <a href="https://www.smartkarma.com/entities/jinke-smart-services-group-co" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (9666 HK)</a>, <a href="https://www.smartkarma.com/entities/soft99-corp" target="_blank" data-smartkarma-citation="entities:18486:1" rel="noopener">Soft99 Corp (4464 JP)</a>, and <a href="https://www.smartkarma.com/entities/mandom-corp" target="_blank" data-smartkarma-citation="entities:8353:1" rel="noopener">Mandom Corp (4917 JP)</a>.</li>
</ul>


I tally 39 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.
One new deal was discussed on Smartkarma this week: Paramount Bed Holdings Co Lt (7817 JP).
Key updates/news took place on PointsBet (PBH AU), Oneconnect (6638 HK), Kangji Medical Instrument (9997 HK), Jinke Smart Services (9666 HK), Soft99 Corp (4464 JP), and Mandom Corp (4917 JP).


(Mostly) Asia-Pac M&A: Kangji Medical, Jinke Smart Services, Soft99, Mandom, Paramount Bed

Travis Lundy

Paramount Bed Holdings Co Lt / Event-Driven

<ul>
<li>In a fairly common pattern, the founding family (38% ownership) of <a href="https://www.smartkarma.com/entities/paramount-bed-holdings-co-lt" target="_blank" data-smartkarma-citation="entities:17808:1" rel="noopener">Paramount Bed Holdings Co Lt (7817 JP)</a> have launched an MBO. </li>
<li>It is too cheap at 4.2x adjusted EV/EBITDA (one could argue it is 5.0x but they also have net receivables) for such a ubiquitous brand and growth. </li>
<li>
<a href="https://www.smartkarma.com/entities/soft99-corp" target="_blank" data-smartkarma-citation="entities:18486:1" rel="noopener">Soft99 Corp (4464 JP)</a> may have been a one-off. Maybe not. People may look at this situation through that lens. It deserves that look. </li>
</ul>


In a fairly common pattern, the founding family (38% ownership) of Paramount Bed Holdings Co Lt (7817 JP) have launched an MBO. 
It is too cheap at 4.2x adjusted EV/EBITDA (one could argue it is 5.0x but they also have net receivables) for such a ubiquitous brand and growth. 

Soft99 Corp (4464 JP) may have been a one-off. Maybe not. People may look at this situation through that lens. It deserves that look. 


[Japan M&A] Paramount Bed (7817 JP) Founding Family Takeout - Too Cheap, Deserves Activist Response

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/paramount-bed-holdings-co-lt" target="_blank" data-smartkarma-citation="entities:17808:1" rel="noopener">Paramount Bed Holdings Co Lt (7817 JP)</a> has recommended an MBO at JPY3,530, a 32.2% premium to the last close price. The offer represents a ten-year high. </li>
<li>The offer is below the midpoint of the special committee IFA's DCF valuation range and its requested price. Hibiki has <a href="https://www.hibiki-path-advisors.com/en/category/engagement/7817/" target="_blank" rel="noopener">previously suggested</a> an intrinsic value of JPY4,929.  </li>
<li>The setup shares several traits with the Mandom MBO, and has the potential for a bump, particularly if an activist emerges as a substantial shareholder or agitates for better terms.   </li>
</ul>



Paramount Bed Holdings Co Lt (7817 JP) has recommended an MBO at JPY3,530, a 32.2% premium to the last close price. The offer represents a ten-year high. 
The offer is below the midpoint of the special committee IFA's DCF valuation range and its requested price. Hibiki has previously suggested an intrinsic value of JPY4,929.  
The setup shares several traits with the Mandom MBO, and has the potential for a bump, particularly if an activist emerges as a substantial shareholder or agitates for better terms.   


