Behind the influx of hedge funds into japanese companies is the undervalued real estate worth 165 billion dollars.
Global hedge funds and private equity firms are flocking to Japanese companies in hopes of unlocking up to 25 trillion yen (165 billion USD) in undervalued real estate assets. The hidden value of real estate on corporate balance sheets has become a theme behind some large activist investor actions and merger and acquisition trades that have emerged in Japan this year. The latest case is the USA company Elliott Investment Management announcing that it holds 5.03% of Tokyo Gas shares, with reports last week estimating that Elliott values the latter's real estate investment portfolio at around 1.5 trillion yen — almost.
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Goldman Sachs: Maintains 'Neutral' rating on China Tower, target price raised to 1.16 Hong Kong dollars
Goldman Sachs issued a research report stating that China Tower (00788) has a 'neutral' rating, with a slight downward revision of up to 1.4% in the revenue forecast for the company from this year to 2026, to reflect the slowing revenue growth of the telecommunications tower business due to price declines, and raised the target price from HK$1.15 to HK$1.16. The bank expects China Tower's outlook to be stable, with next year's revenue growth expected to stabilize at 4%, net profit expected to grow by 12%, dividend per share expected to be 4.9 RMB, equivalent to a 15% year-on-year increase or a distribution of 79% of profit. The bank points out that despite facing the challenge of aging receivables, China Tower's cash flow prospects.
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Goldman Sachs: OPEC+ production cuts may support a slight short-term increase in oil prices.
Goldman Sachs stated that under compliance with the OPEC+ production cut agreement, the crude oil production in Iraq, Kazakhstan, and Russia has decreased, supporting a slight short-term increase in Brent crude oil prices. The investment bank said in a report on Tuesday that due to the recent drop in oil prices, Saudi Arabia is more likely to extend oil production cuts. We now believe that oil production cuts will continue until April 2025, instead of January. Goldman Sachs maintains its expectation of an average price of $76 per barrel for Brent crude oil in 2025. "Any production increase actions by OPEC+ will be gradual and data-driven," Goldman Sachs said.
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