Smartkarma Daily Briefs

In this insight, I discuss how the song Rich Men North of Richmond, return of mask mandates, and new COVID variant are all intertwined.
“Rich Men North of Richmond” is a song about the excessive control of the government and the pressures of life.
I discuss the intricacies of how these three stories are intertwined and how the certain sectors of the stock market could be impacted from the potential changes in government policies.

Ohayo Japan| Tech Sold as Yields Take Their Toll; JAPAN X: Tradition Ends-Japan Embraces Job Hopping

OVERSEAS. Higher Yields and Lower Equities as Major US Indices were lower; Focus on Jackson Hole Speech from Powell; Fed Collins Hints at hikes; Boeing Supply Issues.
JAPAN. NKY Futures -1.9% vs Cash; USDJPY 145.8; Fukushima Water Release prompts China Backlash; Gasoline reachs 15 year high – govt considers subsidies; Boon from Yen for Japan Majors.
JAPAN X: Farewell to lifetime employment ? Japan’s workers are embracing job hopping. This is driving higher wages as labor get reallocated to higher value added roles.

The Stocks to Own in Thailand – Vol. 42

By Dr. Andrew Stotz, CFA

We highlight 14 stocks in Thailand that look interesting to us based on our FVMR Methodology
Portfolio changes: Seven stocks remain, seven new join the fray
Since inception, it has gained 122% versus the SET 100 Index’s return of 35%

China TMT Update-BGNE/300274CH/300750CH/1211HK/JD/2618.HK-JD Lowering the Threshold to Free Shipping

By Shawn Yang

BGNE: Roche announced positive result for its TIGIT treating NSCLC, overturning negative result for treating EC-SCLC (/)
300274CH/300750CH/1211HK: Customs data shows Chinese exports of key renewable energy items decelerated
JD/2618.HK: Estimates for the cost of JD lowering the threshold to receive free shipping (-/+)

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Aug 25

Daily Brief ECM: Cello World Pre-IPO Tearsheet and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Cello World Pre-IPO Tearsheet
Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
ARM Holdings IPO: The Bull Case
JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
Mirxes Pre-IPO: Early Signs of Commercialization Challenges

Cello World Pre-IPO Tearsheet

Cello World Limited (CW IN) is looking to raise around US$210m in its upcoming India IPO. The bookrunners on the deal are Kotak, JM Financial, ICICI, IIFL, and Motilal Oswal.
Cello World (CW) is an Indian consumer products company. The firm is a leading company in the consumerware market in India.
According to the Technopak Report, the firm’s consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories are amongst the largest brands in the Indian consumerware market.

Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis

By Nitin Mangal

Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

ARM Holdings IPO: The Bull Case

By Arun George

ARM Holdings (1822695D US) is the world’s most widely licensed and deployed processor. Softbank Group (9984 JP) is seeking to raise about US$6-10 billion by listing ARM on Nasdaq.
Softbank Privatised ARM for US$32bn in 2016 and unsuccessfully tried to sell it to NVIDIA Corp (NVDA US) for US$40bn in 2022. In August, Softbank acquired Vision Fund’s ARM stake.
The bull case rests on the growth in licensees, high customer switching costs, rising royalty rates, strong revenue visibility and a highly profitable and cash-generative business model.

JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the not so positive aspects of the deal.

APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out

APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Mirxes Pre-IPO: Early Signs of Commercialization Challenges

By Ke Yan, CFA, FRM

Mirxes, a Singapore-headquartered RNA technology company with a focus on cancer screening, plans to raise up to US$100m via a Hong Kong listing.
In this insight, we examine its key product, GASTROClear’s technical and clinical data. We also look at the competitive landscape.
We are of the view that the company’s product, despite improving the accuracy over incumbent competitors marginally, is not a killer product and will face challenges in ramping up sales.

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Aug 25

Daily Brief Event-Driven: Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
StubWorld: Intouch “Cheap” As Thaksin Returns
UMW Holdings (UMWH MK): Sime Darby’s Pre-Conditional MGO
Quiddity Leaderboard SE600 Sep 23: 6 ADDs/DELs As Things Stand; More Possible
ARM Holdings Pre-IPO – Pre-Privatisation to Pre-Listing Changes – Slower Growth, Lower Margins
Boustead Plantations (BPLANT MK): Pre-Conditional MGO at RM1.55
Sime Darby/UMW: It’s All About Scale
Liberty/Telenet: Re-Opening of Tender Offer

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price.
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.

