IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>, the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.</li>
<li>In <a href="https://www.smartkarma.com/insights/sf-holding-h-share-listing-updates-point-to-improving-fundamentals" target="_blank" data-smartkarma-citation="insights:166296" rel="noopener">SF Holding H Share Listing: Updates Point to Improving Fundamentals</a>, we noted that SF is in good health, with a return to growth, rising margins, and strong cash generation.</li>
<li>In this note, we examine the likely discount SF Holding will offer its H Shares compared to the A Shares.</li>
</ul>



S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
In SF Holding H Share Listing: Updates Point to Improving Fundamentals, we noted that SF is in good health, with a return to growth, rising margins, and strong cash generation.
In this note, we examine the likely discount SF Holding will offer its H Shares compared to the A Shares.


SF Holding H Share Listing: AH Discount Views

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>, the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.</li>
<li>SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost &amp; Sullivan.   </li>
<li>The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.</li>
</ul>



S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost &amp; Sullivan.   
The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.


SF Holding H Share Listing: Updates Point to Improving Fundamentals

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Markets go risk-on with the Fed's 50 bps cut a greenlight for AI/tech favourites to rebound sharply.</li>
<li>New highs for homebuilders setting the tone for further gains the Sumitomo Forestry and Sekisui House, while logistics may be weak after FedEx numbers.</li>
<li>Worth noting out-of-favour JP autos with high short interests and US sales ratios who may be squeeze targets with undeployed capital and foreigners coming back to the Japanese market post-Fed.</li>
</ul>


Markets go risk-on with the Fed's 50 bps cut a greenlight for AI/tech favourites to rebound sharply.
New highs for homebuilders setting the tone for further gains the Sumitomo Forestry and Sekisui House, while logistics may be weak after FedEx numbers.
Worth noting out-of-favour JP autos with high short interests and US sales ratios who may be squeeze targets with undeployed capital and foreigners coming back to the Japanese market post-Fed.


Japan Morning Connection: Out-Of-Favour JP Autos May Be Squeeze Targets

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>For the month of July 2024, 11 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$10bn.</li>
<li>The average premium for the new transactions announced (or first discussed) in July was ~31%. The average premium YTD is ~44%.</li>
<li>This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.</li>
</ul>


For the month of July 2024, 11 new transactions (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$10bn.
The average premium for the new transactions announced (or first discussed) in July was ~31%. The average premium YTD is ~44%.
This compares to the average premium for transactions in 2023 (117 transactions), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) of 39%, 41%, 33%, 31%, and 31% respectively.


(Mostly) Asia M&A, July 2024: Canvest, Furukawa, Arvida, Advanced Info, Sermsuk, Thaicom

China Traditional Chinese Medicine / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/yichang-hec-changjiang-pharmaceutical" target="_blank" data-smartkarma-citation="entities:21040:1" rel="noopener">Yichang HEC Changjiang Pharma (1558 HK)</a>, <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a>, <a href="https://www.smartkarma.com/entities/a8-new-media-group-ltd" target="_blank" data-smartkarma-citation="entities:3444:1" rel="noopener">A8 New Media (800 HK)</a>, <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a>, <a href="https://www.smartkarma.com/entities/asia-cement-china-holdings" target="_blank" data-smartkarma-citation="entities:3374:1" rel="noopener">Asia Cement China (743 HK)</a>. 
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a>, <a href="https://www.smartkarma.com/entities/great-eastern-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13993:1" rel="noopener">Great Eastern Holdings (GE SP)</a>, <a href="https://www.smartkarma.com/entities/chilled-frozen-logistics-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:40987:1" rel="noopener">Chilled &amp; Frozen Logistics Holdings (9099 JP)</a>, <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a>, <a href="https://www.smartkarma.com/entities/kfc-holdings-japan-ltd" target="_blank" data-smartkarma-citation="entities:12358:1" rel="noopener">Kfc Holdings Japan (9873 JP)</a>. 
</li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Yichang HEC Changjiang Pharma (1558 HK), China Traditional Chinese Medicine (570 HK), A8 New Media (800 HK), Greatview Aseptic Packaging (468 HK), Asia Cement China (743 HK). 

Lowest spreads: Fancl Corp (4921 JP), Great Eastern Holdings (GE SP), Chilled &amp; Frozen Logistics Holdings (9099 JP), Tatsuta Electric Wire &amp; Cable (5809 JP), Kfc Holdings Japan (9873 JP). 



Merger Arb Mondays (08 Jul) - China TCM, L'Occitane, A8 Media, GA Pack, Asia Cement, Hollysys, MMA

Japan

SG Holdings Co., Ltd. offers courier services. The Company provides goods delivery, cargo logistics, goods pickup, and other services. SG Holdings also operates real estate development, human resources management, and other businesses.

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SG Holdings (9143 JP)

Japan Morning Connection: Out-Of-Favour JP Autos May Be Squeeze Targets

Markets go risk-on with AI/tech favorites rebounding sharply, homebuilders hitting new highs, JP autos with high short interests and US sales...

Andrew Jackson

(Mostly) Asia M&A, July 2024: Canvest, Furukawa, Arvida, Advanced Info, Sermsuk, Thaicom

The average premium for the new transactions announced (or first discussed) in July was ~31%. The average premium YTD is ~44%.

David Blennerhassett

Merger Arb Mondays (08 Jul) - China TCM, L'Occitane, A8 Media, GA Pack, Asia Cement, Hollysys, MMA

This week, the highest gross spreads are HEC Pharma (131.3%), China TCM (26.0%), A8 New Media (12.5%), GA Pack (11.8%), Asia Cement China (11.0%),...

Arun George

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SF Holding H Share Listing: AH Discount Views

SF Holding is premarketing an H Share listing to raise US$1.0-1.5 billion. In this note, we examine the likely discount SF Holding will offer its H...

Arun George

SF Holding H Share Listing: Updates Point to Improving Fundamentals

The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a...

Arun George

Japan Morning Connection: Out-Of-Favour JP Autos May Be Squeeze Targets

Markets go risk-on with AI/tech favorites rebounding sharply, homebuilders hitting new highs, JP autos with high short interests and US sales...

Andrew Jackson

(Mostly) Asia M&A, July 2024: Canvest, Furukawa, Arvida, Advanced Info, Sermsuk, Thaicom

The average premium for the new transactions announced (or first discussed) in July was ~31%. The average premium YTD is ~44%.

David Blennerhassett

Merger Arb Mondays (08 Jul) - China TCM, L'Occitane, A8 Media, GA Pack, Asia Cement, Hollysys, MMA

This week, the highest gross spreads are HEC Pharma (131.3%), China TCM (26.0%), A8 New Media (12.5%), GA Pack (11.8%), Asia Cement China (11.0%),...

Arun George