Daily Briefs

UBTech Robotics (9880 HK) is looking to raise about US$168m in its upcoming HK IPO, after downsizing from an earlier reported float of up to US$700m.
UBTech Robotics is engaged in artificial intelligence (AI)-empowered robotics in China, dedicated to the innovation of humanoid robots and development and sales of smart service robotic solutions.
In our previous note, we looked at the company’s performance and its PHIP updates. In this note, we share our quick thoughts on valuation.

Emcure Pharmaceuticals Pre-IPO: IPO Size Trimmed; Domestic Revenue Growth Decelerated

By Tina Banerjee

Emcure Pharmaceuticals has re-submitted DRHP to the SEBI for the second time. The IPO consists of a fresh issue of INR8 billion and an offer-for-sale of up to ~14M shares.
In the re-submitted DRHP, the company has trimmed the sizes of both the fresh issue and OFS. Emcure originally planned to launch IPO its in 2022.
Emcure has added latest financial performances in re-filed DRHP. During H1FY24, revenue from India increased only 3% YoY to INR16.4M, due to lower sales of anti-viral HIV products.

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Dec 22

Daily Brief Event-Driven: Dai-Ichi Life “Decides” Tender Offer Price and Buyback Price at ¥2 and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Dai-Ichi Life “Decides” Tender Offer Price and Buyback Price at ¥2,123 and ¥1,491/Share
Benefit One (2412 JP): Dai-Ichi Life’s Tender Offer at JPY2,123
StubWorld: Hanwha Corp Is “Cheap”
KOSDAQ150 Adhoc Index Rebalance: TEMC Added; Short Covering Expected in PoscoDX
Buy Pasona As Dai-Ichi Life Amends Benefit One’s Tender Offer & Buyback Price
HLB: Approves to Switch Listing from KOSDAQ to KOSPI in an Extraordinary General Meeting
SEPI/Telefonica: Acquisition of a 10% Stake

Dai-Ichi Life “Decides” Tender Offer Price and Buyback Price at ¥2,123 and ¥1,491/Share

Today, Dai Ichi Life Insurance (8750 JP) came out with a cover letter and an amended Announcement of Intention to Commence a Tender Offer on Benefit One Inc (2412 JP).
The cover letter says they have obtained information from Pasona Group (2168 JP) and Benefit One allowing them to calculate a Tender Offer of ¥2,123/share for minorities, and buyback at ¥1,491/share.
Now we wait. Again. Dai-Ichi Life “intends” to start a tender in mid-Jan 2024 (19 Jan likely earliest start possible) but it is not clear timing will come that early.

Benefit One (2412 JP): Dai-Ichi Life’s Tender Offer at JPY2,123

By Arun George

Dai Ichi Life Insurance (8750 JP)‘s pre-conditional tender offer for Benefit One Inc (2412 JP) is JPY2,123 per share, a 32.7% premium to M3 Inc (2413 JP)’s offer.
The other terms are unchanged. The pre-conditions relate to board recommendation, Pasona Group (2168 JP) support, and the M3 offer not being completed. The tender offer starts in mid-January 2024.
While M3 has extended its offer period to 17 January 2024, it will unlikely engage in a bidding war. Expect the Board and Pasona to support the Dai-ichi Life proposal.

StubWorld: Hanwha Corp Is “Cheap”

By David Blennerhassett

A double dose of StubWorld this week as Hanwha Corporation (000880 KS) comes up “cheap” on my monitor.
Preceding my comments on Hanwha 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%.

KOSDAQ150 Adhoc Index Rebalance: TEMC Added; Short Covering Expected in PoscoDX

By Brian Freitas

Posco DX (022100 KS) will move from the KOSDAQ Market to the KOSPI Market on 2 January. That means KOSDAQ150 Index (KOSDQ150 INDEX) deletion at the close on 28 December.
In line with our forecast, Temc (425040 KS) will be added to the KOSDAQ 150 Index (KOSDQ150 INDEX) as a replacement.
Short interest increased in Posco DX (022100 KS) following its inclusion in a global index and there should continue to be unwinding over the next week.