StubWorld: Intouch “Cheap” As Thaksin Returns

By David Blennerhassett

Intouch Holdings (INTUCH TB) plumbs new 12-month lows for its implied stub, and NAV discount as the former PM returns from exile.
Preceding my comments on Intouch are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

UMW Holdings (UMWH MK): Sime Darby’s Pre-Conditional MGO

By Arun George

Sime Darby (SIME MK) entered a conditional sale and purchase agreement (SPA) to acquire PNB’s 61.18% stake in UMW Holdings (UMWH MK) for RM5.00 per share.
Once the SPA becomes unconditional, Sime Darby must launch an MGO for the remaining UMW shares at RM5.00 per share, an 8.2% premium to the last close.
The SPA is conditional on Sime Darby’s shareholder approval. The SPA and MGO are targeted to be completed in 4Q23 and 1Q24, respectively.

Quiddity Leaderboard SE600 Sep 23: 6 ADDs/DELs As Things Stand; More Possible

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the SE600 and EURSTX Indices for the September 2023 Rebalance.
I currently expect 6 ADDs and 6 DELETEs for the SE600 index in the September 2023 rebalance but these rankings could change prior to the base date.
After the September 2023 rebalance, SimCorp A/S (SIM DC) could get deleted from the SE600 index and trigger an intra-review index change.

ARM Holdings Pre-IPO – Pre-Privatisation to Pre-Listing Changes – Slower Growth, Lower Margins

Softbank Group (9984 JP) aims to raise around US$8-10bn via selling some of its stake in ARM Holdings’ US IPO.
ARM develops and licences high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
In this note, we compare its recent performance versus its performance prior to its privatisation and discuss the changes since then.

Boustead Plantations (BPLANT MK): Pre-Conditional MGO at RM1.55

By Arun George

Kuala Lumpur Kepong (KLK MK) will acquire 33.00% of Boustead Plantations (BPLANT MK)‘s outstanding shares from Boustead Holdings/BHB at RM1.55 per share. The purchase is conditional on BHB shareholder approval.
Once the purchase becomes unconditional, the joint offerors (KLK, BHB, LTAT) will be required to launch an MGO at RM1.55 per share, a 13.1% premium to the last close.
The MGO will have no minimum acceptance condition. The offer is attractive and represents an all-time high. The MGO is expected to be complete in 4Q23.

Sime Darby/UMW: It’s All About Scale

By David Blennerhassett

In one of the largest M&A transactions in Malaysia, Sime Darby (SIME MK) intends to acquire a 61.2% stake in UMW Holdings (UMWH MK) from Permodalan Nasional Bhd for RM3.57bn.
Sime Darby is paying RM5/share, a token 9.9% premium to last close, but more like 25% when factoring in apparent news leakage.
Once the stake sale is completed, Sime Darby will launch an unconditional MGO for all remaining shares not held. This transaction is expected to be wrapped up in early 2024.

Liberty/Telenet: Re-Opening of Tender Offer

By Jesus Rodriguez Aguilar

Liberty has waived the 95% threshold condition. Liberty has now mandatorily opened again the tender given it owns more than 90% (93.43%), on same terms until 13 September (settlement 27 September).
At 5.9x EV/Fwd EBITDA (vs. 5.4x EV/20e EBITDA for Orange Belgium minorities), the offer is relatively cheap, but also reflects the uncertainties surrounding Citymesh’s entrance and risk of market share losses.
Spread is positive. After the second acceptance period closes, I believe the delisting is extremely likely. With limited liquidity and floor dividend no longer guaranteed, recommendation is accept the offer.

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Aug 25

Daily Brief Credit: Road King – Earnings Flash – H1 FY 2023 Results – Lucror Analytics and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Road King – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
Morning Views Asia: Indika Energy

Road King – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Leonard Law, CFA

Road King’s H1/23 results were mixed in our view. The company reported robust top-line growth, albeit gross profit plunged due to lower ASP of properties delivered. In addition, cash dividends from toll roads declined materially, owing to the non-renewal of the Tangjin expressway concession upon expiry in April.

Positively, Road King’s net debt continued to decrease, as it repaid borrowings using cash collection from property deliveries. The company could sustain its sales momentum in H2/23, as it is poised to launch the So Kwun Wat project (its sole remaining undeveloped project in Hong Kong) for sale.

