In today’s briefing:
- Karoon Energy Placement – Not Well Flagged but Will Be an Accretive One
- Nippon Paint (4612 JP): Results Beat On Resilient China 2C Business
- EIA Watch: September Weakness Was Fake News. Time to Buy Oil?
Karoon Energy Placement – Not Well Flagged but Will Be an Accretive One
- Karoon Energy Ltd (KAR AU) seeks to raise approximately A$170m (US$110m) through its primary placement.
- The deal is a large one to digest at 28.5 days of three month ADV and 14.1% of current mcap.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Nippon Paint (4612 JP): Results Beat On Resilient China 2C Business
- Nippon Paint Holdings (4612 JP) announced a better-than-expected 3Q23 results this week, mainly driven by a resilient China decorative paint business.
- The company also raised 2023 operating profit guidance, expecting around 6% higher operating profit (Y168bn from Y158bn previously).
- At 21x forward PE, the company is attractively valued given the growth profile and strong market share position in most end-markets.
EIA Watch: September Weakness Was Fake News. Time to Buy Oil?
- Welcome back to our weekly EIA report, where we run through demand and supply data and give our cents on where we are heading next – and what the implications are for energy markets.
- As always we present the main conclusions up-front: 1) Oil demand will likely come in hot in November on the back of strong gasoline demand in October due to the lags in energy markets (Gasoline leads oil – not the other way around).
- 2) Gasoline numbers in September were likely just a data-glimpse, as no high-frequent data series seem to agree with the narrative that demand for fuel is dropping.
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