In today’s briefing:
- Daehan Shipbuilding Pre-IPO: Discount to Peers but Some Things to Take Note Of
- Asian Terminals Inc (ATI PM): Steady And Cheap Container Port Terminal Operator
- Ralliant Spin-off Deep Dive
- Weekly Update (IGT/BRSL, FTV, RAL)
- Riverstone (RSTON SP): An Unexpected AI Beneficiary at 10x Next-Year P/E and 8% Dividend Yield
Daehan Shipbuilding Pre-IPO: Discount to Peers but Some Things to Take Note Of
- Daehan Shipbuilding (439260 KS) is looking to raise up to US$370m in its upcoming Korean IPO.
- It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Asian Terminals Inc (ATI PM): Steady And Cheap Container Port Terminal Operator
- Asian Terminals (ATI PM) is a steady container port terminal operator, trading at 8.4x PE for FY25e, based on our numbers, and net cash (~10% of the market cap).
- With the recent approval of a two-phase 16% tariff hike at the Batangas Container Terminal, we see scope for the company to increase its earnings in FY25 and FY26.
- We also anticipate multiple years of growth (~20% ROCE) as the company embarks on a 4.2 billion peso expansion, and growth from the South Harbor/Manila is expected to be consistent.
Ralliant Spin-off Deep Dive
Fortive (FTV) spun off Ralliant (RAL) on Monday June 30, 2025. Shareholders received a share of RAL for 3 shares of FTV owned.
Ralliant generated $2.2B of revenue in 2024.
Key segments: 56% of sales in Sensors & Safety (power‑grid monitors, defense, critical-environment sensors) and 44% in Test & Measurement (electronic instrumentation, systems, software).
Weekly Update (IGT/BRSL, FTV, RAL)
- Fortive (FTV) spun off 1 share of Ralliant (RAL) for each 3 shares owned.
- As such, Ralliant has 113MM shares outstanding and a market cap of $5.1BN and enterprise value of $6.1BN.
- The rationale for the spin-off is to separate the “BadCo” (Ralliant) from the “GoodCo” (Fortive RemainCo).
Riverstone (RSTON SP): An Unexpected AI Beneficiary at 10x Next-Year P/E and 8% Dividend Yield
Riverstone’s (RSTON SP — US$779 million) CEO recently bought 1 million shares on the open market.
That caught my attention. Insider buying after a decline in the share price is usually a positive sign.
I also knew that Riverstone had been one of the best-performing stocks on the Singapore Stock Exchange, compounding earnings per share at a +15% annual rate since its IPO in 2006.
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