Category

Daily Briefs

Jan 21
0

Daily Brief Japan: GUPPY’s Inc, Activia Properties, IBJ, Benefit One Inc, Allegro MicroSystems and more

By | Daily Briefs, Japan

In today’s briefing:

  • GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250
  • Activia Properties (3279) – Short-Term Higher-Impact Buyback on Better Fundamental Results
  • IBJ (6071) – Aiming to Solidify Its Dominant Market Position
  • Weekly Deals Digest (21 Jan) – Benefit One, GUPPY’s, T&K Toka, Weiqiao, Genetron, Amer Sports
  • Allegro MicroSystems: Initiation of Coverage – How Its Strategic Focus is Electrifying the Future of Transportation – Major Drivers
  • Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250

By Arun George

  • GUPPY’s Inc (5127 JP) has recommended Medley (4480 JP)’s tender offer of JPY3,250 per share, an 81.0% premium to the undisturbed price (19 January). 
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 10.19% ownership ratio. 
  • Despite the premium, the offer is light vs the IFA DCF valuation. Based on the irrevocables, the minimum acceptance condition requires a 23.4% minority acceptance rate, which is achievable. 

Activia Properties (3279) – Short-Term Higher-Impact Buyback on Better Fundamental Results

By Travis Lundy

  • Activia Properties (3279 JP) announced results Wednesday. Higher DPU on better rental income looks to continue next period, but an asset disposal will produce some drag ahead.
  • Activia Properties also announced a buyback of 10% of ADV for the next four months.
  • The REIT is slightly cheap to peers. Yield spread to JGBs is high which is good. It needs to be 10% higher to restart accretive equity offerings.

IBJ (6071) – Aiming to Solidify Its Dominant Market Position

By Astris Advisory Japan

  • Market leader positioning to consolidate – IBJ is a marriage consultancy service with strong brand equity, offering high-quality services delivered by human professionals.
  • With an industry-leading membership base, affiliated marriage consulting firms within the IBJ network harness the economies of scale through the platform, ensuring a cost-effective approach to service delivery.
  • It has a strong track record of sustainable free cash flow generation. 

Weekly Deals Digest (21 Jan) – Benefit One, GUPPY’s, T&K Toka, Weiqiao, Genetron, Amer Sports

By Arun George

Allegro MicroSystems: Initiation of Coverage – How Its Strategic Focus is Electrifying the Future of Transportation – Major Drivers

By Baptista Research

  • This is our first report on sensor technology player, Allegro MicroSystems.
  • Sales in these strategic growth areas made up 56% of total sales, indicating a successful strategy execution focused on these specific sectors.
  • The company’s automotive revenues grew 31% year-over-year, with the electrification of vehicles and Advanced Driver Assistance Systems adoption being the main growth drivers.

Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

By David Blennerhassett

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Jan 21
0

Daily Brief China: Minsheng Education, Budweiser Brewing APAC , Weiqiao Textile Co, Genetron Holdings Ltd, China Resources Pharmaceutical, Alibaba (ADR) and more

By | China, Daily Briefs

In today’s briefing:

  • Asian Dividend Gems: Minsheng Education
  • Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka
  • Genetron (GTH US): Wide Spread Ahead of the 21 February Vote
  • China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK
  • ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia

Asian Dividend Gems: Minsheng Education

By Douglas Kim

  • Minsheng Education (1569 HK) is a highly undervalued Chinese education stock with high dividend yields. Market cap of the company has declined by nearly 90% from Jun 2018 to today. 
  • Minsheng Education’s dividend yield averaged 5.1% from 2020 to 2022. Estimated dividend yield is 14.6% in 2023.   
  • Minsheng Education mainly provides educational services in China. The company is one of the leaders of China’s private higher education industry.

Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC

By Brian Freitas

  • The review period for a global index commenced last week and will run through this week as well.
  • The announcement of the changes for the LQ45 Index should be announced in the coming week and will be implemented at the close on 31 January.
  • Huge inflows to CSI 300 Index trackers during the week while there was a big outflow from Tracker Fund of Hong Kong (2800 HK). 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka

By David Blennerhassett

Genetron (GTH US): Wide Spread Ahead of the 21 February Vote

By Arun George

  • Genetron Holdings Ltd (GTH US) shareholders will vote on the consortium’s US$4.08 per ADS offer on 21 February. The offer is light in comparison to historical trading ranges.
  • Completion is conditional on shareholder approval, dissenting shareholders representing less than 15% of outstanding shares and regulatory approvals (NDRC, MoC and SAFE). 
  • Despite the light offer, the completion conditions should be met. At the last close price and end of March completion, the gross and annualised spread is 7.7% and 45.5%, respectively.

China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK

By Xinyao (Criss) Wang

  • As more and more China’s drugs successfully obtained FDA approval, we analyzed the “style” of the US FDA, aiming to help investors understand the prospects of domestic companies’ internationalization strategies.
  • For mature pharmaceutical companies, we analyzed the benchmarks for some key financial indicators in terms of both revenue and cost. On these basis, companies’ profit performance would be decent. 
  • As a top pharmaceutical SOE, China Resources Pharmaceutical (CRP) wouldn’t go bankrupt.This is the bottom line.Together with stable dividends, CRP is a worthwhile investment target to hold in bear market.

ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia

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.
  • On the IPO front, we continued our coverage of Amer Sports (AS US) and looked at Mixue Group Hong Kong filings.
  • Placements continued to trickle in throught the week, across the region, apart from Hong Kong.

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Jan 21
0

Top 10 Highlights from the APAC PE, VC and Startup Ecosystem this Week – 21 Jan 2024

By | Private Markets, Smartkarma Newswire

Top ten highlights from the APAC PE, VC, and startup ecosystem this week:

  1. Blackstone is doubling its private equity team in Singapore, recognizing the growing number of opportunities in Southeast Asia.
  2. EQT has increased the hard cap of its Asia mid-market growth fund by 40%, indicating the high demand for investments in the region.
  3. BlackRock has been targeting family-owned companies in Southeast Asia and India for lending opportunities, showcasing the attractive lending landscape in Asia Pacific.
  4. Chinese investment firm Primavera Capital Group, known for backing Alibaba, is raising a new credit opportunities fund, further highlighting the potential in the Asian market.
  5. Japanese tech conglomerate GREE is looking to support US venture capital firms through its fund-of-funds model, demonstrating the good risk profile of venture capital.
  6. US investment group StepStone has opened an office in Singapore, expanding its presence in Asia Pacific and enhancing its investment capabilities.
  7. Adams Street Partners has raised $478.6 million for its early-stage venture fund of funds, indicating strong investor interest in Asian startups.
  8. Blue Earth Capital has raised $378 million for its private equity climate impact strategy, showcasing the focus on sustainability in the region.
  9. Singapore-based private equity firm ABC Impact has secured the first close of its second impact fund, highlighting the growing interest in impact investing.
  10. Multiple investment firms, such as Investcorp and L Catterton Asia Acquisition, are eyeing acquisitions in Southeast Asia, indicating the attractiveness of the region’s markets.

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