Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

<ul>
<li>Yesterday post-close, <a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> announced a ¥6bn+ selldown offering by financial crossholders. There may be others to come, but not clear how much.</li>
<li>The company has had a good couple of years, the stock has reached book value. Optimised balance sheet ROE now clears 10%.</li>
<li>Index impact is limited in all respects. Low vol, low multiple, decent dividend, high earnings progression on decent business growth are all positive factors. </li>
</ul>


Yesterday post-close, Sakata Inx Corp (4633 JP) announced a ¥6bn+ selldown offering by financial crossholders. There may be others to come, but not clear how much.
The company has had a good couple of years, the stock has reached book value. Optimised balance sheet ROE now clears 10%.
Index impact is limited in all respects. Low vol, low multiple, decent dividend, high earnings progression on decent business growth are all positive factors. 


[Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders

Asia Pac ECM and Index Rebal, DZT Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in margin trading positions of JPX stocks as of Dec 5th. The aggregated net margin trading position is USD19,761m.</li>
<li>We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.</li>
<li>We highlight net margin buy/sell changes in Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&amp;S, Mitsubishi UFJ Financial, Disco, Daihen, Nintendo, Carta, Toyoda Gosei, Lasertec, Advantest, Softbank.</li>
</ul>


We analyzed the changes in margin trading positions of JPX stocks as of Dec 5th. The aggregated net margin trading position is USD19,761m.
We tabulate league tables for top/bottom net long/short of margin trading by value, net margin buy as multiple of ADT.
We highlight net margin buy/sell changes in Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&amp;S, Mitsubishi UFJ Financial, Disco, Daihen, Nintendo, Carta, Toyoda Gosei, Lasertec, Advantest, Softbank.


JPX Margin Trading Weekly (Dec 5th): Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&S

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> and <a href="https://www.smartkarma.com/entities/toyo-ink-sc-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13233:1" rel="noopener">Toyo Ink Sc Holdings (4634 JP)</a> are finally getting around to unwinding the rest of their cross-holdings from their decision 5yrs ago.</li>
<li>This is highly accretive. +10% on EPS this year on a weighted average basis and +16.8% on a spot basis. </li>
<li>The reason is good governance and capital efficiency. A side effect is it shifts the shareholder structure more in favor of economic investors. </li>
</ul>



Sakata Inx Corp (4633 JP) and Toyo Ink Sc Holdings (4634 JP) are finally getting around to unwinding the rest of their cross-holdings from their decision 5yrs ago.
This is highly accretive. +10% on EPS this year on a weighted average basis and +16.8% on a spot basis. 
The reason is good governance and capital efficiency. A side effect is it shifts the shareholder structure more in favor of economic investors. 


Sakata Inx (4633) HUGE Buyback Makes Things Interesting

David Blennerhassett

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<p>This week in StubWorld ...</p>
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<p>A change of pace with two infrequently discussed stubs in unwind territory:<br><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener"></a></p>
<p><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/news-corp-class-b" target="_blank" data-smartkarma-citation="entities:5990:1" rel="noopener">News Corp (NWSA US)</a><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">  / </a><a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>, and<br><a href="https://www.smartkarma.com/entities/jafco-co-ltd" target="_blank" data-smartkarma-citation="entities:8848:1" rel="noopener">Jafco Co Ltd (8595 JP)</a> / <a href="https://www.smartkarma.com/entities/nomura-research-institute-ltd" target="_blank" data-smartkarma-citation="entities:18129:1" rel="noopener">Nomura Research Institute Ltd (4307 JP)</a>.</p>
<p><em>and ...</em></p>
<p>two lesser-known stubs in set-up territory:<br><br><a href="https://www.smartkarma.com/entities/iljin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11265:1" rel="noopener">Iljin Holdings (015860 KS)</a> / <a href="https://www.smartkarma.com/entities/iljin-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:4098:1" rel="noopener">Iljin Electric (103590 KS)</a>, and<br><a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a>  / <a href="https://www.smartkarma.com/entities/siix-corp" target="_blank" data-smartkarma-citation="entities:13244:1" rel="noopener">Siix Corp (7613 JP)</a>.</p>
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</div>
<div>
<p>Preceding my comments on these holding company relationships<a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener"></a> are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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<div>
<p>As always, more below the fold.</p>
</div>


This week in StubWorld ...