Buy Pasona As Dai-Ichi Life Amends Benefit One’s Tender Offer & Buyback Price

By David Blennerhassett

Earlier this month, Dai Ichi Life (8750 JP) countered M3 with an unsolicited ¥1,800/share Offer of Equity Value TOB; followed by a Benefit One buyback to mop up Pasona‘s stake.
Dai-Ichi has now amended the TOB Price for minorities in Benefit One to ¥2,123/share, and the tax-equivalent price of ¥1,800/share for Pasona would be ¥1,491 on the Buyback Tender, post-squeezeout.
That price appears a bit higher for Pasona than expected, and therefore a bit lower for Benefit One minorities. Terms can still be bumped.

HLB: Approves to Switch Listing from KOSDAQ to KOSPI in an Extraordinary General Meeting

By Douglas Kim

HLB Inc (028300 KS) announced that it has decided to transfer listing from KOSDAQ exchange to KOSPI exchange.
HLB currently has a market cap of 6.5 trillion won and HLB is likely to be included in KOSPI 200 in 2024.
One of the key reasons why the company has a large market cap is due to its Rivoceranib liver cancer drug which is being reviewed by the U.S. FDA.

SEPI/Telefonica: Acquisition of a 10% Stake

By Jesus Rodriguez Aguilar

The Spanish Cabinet has agreed on the acquisition of up to 10% of the share capital of Telefonica SA (TEF SM) (c.€2.2 billion), higher than the 5% initially mentioned.
This should move the market as it represents 48 trading days. This also means that the Government will likely authorise the purchase of up to 9.9% by STC.
The Kingdom of Spain 10-y benchmark bond yield is 2.9%, while the 24e dividend yield of Telefonica is 8% (source: IBES), therefore the operation makes financial sense.

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Dec 22

Daily Brief Credit: Weekly Wrap – 21 Dec 2023 and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Weekly Wrap – 21 Dec 2023

Weekly Wrap – 21 Dec 2023

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

and more…

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Dec 22

Daily Brief Equity Bottom-Up: Alibaba’s Eddie Wu and more

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

In today’s briefing:

Alibaba’s Eddie Wu, Strategic Leader or Ma’s Partner?
Plover Bay (1523 HK): Interesting Net Cash /8% Dividend Yield Play/ With ROEs Above 50%
Sumber Alfaria Trijaya (AMRT IJ) – Rationalising the Lawson Buildout
Intel’s AI Everywhere In New York
Edelweiss: Hitting All the Right Notes to Scale Up Businesses and Unlock Value
COSCO Shipping Energy (1138 HK): Time for Another Look
AOT Vs MAHB: Part Deux
2Q Follow-Up – Japan System Techniques (4323 JP)
Carnival Corp’s Per Passenger Revenue
MillerKnoll, Inc. – 2QFY24 Results Deliver Strong Margins; Orders Challenged

Alibaba’s Eddie Wu, Strategic Leader or Ma’s Partner?

By Oshadhi Kumarasiri

In the latest wave of management changes, Eddie Wu, Jack Ma’s trusted associate has staged a comeback, securing pivotal roles.
We believe this is not a mere coincidence. Jack Ma seems to be orchestrating moves from behind the scenes, with Eddie Wu strategically positioned to represent his influence.
The Chinese government’s reaction to Jack Ma’s increased involvement may impact Alibaba Group Holding (9988 HK)‘s price performance in the short term.

