In today’s briefing:
- ENEOS Bumps Tatsuta Elec (5809) Bid – 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement
- ECM Weekly (29th July 2024) – ASICS, Kokusai, Amer, Hyundai, Timee, Sanil, Akum, Bloks, Ola Electric
- To Expand Value and Improve Capital Profitability, the Promotion of Human Resources Is Necessary
- Sms Co Ltd (2175 JP): Q1 FY03/25 flash update
ENEOS Bumps Tatsuta Elec (5809) Bid – 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement
- Several weeks ago, ENEOS Holdings (5020 JP) launched its long-delayed Tender Offer for Tatsuta Electric Wire & Cable (5809 JP) with no bump despite the time value of money.
- It said the price reflected Tatsuta’s value sufficiently. A week ago on the 19th, ENEOS extended the Tender Offer, likely because they didn’t have the shares. Price was still “sufficient.”
- I suggested it might not be; I didn’t expect a big bump, but caveated earnings. Friday produced great Q1 earnings, and a bump from ¥720/share to ¥780/share.
ECM Weekly (29th July 2024) – ASICS, Kokusai, Amer, Hyundai, Timee, Sanil, Akum, Bloks, Ola Electric
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, the coming week will see Sanil Electric (062040 KS) list, while Akums Drugs and Pharmaceuticals books will open and Ola Electric too might be launched.
- On the placement front, the past week was relatively quiet after a few hectic weeks.
To Expand Value and Improve Capital Profitability, the Promotion of Human Resources Is Necessary
- It is very difficult to ensure the independence and transparency of a committee when the board of directors is staffed with people who are aligned with the president’s wishes.
- Companies with high ROE have superior corporate governance, due to effective overseas investor’s engagement, while companies with low ROE show unclear policies for improving ROE, despite having formalized board practice.
- To improve the effectiveness of the board, companies should appoint people to the board who will help expand the value of the company, and use engagement with overseas investors etc.
Sms Co Ltd (2175 JP): Q1 FY03/25 flash update
- Sales increased by JPY2.2bn YoY, driven by higher sales in Career and Elderly Care and Disability Welfare Operators segments.
- Operating profit declined by JPY729mn YoY due to higher advertising and other expenses exceeding sales increase.
- Kaipoke member locations increased to 29,900 (+10.5% YoY) and elderly care facilities to 51,950 (+12.2% YoY) as of July 1, 2024.
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