In today’s briefing:
- Hitachi Transport System (9086) – Not a Clear Outcome But Interesting Possibilities
- Mitsui OSK Lines Bear Impulse
- Japan’s Governance: Hitachi Construction Machinery: Additional Notes and Ownership Factor
- Skylark Holdings (3197): Earnings Forecast Update in Light of Omicron Outbreak
Hitachi Transport System (9086) – Not a Clear Outcome But Interesting Possibilities
- Hitachi is, as the media fuss suggests, in the last stages of its re-formation after ridding itself of nearly two-dozen listed subs over the last decade-plus.
- Hitachi Transport System (9086) is the last major sub/affiliate without a new home. Hitachi owns just under 40%. SG Holdings (9143 JP) owns just under 10%. Both want to sell.
- It is not clear HTS wants to be taken private, but there could be an interesting financial engineering solution to suit the sellers.
Mitsui OSK Lines Bear Impulse
- Mitsui OSK Lines impulsive decline as sell volumes rise is a big negative and sets up a short on a bounce, which may be limited.
- 8,500 is near resistance. 7,000 is tactical support (trendline) where a reaction rise is due. Watch RSI near/below 30 for a short term low.
- Major support at 6,500 targeted representing key dual lows, 200 dma and congestion support.
Japan’s Governance: Hitachi Construction Machinery: Additional Notes and Ownership Factor
- More important than the continuity of the Hitachi brand is how HCM can increase the competitive advantage of its products and how quickly it can respond to changes in market.
- Changes in major shareholders and the presence of major shareholders have been shown to have statistically significant correlations in ROA, Tobin’s q (and changes in market capitalization).
- The existence of the Ownership factor doesn’t necessarily predict the future of HCM, but in construction equipment market with strong competition, having a reliable partner is encouraging in business decisions.
Skylark Holdings (3197): Earnings Forecast Update in Light of Omicron Outbreak
- We are updating our earnings forecasts for Skylark Holdings (3197, the company) in light of its 3Q FY12/21 results
- Earnings forecast for FY12/22 and beyond: Moderate recovery
- Our target price is equivalent to 34.2x our FY12/24 EPS forecast of 46.85 yen.
Before it’s here, it’s on Smartkarma