Plover Bay (1523 HK): Interesting Net Cash /8% Dividend Yield Play/ With ROEs Above 50%

By Sameer Taneja

Plover Bay Technologies (1523 HK) is another exciting play from the stable of net cash (12% of market cap) and high dividend yield (8% FY22) companies.
The company develops networking technologies that enable supercharged connectivity. Users can build always-on networks anywhere by combining fixed, mobile, and satellite connectivity. Its major brands are Peplink and Pepwave.
Plover Bay is a high net margin (25%) and high ROE (>50%) business that has 9-10% CAGR revenue growth (trading at 11x PE) with catalysts up ahead.

Sumber Alfaria Trijaya (AMRT IJ) – Rationalising the Lawson Buildout

By Angus Mackintosh

Sumber Alfaria Trijaya has decided to pare back the velocity of the expansion of Lawson convenience stores as it consolidates its leading position and maximises efficiencies.
4Q2023 saw slower growth in November but December should be stronger, whilst its store expansion for 2023 reached 1,700 new stores, with plans for around 1,300 new stores in 2024.
Sumber Alfaria Trijaya remains the best way to play the minimarket space in Indonesia. 4Q 2023 numbers should provide a positive catalyst given it is the seasonally high quarter.

Intel’s AI Everywhere In New York

By William Keating

Intel’s “AI Everywhere” event turned out to be little more than last minute launches client and server products promised for 2023
While these products have little new in the way of ground-breaking AI hardware, the entire event was infused with AI marketing to the highest degree
Ostensibly Intel’s great hope in AI hardware acceleration, Gaudi, featured solely as a last minute gimmick announcing that Gaudi3 was “out of the fab and into the lab”. Yawn!

Edelweiss: Hitting All the Right Notes to Scale Up Businesses and Unlock Value

By Ankit Agrawal, CFA

Edelweiss reported a decent Q2FY24 with ex-Insurance PAT of INR 153cr vs INR 133cr YoY. All the businesses – ARC, Asset Management and Credit – performed well.
Edelweiss is making decent progress in the Credit business aided by the co-lending business model. 80% of disbursals in NBFC and 30% in Housing Finance in Q2FY24 were through co-lending.
Edelweiss is in process of selling a minority stake in its Alternative Asset Management business for value unlocking. It plans to sell 10-20% equity stake for INR 1500-2000cr.

COSCO Shipping Energy (1138 HK): Time for Another Look

By Osbert Tang, CFA

The 20% retreat in the share price of Cosco Shipping Energy Transportation (1138 HK) from the peak has well reflected the plunge in 3Q23 VLCC rates and 10% earnings downgrade.
4Q23 VLCC rates have rebounded 78.4% QoQ. Re-routing due to recent Houthi attacks on commercial ships at the Red Sea has reduced effective supply and is positive to rates.
Heightened energy security needs will drive demand. The medium-term supply pressure is mild as the VLCC orderbook equals just 2% of the existing fleet, fueling ROE for FY23-25F.

AOT Vs MAHB: Part Deux

By Henry Soediarko

Airports of Thailand (AOT TB) 6m24 revenue growth rates are healthy, supported by the growth in departure passenger service charges and the coming back of concession revenues.
AOT labor expenses have expanded at an unprecedented level, even higher than pre-COVID levels, while Malaysia Airports Holdings (MAHB MK) kept them under control.
Book profit on half of the exposure and wait for the next quarter to see if AOT labor expenses will stay high.

2Q Follow-Up – Japan System Techniques (4323 JP)

By Sessa Investment Research

Fully independent DX provider: Japan System Techniques (JAST) is an independent system integrator that develops and sells software and systems, which celebrated its 50th anniversary.
The company develops systems for customers in a variety of industries and sectors, including finance, manufacturing, distribution, services, public services, telecommunications, transportation, and science and technology.
Furthermore, as a developer, the company has three main JAST-branded software offerings for its customers, namely GAKUEN for the education industry, BankNeo for the financial industry, and JMICS (JAST Medical Insurance Checking System) for the medical industry and the profitability of these own-brand businesses is very high.

