$SoftBank Group (9984.JP)$ [TOKYO 8/6 Reuters] - Japan's Sof...
[TOKYO 8/6 Reuters] - Japan's SoftBank Group is expected to announce small profits for the first quarter on the <9984.T>2nd, but investors are likely to pay attention to whether the company, which is a major high-tech investment company, announces large-scale share buybacks or shows intention to embark on stock buybacks.
Large Japanese stocks and major high-tech companies (SoftBank is both) have been hit in particular by a drastic rebound in yen carry trade and concerns about the US recession. SoftBank's stock price fell nearly 20% on Monday, but it regained nearly half of that () on Tuesday afternoon.
Mr. Masayoshi Son, the CEO of SoftBank, has once again faced the voices of investors calling for share buybacks since the beginning of this year since the beginning of this year since the beginning of this year because the total market value of the company is traded at a significant discount compared to the total asset value and that discount continues to expand.
Most analysts estimate a discount rate of around 60%, which was 53% at the end of March and 36% at the end of 2023/6.
In particular, an activist investor Elliot Management is requesting a 15 billion dollar ((link)) share buyback program after restructuring shares worth 2 billion dollars or more, a person familiar with the issue said in June.
Since then, multiple analysts have agreed with this call, and there are analysts who point out that the gap between SoftBank's market value and net asset value has further widened due to this week's market turmoil, and the basis for large-scale stock buybacks has increased.
Also, it is said that SoftBank's cash on hand as of the end of March was 26 billion dollars.
“Rolf Baruch of New Street Research believes SoftBank should go ahead and buy shares worth 10 billion dollars or more.
According to the forecast average of the five analysts compiled by LSEG and Reuters, SoftBank's net profit for the April-6 fiscal year is likely to be 109 billion yen (($748 million)). This was a surplus for 3 consecutive quarters, compared to a deficit of 316.2 billion yen in the same period last year.
This huge investment company, which has <ARM.O>90% of the shares of the chip design company Arm as its largest shareholding, has carefully restructured its finances after the failure of WeeWork, an office sharing startup with momentum to drop flying birds, and the high-tech enterprise portfolios of SoftBank's two vision funds lost popularity in a high interest rate environment.
SoftBank has invested only about 4 billion dollars each for the past 2 fiscal years.
Recently, SoftBank raised 1 billion dollars of funding for the British autonomous vehicle startup Wayve (link), and in July it acquired the British artificial intelligence chip maker Graphcore (Graphcore) (link) for an undisclosed amount of money.
<TEM.O>Tempus AI, which handles precision medicine utilizing artificial intelligence, invested 0.2 billion dollars in April before it was listed on the NASDAQ in June. SoftBank and Tempos announced a joint venture based in Japan in the same month.
Large Japanese stocks and major high-tech companies (SoftBank is both) have been hit in particular by a drastic rebound in yen carry trade and concerns about the US recession. SoftBank's stock price fell nearly 20% on Monday, but it regained nearly half of that () on Tuesday afternoon.
Mr. Masayoshi Son, the CEO of SoftBank, has once again faced the voices of investors calling for share buybacks since the beginning of this year since the beginning of this year since the beginning of this year because the total market value of the company is traded at a significant discount compared to the total asset value and that discount continues to expand.
Most analysts estimate a discount rate of around 60%, which was 53% at the end of March and 36% at the end of 2023/6.
In particular, an activist investor Elliot Management is requesting a 15 billion dollar ((link)) share buyback program after restructuring shares worth 2 billion dollars or more, a person familiar with the issue said in June.
Since then, multiple analysts have agreed with this call, and there are analysts who point out that the gap between SoftBank's market value and net asset value has further widened due to this week's market turmoil, and the basis for large-scale stock buybacks has increased.
Also, it is said that SoftBank's cash on hand as of the end of March was 26 billion dollars.
“Rolf Baruch of New Street Research believes SoftBank should go ahead and buy shares worth 10 billion dollars or more.
According to the forecast average of the five analysts compiled by LSEG and Reuters, SoftBank's net profit for the April-6 fiscal year is likely to be 109 billion yen (($748 million)). This was a surplus for 3 consecutive quarters, compared to a deficit of 316.2 billion yen in the same period last year.
This huge investment company, which has <ARM.O>90% of the shares of the chip design company Arm as its largest shareholding, has carefully restructured its finances after the failure of WeeWork, an office sharing startup with momentum to drop flying birds, and the high-tech enterprise portfolios of SoftBank's two vision funds lost popularity in a high interest rate environment.
SoftBank has invested only about 4 billion dollars each for the past 2 fiscal years.
Recently, SoftBank raised 1 billion dollars of funding for the British autonomous vehicle startup Wayve (link), and in July it acquired the British artificial intelligence chip maker Graphcore (Graphcore) (link) for an undisclosed amount of money.
<TEM.O>Tempus AI, which handles precision medicine utilizing artificial intelligence, invested 0.2 billion dollars in April before it was listed on the NASDAQ in June. SoftBank and Tempos announced a joint venture based in Japan in the same month.
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Yoshi_777 : Well, I was surprised when I bought our stock. I don't think so. At the general shareholders' meeting, I just cut it down on money.
Yoshi_777 : I'm sorry.
We've decided to buy back our shares.