Smartkarma Daily Briefs

Tryt Inc (9164 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$339 million. The shares will start trading on 24 July.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case, TRYT IPO: Valuation Insights and TRYT IPO: Revised IPO Price Range Remains Unattractive.
The market sentiment on the sector has broadly remained unchanged since the release of the prospectus. Our analysis suggests that Tryt is, at best, fully priced at the IPO price.

ECM Weekly (23rd July 2023) – Tryt, Genda, Rakuten, Mobovi, Samhi, Indigo, Federal Bank, Invincible

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, the coming week will see Tryt Inc (9164 JP) and Genda Inc (9166 JP) listing, along with Fadu (440110 KS) bookbuild.
For placements, Japan and India placements continue to flow, while there are no signs of any major Hong Kong activity.

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Jul 23

Daily Brief Event-Driven: SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle
Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM
Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle

By Travis Lundy

The SBI Holdings Tender Offer for SBI Shinsei Bank (8303 JP) was completed about four weeks ago, and in something of a surprise, only 3.7% of 26.98% minority holdings tendered.
The stock traded above terms every day during the Tender Offer Period. People accumulated in order to pursue their appraisal rights later. That is big.
This week, SBI Shinsei announced the schedule of dates relating to the squeezeout EGM. The record date was early. The reverse stock split announced is as expected, possibly game-able.

Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM

By David Blennerhassett

Keisei Electric (9009 JP)‘s valuation has deviated from Oriental Land (4661 JP)‘s since the proposed expansion of Tokyo Disney Sea, Fantasy Springs. That bifurcation should now reverse.
Don’t expect a serious fight in Nidec (6594 JP)‘s hostile for Takisawa Machine Tool (6121 JP). Fanuc could counter. It is possible others could step up but we wouldn’t know.
On the back of the news to spin off and list some logistics ops, Shenzhen International (152 HK) is probably a buy on weakness vs Stub Ops Peers.

Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs

JFSL spun off from Reliance Industries (RIL IN) last week and Ventia (VNT AU) replaced Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX).
The IDX should announce the changes to the IDX30, LQ45 and IDX80 indices early in the coming week.
There were inflows to Tracker Fund of Hong Kong Ltd (2800 HK) and Hang Seng H Share Index ETF (2828 HK) while Taiwan focused ETFs had outflows.

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus

By Simon Harris

Weekly summary of vol changes and moves across Global Markets
Analysing ATM volatility and skew changes over the last 5 days
We suggest a few trades to take advantage of the implied vol surfaces

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Jul 23

Daily Brief Consumer: Rakuten Group and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

ECM Weekly (23rd July 2023) – Tryt, Genda, Rakuten, Mobovi, Samhi, Indigo, Federal Bank, Invincible

ECM Weekly (23rd July 2023) – Tryt, Genda, Rakuten, Mobovi, Samhi, Indigo, Federal Bank, Invincible

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, the coming week will see Tryt Inc (9164 JP) and Genda Inc (9166 JP) listing, along with Fadu (440110 KS) bookbuild.
For placements, Japan and India placements continue to flow, while there are no signs of any major Hong Kong activity.

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Jul 23

Daily Brief Industrials: Tryt Inc, ROHM Co Ltd, Keisei Electric Railway Co, Polycab India and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TRYT IPO: Trading Debut
Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans
Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM
2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

TRYT IPO: Trading Debut

Tryt Inc (9164 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$339 million. The shares will start trading on 24 July.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case, TRYT IPO: Valuation Insights and TRYT IPO: Revised IPO Price Range Remains Unattractive.
The market sentiment on the sector has broadly remained unchanged since the release of the prospectus. Our analysis suggests that Tryt is, at best, fully priced at the IPO price.

Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans

By Scott Foster

As expected, Rohm has decided to invest ¥300 billion in the JIP-led buyout of Toshiba: ¥100 billion in voting equity shares and ¥200 billion in non-voting preferred shares.
This would make Toshiba an equity-method affiliate of Rohm, facilitating synergetic cooperation in power semiconductors. The investment is large, but Rohm would still have a sound balance sheet.
Rohm also plans to buy Solar Frontier’s Kunitomi factory to meet SiC power device capacity requirements through 2030. Investors can now focus on profit growth, which should resume next year.

Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM

By David Blennerhassett

Keisei Electric (9009 JP)‘s valuation has deviated from Oriental Land (4661 JP)‘s since the proposed expansion of Tokyo Disney Sea, Fantasy Springs. That bifurcation should now reverse.
Don’t expect a serious fight in Nidec (6594 JP)‘s hostile for Takisawa Machine Tool (6121 JP). Fanuc could counter. It is possible others could step up but we wouldn’t know.
On the back of the news to spin off and list some logistics ops, Shenzhen International (152 HK) is probably a buy on weakness vs Stub Ops Peers.

2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

By Ankit Agrawal, CFA

We published on Polycab as our 2023 high conviction idea on Dec 25 2022. Since then, the stock has been up 75%+, exceeding our 65%+ upside FY26 target.
The steep rise was probably driven by strong earnings growth on the back of upbeat demand environment led by healthy domestic capex, rising exports and robust housing demand.
At the current valuation, Polycab is richly valued and we assign a “SELL” rating. Polycab’s current market cap at INR 68700cr+ is well above our FY26 projection of INR 63500cr+.

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Jul 23

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC) – ADR, Kuaishou Technology, Wistron Corp, Hong Kong Hang Seng Index, Monolithic Power Systems, Inc, America Movil SAB de CV and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

TSMC: 2023 Guidance Reduction Excuse To Take Profit? Guidance Also Affirmed Long-Term Bullishness
[Kuaishou (1024 HK, SELL, TP HK$50) Preview]: Monetization Is On-Track Amid Competitive Pressure
Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus
Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio
America Movil ADR: Initiation of Coverage – Business Strategy & Key Drivers

TSMC: 2023 Guidance Reduction Excuse To Take Profit? Guidance Also Affirmed Long-Term Bullishness

By Vincent Fernando, CFA

TSMC reduced 2023 revenue guidance when it reported results during the week. A weaker than expected economy in China and general economic weakness was blamed.
However, the company’s results beat Street expectations and management maintained its long-term gross margin guidance of 53%+, which implies the company maintaining a structurally higher margin.
Shares fell after results on a profit taking excuse — We however note that latest guidance also reaffirmed multi-year strength ahead. Structural Long.

[Kuaishou (1024 HK, SELL, TP HK$50) Preview]: Monetization Is On-Track Amid Competitive Pressure

By Shawn Yang

We expect Kuaishou to report C2Q23 revenue and non-IFRS net income that are in-line and 27% vs consensus, respectively.
We slightly cut our revenue forecast for live streaming but increased our revenue forecast for online ads. Kuaishou’s margin beat is mainly due to efficient cost control, especially in overseas.
Kuaishou still has several minor positive catalysts, but WeChat Video Accounts is the major short thesis in the long run. We raise EPS forecasts, but maintain SELL.

Index Rebalance & ETF Flow Recap: ASX, SK Telecom, Yuanta ETFs

JFSL spun off from Reliance Industries (RIL IN) last week and Ventia (VNT AU) replaced Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX).
The IDX should announce the changes to the IDX30, LQ45 and IDX80 indices early in the coming week.
There were inflows to Tracker Fund of Hong Kong Ltd (2800 HK) and Hang Seng H Share Index ETF (2828 HK) while Taiwan focused ETFs had outflows.

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Where Is the Stimulus

By Simon Harris

Weekly summary of vol changes and moves across Global Markets
Analysing ATM volatility and skew changes over the last 5 days
We suggest a few trades to take advantage of the implied vol surfaces

Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio

This is our first report on Monolithic Power Systems, one of the largest semiconductor-based equipment companies.
Revenue from communications also increased due to a slight increase in revenue from the 5G infrastructure.
We initiate coverage on the stock of Monolithic Power Systems, Inc. with a ‘Hold’ rating.

