In today’s briefing:
- Doosan Robotics (454910 KS): Listing & Index Inclusion Timeline
- Cainiao Pre-IPO – The Postivies – Evolving into a Global Player, Decent Revenue Growth
- Cainiao Smart Logistics IPO: Lacks Viability as a Standalone Business
- Updated TOPIX Selldown and Index Flows This Week – Initial TOPIX Selldown of Toshiba NEXT Month
- Nihon M&A: Not Many Catalysts to Move the Stock Price Up
- Jacobs Solutions Inc.: What the Healthy Pipeline Means for Future Growth! – Major Drivers
- NOW, Inc. – Leveraging Existing Model to Supply Energy Evolution
- TransDigm Group Incorporated: How Domestic Travel & Defense Are Fueling Stellar Growth! – Major Drivers
- MillerKnoll, Inc. – 1QFY24 Beats Estimates on Gross Margin; Hikes Guidance
Doosan Robotics (454910 KS): Listing & Index Inclusion Timeline
- Doosan Robotics (454910 KS) is principally engaged in the manufacture and sale of industrial robots.
- Doosan Robotics has raised KRW 421bn (US$311m) in its IPO, valuing the company at KRW 1,685bn (US$1.245bn). Float at listing will vary from 6%-21% depending on index provider.
- Inclusion in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) and other global indices will take place between Feb (possibly May) and June next year.
Cainiao Pre-IPO – The Postivies – Evolving into a Global Player, Decent Revenue Growth
- Cainiao Smart Logistics , Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
- Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
- In this note, we talk about the positive aspects of the deal.
Cainiao Smart Logistics IPO: Lacks Viability as a Standalone Business
- Alibaba (ADR) (BABA US)‘s logistics arm, Cainiao Smart Logistics (1437124D HK), filed for an IPO with HKEX yesterday, aiming to raise $1bn to $2bn.
- Although efficient, Cainiao may face business challenges, as the majority of logistics costs and revenues stem from services outsourced to logistics partners.
- Despite the proposed IPO, we believe that Cainiao will always operate in the shadow of Alibaba’s primary e-commerce business.
Updated TOPIX Selldown and Index Flows This Week – Initial TOPIX Selldown of Toshiba NEXT Month
- Last week on 20 Sep I published Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule and Sunday, The Biggish Sep 2023 “Wednesday-Thursday Trade” With Added Monday/Friday Flavour.
- They were based on an expectation the TSE would announce the initial selldown for Sep-end as they normally would. Unbeknownst to me, on 22 Sep they announced end-Oct.
- The initial TOPIX selldown is 30 Oct, not 28 Sep. This affects expected reverse funding today.
Nihon M&A: Not Many Catalysts to Move the Stock Price Up
- Nihon M&A Center’s share price has dropped more than 50% YTD despite several news media outlets reporting that there has been a surge in M&A activity among Japanese companies.
- At the same time, the Japanese government also issued new guidelines to promote more M&A activities in the nation to boost competitiveness.
- The no. of M&A transactions for the company has continued to grow however, value per transaction has been on a declining trend suggesting these deals are smaller in size.
Jacobs Solutions Inc.: What the Healthy Pipeline Means for Future Growth! – Major Drivers
- Jacobs Solutions delivered a decent set of quarterly results, marked by substantial gross and adjusted net revenue growth, well above Wall Street expectations.
- Gross income increased, with adjusted net income growing year-over-year.
- Notably, the company’s gross margin slightly decreased, primarily due to factors related to PA Consulting.
NOW, Inc. – Leveraging Existing Model to Supply Energy Evolution
We hosted a fireside chat with DNOW on September 12, 2023.
We were joined by President and Chief Executive Officer David Cherechinsky and Vice President Digital Strategy and Investor Relations Brad Wise.
DNOW’s transformed fulfillment model is driving sustainable earnings traction as the company increases its market share.
TransDigm Group Incorporated: How Domestic Travel & Defense Are Fueling Stellar Growth! – Major Drivers
- TransDigm Group Incorporated delivered a solid result and managed an all-around beat in the last quarter, particularly in the commercial market segment, which accounts for a significant portion of its revenue.
- Commercial OEM revenue increased by approximately 25%, reflecting strong production rates and airline demand for new aircraft.
- With a positive outlook for air travel recovery and solid defense market growth, TransDigm remains well-positioned to navigate industry dynamics.
MillerKnoll, Inc. – 1QFY24 Beats Estimates on Gross Margin; Hikes Guidance
After market close on September 26, MillerKnoll reported 1QFY24, beating estimates on significantly above-forecasted gross margin and modestly better-than-estimated sales.
Our tabular analysis compares its 1QFY24 results with 1QFY23 and our 1QFY24 estimates.
The beat notwithstanding, MillerKnoll’s results were below 1QFY23, which benefited from ~$77 million in sales due to a 14th week.
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