In today’s briefing:
- Weekly Deals Digest (23 Feb) – JXAM, Canvest, CNBM, Tam Jai, Proto, Domain, Mayne, SG Fleet
- ECM Weekly (24th Feb 2025) – JX Advance, Mixue, Hexaware, Geekplus, Trualt, Goodman, Xtalpi, Hyundai
- Fortescue Metals Group (FMG AU): The Thrill Is Gone, And So Has The Dividend
- Antofagasta (ANTO LN): Good Set of Results, Capex Acceleration of >50%
Weekly Deals Digest (23 Feb) – JXAM, Canvest, CNBM, Tam Jai, Proto, Domain, Mayne, SG Fleet
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Mixue Group (MIX HK) and JX Advanced Metals (5016 JP) IPOs.
- Event-Driven developments: Canvest Environmental Protection Group (1381 HK), China National Building Material (3323 HK), Tam Jai International (2217 HK), Proto Corp (4298 JP), Domain Holdings Australia (DHG AU).
ECM Weekly (24th Feb 2025) – JX Advance, Mixue, Hexaware, Geekplus, Trualt, Goodman, Xtalpi, Hyundai
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, Mixue Group (MIX HK) and Chifeng Jilong Gold (600988 CH) might go live in the coming week, with JX Advanced Metals (5016 JP) following after.
- On the placements front, there were a few mega deals this week.
Fortescue Metals Group (FMG AU): The Thrill Is Gone, And So Has The Dividend
- Fortescue Metals (FMG AU) announced disappointing results, with revenues/profits down 16%/53% YoY, disappointing consensus slightly by 4-5%.
- Capex accelerated to 3.5-3.8 bn USD annually, vs the initial 3.2-3.5 USD. The company reduced its decarbonization capex to 400-500 mn USD from the initial >700 mn USD.
- Fortescue Metals (FMG AU) dividend payout ratio has reverted to its base level of 65%, yielding a modest 5.3% based on H1FY25’s 50-cent distribution.
Antofagasta (ANTO LN): Good Set of Results, Capex Acceleration of >50%
- Antofagasta PLC (ANTO LN) delivered robust 2024 results, showcasing an 11% EBITDA increase to $3.4 billion and significantly expanded margins to 52%, exceeding many industry peers.
- Antofagasta’s 2025 capital expenditure is projected to increase to $3.9 billion (from $2.4 billion in 2024), supporting production growth to 900,000 tons (vs current 660k tons) by 2029-30.
- Antofagasta’s valuation, at 27.2x P/E and 7.2x EV/EBITDA, appears elevated. Southern Copper (SCCO US), offering superior return on capital employed (ROCE), presents a more attractive investment profile.
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