America Movil ADR: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Latin American telecom major, America Movil.
Growth in prepaid and postpaid subscriptions remained steady, contributing to an 8.3% expansion in the postpaid base and a 5.3% increase in the prepaid base.
Despite a 4.6% year-on-year decrease in Q2 revenue due to the Mexican peso’s appreciation against other currencies, the company still posted MXN 203 billion in revenue, with service revenues declining by 4.2%.

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Jul 23

Daily Brief Industrials: Tryt Inc, ROHM Co Ltd, Keisei Electric Railway Co, Polycab India and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TRYT IPO: Trading Debut
Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans
Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM
2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

TRYT IPO: Trading Debut

Tryt Inc (9164 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$339 million. The shares will start trading on 24 July.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case, TRYT IPO: Valuation Insights and TRYT IPO: Revised IPO Price Range Remains Unattractive.
The market sentiment on the sector has broadly remained unchanged since the release of the prospectus. Our analysis suggests that Tryt is, at best, fully priced at the IPO price.

Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans

By Scott Foster

As expected, Rohm has decided to invest ¥300 billion in the JIP-led buyout of Toshiba: ¥100 billion in voting equity shares and ¥200 billion in non-voting preferred shares.
This would make Toshiba an equity-method affiliate of Rohm, facilitating synergetic cooperation in power semiconductors. The investment is large, but Rohm would still have a sound balance sheet.
Rohm also plans to buy Solar Frontier’s Kunitomi factory to meet SiC power device capacity requirements through 2030. Investors can now focus on profit growth, which should resume next year.

Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM

By David Blennerhassett

Keisei Electric (9009 JP)‘s valuation has deviated from Oriental Land (4661 JP)‘s since the proposed expansion of Tokyo Disney Sea, Fantasy Springs. That bifurcation should now reverse.
Don’t expect a serious fight in Nidec (6594 JP)‘s hostile for Takisawa Machine Tool (6121 JP). Fanuc could counter. It is possible others could step up but we wouldn’t know.
On the back of the news to spin off and list some logistics ops, Shenzhen International (152 HK) is probably a buy on weakness vs Stub Ops Peers.

2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

By Ankit Agrawal, CFA

We published on Polycab as our 2023 high conviction idea on Dec 25 2022. Since then, the stock has been up 75%+, exceeding our 65%+ upside FY26 target.
The steep rise was probably driven by strong earnings growth on the back of upbeat demand environment led by healthy domestic capex, rising exports and robust housing demand.
At the current valuation, Polycab is richly valued and we assign a “SELL” rating. Polycab’s current market cap at INR 68700cr+ is well above our FY26 projection of INR 63500cr+.

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Jul 23

Daily Brief Financials: SBI Shinsei Bank, Itau Unibanco Holding Sa, HDFC Bank, Discover Financial Services, American International Group, PNC Financial Services Group, Prudential Financial and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle
Itau Unibanco Holding S.A.: Initiation of Coverage – Business Strategy & Key Drivers
HDFC Bank: Seasonality Impacts Q1 Growth, But All Is Well
Discover Financial Services: Initiation of Coverage – Business Strategy & Key Drivers
American International Group (AIG): Initiation of Coverage – Recent Catastrophe Impact & Other Developments
PNC Financial Services Group: Initiation of Coverage – Impact Of Banking Crisis & Other Developments
Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle

By Travis Lundy

The SBI Holdings Tender Offer for SBI Shinsei Bank (8303 JP) was completed about four weeks ago, and in something of a surprise, only 3.7% of 26.98% minority holdings tendered.
The stock traded above terms every day during the Tender Offer Period. People accumulated in order to pursue their appraisal rights later. That is big.
This week, SBI Shinsei announced the schedule of dates relating to the squeezeout EGM. The record date was early. The reverse stock split announced is as expected, possibly game-able.

Itau Unibanco Holding S.A.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on one of the largest private sector banks in Brazil, Itau Unibanco.
The loan portfolio showcased growth despite signs of a slowdown, with the SMEs loan portfolio registering an increase of 9.2% for Q1 2023 compared to Q1 2022.
We initiate coverage on the stock of Itau Unibanco Holding S.A. with a ‘Hold’ rating.