Carnival Corp’s Per Passenger Revenue

By Calcbench

Lots of financial analysts and other Calcbench users might be wishing they could sail away on a tropical cruise as we enter the holiday slow season, so perhaps it’s a good time to visit Carnival Corp. ($CCL) and the company’s latest financial performance.
Carnival filed its latest quarterly (and fiscal year-end) earnings release on Thursday, and top-line numbers looked pretty good for a company still recovering from the pandemic’s apocalyptic effects four years ago.
Quarterly revenue jumped 40.6 percent from the year-ago period, to $5.4 billion; annual revenue soared 77.5 percent to $21.6 billion.

MillerKnoll, Inc. – 2QFY24 Results Deliver Strong Margins; Orders Challenged

After market close on December 20, MillerKnoll reported 2QFY24 adjusted EPS of $0.59, ahead of our estimate of $0.55 and the consensus mean of $0.54.
Margins were better than expected, while revenue of $949.5 million came in at the low end of guidance.
Sales in the Americas segment disappointed relative to our expectations.

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Dec 22

Daily Brief Macro: Mint Macro Roundup: BoJ Maintains Loose Policy Yet Yen Remains Strong and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Mint Macro Roundup: BoJ Maintains Loose Policy Yet Yen Remains Strong
Sentiment Nugget: Central Bank Divergence Into Year-End
The Weekly Market Monitor – Bye-Bye OPEC, Hello Liquidity, and Welcome Back Earnings!
EIA Watch: Is OPEC falling apart? 2024 outlook

Mint Macro Roundup: BoJ Maintains Loose Policy Yet Yen Remains Strong

By Pranay Yadav

BoJ stuck to its ultra-loose monetary policy at its policy meeting on 19/Dec. It continues to maintain an extremely dovish stance to encourage economic growth.
Governor Ueda stated that the prospects of inflation declining sustainably to target and wages rising and propping up demand remain high.
Yen initially weakened following continued easing however it has recovered losses and stands 1.7% stronger than its level before Fed’s dovish stance on 13/Dec.

Sentiment Nugget: Central Bank Divergence Into Year-End

By Andreas Steno

Into year-end we have noted a number of key shifts in what Central Bank language is actually telling us from a quantitative point of view.
We regularly track and update our measure of positivity/negativity of Bank language contained in statements, outlooks and speeches on a scale of -1 to +1 in our DataHub for premium subscribers.
There you can access full histories and dig deeper into the underlying drivers.

The Weekly Market Monitor – Bye-Bye OPEC, Hello Liquidity, and Welcome Back Earnings!

By Jeroen Blokland

After the latest data, our earnings bellwether is back to zero, suggesting company earnings may be off the hook for big declines. That would be different this time.
Our Fair Value estimate of the 10-year US Treasury is dropping like a stone, yet the gap with the actual yield remains strikingly large. ‘term premium aficionados’ are likely wrong.
We look at a bunch of US housing and consumer data and must conclude that the odds of an imminent recession are shrinking.

EIA Watch: Is OPEC falling apart? 2024 outlook

By Ulrik Simmelholt

Welcome to this year’s final EIA watch with a 2024 outlook plus your weekly updates from our EIA models.
Before we start, we have some breaking news coming out of OPEC.
Jornal de Angola reports that Angola will exit OPEC and we see this as the first cracks starting to show within the cartel.

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Dec 21

Daily Brief TMT/Internet: LG Display, Whispir Ltd, SiteMinder, Nexchip Semiconductor , Tencent, Viva Republica, Micron Technology and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering
Whispir (WSP AU): Soprano & Pendula Jostle for Control
Quiddity Leaderboard ASX Mar 24: Allkem, Newmont, Costa, and Many More
STAR50 Index Rebalance Preview: Four High Impact Changes in March
[Blue Lotus Sector Update]: Latest Developments in Short Video Point to Possibilities
Key Beneficiaries of a Potential Viva Republica IPO in 2024
The First Semi Micron to Guide 1Q24; Conservative Now but Likely Raise Later

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

By Sanghyun Park

Unlike typical Korean stock rights arbitrage, LG Display’s significant equity offering and active stock futures trading anticipate a spread opening, akin to the recent Hanwha Ocean scenario.
In contrast to Hanwha Ocean, the absence of major sellers, like KDB, sets this event apart. LG Electronics, the major shareholder with a 37.9% stake, intends to participate.
Despite differences from Hanwha Ocean, LG Display’s high retail shareholder presence implies a substantial likelihood of stock rights overhang, even without players like KDB.

