Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Capital Markets

Takasago Thermal Engineering / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/takasago-thermal-engineering" target="_blank" data-smartkarma-citation="entities:2165:1" rel="noopener">Takasago Thermal Engineering (1969 JP)</a> reported Q3 <a href="https://ssl4.eir-parts.net/doc/1969/ir_material2/245033/00.pdf" target="_blank" rel="noopener">earnings</a> today. Revs up tiny yoy over 9m. OP +13%, Net +18.2%. Progression a bit behind guidance for full-year (but guidance unchanged)</li>
<li>Orders received and carried forward a record high. Margins up. DX/etc investments up. Crossholdings down but still HUGE outbound/in-bound. Goal is to shrink from 20% of net assets to 15%.</li>
<li>Today the company announced some crossholders would sell ~5% of shares out, and the company would launch a buyback for half that. Meh...</li>
</ul>



Takasago Thermal Engineering (1969 JP) reported Q3 earnings today. Revs up tiny yoy over 9m. OP +13%, Net +18.2%. Progression a bit behind guidance for full-year (but guidance unchanged)
Orders received and carried forward a record high. Margins up. DX/etc investments up. Crossholdings down but still HUGE outbound/in-bound. Goal is to shrink from 20% of net assets to 15%.
Today the company announced some crossholders would sell ~5% of shares out, and the company would launch a buyback for half that. Meh...


Takasago Thermal Engineering Offering (1969) - Small Start to Larger Unwind

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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.

<ul>
<li>A group of shareholders are looking to raise US$118m from selling their respective stakes in <a href="https://www.smartkarma.com/entities/takasago-thermal-engineering" target="_blank" data-smartkarma-citation="entities:2165:1" rel="noopener">Takasago Thermal Engineering (1969 JP)</a> .</li>
<li>While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>


A group of shareholders are looking to raise US$118m from selling their respective stakes in Takasago Thermal Engineering (1969 JP) .
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.


Takasago Thermal Engineering Placement - Share Buyback Should Aid Deal Performance

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Takasago Thermal Engineering / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/takasago-thermal-engineering" target="_blank" data-smartkarma-citation="entities:2165:1" rel="noopener">Takasago Thermal Engineering (1969 JP)</a> is one of the top 10 players in Japan for energy efficiency players for industrial clients, especially semiconductors. </li>
<li>Japan Metropolitan Govt bought stake in Rapidus, signifying a potential long-term business potential for Takasago Thermal Engineering. </li>
<li>Valuation is no longer dirt cheap but still at a favorable level given its potential enlarged revenue growth. </li>
</ul>



Takasago Thermal Engineering (1969 JP) is one of the top 10 players in Japan for energy efficiency players for industrial clients, especially semiconductors. 
Japan Metropolitan Govt bought stake in Rapidus, signifying a potential long-term business potential for Takasago Thermal Engineering. 
Valuation is no longer dirt cheap but still at a favorable level given its potential enlarged revenue growth. 


Takasago Thermal Engineering (1969): Start of Multi-Year Bull

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

NTT (Nippon Telegraph & Telephone) / Event-Driven

NTT (Nippon Telegraph & Telephone) (9432 JP)

<ul>
<li>On 7 April, the JPX announced the changes to the Free Float Weights (FFW) for the TOPIX Index. There are some big changes due to the updated FFW methodology.</li>
<li>From April to June, we see a one-way turnover of 2.87% and a one-way trade of ¥2,285bn. Some stocks have opposite way flows in different months.</li>
<li>Stocks with inflows outperformed stocks with outflows from Oct-Dec 2021 before giving up all the gains. These stocks have started to outperform and could continue outperforming over the next quarter.</li>
</ul>


On 7 April, the JPX announced the changes to the Free Float Weights (FFW) for the TOPIX Index. There are some big changes due to the updated FFW methodology.
From April to June, we see a one-way turnover of 2.87% and a one-way trade of ¥2,285bn. Some stocks have opposite way flows in different months.
Stocks with inflows outperformed stocks with outflows from Oct-Dec 2021 before giving up all the gains. These stocks have started to outperform and could continue outperforming over the next quarter.


TOPIX FFW Transition - Big Flows from April to June

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

<p>Takasago Thermal is a construction/engineering company established in 1923 that focusses on air conditioning systems for commercial and industrial facilities. It is involved from the planning stage right through to construction, maintenance and renovation. Last year (3/17) it had sales of Y260.2bn (+4%) and operating profits of Y12.4bn (+33%).  General purpose air conditioning units accounted for Y157.5bn or 63% of sales. This includes everything from traditional building air conditioning…</p>

Takasago Thermal is a construction/engineering company established in 1923 that focusses on air conditioning systems for commercial and industrial facilities. It is involved from the planning stage right through to construction, maintenance and renovation. Last year (3/17) it had sales of Y260.2bn (+4%) and operating profits of Y12.4bn (+33%).  General purpose air conditioning units accounted for Y157.5bn or 63% of sales. This includes everything from traditional building air conditioning…

Takasago Thermal (1969) Will Easily Beat Cautious Estimates and There Will Be More Growth Next Year.

Japan

Takasago Thermal Engineering Co., Ltd. constructs air-conditioning facilities in commercial, institutional, and industrial buildings.  The Company also develops and constructs clean room systems for semiconductor manufacturers. Additionally, Takasago Thermal manufactures and sells air-conditioning related equipment.

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Takasago Thermal Engineering (1969 JP)

Takasago Thermal Engineering Offering (1969) - Small Start to Larger Unwind

Takasago Thermal today announced Q3, a small secondary, and a buyback to cover about 40% of it from April to June. This story stock has a lot of...

Travis Lundy

Takasago Thermal Engineering (1969): Start of Multi-Year Bull

Takasago Thermal Engineering, one of the beneficiaries in HVAC sector for multi year bull in semicond capex cycle, has revised its guidance upwards...

Henry Soediarko

TOPIX FFW Transition - Big Flows from April to June

Changes to the Topix FFW methodology will result in a turnover of 2.87% & trade of ¥2,285bn from April to June. There is a lot to trade on some...

Brian Freitas

Takasago Thermal (1969) Will Easily Beat Cautious Estimates and There Will Be More Growth Next Year.

Takasago Thermal is a construction/engineering company established in 1923 that focusses on air conditioning systems for commercial and industrial...

Pearl Hill Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Takasago Thermal Engineering Offering (1969) - Small Start to Larger Unwind

Takasago Thermal today announced Q3, a small secondary, and a buyback to cover about 40% of it from April to June. This story stock has a lot of...

Travis Lundy

Takasago Thermal Engineering Placement - Share Buyback Should Aid Deal Performance

A group of shareholders are looking to raise US$118m selling their respective stakes in Takasago Thermal Engineering. In this note, we discuss...

Nicholas Tan

Takasago Thermal Engineering (1969): Start of Multi-Year Bull

Takasago Thermal Engineering, one of the beneficiaries in HVAC sector for multi year bull in semicond capex cycle, has revised its guidance upwards...

Henry Soediarko

TOPIX FFW Transition - Big Flows from April to June

Changes to the Topix FFW methodology will result in a turnover of 2.87% & trade of ¥2,285bn from April to June. There is a lot to trade on some...

Brian Freitas

Takasago Thermal (1969) Will Easily Beat Cautious Estimates and There Will Be More Growth Next Year.

Takasago Thermal is a construction/engineering company established in 1923 that focusses on air conditioning systems for commercial and industrial...

Pearl Hill Advisors