In today’s briefing:
- *NEW* USTR Section 301 Proposed Actions on China Maritime Dominance
- Weekly Deals Digest (20 Apr) – Shibaura Electronics, Topcon, Jamco, TRYT, Canvest, ENN, Insignia
- DISCO: Growth Is Slowing Down, the Stock Is Still Expensive
- Aeon’s Plans to Absorb Aeon Mall and Aeon Delight Will Help Margin Growth
*NEW* USTR Section 301 Proposed Actions on China Maritime Dominance
- Biden’s USTR came out with a flawed Section 301 report on Chinese maritime “dominance” in January. It is not that China shipbuilding is not dominant, but the report was flawed.
- In February/March (flawed) measures were proposed. Then mostly minimally-insightful hearings were held. Then Trump came out with an Executive Order “Restoring America’s Maritime Dominance” (that requires looking back 80yrs).
- Now we have new USTR Proposed Measures which water down the old ones quite considerably.
Weekly Deals Digest (20 Apr) – Shibaura Electronics, Topcon, Jamco, TRYT, Canvest, ENN, Insignia
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: China Resources Beverage (2460 HK) lock-up expiry; DN Solutions (298440 KS) and LG Electronics India (123D IN) IPOS.
- Event-Driven developments: Shibaura Electronics (6957 JP), Topcon Corp (7732 JP), Jamco Corp (7408 JP), TRYT (9164 JP), Canvest Environmental Protection Group (1381 HK), ENN Energy (2688 HK).
DISCO: Growth Is Slowing Down, the Stock Is Still Expensive
- DISCO Mar-25 results beat Consensus by ~12%. Jun-25 guidance is very weak but DISCO always under-guides egregiously. But it’s weak.
- Consensus has revised down its Jun-25 revenue forecast from 12% YoY growth to 6% but left Sept-Dec-25 unchanged at ~10% YoY growth. The odds are that Consensus is too high.
- The stock is down -39% since end Dec-24 but still trading at 20x EPS in the face of downside risks to Consensus. Not appealing.
Aeon’s Plans to Absorb Aeon Mall and Aeon Delight Will Help Margin Growth
- Aeon will turn Aeon Mall and its facilities management business, Aeon Delight, into subsidiaries.
- The move is part of plans to rationalise and inject new momentum into its shopping building business, including new types of neighbourhood mall.
- It will also use Aeon Mall’s overseas network to scout for promising tenants for its malls and GMS stores.
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