Whispir (WSP AU): Soprano & Pendula Jostle for Control

By David Blennerhassett

On the 6 November, cloud communication outfit Whispir (WSP AU) announced a A$0.46/share unconditional Offer, in cash, from mobile messaging software play Soprano Design.
The Offer price was a 92% premium to Whispir’s recent private placement, and a 60% premium to the undisturbed price. Whispir rejected the Offer.
Pendula subsequently emerged with a A$0.57/share NBIO. Soprano “countered” with A$0.52/share. Pendula upped its indicative Offer to A$0.60/share. An independent expert’s fair value is between A$0.486/share-A$0.565/share.

Quiddity Leaderboard ASX Mar 24: Allkem, Newmont, Costa, and Many More

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2024 index review.
I expect one change for ASX 20, one change for ASX 100, and four changes for ASX 200 during the March 2024 index rebal event.
Separately, there could also be one intra-review change for ASX 200 in February 2024.

STAR50 Index Rebalance Preview: Four High Impact Changes in March

By Brian Freitas

The review period for the March rebalance ends 31 January. We expect the changes to be announced 23 February with the implementation taking place after the close on 8 March.
We expect the index committee to continue using a 6-month minimum listing history resulting in four changes to the index.
One way turnover is estimated at 3.3% resulting in a one-way trade of CNY 4,717m. The impact on the deletions will be much larger than that on the inclusions.

[Blue Lotus Sector Update]: Latest Developments in Short Video Point to Possibilities

By Ying Pan

We view both Weixin Video Account (WVA) and Douyin China as secondary assets to their respective parents, which in our view, may lead to them forming…(TBC)
However, rising competition in the short-play (短剧) market may put the two businesses in more direct confrontation, which may delay or diminish the chance for two to work together;
We view Tencent as the likely winner in the continuing evolution of short video as it considers various options to maximize the value of WVA traffic.

Key Beneficiaries of a Potential Viva Republica IPO in 2024

By Douglas Kim

It was reported in numerous local media that Viva Republica has sent several RFPs to several large domestic securities companies to be underwriters of a potential IPO in 2024.
Viva Republica is one of the largest Korean fintech companies. Market value of Viva Republica is estimated at more than 9 trillion won.
E World, Hanwha Securities, Hana Financial, and Korea Electronic Certification Co are major public companies that should benefit from the listing of Viva Republica.

The First Semi Micron to Guide 1Q24; Conservative Now but Likely Raise Later

By Andrew Lu

Driven by stronger PC/networking DRAM sales, Micron reports 5% stronger 4Q23 sales, 10-13ppts q/q margin improvement and 34% y/y decline in MOI to 5.2 months;
Micron guides 1Q24 sales growth 8-16% q/q and 38-49% y/y and gross margin of 12%, beating Bloomberg consensus estimates by 6ppts;
Rooms to raise: 1. 1Q24 sales of 18% q/q likely; 2. Turning profits sooner than expected; 3. +Free cash flow in 2024; 4. HBM3E for GH200/H200 to improve mix, margin.

