In today’s briefing:
- Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook
- SBI Sumishin Net Bank IPO – It Was All Good, till Friday
- Sona Blw Precision Placement – US$585m Clean-Up Sale by Blackstone Will Lift the Overhang
- ZKH Group IPO: The Bull Case
- FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
- Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers
- CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers
- Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint
Japan Post Bank (7182 JP): JPY1,131 Offer Price; Updated Playbook
- Japan Post Bank (7182 JP) priced its offer at JPY1,131, a discount of 2.1% to the last close. JPB’s on-market buyback period runs from 22 March to 12 May.
- Japan Post Holdings (6178 JP)/ JPH’s 2021 offering suggests that the share price will have support to trade above the offer price at delivery date and the on-market buyback period.
- The offer price’s forward P/B of 0.45x and yield of 4.42% are attractive vs peers. JPB’s price ratio at the offer price is undemanding vs TOPIX Banks ETF and JPH.
SBI Sumishin Net Bank IPO – It Was All Good, till Friday
- SBI Sumishin Net Bank (7163 JP) (SSNB) is looking to raise around US$390m in its second listing attempt.
- SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
- In this note, we talk about implied valuations in the IPO price range
Sona Blw Precision Placement – US$585m Clean-Up Sale by Blackstone Will Lift the Overhang
- Singapore VII Topco III (Blackstone-affiliate) is looking to raise at least US$585m in its stake sale of Sona BLW Precision Forgings (SONACOMS IN) .
- The share sale is a clean-up one and will lift the overhang on the stock.
- The block is marketed at a floor price of INR400/share, at a 8.3% discount to last close.
ZKH Group IPO: The Bull Case
- ZKH Group (ZKH US), a leading MRO (maintenance, repair, and operations) procurement service platform in China, is pre-marketing an NYSE IPO to raise US$200-300 million.
- The ZKH platform is for enterprise customers and the GBB platform is for micro businesses. Key backers include Tencent (700 HK) and Tiger Global.
- The key elements of the bull case rest on large addressable markets, solid customer loyalty, improving gross margin, lower operating losses and a strong balance sheet.
FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on FMC Corporation, a major agricultural sciences company in the U.S.
- FMC achieved significant results in the quarter because of high volume growth and aggressive pricing and it managed to deliver an all-around beat.
- Its new product sales are growing quickly, nearly doubling year over year, accounting for 11% of overall sales in the quarter.
DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
- This is our first report on major healthcare provider, DaVita.
- DaVita produced an adjusted operating income of $317 million and adjusted profits per share from continuing operations of $1.11 for the fourth quarter, bringing the entire year squarely at the top of the revised target range it provided last quarter.
- During the previous quarter, the international adjusted operating income fell by $15 million.
Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers
- This is our first report on Parker-Hannifin Corporation, a global leader in motion and control technologies.
- Parker-Hannifin delivered strong operating performance throughout the second quarter of the current fiscal and delivered an all-around beat.
- We initiate coverage on the stock of Parker-Hannifin Corporation with a ‘Hold’ rating.
CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on one of the largest producers of nitrogen products in the world – CF Industries.
- CF’s overall performance was fairly good against the backdrop of a continually tight global supply-demand balance for nitrogen.
- We initiate coverage on the stock of CF Industries with an ‘Outperform’ rating.
Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers
- This is our first report on Centene Corporation, one of the largest health insurance players in the U.S.
- Centene had a successful year in 2022 and ended it on a positive note with an all-around beat.
- Total revenue grew by $3 billion, driven by strong organic growth in Medicaid, strong growth in Medicare membership, and the acquisition of Magellan.
Trial Holdings Pre-IPO – The Positives – Steady past Performance with an Expanding Footprint
- Trial Holdings (5882 JP)‘s is looking to raise around US$375m in its Japan IPO.
- TH operates a network of retail stores that offer one-stop shopping under its everyday low price model, across a variety of daily necessities, food items and other products.
- In this note, we will talk about the positive aspects of the deal.
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