Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On Friday after the close, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> announced a ToSTNeT-3 buyback scheduled for Monday morning for ¥400bn, worth 8+% of shares outstanding. </li>
<li>That's big. But the seller is likely to be SMBC Nikko. And they will then spend much of the next year buying back ¥400bn of shares on-market. </li>
<li>Separately, 7&amp;i announced an alliance with Softbank Corp, PayPay, and Sumitomo Mitsui Card. They will buy ¥100bn each. Net, this means a 2% buyback IF successful. More if not.</li>
</ul>


On Friday after the close, Seven &amp; I Holdings (3382 JP) announced a ToSTNeT-3 buyback scheduled for Monday morning for ¥400bn, worth 8+% of shares outstanding. 
That's big. But the seller is likely to be SMBC Nikko. And they will then spend much of the next year buying back ¥400bn of shares on-market. 
Separately, 7&amp;i announced an alliance with Softbank Corp, PayPay, and Sumitomo Mitsui Card. They will buy ¥100bn each. Net, this means a 2% buyback IF successful. More if not.


[Japan Buyback, But Not] 7&I (3382) To Buy Back ¥400bn from Market, Sell ¥300bn to Crossholders

Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

<ul>
<li>5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue</li>
<li>MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader</li>
<li>Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.</li>
</ul>


5G-Capable devices now account for 25% of total devices in Japan. So far, 5G take-up appears to be quicker than 4G although that doesn't translate into higher revenue
MVNO subscriptions continue to grow despite former leader Rakuten moving users to its own network. IIJ remains the segment leader
Rakuten Mobile's subscriber woes have been well-flagged but another issue may be ahead as the migration of MVNO subs to the MNO platform has slowed in recent quarters.


Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

<ul>
<li>The Ministry of Industry Affairs and Communications (MIC) has issued a progress report on its mobile spectrum allocations through 2025</li>
<li>There is no change to previous allocation targets of c. 16 GHz but it is worth highlighting again how huge that is versus current industry holdings of 3 GHz</li>
<li>In general, more spectrum is a positive for Japanese mobile operators, especially as airwaves are allocated not auctioned</li>
</ul>


The Ministry of Industry Affairs and Communications (MIC) has issued a progress report on its mobile spectrum allocations through 2025
There is no change to previous allocation targets of c. 16 GHz but it is worth highlighting again how huge that is versus current industry holdings of 3 GHz
In general, more spectrum is a positive for Japanese mobile operators, especially as airwaves are allocated not auctioned


Japan Telecoms - A Reminder on the Regulator’s Spectrum Plans Through FY25

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.

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/montage-technology-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46333:1" rel="noopener">Montage Technology (6809 HK)</a> (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.</li>
<li>MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Montage Technology (6809 HK) (MT), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. Its cornerstone investors will soon be released from their lockup.
MT’s product portfolio, mainly comprises memory interface chips and interconnect chips, addresses interconnect bottlenecks while enhancing data rate/bandwidth, reliability, and power efficiency, as per the company.
In this note, we will talk about the lockup dynamics and possible placement.


Aequitas: Montage Technology A/H Lockup Expiry - US$1.1bn+ Release with the Stock up Nearly 150%

<ul>
<li>MIC data provides further support that regulatory pressure was successful in driving down industry prices with 40mn users on discount plans that are among the cheapest globally</li>
<li>That has led to ¥230-250bn in service revenue erosion for both FY21 and FY22e but evidence of a solid win for regulators reassures that further action isn't needed</li>
<li>Handset pricing is on the rise as 5G proliferates, which is good news for incumbents that can lock users in through instalment payment plans</li>
</ul>


MIC data provides further support that regulatory pressure was successful in driving down industry prices with 40mn users on discount plans that are among the cheapest globally
That has led to ¥230-250bn in service revenue erosion for both FY21 and FY22e but evidence of a solid win for regulators reassures that further action isn't needed
Handset pricing is on the rise as 5G proliferates, which is good news for incumbents that can lock users in through instalment payment plans


Japan Telecoms - Update from Regulators’ Competition Working Group

Japan

Softbank Corporation provides mobile phone telecommunication and networking services. The Company offers mobile communication opening, short messaging function opening, video function opening, and other services. Softbank also provides mobile phones.

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Softbank Corp (9434 JP)

[Japan Buyback, But Not] 7&I (3382) To Buy Back ¥400bn from Market, Sell ¥300bn to Crossholders

7&i has announced a ¥400bn buyback offset by a ¥300bn sale of shares to new crossholders. Not a great look. The buyback looks like 25+% of Max Real...

Travis Lundy

Japan Telecoms - MIC Reports Telecom Subscription Data Including a Key 5G Milestone

MIC data highlights the rapid proliferation of 5G as capable devices exceed 25% two years after launch. The latest also reiterates mobile strength...

Kirk Boodry

Japan Telecoms - A Reminder on the Regulator’s Spectrum Plans Through FY25

The MIC has published a draft report on its progress towards FY25 spectrum allocations. In general, more spectrum is good for the industry...

Kirk Boodry

Aequitas: Montage Technology A/H Lockup Expiry - US$1.1bn+ Release with the Stock up Nearly 150%

Montage Technology (6809 HK), a provider of memory interface chips and interconnect chips, raised around US$1bn in its H-share listing. Its...

Sumeet Singh

Japan Telecoms - Update from Regulators’ Competition Working Group

Further evidence that price reductions have met expectations as regulator working group prepares its final report on the competition. NTT remains...

Kirk Boodry

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