Daily Brief Energy/Materials: Lygend Resources & Technology, JSW Steel Ltd, Copper, Petroleo Brasileiro SA, Eni SpA and more

• Lygend Resources & Technology (LR HK) is looking to raise up to US$595m in its Hong Kong IPO.
• Lygend Resources & Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
• In this note, we will revisit our earnings assumptions and share our thoughts on valuation.

• Lygend Resources & Technology (2245 HK), a nickel play, has launched its IPO to raise up to US$595 million. 
• We previously discussed the IPO in Lygend Resources & Technology IPO: Riding the Wave. 
• In this note, we present our forecasts and look at valuation. Lygend is attractively valued at the IPO price range. We would participate.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• JSW Steel Ltd

• The Rabobank issued a research note last week where they forecasted that prices for agricultural commodities like coffee, feed grains and oilseeds could dip next year as many major economies enter recession, but also stated that they will remain high in historical terms.
• We think the general call is correct, but the timing isn’t. We already see this dip move playing out at the moment.
• Just take a look at coffee, cotton, oil, or copper. We believe this dip in the long-term cyclical bull market will end towards Q2 of 2022 before the rally in many commodity markets resumes again as demand strikes back.

• This is our first report on Brazilian energy major, Petrobras.
• The company had a disappointing quarter and failed to meet Wall Street expectations in terms of revenues as well as earnings.
• In terms of carbon capture, Petrobras has the largest carbon capture program that offshores the bored.

• This is our first report on Italian oil and gas major, Eni SpA.
• The company delivered an excellent result which was an all-around beat and made noteworthy strategic advances.
• Despite shortfall in the refining margins and lower crude oil prices, net income rose.