In today’s briefing:
- Toshiba (6502) Tender – Certainly Cheaper. Maybe Delayed, But Toshiba Fatigue Is Strong
- AKR Corporindo (AKRA IJ) – A Steely Operator
- LianLian DigiTech IPO: The Bear Case
- BES: Positive Operational Update
Toshiba (6502) Tender – Certainly Cheaper. Maybe Delayed, But Toshiba Fatigue Is Strong
- It has been four months since JIP officially announced their intention to launch a Tender Offer for Toshiba Corp (6502 JP) by end-July. 7 weeks since Toshiba’s Board supported it.
- There’s been no material public griping. Peers are sharply higher. There have been news stories suggesting a Western Digital/Kioxia deal is close. That’s now extended. The Toshiba deal possibly too.
- But huge outperformance by peers, and possible clarity from Kioxia deal terms are unlikely to move the Toshiba Board to demand more.
AKR Corporindo (AKRA IJ) – A Steely Operator
- AKR Corporindo (AKRA IJ) booked solid set of numbers despite a less favourable pricing environment with the additional boost from a ramp up of sakes at JIIPE.
- JIIPE will become a more important contributor for AKR Corporindo, as it builds a critical mass of EV-battery-related tenants plus it benefits from increasing demand from smelters for chemicals
- AKR Corporindo remains a core industrial holding in Indonesia, through both its petroleum and chemicals business plus its industrial estate, which is a multi-year growth story. Valuations remain attractive.
LianLian DigiTech IPO: The Bear Case
- Lianlian DigiTech (2104619D CH), a digital payment services provider in China, has filed for an HKEx IPO to raise US$500 million, according to press reports.
- In LianLian DigiTech IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on margin pressure on the fastest-growing business, operating losses, an unconvincing path to profitability, FCF burn with a weak balance sheet.
BES: Positive Operational Update
- Braille Battery will be expanding its product offering for motorcycles, ATV/UTVs, and personal watercrafts.
- This morning, Braille Energy Systems (BES:TSXV) provided an operational update on its three divisions, Braille Battery, Electrafy, and Firebulb.
- Braille Battery BES announced that it will be expanding its product range of “Made in USA” Power Sports Batteries to provide additional ultra-high cranking and high-capacity lithium batteries for its Motorcycle V-Twin segment, ATV/UTVs, and personal watercrafts.
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