We believe Road King will remain current on its obligations for the next 12 months. That said, the company’s medium-term prospects appear dim. Moreover, the small and dwindling land bank might suffice for only another two years of development. In the meantime, the company is likely to continue repurchasing offshore bonds.

We move our LARA to “High Risk”. We maintain our “Hold” recommendation on the ROADKG 2024 notes, but move to “Not Recommended” on the remaining notes.

Morning Views Asia: Indika Energy

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Indika Energy

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Aug 25

Daily Brief Equity Bottom-Up: Is Samsung M&A About to Happen? and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Is Samsung M&A About to Happen?
Wuxi Biologics (2269 HK): Mixed 1H23 Result; Strong Non-COVID Business Momentum Enhances Visibility
MT (Meituan 3690 HK): 2Q23, Record High Op Profit, 38% Buy
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Daikin (6367) | Cooling on Heat Pumps
Nvidia: Better than Dreamed
VIPShop (VIPS US): Attractive Value Play Underappreciated by Investors Looking for Growth
[iQIYI, Lnc. (IQ US, BUY, TP US$6.25) Review]: Ads Revenue Will Continue to Have Fair Growth
Western Digital Corporation: How Cloud is Redefining Their Revenue Streams! – Major Drivers
Memory Monitor: SK Hynix Appearing Prescient; Relative Value in Micron

Is Samsung M&A About to Happen?

By Ken S. Kim

Local press states that Samsung Electronics Pref Shares (005935 KS)sold shares as they look to invest in their future capex
The capex amount for 2023 will be around 40-50 trillion KRW and it doesn’t seem like W3 trillion is a needle mover
With a new 3 year shareholder return plan, I would think maybe cash is needed to secure ammunition for M&A

Wuxi Biologics (2269 HK): Mixed 1H23 Result; Strong Non-COVID Business Momentum Enhances Visibility

By Tina Banerjee

Wuxi Biologics (2269 HK) recorded 8% YoY revenue growth to RMB8.5B in 1H23. Strong momentum continued in the base business, with the non-COVID revenue achieving a 60% YoY growth.
Ramping up of new manufacturing facilities, maintenance shutdown of existing facilities, slowdown in funding environment in China, and increasing expenses have negatively impacted the profitability.
Total number of integrated projects reached a new record of 621 with 46 integrated projects added to the pipeline. As of June 30, backlog increased 9% YoY to $20.1B.

MT (Meituan 3690 HK): 2Q23, Record High Op Profit, 38% Buy

By Ming Lu

Total revenue grew by 33% YoY, which is the highest growth rate in the past seven quarters.
The company achieved a higher operating profit in 2Q23 after turned the profit positive in 1Q23.
The stock price has risen by 20% since our last buy rating, but we believe there will be still 38% upside for yearend 2024.

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

Daikin (6367) | Cooling on Heat Pumps

Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.

Nvidia: Better than Dreamed

By Douglas O’Laughlin

Nvidia, in characteristic fashion, murdered EPS estimates.
Revenue was $2 billion ahead of the guide, and the guide was another $4 billion ahead of consensus for the next quarter.
Going into the print, many people were concerned that positioning was bad, i.e., everyone was bullish and expectations were too high. Well, they did not disappoint.

VIPShop (VIPS US): Attractive Value Play Underappreciated by Investors Looking for Growth

By Eric Chen

Over the last decade, VIPShop proved it is the undisputed leader in China’s online discount retail business with the longest streak of profitability and impressive ROE among China internet names.
Investors are misplaced to look to the stock for growth. Rather, it is cash cow in mature business with deep moat and run by disciplined management who cares about shareholders.
Trading at 4.5x our FY23 earnings excluding net cash, it valuation is attractive even compared to depressed sector comps. Expect 20% CAGR of return by 2025 driven by intrinsic value.

[iQIYI, Lnc. (IQ US, BUY, TP US$6.25) Review]: Ads Revenue Will Continue to Have Fair Growth

By Shawn Yang

IQ reported 2Q23 revenue and non-GAAP net income 0.2%/28.5% vs cons.
We cut our projections for 3Q23’s membership services revenue, but increased estimations for online ads services revenue, and raised margin forecasts for 2023.
We maintain our US$ 6.25 TP, implying 16.2X PE in 2023.

Western Digital Corporation: How Cloud is Redefining Their Revenue Streams! – Major Drivers

Western Digital Corporation delivered an all-around beat in the quarter, with total revenue of $2.7 billion.
In the fourth quarter, cloud comprised 37% of all revenue at $1 billion, down 18% from the previous quarter and 53% from the previous year.
Shipments of nearline bits were 59 exabytes, a 26% sequential decline driven by persistent difficulties among cloud clients.