HDFC Bank: Seasonality Impacts Q1 Growth, But All Is Well

By Ankit Agrawal, CFA

HDFC Bank (HDFCB IN) reported weak QoQ growth in deposits and advances. This is however temporary due to seasonality. The growth trajectory for rest of the year remains intact.
HDFCB continues to invest aggressively into expanding its geographical presence to drive growth. Benign credit cost enables investments without impacting the ROA.
HDFC Ltd (“HDFC”) has been also merged into HDFCB effective Jul 1. The merged entity is carrying sufficient liquidity at 120%+ LCR to meet the additional CRR and SLR needs.

Discover Financial Services: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Discover Financial Services, a prominent consumer finance company.
Net interest income grew significantly, supported by an expanding net interest margin driven by higher prime rates.
Additionally, the company introduced Discover Financial Health Improvement Fund to improve the financial well-being of low- and middle-income individuals, communities, and small enterprises.

American International Group (AIG): Initiation of Coverage – Recent Catastrophe Impact & Other Developments

This is our first report on insurance behemoth, AIG.
In Q1 2023, AIG reported a net income of $3.9 billion, marking a significant turnaround from the net loss of $7.9 billion reported in Q1 2022.
Concurrently, AIG continues to monitor market conditions and regulatory approvals as it considers reducing its ownership interest in Corebridge via a secondary offering, amongst other options.

PNC Financial Services Group: Initiation of Coverage – Impact Of Banking Crisis & Other Developments

This is our first report on PNC Financial Services Group, a major bank and financial service company.
Despite a rise in the accumulated other comprehensive loss by $400 million during Q2, the tangible book value rose to $77.80.
We initiate coverage on the stock of PNC Financial Services Group with a ‘Hold’ rating.

Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers

This is our first report on Prudential Financial, Inc., a major global player in financial services and insurance.
Prudential kept transforming throughout the quarter to become less reliant on the market and better able to produce steady, long-term growth.
The company also had the financial strength to navigate the changing macroeconomic climate because of its rock-solid balance sheet.

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Jul 23

Daily Brief Health Care: Intco Medical Technology Co., Ltd-A, Intuitive Surgical and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China Healthcare Weekly (Jul.21) – New Growth Points by NDRC, License-In Model Isn’t Outdated, Intco
Intuitive Surgical (ISRG US): Robust Procedure Volume Drove 2Q23 Result; 2023 Outlook Raised

China Healthcare Weekly (Jul.21) – New Growth Points by NDRC, License-In Model Isn’t Outdated, Intco

By Xinyao (Criss) Wang

NDRC issued “Guiding Catalogue for Industrial Structure Adjustment“. The newly proposed adjustments deserve investors’ attention, because they are the areas where investors could receive excess returns in China healthcare.
Obtaining assets from external sources remains paramount for MNCs. License-in mode isn’t outdated. As long as companies can make money, the ways to acquire assets can be diversified.
Intco’s performance/stock price has bottomed out, and would gradually resume growth/rebound afterwards. Its market value would return to RMB20-30 billion. Intco would achieve a distress reversal, with attractive investment value.

Intuitive Surgical (ISRG US): Robust Procedure Volume Drove 2Q23 Result; 2023 Outlook Raised

By Tina Banerjee

In 2Q23, Intuitive Surgical (ISRG US) recorded 15% YoY revenue growth to $1.76B, driven by growth in da Vinci procedure volume and an increase in the installed base of systems.
2Q23 procedure growth was 22%, compared to 14% for 2Q22 and 26% last quarter. Areas of strength included general surgery and gynecology for benign conditions, particularly in the U.S.
The company now expects 2023 procedure volume growth of 20–23%, up from previous estimates of 18–21% growth. Significant material supply chain disruptions or hospital capacity constraints are not expected.

