In today’s briefing:
- Daito Trust Buys Out Listed Private Co Ascot (3264 JP) – Small Done Deal at ¥260
- Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal
- Sabadell’s Dividend Strategy and the BBVA Takeover Bid
- EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.
- Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)
- EQD | Global Option Implied Volatility – Option Opportunities Across the Regions
- EQD | S&P/ASX 200 Option Strategy – Today’s All-Time-High Calls for Proactive Hedging
- ZKsync & The Elastic Network Endgame
- Resona Holdings (8308 JP) – Positive 3QFY24 Results
- Orient Corp (8585 JP): Q3 FY03/25 flash update
Daito Trust Buys Out Listed Private Co Ascot (3264 JP) – Small Done Deal at ¥260
- Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.
- Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to Daito Trust Construct (1878 JP).
- This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That’s it. Easy peasy done deal.
Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal
- Ascot Corp (3264 JP) announced a tender offer from Daito Trust Construct (1878 JP) at JPY260 per share, a 20.4% premium to the last close.
- Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.
- This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).
Sabadell’s Dividend Strategy and the BBVA Takeover Bid
- Sabadell plans a €500 million share buyback to maintain stock value, reducing the attractiveness of BBVA’s exchange offer and increasing shareholder resistance to the takeover.
- Regulatory scrutiny intensifies as BBVA-Sabadell would control 39.63% of Catalonian banking credit, raising competition concerns, particularly in SME lending and payment services.
- The market expects BBVA to raise its offer by 10-20%, but BBVA’s CEO insists there is “no room” for improvement, making shareholder approval uncertain.
EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.
- NSE Nifty Bank Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
- Putting implied volatility into context with the NSE Nifty Bank Index 200 day moving average will lead to a different conclusion. Selling volatility might not be the opportunity it seems.
- This Insight provides a quantitative indication at which level implied volatility can be assessed as rich.
Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)
- In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February.
- The top 10 stock picks include Orion Holdings, OCI Holdings, Hana Tour Service, Hyundai Motor, KT Corp, Samsung F&M Insurance, Korean Air, Hankook T&T, Young Poong, and NICE Info Service.
- Our top 10 Korean stock picks from 17 to 31 January are up on average 2.6%, outperforming KOSPI which is down 0.1% in the same period.
EQD | Global Option Implied Volatility – Option Opportunities Across the Regions
- Global option markets present a diverse picture, offering a broad opportunity set.
- Several markets make for good hedging-candidates after a strong January and amid cheap options.
- Although several Indian indices show high implied volatility, contextual analysis indicates volatility may be fairly priced relative to their bear trends.
EQD | S&P/ASX 200 Option Strategy – Today’s All-Time-High Calls for Proactive Hedging
- Today, the S&P/ASX 200 (AS51 INDEX) reached a new all-time high while implied volatility is near record low levels. The combination makes for a good opportunity to hedge.
- Volatility assessment trough conventional volatility metrics and one new chart not seen anywhere else.
- An actionable example of a put option hedge is presented, striking a balance between protection and cost.
ZKsync & The Elastic Network Endgame
- This consulting report explores ZKsync’s transformation from a Layer 2 scaling solution into the Elastic Network, a groundbreaking ecosystem of interoperable ZK Chains positioned to revolutionize institutional blockchain adoption.
- With Bitcoin ETF inflows exceeding $30B and major players like BlackRock embracing blockchain technology, 2024 has marked unprecedented institutional interest in crypto.
- However, widespread adoption faces two key challenges: blockchain fragmentation and the inability of public networks to meet institutional requirements for privacy and compliance.
Resona Holdings (8308 JP) – Positive 3QFY24 Results
- Resona’s 3QFY24 results confirm that it is well geared to higher interest rates in Japan, with its high floating rate loan exposure, low LDR and high BoJ cash balance
- In addition, management is executing effectively to deliver revenue growth well ahead of opex growth, and NPL trends continue to improve, resulting in sharply lower cost of risk
- Resona’s equity holdings value to market cap ratio is 36%, the highest of the six biggest Japanese banks by market cap; management is actively divesting holdings to free up capital
Orient Corp (8585 JP): Q3 FY03/25 flash update
- Operating revenue rose by JPY13.9bn (+8.2% YoY) to JPY182.5bn, driven by core business growth and new subsidiaries.
- Operating expenses increased JPY15.4bn (+9.7% YoY) to JPY174.0bn, mainly due to higher SG&A and financing expenses.
- Recurring profit decreased JPY1.6bn (-15.8% YoY) to JPY8.5bn, with net income impacted by income tax adjustments.
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