In today’s briefing:
- Proto Corp (4298 JP) – Activists Getting More Activish, Watch for Position Changes?
- Stock Splits Meet Many Companies’ Needs to Increase the Shareholdings of Individual Investors
- BYD (1211 HK) 2024 Result Preview: Expanding in Domestic Market and 19% Upside Left
- Annual Tire Company Results Show Pace Of Change
- Softcare Pre-IPO – Strong Market Penetration but Gross Margins May Be Capped
- VRA: 4Q Review: Fully Focused on the Core, Reiterate Buy, Lowering PT to $4
Proto Corp (4298 JP) – Activists Getting More Activish, Watch for Position Changes?
- The MBO for Proto Corp (4298 JP) where the founder/chair is buying out from minorities is being done at the wrong price. His reasons are good, but not for minorities.
- One large foreign shareholder – the second largest shareholder of the firm – has offered substantial pushback in the form of a letter asking for discussions. That went nowhere.
- So now they have come out harder. The solution here is a really big bump or a broken deal if investors keep the share price above the TOB price.
Stock Splits Meet Many Companies’ Needs to Increase the Shareholdings of Individual Investors
- The increase in stock splits can be attributed to TSE requesting more effective measures from companies after market restructuring and to more companies whose stock prices have risen.
- Companies are obsessed with getting individual investors on their side. It seems that the interests of companies and TSE are aligned in conducting stock splits to increase individual investors’ shareholdings.
- Now that many companies want to increase the number of individual investors, it may be a good time to resolve the cost issue and consider changing the share unit system.
BYD (1211 HK) 2024 Result Preview: Expanding in Domestic Market and 19% Upside Left
- BYD will release its 2025 annual results on March 24.
- The stock price has risen by 38% since our last buy rating on January 6.
- However, we believe there is still an upside of 19% for the next twelve months.
Annual Tire Company Results Show Pace Of Change
- The tire majors losing volume
- Smaller tire makers gaining prominence
- Most tire majors saw flat or drop in profits
Softcare Pre-IPO – Strong Market Penetration but Gross Margins May Be Capped
- Softcare (SOFT HK) is looking to raise at least US$300m in its upcoming Hong Kong IPO.
- Softcare (SC) is an international hygiene product corporation engaged in the development, manufacturing and sales of baby and feminine hygiene products.
- In this note, we look at the firm’s past performance.
VRA: 4Q Review: Fully Focused on the Core, Reiterate Buy, Lowering PT to $4
- We are lowering our projections and price target for Vera Bradley after the company reported lower than consensus 4QFY25 (January) projections, announced the sale of Pura Vida and provided initial FY26 guidance, which, even with the exclusion of Pura Vida, demonstrates the return to prominence for Vera Bradley will be a longer than expected undertaking.
- That said, with a cash rich balance sheet, signs of positives in the direct channel and management quickly reacting to customer commentary, we believe the company has the ability (and financial resources) to switch the customer base and register compelling returns.
- As such, we are reiterating our Buy rating, but, in a bow to what will be another rebuilding year in FY26 cutting out price target to $4 (from $5.50).
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