Paramount Bed Holdings (7817 JP): Another MBO Susceptible to Activism

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mani-inc" target="_blank" data-smartkarma-citation="entities:6534:1" rel="noopener">Mani Inc (7730 JP)</a> 9MFY25 revenue increased 3% YoY to ¥22.3B mainly due to strong sales of Surgical products and Eyeless Needle products, while Dental segment sales dipped on recall.</li>
<li>Operating margin deteriorated to 27.5% in 9MFY25, down 260bps. Segment wise, dental segment reported the worst operating margin decline from 19.6% to 10.4%.</li>
<li>Management revised FY25 guidance downwards, now expecting revenue to be ¥29.6B (previous guidance ¥30.2B), up 3.8% YoY. Profits and margins also witnessed a downward revision.</li>
</ul>



Mani Inc (7730 JP) 9MFY25 revenue increased 3% YoY to ¥22.3B mainly due to strong sales of Surgical products and Eyeless Needle products, while Dental segment sales dipped on recall.
Operating margin deteriorated to 27.5% in 9MFY25, down 260bps. Segment wise, dental segment reported the worst operating margin decline from 19.6% to 10.4%.
Management revised FY25 guidance downwards, now expecting revenue to be ¥29.6B (previous guidance ¥30.2B), up 3.8% YoY. Profits and margins also witnessed a downward revision.


Mani Inc (7730 JP): Dental Recalls Still a Pain Point, Guidance Revised Downwards

Paramount Bed Holdings Co Lt / Equity Bottom-Up

<ul>
<li>In FY25, <a href="https://www.smartkarma.com/entities/paramount-bed-holdings-co-lt" target="_blank" data-smartkarma-citation="entities:17808:1" rel="noopener">Paramount Bed Holdings Co Lt (7817 JP)</a> reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.</li>
<li>Due to higher SG&amp;A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.</li>
<li>Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.</li>
</ul>


In FY25, Paramount Bed Holdings Co Lt (7817 JP) reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.
Due to higher SG&amp;A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.
Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.


Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now

Japan

Paramount Bed Holdings Company Ltd. operates as a holding company. The Company, through its subsidiaries, designs and manufactures hospital, medical, electric, motorized, and orthopedic beds.

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Paramount Bed Holdings Co Lt (7817 JP)

(Mostly) Asia-Pac M&A: Kangji Medical, Jinke Smart Services, Soft99, Mandom, Paramount Bed

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

[Japan M&A] Paramount Bed (7817 JP) Founding Family Takeout - Too Cheap, Deserves Activist Response

The founding family behind ubiquitous elderly/nursing care bed maker Paramount Bed has launched an MBO to take the rest of the company private at 4...

Travis Lundy

Paramount Bed Holdings (7817 JP): Another MBO Susceptible to Activism

The setup shares several traits with the Mandom MBO, and has the potential for a bump, particularly if an activist emerges as a substantial...

Arun George

Mani Inc (7730 JP): Dental Recalls Still a Pain Point, Guidance Revised Downwards

Mani's dental segment reported sales drop of 10% in 9MFY25, with the segment reporting the worst operating margin decline from 19.6% to 10.4%....

Tina Banerjee

Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now

Paramount Bed reported 2% revenue growth in FY25 driven by nursing care, but saw decreased profits due to higher expenses. The company guides for...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

(Mostly) Asia-Pac M&A: Kangji Medical, Jinke Smart Services, Soft99, Mandom, Paramount Bed

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

[Japan M&A] Paramount Bed (7817 JP) Founding Family Takeout - Too Cheap, Deserves Activist Response

The founding family behind ubiquitous elderly/nursing care bed maker Paramount Bed has launched an MBO to take the rest of the company private at 4...

Travis Lundy

Paramount Bed Holdings (7817 JP): Another MBO Susceptible to Activism

The setup shares several traits with the Mandom MBO, and has the potential for a bump, particularly if an activist emerges as a substantial...

Arun George

Mani Inc (7730 JP): Dental Recalls Still a Pain Point, Guidance Revised Downwards

​Mani's dental segment reported sales drop of 10% in 9MFY25, with the segment reporting the worst operating margin decline from 19.6% to 10.4%....

Tina Banerjee

Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now

​Paramount Bed reported 2% revenue growth in FY25 driven by nursing care, but saw decreased profits due to higher expenses. The company guides for...

Tina Banerjee

Mani's dental segment reported sales drop of 10% in 9MFY25, with the segment reporting the worst operating margin decline from 19.6% to 10.4%....

Paramount Bed reported 2% revenue growth in FY25 driven by nursing care, but saw decreased profits due to higher expenses. The company guides for...