In today’s briefing:
- [Japan Activism] Pasona Group (2168 JP) – Three New Things Of Mixed Importance
- TIP Customized Taiwan Select High Div Index Rebal Preview: Methodology Change Leads to US$9bn Trade
- HD Hyundai: Will It Increase Ownership Stake In HD Korea Shipbuilding & Offshore Engineering?
- Grab Holdings’ Fintech Gamble: Will Its Banking Bet Finally Pay Off by 2026?
- PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?
- An Update on Samsung Electronics Chairman Lee Jae-Yong and His Family Members’ Inheritance Taxes
- Weekly Update (FTV, NLOP, STRZ, RAL)
- Vesuvius India Ltd (NSE: VESUVIUS) – A High-Quality Play on India’s Steel Upswing
- Voyager Technologies Inc. (VOYG): Space Race Continues, Terms Set for Defense IPO
- Old Dominion Freight Line: Adaptating to Economic Indicators & Market Dynamics to Respond Swiftly To Changes In The Economy’s Pulse!
[Japan Activism] Pasona Group (2168 JP) – Three New Things Of Mixed Importance
- Pasona Group (2168 JP) is a “value stock.” It has loads of cash (but less than you think) and significant ongoing governance issues, but they are doing a TINY buyback.
- Several weeks ago we got an announcement which was odd. Not completely odd, just odd. Now in the past week we have market activity/announcements which make one wonder.
- This piece attempts to interpret some of the recent data/info points. One is odd. Another is odd but meaningful (but different than people think). A third is just technical.
TIP Customized Taiwan Select High Div Index Rebal Preview: Methodology Change Leads to US$9bn Trade
- The TIP Taiwan Select High Dividend ETF (00919 TW) tracks the TIP Customized Taiwan Select High Dividend Index and has an AUM of TWD 363bn (US$12.1bn).
- Following a change in methodology, there could be 16 adds and 6 deletes in June with an estimated one-way turnover of 39% and a round-trip trade of US$9bn.
- We expect the adds to outperform the deletes over the next few days, following which reversion could set in.
HD Hyundai: Will It Increase Ownership Stake In HD Korea Shipbuilding & Offshore Engineering?
- There has been an increasing speculation of HD Hyundai increasing its stake in HD Korea Shipbuilding & Offshore Engineering (HD KSOE) in 2025.
- There are two main reasons why HD Hyundai could increase its stake in HD KSOE.
- They include HD KSOE contributing higher percentage of dividend income and continued full-fledged recovery of the operating profits of the HD HHI and HD Hyundai Mipo.
Grab Holdings’ Fintech Gamble: Will Its Banking Bet Finally Pay Off by 2026?
- The recent earnings of Grab Holdings Limited for the first quarter of 2025 presented a mixed picture of the company’s performance and strategic outlook.
- On the positive side, Grab reported robust growth, with a 17% year-over-year increase in on-demand Gross Merchandise Value (GMV) and a record number of monthly transacting users.
- This growth translated into another quarter of record revenues.
PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?
- Listed companies trading below 0.8x P/B may be taxed like unlisted ones—based on book value, with a floor set at 80% of NAV regardless of calculated valuation.
- Momentum is spreading beyond holdcos, with local desks eyeing low-PBR, high treasury share names. Attached is an Excel with Q1 PBRs and Q4 treasury ratios for all listed stocks.
- We could target direct succession names like SK Inc. or go broader, screening by treasury share % and P/B discount—likely the preferred route given Korea’s post-election momentum playbook.
An Update on Samsung Electronics Chairman Lee Jae-Yong and His Family Members’ Inheritance Taxes
- This insight provides an update on the inheritance tax payment requirement by the Samsung Electronics Chairman Lee Jae-Yong and his family members.
- Lee Jae-Yong has a final installment of 480 billion won in inheritance taxes to be paid in April 2026.
- Once Lee makes the final inheritance tax payment next year, he can start to reinvest his dividend income in various Samsung Group affiliates including Samsung C&T.
Weekly Update (FTV, NLOP, STRZ, RAL)
Fortive (FTV) will spin off 100% of Ralliant on June 28, 2025.
Ralliant will trade under the ticker RAL. When issued trading will begin on June 25th. Ralliant will host an investor day on June 10, 2025.
Ralliant (Precision Technologies) will be a $2.2B revenue company (2024) focused on Test & Measurement and Sensors & Safety Systems.
Vesuvius India Ltd (NSE: VESUVIUS) – A High-Quality Play on India’s Steel Upswing
- Vesuvius India has a strong track record of double-digit revenue and profit growth, supported by robust return ratios like 32% ROCE and a debt-free balance sheet.
- With ongoing capacity expansions and rising contribution to the parent’s revenue and EBITDA, India is now a key growth engine for the group.
- Despite premium valuations, the company’s execution strength and industry tailwinds make it a compelling long-term play.
Voyager Technologies Inc. (VOYG): Space Race Continues, Terms Set for Defense IPO
- Voyager Technologies will be offering 11 million shares at a $26-$29 range equating to a $1.4b-$1.65b valuation.
- The deal is anticipated to price on Tuesday (6/10) for a Wednesday (6/11) debut on the Nasdaq.
- Janus Henderson Investors and Wellington Management have indicated an interest in purchasing up to an aggregate of $60 million in shares of Class A common stock.
Old Dominion Freight Line: Adaptating to Economic Indicators & Market Dynamics to Respond Swiftly To Changes In The Economy’s Pulse!
- The first-quarter 2025 earnings report for Old Dominion Freight Line presents a nuanced picture reflecting both achievements and challenges rooted in the prevailing economic environment and strategic corporate decisions.
- During the period, Old Dominion faced a 5.8% year-over-year decrease in revenue, totaling $1.37 billion.
- This decline was primarily attributed to a 6.3% drop in less-than-truckload (LTL) tons per day, slightly offset by a 2.2% increase in LTL revenue per hundredweight.
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