Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>For a change of pace, this insight briefly canvasses a clutch of Holdco's trading at extreme levels. </li>
<li>Preceding the chart-heavy insight are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


For a change of pace, this insight briefly canvasses a clutch of Holdco's trading at extreme levels. 
Preceding the chart-heavy insight are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro

<ul>
<li>On an implied stub and simple ratio, <strong><a href="https://www.smartkarma.com/entities/takara-holdings-inc" target="_blank" data-smartkarma-citation="entities:11074:1" rel="noopener">Takara Holdings (2531 JP)</a></strong> is trading rich to 60.9%-held <strong><a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a></strong>.</li>
<li>Preceding my comments on Takara are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


On an implied stub and simple ratio, Takara Holdings (2531 JP) is trading rich to 60.9%-held Takara Bio Inc (4974 JP).
Preceding my comments on Takara are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Takara Holdings Trading "Rich"

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a> has raised FY23 revenue, operating profit, and net profit guidance by 1%, 5%, and 5%, respectively, due to better-than-anticipated sales of the COVID-19 testing-related reagents.</li>
<li>Takara Bio is heavily exposed to the COVID-19-related reagent revenue. However, the company is witnessing decline in general research reagent revenue in Japan.</li>
<li>With the shrinking demand for the COVID-19 testing and slower-than-expected recovery in general research reagent in Japan, revenue is expected to decline 25% YoY in FY24.</li>
</ul>



Takara Bio Inc (4974 JP) has raised FY23 revenue, operating profit, and net profit guidance by 1%, 5%, and 5%, respectively, due to better-than-anticipated sales of the COVID-19 testing-related reagents.
Takara Bio is heavily exposed to the COVID-19-related reagent revenue. However, the company is witnessing decline in general research reagent revenue in Japan.
With the shrinking demand for the COVID-19 testing and slower-than-expected recovery in general research reagent in Japan, revenue is expected to decline 25% YoY in FY24.


Takara Bio (4974 JP): Shrinking COVID-19 Testing Demand to Impact Near-Term Revenue Growth

Thematic (Sector/Industry)

<ul>
<li>As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.</li>
<li>Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.</li>
<li>For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.</li>
</ul>


As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.
Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.
For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.


2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

<ul>
<li>Over the last six months, <a href="https://www.smartkarma.com/entities/sosei-group-corp" target="_blank" data-smartkarma-citation="entities:770:1" rel="noopener">Sosei Group (4565 JP)</a> gained 37%, while <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a> plunged 21%. During the same time, benchmark indices Nikkei 225 and Topix gained 1.8%.</li>
<li>Sosei is expected to continue its outperformance driven by clinical progress of the existing collaboration programs. Sosei’s strong track record of drug discovery enhances conviction on its future growth potential.</li>
<li>Takara has been on an accelerated growth path since FY21, thanks to COVID-19 testing revenue. The company will be negatively impacted by the declining demand for the COVID-19 tests.</li>
</ul>


Over the last six months, Sosei Group (4565 JP) gained 37%, while Takara Bio Inc (4974 JP) plunged 21%. During the same time, benchmark indices Nikkei 225 and Topix gained 1.8%.
Sosei is expected to continue its outperformance driven by clinical progress of the existing collaboration programs. Sosei’s strong track record of drug discovery enhances conviction on its future growth potential.
Takara has been on an accelerated growth path since FY21, thanks to COVID-19 testing revenue. The company will be negatively impacted by the declining demand for the COVID-19 tests.


Japan Healthcare: Pair Trade Ideas- Long Sosei Group (4565 JP), Short Takara Bio (4974 JP)

Japan

TAKARA BIO INC. is a biopharmaceutical company.  The Company researches and develops reagents for genome engineering and analysis, technology used for gene therapy, and natural health food products using mushrooms and seaweed body and extracts.

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Takara Bio Inc (4974 JP)

StubWorld: Japex/Inpex, Amorepacific, Wynn, Shimao, Takara, Silicon Integrated/United Micro

For a change of pace, this insight briefly canvasses a clutch of Holdco's trading at extreme levels. Inpex is the key Holdco discussed.

David Blennerhassett

StubWorld: Takara Holdings Trading "Rich"

If you had set up this stub, I'd be unwinding here. I'd be looking to reverse the stub - short Holdings, Long Bio - however, Bio remains in a...

David Blennerhassett

Takara Bio (4974 JP): Shrinking COVID-19 Testing Demand to Impact Near-Term Revenue Growth

Takara Bio is expected to report decelerating revenue due to reducing demand for COVID testing reagents and slower uptake in general research...

Tina Banerjee

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

Japan Healthcare: Pair Trade Ideas- Long Sosei Group (4565 JP), Short Takara Bio (4974 JP)

Over the last six months, Sosei shares gained 37%, while Takara Bio shares plunged 21%. No immediate reversal is expected. The performance gap...

Tina Banerjee

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