In today’s briefing:
- The Japan March-End Rebal and Dividend Trade
- Makino Milling Machine (6135 JP): Proposes Countermeasures
- Quess Corp Demerger: Value Unlocking & Strategic Shift to Drive Growth
- DN Solutions Pre-IPO – The Negatives – Stagnant Volumes
- Plug Power Inc.: Will Its Cost Reduction Measures Be Enough To Add Some Level Of Financial Stability?
- Waste Management: An Insight Into Its Healthcare Solutions
The Japan March-End Rebal and Dividend Trade
- Every year it’s the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.
- The month-end and quarter-end bring big flows, or not, depending on how things have gone.
- Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!
Makino Milling Machine (6135 JP): Proposes Countermeasures
- The Makino Milling Machine Co (6135 JP) Board has proposed introducing countermeasures to nudge Nidec Corp (6594 JP) to delay the start of the tender to 9 May.
- The countermeasure was likely needed to facilitate a competing offer rather than force Nidec to provide the required information and delay the start (Nidec is still evaluating the request).
- Nidec’s offer at current terms has a low chance of success, necessitating revised terms. The Board claims that there is a sufficient probability of a competing proposal.
Quess Corp Demerger: Value Unlocking & Strategic Shift to Drive Growth
- Quess Corp Ltd (QUESS IN) is strategically demerging into 3 distinct segments, enabling focused strategies and boosting growth potential for each, paving the way for greater success and innovation.
- Previously, the high-margin Global Technology Solutions segment contributed 12% of revenue, but its potential was overlooked within the larger company. Now, with demerging, it gains specialized focus and proper valuation.
- The demerger gives investors the flexibility to choose between cash-generating, high-margin, or moderate-margin businesses, with the added option of a platform for job hunting, all backed by focused, specialized management.
DN Solutions Pre-IPO – The Negatives – Stagnant Volumes
- DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
- DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
- In this note, we talk about the not-so-positive aspects of the deal.
Plug Power Inc.: Will Its Cost Reduction Measures Be Enough To Add Some Level Of Financial Stability?
- Plug Power recently reported its earnings and has embarked on Project Quantum Leap to streamline its operations, aiming for significant cost savings ranging from $150 million to $200 million annually by reducing staff, refining product focus, and consolidating facilities.
- This restructuring demonstrates the company’s commitment to improving operational efficiency, especially crucial as they face a slower-than-anticipated development of the hydrogen market.
- The company remains optimistic about hydrogen’s long-term role in the global energy mix, predicting its contribution to be 10% to 20%.
Waste Management: An Insight Into Its Healthcare Solutions
- The latest earnings report from Waste Management, Inc. (WM) highlights a period of substantial operational and financial performance improvements in 2024.
- The company has focused on a combination of top-line growth strategies and diligent cost management which positioned it well in its markets.
- Notably, there was a marked increase in operating EBITDA by more than 10% within its legacy business, achieving a 30% operating EBITDA margin — the highest in its history.
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