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Dec 21

Daily Brief Energy/Materials: Livent, United States Steel, Vedanta Resources, Pan American Silver and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Allkem+Livent=Arcadium : Expected Index Flows
Nippon Steel/United States Steel Corp: Knock-Out Offer
Vedanta Resources – Event Flash – Liability Management Exercise – Lucror Analytics
Pan American Silver – Skarn PEA confirms its early potential

Allkem+Livent=Arcadium : Expected Index Flows

Yesterday during the day, Allkem Ltd (AKE AU) shareholders approved the Scheme and Livent (LTHM US) shareholders approved the merger. The deal is done. Allkem last trades 21 Dec.
NEWCO starts trading 4 January in the US but the Arcadium Lithium CDIs start trading 22 Dec in Australia. S&P/ASX announced they will replace Allkem in the ASX200.
But I have been asked for a breakdown of flows and timing again, so I have put it into a handy table which I hope makes it less confusing.

Nippon Steel/United States Steel Corp: Knock-Out Offer

By Jesus Rodriguez Aguilar

Nippon Steel Corporation (5401 JP) and United States Steel (X US) have agreed an all-cash $55.00/share offer, 142% premium to where X traded before Cliff’s approach, a very generous 7x EV/24e EBITDA.
A determined buyer seeks market share in the lucrative US market, with no meaningful synergies expected and willingness to keep all US Steel jobs and (greener) growth projects.
Although unions and some lawmakers are voicing concerns, CFIUS shouldn’t pose a big hurdle. Spread is 12.04%/17.93% (gross/annualised, assuming late settlement by end of Q3 2024). Long.

Vedanta Resources – Event Flash – Liability Management Exercise – Lucror Analytics

By Trung Nguyen

Vedanta Resources (VRL) has launched a consent solicitation for an extensive liability management exercise. The company is seeking consent from noteholders of its four bonds to extend the maturities of three of the bonds (the January 2024, August 2024 and 2025 notes) to 2027-2028. There will be no haircut on the principal, and the coupon for the August 2024 notes and 2025 notes will be increased to match that of the January 2024 notes.

In our opinion, the terms of the proposal are mixed and the timeline is very tight. Failure to receive the requisite consent may lead to the company defaulting on the January 2024 notes. The new financing cannot be used to repay the January 2024 notes if the liability management exercise does not go through. In this case, there would be no time for VRL to come up with a revised proposal before the maturity of the January 2024 notes.

We acknowledge the company’s efforts in terms of the improved security packages and higher coupons. We recommend that noteholders accept the proposal and provide consent.

Pan American Silver – Skarn PEA confirms its early potential

By Edison Investment Research

Pan American Silver (PAAS) released a preliminary economic assessment (PEA) of the La Colorada Skarn project, confirming its potential to become a large-scale operation producing an average 17.2Moz of silver per annum over the first 10 years of its 17-year mine life. At a base case throughput rate of 50ktpd, the company estimates the project’s post-tax NPV8 at US$1.1bn, with an IRR of 14% and a payback period of 4.3 years. We intend to update our valuation shortly to incorporate the PEA and the prevailing stronger than expected gold and silver prices.

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Dec 21

Daily Brief Industrials: Toyo Construction, Singapore Airlines, INOX India Limited, MillerKnoll, Amaero International Ltd, Steelcase Inc Cl A, Chargeurs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Toyo Construction (1890) – Everyone Hits Pause
Singapore Airlines (SIA SP | BUY | SGD: 8.07): Nov’ 2023 Op Stats, More Reason to Be Bullish
Inox India IPO Trading – Hot Demand for Cryogenics
MillerKnoll, Inc. – 2QFY24 Earnings After Close
Amaero International Ltd – Several Milestones Tracking Ahead of Schedule
Steelcase, Inc. – 3QFY24 Earnings: Margins Drive EPS Upside
Steelcase, Inc. – Tweaking Estimates: Margins Improve, Sales Moderate
Chargeurs Tender Offer

Toyo Construction (1890) – Everyone Hits Pause

In September, YFO (Yamauchi Family Office) upped its Tender Offer proposal to ¥1,255/share. YFO presented. The Toyo Special Committee met, interviewed, examined, deliberated, then last week rejected YFO’s proposal.
The rejection was a three-parter. First, they rejected YFO for not bringing management/ownership experience. Second, they said the proposal didn’t add enough value. Third, the price was too low.
There were no metrics against which to measure anything. And now Toyo has apparently decided to withdraw its Tender Offer Proposal.