Memory Monitor: SK Hynix Appearing Prescient; Relative Value in Micron

By Vincent Fernando, CFA

Major memory names have fallen with the recent market concerns and only staged a small reboound due to Nvidia’s bullish results.
NAND and DRAM price declines have stabilized. Demand for DRAM from servers is expected to exceed that from mobile devices, driven by AI usage.
We see relative value in Micron vs. Nanya Technology and SK Hynix. SK Hynix is ahead of the game for AI, and Nanya offers focused DRAM exposure however.

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Aug 25

Daily Brief Macro: China Watch: The Big Losers from an Imports Pull-Back and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

China Watch: The Big Losers from an Imports Pull-Back
EM by EM #18 – Why Jackson Hole is more important than Johannesburg
CX Daily: China’s Auto Exports Belie Roadblocks to Conquering Europe, U.S.

China Watch: The Big Losers from an Imports Pull-Back

By Andreas Steno

Real estate isn’t the only sector in commotion.
Chinese imports have plummeted and this too has implications for global markets.
Without further ado, let’s dive into some statistics – welcome! The CNY is still in the driver’s seat of cross-market action.

EM by EM #18 – Why Jackson Hole is more important than Johannesburg

By Emil Moller

During an otherwise uneventful week, the International Finance correspondents are having a party.
The first destination for the flying journalist class is the Johannesburg summit, which has not only cast the BRIC nations into the spotlight but has also introduced a rejuvenated composition of member states.
Ambitious assertions regarding unity, economic integration, and strategic cooperation have taken center stage, and the customary media channels appear to be embracing these prospects with an air of uncritical acceptance.

CX Daily: China’s Auto Exports Belie Roadblocks to Conquering Europe, U.S.

By Caixin Global

Autos /In Depth: China’s auto exports belie roadblocks to conquering Europe, U.S.
China-South Africa /: Xi calls for more cooperation between China and South Africa
Schroders /: Schroders China unit seeks approval for first mutual fund

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Aug 25

Daily Brief Crypto: Comparing Liquidity on Uniswap and Binance and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Comparing Liquidity on Uniswap and Binance

Comparing Liquidity on Uniswap and Binance

By Kaiko

Market depth is a widely used measure of liquidity, commonly calculated across the order books of cryptocurrency pairs on centralized exchanges (CEXes).
It provides the amount of bids and asks at varying distances from the mid-price, encompassing a range from -0.1% to 10%.
This chart shows cumulative ETH-USDT bid and ask volumes at various levels on the ten largest CEXes.

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Aug 25

Daily Brief Industrials: Hanwha Ocean, Polycab India , Vishnu Prakash R Punglia , Daikin Industries, JSW Infrastructure, APM Human Services Internation, Republic Services, Illinois Tool Works and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
Daikin (6367) | Cooling on Heat Pumps
JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers
Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price.
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis

By Nitin Mangal

Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

Daikin (6367) | Cooling on Heat Pumps

Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.

JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the not so positive aspects of the deal.

APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out

APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers

Republic Services exceeded analyst expectations in revenue and earnings.
The company is improving profitability while successfully expanding its business both organically and through acquisitions.
The company produced a revenue increase of 9% throughout the quarter, including more than 4% via acquisitions.

Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Illinois Tool Works delivered mixed results for the quarter, with revenues below the analyst consensus.
The expansion of operating margins indicates the company has adapted well to changing market dynamics.
While some factors impacted revenues, the stable underlying demand across various industrial end markets reflects the company’s resilience.

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Aug 25

Daily Brief Industrials: Hanwha Ocean, Polycab India , Vishnu Prakash R Punglia , Daikin Industries, JSW Infrastructure, APM Human Services Internation, Republic Services, Illinois Tool Works and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
Daikin (6367) | Cooling on Heat Pumps
JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers
Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price.
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis

By Nitin Mangal

Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

Daikin (6367) | Cooling on Heat Pumps

Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.

JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the not so positive aspects of the deal.

APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out

APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers

Republic Services exceeded analyst expectations in revenue and earnings.
The company is improving profitability while successfully expanding its business both organically and through acquisitions.
The company produced a revenue increase of 9% throughout the quarter, including more than 4% via acquisitions.

Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts