In today’s briefing:
- NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd
- Cainiao IPO: Index Inclusion Timeline
- J&T Global Express IPO: PHIP Updates
- J&T Global Express Pre-IPO, Part 5 | Analysis of H123 Performance | Updated EV Estimate US$9.1 Bn
- FuelCell Energy Inc.: New Commercial Development Initiatives Explained! – Major Drivers
- J&T Global Express Pre-IPO – PHIP Updates – Managed to Grow but Isn’t Sustainable Yet
- Cintas Corporation: Collaboration With Honda & Other Major Developments
NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd
- There should be two changes for the NIFTY Index (NIFTY INDEX) in March. That could increase to three, but that would take some big price moves from now to January.
- Impact on the potential changes is pretty large at over 6 days of ADV to trade from passive trackers. The impact is over 11 days of delivery volume.
- Inclusion of Avenue Supermarts Ltd (DMART IN) in the F&O segment before January could lead to another change.
Cainiao IPO: Index Inclusion Timeline
- Cainiao Smart Logistics (1437124D HK) has filed an application proof to list on the HKEX (388 HK) and could raise US$1bn at a valuation between US$15bn-20bn.
- Cainiao Smart Logistics (1437124D HK) could get Fast Entry to the HSCI and be included in Southbound Stock Connect once the price stabilisation period is complete.
- Inclusion in other indices will take longer with the highest probability of index inclusion in June. Earlier inclusion will depend on the IPO timing, size and allocation to strategic/cornerstone investors.
J&T Global Express IPO: PHIP Updates
- Global logistics and express delivery service provider J&T Express’ HKEx IPO application has been approved and this insight focuses on new data points from the PHIP filings.
- SEA segment’s GPM has further declined during 1H2023, however, gross losses of the other two segments have declined significantly resulting in GPM for the company.
- Our analysis suggests that with falling SEA margins, J&T Global Express (1936374D CH) may not be able to generate operating profits in the medium-term.
J&T Global Express Pre-IPO, Part 5 | Analysis of H123 Performance | Updated EV Estimate US$9.1 Bn
- In this insight we focus on J&T’s improved H123 performance in China and SE Asia
- How did the company achieve these gains? And do the improvements appear sustainable?
- We conclude with an updated estimate of J&T’s Enterprise Value: US$9.1 Bn
FuelCell Energy Inc.: New Commercial Development Initiatives Explained! – Major Drivers
- FuelCell Energy, Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.
- The company reported total revenues of $25.5 million for the quarter.
- The two latest module exchanges at the plant owned by Korea Southern Power Company and the module exchange at the plant at Trinity College were the main factors behind the increase in service agreement revenue for the third quarter of fiscal year 2023.
J&T Global Express Pre-IPO – PHIP Updates – Managed to Grow but Isn’t Sustainable Yet
- J&T Global Express, a global logistics service provider, is looking to raise about US$500m in its upcoming Hong Kong IPO.
- As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.
- We have looked at the company’s past performance in our earlier notes. In this note we will look at its PHIP updates.
Cintas Corporation: Collaboration With Honda & Other Major Developments
- Cintas Corporation managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company’s bottom line reaps the rewards of its robust volume and revenue growth.
- Besides, the Fire business generated $174.3 million in revenue, with a 14.2% organic revenue growth rate.
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