Singapore Airlines (SIA SP | BUY | SGD: 8.07): Nov’ 2023 Op Stats, More Reason to Be Bullish

By Mohshin Aziz

Singapore Airlines (SIA SP) (SIA) November operating statistics were good, passenger load factor rose by 1.9ppt YoY to 87.8%, and cargo load factor rose by a similar quantum
Market observations suggest yields should remain at high levels and cost items such as fuel and USD-denominated items on a favorable downtrend
If this performance continues, SIA will beat consensus easily. We recommend BUY with a TP of SGD8.07 – pegged to 10x FY24 PE. (+26% UPSIDE)

Inox India IPO Trading – Hot Demand for Cryogenics

INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on 21st Dec 2023.
Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

MillerKnoll, Inc. – 2QFY24 Earnings After Close

By Research as a Service (RaaS)

MillerKnoll reports 2QFY24 earnings after market close on Wednesday, December 20, and will host its management conference call at 5:00 pm ET.
WTR is modeling EPS of $0.55, the midpoint of guidance, on revenue of $987 million. Consensus is $0.54, with an estimate range of $0.52-0.56.
Order trends. We are modeling orders in the Americas at +13.9% versus a poor year-ago quarter of -17.3%.

Amaero International Ltd – Several Milestones Tracking Ahead of Schedule

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
The company is developing a 1,000+-tonne-a-year critical metals alloy powder manufacturing facility in Tennessee, USA with its initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry.
On December 19, the company provided an update to investors on its progress to date this month with several milestones tracking ahead of schedule.

Steelcase, Inc. – 3QFY24 Earnings: Margins Drive EPS Upside

After Tuesday’s close, Steelcase reported 3QFY24 adjusted EPS of $0.30, ahead of our $0.25 estimate and consensus of $0.23.
Revenue came in lighter than expected at $778 million versus our $804 million estimate and consensus of $796 million.
Steelcase delivered another quarter of gross margin improvement at 32.4%, up 370 bps versus 3QFY23, and 46 bps above our estimate.

Steelcase, Inc. – Tweaking Estimates: Margins Improve, Sales Moderate

This note revises our estimates for Steelcase following its 3QFY24 earnings call.
In short, for 4QFY24, we up our margin assumption, moderate our revenue assumption slightly, and shave our adjusted EPS estimate by $0.01.
Steelcase reported strong margins and steady orders in the 3QFY24 on Tuesday evening.

Chargeurs Tender Offer

By European Stock Picks

CEO Michaël Fribourg, who controls almost 30% of the company through Colombus Holding, will launch a takeover bid for Chargeurs at €12 per share.
His aim is to achieve a majority stake while keeping the company listed.
The proposed price of €12 per share represents a premium of 36.2% to the wighted average share price over the last month and 50.5% over the last three months.

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Dec 21

Daily Brief Industrials: Toyo Construction, Singapore Airlines, INOX India Limited, MillerKnoll, Amaero International Ltd, Steelcase Inc Cl A, Chargeurs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Toyo Construction (1890) – Everyone Hits Pause
Singapore Airlines (SIA SP | BUY | SGD: 8.07): Nov’ 2023 Op Stats, More Reason to Be Bullish
Inox India IPO Trading – Hot Demand for Cryogenics
MillerKnoll, Inc. – 2QFY24 Earnings After Close
Amaero International Ltd – Several Milestones Tracking Ahead of Schedule
Steelcase, Inc. – 3QFY24 Earnings: Margins Drive EPS Upside
Steelcase, Inc. – Tweaking Estimates: Margins Improve, Sales Moderate
Chargeurs Tender Offer

Toyo Construction (1890) – Everyone Hits Pause

In September, YFO (Yamauchi Family Office) upped its Tender Offer proposal to ¥1,255/share. YFO presented. The Toyo Special Committee met, interviewed, examined, deliberated, then last week rejected YFO’s proposal.
The rejection was a three-parter. First, they rejected YFO for not bringing management/ownership experience. Second, they said the proposal didn’t add enough value. Third, the price was too low.
There were no metrics against which to measure anything. And now Toyo has apparently decided to withdraw its Tender Offer Proposal.