A change of pace with two infrequently discussed stubs in unwind territory: 
News Corp (NWSA US)  / REA Group Ltd (REA AU), and Jafco Co Ltd (8595 JP) / Nomura Research Institute Ltd (4307 JP).
and ...
two lesser-known stubs in set-up territory:  Iljin Holdings (015860 KS) / Iljin Electric (103590 KS), and Sakata Inx Corp (4633 JP)  / Siix Corp (7613 JP).



Preceding my comments on these holding company relationships are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


As always, more below the fold.


StubWorld: News Corp/REA Group, Jafco/Nomura Research, Iljin Holdings/Iljin Electric, Sakata/SIIX

<p>This week in StubWorld ...</p>
<p>For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level - currently trading above 3 STD from its 90-day average. These include:</p>
<p><a href="https://www.smartkarma.com/entities/h2o-retailing-corp" target="_blank" data-smartkarma-citation="entities:17562:1" rel="noopener">H2 O Retailing (8242 JP)</a> / <a href="https://www.smartkarma.com/entities/toho-co-ltd" target="_blank" data-smartkarma-citation="entities:7806:1" rel="noopener">Toho Co Ltd (9602 JP)</a> <br><a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> / <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a><br><a href="https://www.smartkarma.com/entities/sakata-inx-corp" target="_blank" data-smartkarma-citation="entities:19446:1" rel="noopener">Sakata Inx Corp (4633 JP)</a> / <a href="https://www.smartkarma.com/entities/siix-corp" target="_blank" data-smartkarma-citation="entities:13244:1" rel="noopener">Siix Corp (7613 JP)</a>  <br><br>Preceding my comments on these Holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
<div class="content-remarks">
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
</div>

This week in StubWorld ...
For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level - currently trading above 3 STD from its 90-day average. These include:
H2 O Retailing (8242 JP) / Toho Co Ltd (9602 JP)  Hyundai Mobis (012330 KS) / Hyundai Motor Co (005380 KS) Sakata Inx Corp (4633 JP) / Siix Corp (7613 JP)    Preceding my comments on these Holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


Japan

SAKATA INX CORPORATION mainly produces printing inks, equipment, and other related materials for the newspaper and cardboard industries.

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Sakata Inx Corp (4633 JP)

[Japan Offering] Sakata Inx (4633 JP) Selldown by Financial Crossholders

Sakata Inx has announced a secondary offering by financial crossholders. This looks like an opportunity to buy a dip but notably, the company is...

Travis Lundy

JPX Margin Trading Weekly (Dec 5th): Carta, Toyoda Gosei, Lasertec, Advantest, SoftBank, Mitsui E&S

We analyzed JPX margin trading positions report for the past week and highlighted Carta (3688 JP), Toyoda Gosei (7282 JP), Lasertec (6920 JP),...

Ke Yan, CFA, FRM

Sakata Inx (4633) HUGE Buyback Makes Things Interesting

Sakata Inx and Toyo Ink are finally unwinding their cross-holdings after starting 5+yrs ago. The reason is Corporate Governance Code and corporate...

Travis Lundy

StubWorld: News Corp/REA Group, Jafco/Nomura Research, Iljin Holdings/Iljin Electric, Sakata/SIIX

Looking at consensus numbers, the majority of forward growth is coming from REA, not the stub ops. From a NAV viewpoint, News Corp is trading rich....

David Blennerhassett

StubWorld: Holdcos At 3 STD+

This week in StubWorld ... For a slight change of pace, I briefly touch on three Holdco structures - two at setup levels, one at an unwind level -...

David Blennerhassett

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