In today’s briefing:
- Hanwha Ocean Placement – Recent Run-Up, Results Make It Tricky
- Hanwha Ocean (042660 KS) Placement: Index Implications; Stock Appears Wildly Overvalued
- KDB’s Hanwha Ocean Block Deal: Worth Taking a Swing
- AKR Corporindo (AKRA IJ) – A New Chapter Begins
- Sodick (6143) – From Turnaround to Transformation Towards Growth
- Boeing Ramps Up 737 and 787 Production: A Bold Play to Dominate Global Skies!
- General Dynamics Unleashes Next-Gen G700 & G800 Jets, Paving the Way for Soaring Profits!
- The Beat Ideas: Amara Raja Energy & Mobility Ltd: Assessing Growth Across Emerging Segments
- Valmont Industries: Here Are The 5 Biggest Factors Fueling Our ‘Outperform’ Rating!
- Waste Connections: Here Are the 6 Key Drivers Shaping Its Performance for 2025 & Beyond!
Hanwha Ocean Placement – Recent Run-Up, Results Make It Tricky
- Korea Development Bank (KDB) plans to raise around US$740m via selling around 5%+ stake in Hanwha Ocean (042660 KS).
- HO’s shares have nearly tripled since the start of the year, and the company reported its results today.
- In this note, we will run the deal through our ECM framework and talk about the recent updates.
Hanwha Ocean (042660 KS) Placement: Index Implications; Stock Appears Wildly Overvalued
- Korea Development Bank is looking to sell 13m shares of Hanwha Ocean (042660 KS). That is US$740m at the top end of the marketed range and 4x ADV.
- Following the sale, Korea Development Bank will still own over 15% of the company and that will be an overhang for the stock. Plus the stock appears wildly overvalued.
- There will be limited buying from passive trackers at the time of the placement with bigger passive flows coming through in June and August.
KDB’s Hanwha Ocean Block Deal: Worth Taking a Swing
- KDB sells 4.3% of total shares, offloading about one fifth of its holdings. The price range was 81,265–81,710 won, at an 8.51–9.00% discount, totaling 1.056–1.062 trillion won.
- With more float and passive buying (KOSPI 200) potential, plus shipbuilding momentum, the stock’s pullback likely won’t exceed today’s discount — it might be worth taking a swing.
- There’s buzz KDB might sell its HMM stake through block trades, like Hanwha Ocean. However, with HMM’s cash reserves, a tender offer seems more likely to drive stock action instead.
AKR Corporindo (AKRA IJ) – A New Chapter Begins
- AKR Corporindo (AKRA IJ) released a solid set of results driven by its trading & distribution segment, retail gas stations, and very strong utilities earnings from its JIIPE industrial estate.
- The company booked a record gross profit despite a lack of land sales in 1Q2025, but it remains positive on the outlook with 20 hectares to be booked in 2Q2025.
- AKRA is also upbeat on prospects for trading & distribution and utility earnings this year as anchor tenants ramp up production at JIIPE. Valuations remain compelling.
Sodick (6143) – From Turnaround to Transformation Towards Growth
- It has been an active 12 months for Sodick as it delivered a strong turnaround in FY12/24 driven by structural reform, appointed new President and CEO Yuji Akutsu, and affirmed growth prospects on both the Food Machinery segment and new products such as laser processing machines, metal 3D printers, and ultra-high-precision machining centers.
- Ongoing structural reforms focus on reducing reliance on China, enhancing profitability through business and product selection based on market dynamics, and rebuilding global production and sales systems to adapt to yen depreciation and evolving customer demand.
- Overseas expansion and providing “turnkey” solutions remain high priorities to build sustainable growth.
Boeing Ramps Up 737 and 787 Production: A Bold Play to Dominate Global Skies!
- The Boeing Company’s first-quarter 2025 earnings report reveals a mixed but generally favorable performance across the board.
- The company continues to focus on its recovery plan, which targets stabilizing the business, improving development program execution, cultural transformation, and building for the future.
- Positives in the report are balanced with ongoing challenges, particularly in the areas of tariffs and production stability, which are crucial to consider in an investment thesis.
General Dynamics Unleashes Next-Gen G700 & G800 Jets, Paving the Way for Soaring Profits!
- General Dynamics reported a strong first quarter of 2025 with earnings per diluted share reaching $3.66 and revenues of $12.2 billion.
- This represents a significant increase in key financial metrics compared to the previous year, with revenue up 13.9%, operating earnings up 22.4%, and net earnings up 24.4%.
- The company exceeded consensus estimates by $0.16 per share.
The Beat Ideas: Amara Raja Energy & Mobility Ltd: Assessing Growth Across Emerging Segments
- AREML is expanding into emerging lithium-ion related sectors, with significant investments in EV batteries and others. The company is constructing a INR9,500 crore Giga Corridor for lithium-ion cell manufacturing.
- The company’s shift from lead-acid to lithium-ion batteries and energy storage aligns with clean mobility trends, boosted by government incentives for local manufacturing and battery subsidies, enhancing growth prospects.
- AREML’s future growth is linked to lithium-ion and clean energy markets. Despite early margin pressures, this could make it a key player in India’s green energy shift.
Valmont Industries: Here Are The 5 Biggest Factors Fueling Our ‘Outperform’ Rating!
- Valmont Industries Inc.’s latest financial results present a complex mix of market conditions and strategic maneuvers as the company navigates 2025.
- The first quarter saw a slight decline in consolidated net sales, down 0.9% year-over-year, although sales increased modestly on a constant currency basis.
- Operating margin and earnings per share were stable, reflecting the company’s disciplined approach to executing its strategic priorities amidst a challenging global economic environment.
Waste Connections: Here Are the 6 Key Drivers Shaping Its Performance for 2025 & Beyond!
- Waste Connections, Inc. (WCN) delivered strong financial results in the first quarter of 2025, demonstrating robust performance in various strategic areas.
- The company achieved revenue of $2.228 billion, which exceeded the high end of their outlook and marked a year-over-year increase of 7.5%.
- Adjusted for foreign exchange impacts, this growth is 8.4%.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