Singapore Airlines (SIA SP | BUY | SGD: 8.07): Nov’ 2023 Op Stats, More Reason to Be Bullish

By Mohshin Aziz

Singapore Airlines (SIA SP) (SIA) November operating statistics were good, passenger load factor rose by 1.9ppt YoY to 87.8%, and cargo load factor rose by a similar quantum
Market observations suggest yields should remain at high levels and cost items such as fuel and USD-denominated items on a favorable downtrend
If this performance continues, SIA will beat consensus easily. We recommend BUY with a TP of SGD8.07 – pegged to 10x FY24 PE. (+26% UPSIDE)

Inox India IPO Trading – Hot Demand for Cryogenics

INOX India Limited (INOX IN) raised around US$175m in its Indian IPO, after pricing the deal at INR660/share. It will begin trading tomorrow on 21st Dec 2023.
Inox India is a manufacturer of cryogenic equipment. As per CRISIL, the firm was the largest Indian exporter of cryogenic tanks in terms of FY23 sales.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about demand and trading dynamics.

MillerKnoll, Inc. – 2QFY24 Earnings After Close

By Research as a Service (RaaS)

MillerKnoll reports 2QFY24 earnings after market close on Wednesday, December 20, and will host its management conference call at 5:00 pm ET.
WTR is modeling EPS of $0.55, the midpoint of guidance, on revenue of $987 million. Consensus is $0.54, with an estimate range of $0.52-0.56.
Order trends. We are modeling orders in the Americas at +13.9% versus a poor year-ago quarter of -17.3%.

Amaero International Ltd – Several Milestones Tracking Ahead of Schedule

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
The company is developing a 1,000+-tonne-a-year critical metals alloy powder manufacturing facility in Tennessee, USA with its initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry.
On December 19, the company provided an update to investors on its progress to date this month with several milestones tracking ahead of schedule.

Steelcase, Inc. – 3QFY24 Earnings: Margins Drive EPS Upside

After Tuesday’s close, Steelcase reported 3QFY24 adjusted EPS of $0.30, ahead of our $0.25 estimate and consensus of $0.23.
Revenue came in lighter than expected at $778 million versus our $804 million estimate and consensus of $796 million.
Steelcase delivered another quarter of gross margin improvement at 32.4%, up 370 bps versus 3QFY23, and 46 bps above our estimate.

Steelcase, Inc. – Tweaking Estimates: Margins Improve, Sales Moderate

This note revises our estimates for Steelcase following its 3QFY24 earnings call.
In short, for 4QFY24, we up our margin assumption, moderate our revenue assumption slightly, and shave our adjusted EPS estimate by $0.01.
Steelcase reported strong margins and steady orders in the 3QFY24 on Tuesday evening.

Chargeurs Tender Offer

By European Stock Picks

CEO Michaël Fribourg, who controls almost 30% of the company through Colombus Holding, will launch a takeover bid for Chargeurs at €12 per share.
His aim is to achieve a majority stake while keeping the company listed.
The proposed price of €12 per share represents a premium of 36.2% to the wighted average share price over the last month and 50.5% over the last three months.

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Dec 21

Daily Brief Financials: Embassy Office Parks REIT, Philippine Stock Exchange, China South City and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed
Philippines Exchange (PSE PM): Updates from Q3/Q4, Catalysts Lining Up for Long-Term
Morning Views Asia: China South City

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed