In today’s briefing:
- MUFG Partial Offer by MUFG to Buy ~50% of Small Cap Zenhoren (5845) – Watch the Back End
- EQD | Nikkei Index Options Weekly (February 10 – 14): Mired in Sideways Range
- EQD | Nifty Index Options Weekly (February 10 – 14): Tactical Hedge into Weak Seasonals
- Shortlist of High Conviction Philippines Equity Ideas – February 2025
- J Trust Co Ltd (8508 JP): Full-year FY12/24 flash update
MUFG Partial Offer by MUFG to Buy ~50% of Small Cap Zenhoren (5845) – Watch the Back End
- Friday after the close, Mitsubishi UFJ Financial (MUFG) (8306 JP) announced a partial offer to buy up to 13.026385mm shares (minimum 11.661185mm shs) of rent guarantor Zenhoren (5845 JP).
- That is 49.6% but an MUFJ sub already owns 1.46%. The offer comes at a 32% premium to last. Two holders with 33.59% of the register have agreed to tender.
- This will turn the company into a consolidated subsidiary of MUFG under MUFJ Nicos, the group’s consumer credit subsidiary. Shareholder structure matters. Watch the back end.
EQD | Nikkei Index Options Weekly (February 10 – 14): Mired in Sideways Range
- USD/JPY more volatile relative to Nikkei, trading in a 2.3% range on the week and historic vol continuing to climb compressing the hv spread.
- Nikkei is trading at the mid-point of the sideways range it’s been in since the end of September.
- Most heavily traded strikes were at the top and bottom of the sideways range.
EQD | Nifty Index Options Weekly (February 10 – 14): Tactical Hedge into Weak Seasonals
- Nifty mired in long downtrend with unfavorable seasonals directly ahead.
- Weak price action, with all 5 days trading lower pulls implied vols higher by 1.5 points.
- We examine the poor seasonal performance heading into the end of the month and recommend a tactical hedge.
Shortlist of High Conviction Philippines Equity Ideas – February 2025
- We are gradually building a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
- We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
- Figaro Coffee (FCG PM) has been added due to its >20% ROCE, 7x PE, and strong growth potential. We will initiate coverage on it shortly with an insight.
J Trust Co Ltd (8508 JP): Full-year FY12/24 flash update
- Operating revenue reached JPY128.2bn, a 12.2% YoY increase, driven by growth in financial and real estate businesses.
- Profit attributable to owners decreased 63.0% YoY to JPY6.0bn, impacted by deferred tax liabilities reversal from a merger.
- FY12/25 forecasts JPY135.1bn operating revenue, JPY11.1bn operating profit, and JPY6.5bn profit attributable to owners.
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