In today’s briefing:
- Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout
- LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?
- Ryanair (RYA ID): Global Index Inclusion & EU Upweight Following Raised Foreign Ownership Limit
- CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
- Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty
- Nidec (6594) | Chasing Trends to Fiscal Discipline
Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout
- The bill submitted by the Democratic Party today highlights that separate taxation on dividend income applies only to dividends from companies with a 35% payout ratio or higher.
- We might see re-rating on dividend stocks with solid cash flow but below 35%, especially banks over telcos. Holdcos like Samsung C&T, LG, and Hyundai Glovis could attract attention too.
- Dark horses like NAVER, with earnings potential, and Samsung Electronics, currently at 25%, could attract attention if they increase payouts to 35%.
LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?
- On 22 April, LS Cable & System announced that it plans to acquire up to 70 billion won worth of Gaon Cable.
- If LS Cable purchases 70 billion won worth of Gaon Cable’s shares (7.4% stake at current price), its stake in the company would rise to 89%.
- There are numerous options for Gaon Cable going forward including privatization or a merger with LS Cable.
Ryanair (RYA ID): Global Index Inclusion & EU Upweight Following Raised Foreign Ownership Limit
- Ryanair Holdings (RYA ID) raised its foreign ownership limit (FOL) from 50% to 80% on 7 March 2025, due to increasing EU national holdings over the last years.
- The security is forecasted to be added to global standard in May and global all-world in September 2025 as it now has eligible foreign room after the FOL increase.
- The security’s free float is expected to rise from 50% to 80% in stoxx europe 600 and euro stoxx at the June 2025 review.
CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
- CiDi Inc. is looking to raise about US$200m in its upcoming Hong Kong IPO.
- CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
- The company stands to benefit from sustained industry tailwinds. While still in its early stages, CiDi has made progress in narrowing its losses.
Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty
- Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCI) is looking to raise about US$579m in its upcoming India IPO.
- DKCI is an R&D and innovation-focused global manufacturer and supplier of specialty chemicals, catering to hydrocarbons and industrial supply chains, and customers with diverse applications across various industrial segments.
- In this note, we talk about the not-so-positive aspects of the deal.
Nidec (6594) | Chasing Trends to Fiscal Discipline
- Nidec beat Q4 expectations but offered muted FY3/26 guidance, with flat sales and modest profit growth amid macro and tariff uncertainty.
- New CEO Kishida shifts focus from top-line ambition to margin discipline, targeting ¥150bn in cost cuts over three years.
- Once a high-growth play, Nidec now trades at value multiples — 1.5x book — offering a more grounded path to shareholder returns.
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