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Jul 23

Most Read: Surya Esa Perkasa, Liontown Resources, Cameco Corp, Eoptolink Technology Inc Ltd, Neuren Pharmaceuticals, Data#3 Ltd, SBI Shinsei Bank, Nippon Paint Holdings, Tryt Inc, ROHM Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: 4 Days to Implementation
S&P/ASX Index Rebalance Preview: Potential Changes in September
Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes
ChiNext/ChiNext50 Index Rebalance Preview: Potential Changes & Basket Performance
Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY
S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September
SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle
Nippon Paint (Part I): A Deep Dive into NP’s Japan Business
TRYT IPO: Trading Debut
Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans

IDX30/LQ45/IDX80 Index Rebalance: 4 Days to Implementation

There are 3 changes for the IDX30 Index, 6 changes for the LQ45 Index, and 7 changes for the IDX80 Index at the rebalance to be implemented on 31 January.
Largest passive inflows are expected to be on Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) and Surya Esa Perkasa (ESSA IJ).
With only 4 days to implementation, there will be relatively big moves on stocks that have large flow/impact from passive fund trading.

S&P/ASX Index Rebalance Preview: Potential Changes in September

We forecast 22 changes across the ASX50 Index, ASX100 Index, S&P/ASX 200 (AS51 INDEX) and ASX300 Index at the September rebalance.
Some of the changes are high probability while others are close to cutoffs. The impact of passive trading will be pretty large on a lot of stocks.
Short interest on the potential deletes indicates some pre-positioning but there should still be a fair bit more to do.

Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes

Based on prices and turnover from 10 July, there could be one deletion from the index in July. Plus there will be capping and float changes.
There are four stocks that meet the inclusion criteria but all are non-pure play companies and the index is already at the limit of 15 non-pure play companies.
There will be a large impact on a lot of stocks but the flows are not very large due to the limited assets tracking the index.

ChiNext/ChiNext50 Index Rebalance Preview: Potential Changes & Basket Performance

One third of the way through the review period, we forecast 10 changes for the ChiNext Index (SZ399006 INDEX EQUITY) and 5 changes for the ChiNext 50 Index in December.
Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.
The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the 5 months. We’d wait for a pullback to re-enter positions.

Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY

Busy week in India with the adhoc changes to the NIFTY, NSE Nifty Next 50, S&P BSE SENSEX and Nifty Bank due to the HDFC Limited and HDFC Bank merger.
The IDX could announce the changes to the IDX30, LQ45 and IDX80 indices in the coming week, though there is no firm schedule for announcements.
Yet another week of inflows to the Tracker Fund of Hong Kong Ltd (2800 HK) ETF and outflows from the Hang Seng H Share Index ETF (2828 HK).

S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September

By Shifara Samsudeen, ACMA, CGMA

Ventia (VNT AU) will replace Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 21 July.
The ad hoc change will lead to changes in the list of potential adds and deletes at the regular scheduled rebalance in September.
Weebit Nano Ltd (WBT AU) is now a potential add in September and could see some pre-positioning in the near future.

SBI Shinsei Bank (8303) Calls Its EGM and Appraisal Rights Seekers Prepare for Battle

By Travis Lundy

The SBI Holdings Tender Offer for SBI Shinsei Bank (8303 JP) was completed about four weeks ago, and in something of a surprise, only 3.7% of 26.98% minority holdings tendered.
The stock traded above terms every day during the Tender Offer Period. People accumulated in order to pursue their appraisal rights later. That is big.
This week, SBI Shinsei announced the schedule of dates relating to the squeezeout EGM. The record date was early. The reverse stock split announced is as expected, possibly game-able.

Nippon Paint (Part I): A Deep Dive into NP’s Japan Business

This is the First of a series of reports on Nippon Paint Holdings (4612 JP) and in this insight, we deep dive into the company’s Japanese business.
The automotive coating biz in Japan is heavily reliant on the domestic automotive market while decorative paints is facing challenges due to slowdown in population in the country.
The outlook for Japan biz remains stagnant with growth rates slowing down and margins on a downward trend.

TRYT IPO: Trading Debut