In today’s briefing:
- HD Hyundai Marine Solution Block Deal Sale of 8.5% of Outstanding Shares
- HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
- SENSEX Index Rebalance: Trent, Bharat Electronics to Replace Nestle, IndusInd Bank
- Air Canada’s Odd-Lot Tender Offer: Potential Upside Amid CapEx Challenges and Transborder Revenue Declines
- Sanyo Trading (3176 JP) – Steady Delivery with Sustainability Emerging as a Key Driver
- Carrier Global’s Localization & Dual Sourcing Strategy—Can It Outpace Global Disruptions?
- C.H. Robinson Focusing On Global Expansion with Southeast Asia Trade Shift; What Lies Ahead?
- Industrial Evolution: Adapting to Policies and Innovation
- W.W. Grainger Inc. Shields Profits with Bold Moves in Pricing, Imports, & Market Targeting!
- Howmet Aerospace Fortifies Financial Resilience with Aggressive Tariff Mitigation Strategy; What’s Next?
HD Hyundai Marine Solution Block Deal Sale of 8.5% of Outstanding Shares
- After the market close today, it was announced that KKR is selling 3.81 million shares (8.5% of outstanding shares) of HD Hyundai Marine Solution in a block deal sale.
- The expected block deal sale price is 145,000 won to 148,000 won per share, which represent 7.96% to 9.83% discount to the closing price of 160,800 won on 22 May.
- Once this block deal is completed, KKR’s remaining stake in HD Hyundai Marine Solution will be reduced to 11% (4.94 million shares).
HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
- KKR is looking to raise around US$410m via selling some of its stake in HD Hyundai Marine Solution (443060 KS).
- KKR had come out of its IPO linked lockup in Nov 2024 and had tried to launch a deal in Dec 2024 and finally undertook a deal in Feb 2025.
- In this note, we will talk about the placement and run the deal through our ECM framework
SENSEX Index Rebalance: Trent, Bharat Electronics to Replace Nestle, IndusInd Bank
- In line with forecasts, Trent and Bharat Electronics will replace Nestle India and Indusind Bank in the S&P BSE SENSEX Index after the close of trading on 20 June.
- Passive funds are estimated to buy 3-4 days of ADV in the adds and sell 1-10 days of ADV in the deletes. That increase to 3.5-17 days of delivery volume.
- Indusind Bank (IIB IN) stock has dropped recently due to a large quarterly loss and allegations of fraud. The stock is also a potential deletion from the NIFTY Index.
Air Canada’s Odd-Lot Tender Offer: Potential Upside Amid CapEx Challenges and Transborder Revenue Declines
- Air Canada is conducting a tender offer for ~8% of shares, prioritizing odd-lot holders, with potential upside.
- The company plans significant CapEx for fleet modernization, impacting free cash flow and financial projections until 2028.
- Air Canada’s valuation is low compared to peers, trading at 3.3x EBITDA, with a 54% EBITDA growth target by 2028.
Sanyo Trading (3176 JP) – Steady Delivery with Sustainability Emerging as a Key Driver
- Q1-2 FY9/25 results met expectations, with the company’s diversified operations helping offset softness in Industrial Products and Life Science.
- A key positive was the acceleration of growth in Sustainability, driven by green technology and energy solutions, which reinforces its potential as a core earnings driver.
- Fine Chemicals remained resilient, backed by domestic demand for industrial rubber.
Carrier Global’s Localization & Dual Sourcing Strategy—Can It Outpace Global Disruptions?
- Carrier Global Corporation reported a robust performance for the first quarter of 2025, showcasing strong results across various segments despite facing some challenges in certain areas.
- The company, which specializes in HVAC (heating, ventilation, and air conditioning), refrigeration, and fire and security solutions, provided a comprehensive view of its financial performance, including significant areas of growth and concern, setting the stage for the remainder of the year.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
C.H. Robinson Focusing On Global Expansion with Southeast Asia Trade Shift; What Lies Ahead?
- C.H. Robinson delivered a solid performance in the first quarter of 2025, with significant progress on strategic initiatives aimed at improving market share and margins despite an unsteady freight market.
- The company’s North American Surface Transportation (NAST) division reported better-than-market growth in truckload and less-than-truckload (LTL) shipments, demonstrating an ability to adapt and gain market share.
- In Global Forwarding, C.H. Robinson successfully won new business while optimizing expenses to enhance productivity, resulting in a 39% year-over-year increase in income from operations.
Industrial Evolution: Adapting to Policies and Innovation
- In 2025, Singapore’s Industrials sector saw increased trading activity, with over one-third experiencing over 50% ADT growth.
- ST Engineering led the STI in performance, supported by diversified revenue streams and investments in digital technologies.
- OKP Holdings reported a 95% share price gain, driven by technology integration, productivity boosts, and geographical diversification.
W.W. Grainger Inc. Shields Profits with Bold Moves in Pricing, Imports, & Market Targeting!
- W.W. Grainger’s first quarter of 2025 results reflect a performance largely in line with expectations, highlighting the environmental dynamics impacting the business.
- Total company reported sales were up by 1.7% on a reported basis, equating to a 4.4% increase on a daily constant currency basis.
- Operating margins were noted at a healthy 15.6%, with diluted earnings per share (EPS) rising by $0.24 to $9.86.
Howmet Aerospace Fortifies Financial Resilience with Aggressive Tariff Mitigation Strategy; What’s Next?
- Howmet Aerospace’s first-quarter earnings in 2025 reflect both strengths and challenges for the company.
- The quarter began with a solid performance across the board, with revenue reaching a record level and improving year over year by 6%.
- The company’s operational efficiency contributed to this outcome, as evidenced by its EBITDA margin of 28.8% and operating margin of 25.3%, which increased by 500 basis points compared to the previous year.
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