Smartkarma Daily Briefs

• Back on the 23rd October,  flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
• The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% – up from 27.71% – before options. A whitewash waiver is required.
• A expected, the Offer Doc has now been delayed. It is now expected to be dispatched on or before the 29th November. 

• 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 & 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.

• On 14 November, Di Dong Il Corp (001530 KS) announced that it plans to cancel 3.78 million treasury shares (representing 15% of outstanding shares) on 29 November.
• The company currently has 5.84 million outstanding shares. Thus, the share cancellation of 3.78 million shares represent 65% of its treasury shares. 
• The company is facing an investigation due to suspicions that it conducted a loan transaction with its largest shareholder, the Jung-Hun Foundation, without board approval.

• CiDi Inc (CIDI HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC, China Securities and Ping An.
• It is a leading provider of autonomous driving technology for commercial vehicles in China.
• It focuses on research and development of autonomous mining and logistics trucks, V2X technologies and high-performance perception solutions.

• MNC Solution (MNC KS) MNC Solutions is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In this note, we look at the firm’s past performance.

• Trex Company, Inc. recently reported its third quarter 2024 earnings.
• The company reported net sales of $234 million, reflecting a decline of 23% from the previous year primarily due to a $70 million reduction in channel inventory.
• Despite this, Trex noted robust consumer demand for its premium products like Trex Transcend Lineage and Signature decking and railing, although sales of lower-priced products were more restrained.

• RaaS is initiating coverage of engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) with a DCF-based valuation of $0.40/share, representing potential capital upside of 196% on the current share price.
• FY24 was a turnaround year for Verbrec under new management with a clear strategy of carving out costs, improving operating and risk management disciplines, selling under-performing businesses and finalising legacy projects.
• The business is now recapitalised, profitable, cash generative and, in our opinion, poised for further growth with a favourable macro environment in both VBC’s traditional engineering projects and particularly its areas of sustainable focus, led by the energy transition that is underway in Australia.

Braemar’s H125 results were in line with expectations, with modest revenue growth and some operational gearing evident in operating profit. The underlying activities continue to expand and diversify and Braemar remains well-positioned to drive its growth strategy. The trading outlook for FY25 is promising and we expect the company to be able to leverage its strong balance sheet in pursuit of strategic growth in a fragmented market. We maintain our underlying revenue and operating profit estimates for FY25 and FY26, as well as our 535p valuation, although EPS is affected by a reassessment of the number of shares in issue. Estimated end-FY25 net cash improves to £2.5m from a more modest net cash position.

• Crane Company recently presented its third-quarter 2024 financial results, showcasing several key highlights and challenges.
• The company’s performance this quarter was marked by a solid increase in both core sales and earnings per share, despite encountering multiple operational disruptions.
• Firstly, Crane demonstrated robust financial performance by exceeding expectations, with adjusted earnings per share (EPS) rising to $1.38.

• Cumulative Q3 FY12/24 revenue rose 7.3% YoY, driven by Environmental Equipment, Household Equipment, and Renewable Energy segments.
• Operating profit increased 88.0% YoY to JPY677mn, supported by price hikes and strong segment performances.
• Overseas revenue grew due to demand in India and Sri Lanka, with large government projects boosting growth.

• Back on the 23rd October,  flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
• The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% – up from 27.71% – before options. A whitewash waiver is required.
• A expected, the Offer Doc has now been delayed. It is now expected to be dispatched on or before the 29th November. 

• 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 & 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.

• On 14 November, Di Dong Il Corp (001530 KS) announced that it plans to cancel 3.78 million treasury shares (representing 15% of outstanding shares) on 29 November.
• The company currently has 5.84 million outstanding shares. Thus, the share cancellation of 3.78 million shares represent 65% of its treasury shares. 
• The company is facing an investigation due to suspicions that it conducted a loan transaction with its largest shareholder, the Jung-Hun Foundation, without board approval.

• CiDi Inc (CIDI HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC, China Securities and Ping An.
• It is a leading provider of autonomous driving technology for commercial vehicles in China.
• It focuses on research and development of autonomous mining and logistics trucks, V2X technologies and high-performance perception solutions.

• MNC Solution (MNC KS) MNC Solutions is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In this note, we look at the firm’s past performance.

• Trex Company, Inc. recently reported its third quarter 2024 earnings.
• The company reported net sales of $234 million, reflecting a decline of 23% from the previous year primarily due to a $70 million reduction in channel inventory.
• Despite this, Trex noted robust consumer demand for its premium products like Trex Transcend Lineage and Signature decking and railing, although sales of lower-priced products were more restrained.

• RaaS is initiating coverage of engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) with a DCF-based valuation of $0.40/share, representing potential capital upside of 196% on the current share price.
• FY24 was a turnaround year for Verbrec under new management with a clear strategy of carving out costs, improving operating and risk management disciplines, selling under-performing businesses and finalising legacy projects.
• The business is now recapitalised, profitable, cash generative and, in our opinion, poised for further growth with a favourable macro environment in both VBC’s traditional engineering projects and particularly its areas of sustainable focus, led by the energy transition that is underway in Australia.

Braemar’s H125 results were in line with expectations, with modest revenue growth and some operational gearing evident in operating profit. The underlying activities continue to expand and diversify and Braemar remains well-positioned to drive its growth strategy. The trading outlook for FY25 is promising and we expect the company to be able to leverage its strong balance sheet in pursuit of strategic growth in a fragmented market. We maintain our underlying revenue and operating profit estimates for FY25 and FY26, as well as our 535p valuation, although EPS is affected by a reassessment of the number of shares in issue. Estimated end-FY25 net cash improves to £2.5m from a more modest net cash position.

• Crane Company recently presented its third-quarter 2024 financial results, showcasing several key highlights and challenges.
• The company’s performance this quarter was marked by a solid increase in both core sales and earnings per share, despite encountering multiple operational disruptions.
• Firstly, Crane demonstrated robust financial performance by exceeding expectations, with adjusted earnings per share (EPS) rising to $1.38.

• Cumulative Q3 FY12/24 revenue rose 7.3% YoY, driven by Environmental Equipment, Household Equipment, and Renewable Energy segments.
• Operating profit increased 88.0% YoY to JPY677mn, supported by price hikes and strong segment performances.
• Overseas revenue grew due to demand in India and Sri Lanka, with large government projects boosting growth.