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CREDIT SUPPLY: Honda (HNDA A3/A-/A): Capital Allocation

CREDIT SUPPLY
  • Honda has released a statement following earlier media reports of potential equity sales by insurers.
  • Honda says it has been considering “various capital policies including the above”, which could imply a buyback of the shares, with reportedly JPY500mn for sale.
  • Honda had FY24 EBITDA of 2.2bn and bought back around 250mn of stock last year, we see limited impact should this materialise.

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