Tuesday, 08 August 2017 07:20 AM
Research Desk Line-up: Ferrari Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 8, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Toyota Motor Corp. (NYSE: TM), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=TM. The Company Mazda Motor Corp. ("Mazda") announced on August 04, 2017, that they have both signed an agreement for a business and capital alliance which will help strengthen their partnership. The collaboration agreement between the two Japanese Automobile Companies is a result of a two-year long collaboration and strategic discussions and represents a key milestone in the progression of the partnership between the two Companies. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
Discover more of our free reports coverage from other companies within the Auto Manufacturers - Major industry. Pro-TD has currently selected Ferrari N.V. (NYSE: RACE) for due-diligence and potential coverage as the Company announced on August 02, 2017, its consolidated preliminary results for Q2 2017 which ended on June 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Ferrari when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TM; also brushing on RACE. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=TM
http://protraderdaily.com/optin/?symbol=RACE
Commenting on the agreement, Akio Toyoda, President of Toyota said:
"The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota's competitive spirit, increasing our sense of not wanting to be bested by Mazda."
Masamichi Kogai, President and CEO of Mazda added:
"Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders."
Scope of the collaboration
The collaboration agreement covers five focus areas:
- Establish a joint venture company that will manufacture vehicles in the US: As per the agreement, Toyota and Mazda will look at setting up a plant in the US with an annual production capacity of approximately 300,000 vehicles. The plant will be jointly funded with equal contributions from both Companies and is expected to be operational from FY21. The new plant will need a total investment of approximately $1.6 billion and is expected to create up to 4,000 jobs.
The new plant is expected to produce Toyota's Corolla model cars and Mazda's cross-over models which will be freshly launched for the North American market. The production of its car in the US will help Mazda expand its footprint in North America and quickly respond to customer's requirements and queries in this region. Toyota's reasons for establishing a plant in the US is to increase its production capacity and expand its presence in the growing North American market. The Company also plans to bring its management closer to its customers in the region and improve its customer service.
Toyota is already building a plant in Guanajuato, Mexico where it plans to manufacture its Tacoma model vehicles. The Company has assured that the building of the plant in the US will not in any way impact the Company's investment or employment plans in the Mexico facility.
- Jointly develop technologies for electric vehicles: As the popularity and demand for electric vehicles grows worldwide, Toyota and Mazda plan to jointly develop technologies for electric vehicles including exchange of expertise with each other. The newly developed technologies will enable both Companies to develop vehicles that are in-line with regulations and market trends in each country. The finer details of the partnership in this area will be worked out by both Companies in the future.
- Jointly develop self-driving car (connected-car) technology & jointly work on advanced safety technologies: As people increasingly use various information from their cars, the demand for connected technologies has been on the surge. Toyota and Mazda plan to work together to develop and build technologies for onboard multimedia infotainment systems to meet this demand. Apart from the connected technologies, Toyota plans to share its vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies with Mazda. The aim of sharing these technologies is to form a mobile society devoid of accidents.
- Expand complementary products: At present, Mazda is supplying a compact sedan to Toyota in North America and Toyota is planning to supply a compact commercial "two-box" van to Mazda in Japan. The collaboration agreement envisions the expansion of this arrangement to encompass other complementary products on a global level.
Capital Investment
The agreement also covers the capital investment by both Companies. As per the terms, Toyota will acquire newly issued shares of Mazda via a third-party allotment. At the same time, Mazda will acquire Toyota's shares (treasury stock disposed of by Toyota) via a third-party allocation. Toyota's shares acquired by Mazda will be in equal value as Mazda's shares acquired by Toyota. The aim of this cross investment is to ensure that both Companies continue to maintain their independence and equality.
Based on the above understanding, Toyota will acquire 31,928,500 newly issued shares of Mazda via a third-party allotment. The shares represent a 5.05% stake in Mazda on an issued share basis after the capital increase. Mazda will acquire Toyota's shares that are in equal value to its own shares, through a disposition of treasury stock via a third-party allotment, which will be implemented by Toyota shortly. Mazda's shareholding in Toyota represents 0.25% stake on an issued share basis.
Mazda plans to use the funds raised from the issue of new share and disposal via the third-party allotments to acquire Toyota's share, while Toyota plans to dispose of its treasury stock via third-party allotment to fund its acquisition of Mazda's shares. Some of the funds raised from the issue of new shares and disposal of treasury stock will also help in the capital expenditure earmarked for the formation of a Joint Venture to build a new plant in the US for manufacturing vehicles in the area.
Both Companies will take a call on further capital investments based on the progress of their business partnership. The acquisition of shares by Companies is expected to be completed by October 02, 2017.
Background
Both Companies had signed a partnership agreement in May 2015 with the aim of leveraging their individual strengths to improve technologies and strengthen their business. The partnership enables both Companies to jointly take on the challenges of the auto industry including stricter environmental and safety regulations, entrance of new competitors, diversification of mobility-related businesses, etc. The partnership agreement spells out the areas where they can work together while at the same time maintain the equality and independence of each company.
Last Close Stock Review
On Monday, August 07, 2017, the stock closed the trading session at $114.13, marginally rising 0.43% from its previous closing price of $113.64. A total volume of 141.28 thousand shares have exchanged hands. Toyota Motor's stock price advanced 5.22% in the last one month, 3.58% in the past three months, and 0.72% in the previous six months. The stock is trading at a PE ratio of 10.48 and has a dividend yield of 3.44%. The stock currently has a market cap of $185.42 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily