In today’s briefing:
- Doosan Robotics IPO: The Bull Case
- Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
- Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology
- Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked
- ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher
- BES: Mixed Q3 Financials; Long-Term Thesis Intact
Doosan Robotics IPO: The Bull Case
- Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
- The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
- The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.
Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
- Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In our previous notes, we talked about the company’s past performance. In this note, we undertake a peer comparison.
Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology
- Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
- The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
- A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.
Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked
- Poor 1H23 result at Shenzhen International (152 HK) should have been anticipated, and we believe there is good room for sharp earnings improvement in 2H23.
- Completion of logistics projects, more asset value realisation (through REIT and private equity funds), contribution from Yicheng Qiwanli and lower finance costs should underpin outlook.
- SZI is an asset play with significant upside and this is reflected in the undemanding 0.42x P/B. Against its historical average of 0.67x, such a level is almost -2SD below.
ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher
- Solid Q2 results from ZTO, with deep unit cost reductions offseting weak pricing
- But ultimately, Q2/H1 results are merely in-line with guidance — not better, nor worse
- In this environment, it’s difficult to see what will move ZTO out of recent trading range
BES: Mixed Q3 Financials; Long-Term Thesis Intact
- Braille reported Q3/23 financial results that were mixed compared to our expectations.
- Braille Battery remains well positioned to expand internationally and return to its historical sales growth rate of ~15% while expanding gross margin in the process.
- The results were mixed relative to our expectations, being in line for revenue and adjusted EBITDA but missing on gross margin.
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