In today’s briefing:
- Unpacking the Backstory of HMM’s Value-Up Disclosure Today: Dividend Arbitrage Still in Focus
- Vikran Engineering Limited Pre-IPO – Capitalizing On Core Competencies But With Concentration Risks
- HMM: Material Improvement in Corporate Value Up Plan
- Grab Holdings (GRAB IJ) – New Fleets and Finance
- What’s News in Amsterdam – 22 January (Ahold Delhaize | InPost | PostNL | DHL)
Unpacking the Backstory of HMM’s Value-Up Disclosure Today: Dividend Arbitrage Still in Focus
- HMM’s aggressive short-term return strategy is driven by KDB’s BIS issue, explaining why they acted earlier and more aggressively than expected.
- HMM’s best move is boosting the 2024 div payout, keeping KDB happy by smoothing over KDB’s PR angle, and aligning with its June value-up index rebalance agenda.
- The 2024 year-end dividend is conservatively expected between KRW 850-1,200 per share, totaling KRW 750 billion to 1 trillion, with the record date likely in late February or early March.
Vikran Engineering Limited Pre-IPO – Capitalizing On Core Competencies But With Concentration Risks
- Vikran Engineering Limited (1635154D IN) (VEL) is planning to raise about US$119m through its upcoming India IPO.
- Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects.
- According to CRISIL Report, VEL has experienced fastest growth in profitability, with a 236.94% CAGR growth in PAT and a 130.02% CAGR growth in EBITDA between FY22 to FY24.
HMM: Material Improvement in Corporate Value Up Plan
- On 22 January, HMM Co., Ltd. (011200 KS) announced its new Corporate Value Up plan which included five major items.
- They include higher shareholder returns, achieve average sales growth of 9% and ROE of 4% in the next three years, and improve communication with stakeholders and shareholders.
- The company plans to implement total shareholder returns of at least 2.5 trillion won within one year, which represents 14.8% of its market cap.
Grab Holdings (GRAB IJ) – New Fleets and Finance
- Grab Holdings has announced that it will tie up with BYD (1211 HK) to source 50,000 EVs for its ride-hailing fleet, which will help to address car and driver shortages.
- Drivers will be able to buy the vehicles at favourable prices, with competitive financing packages. Grab’s technology will be built-in to improve driver performance and provide data to improve services.
- Grab is also stepping up its efforts in insurance, winning general insurance licences in Singapore and Malaysia, allowing it to offer tailored insurance products to drivers initially but customers later.
What’s News in Amsterdam – 22 January (Ahold Delhaize | InPost | PostNL | DHL)
- In this edition: • Ahold Delhaize | Albert Heijn’s market share rose for the 6th consecutive year • DHL / InPost | DHL intends to double its APM footprint in Germany by 2030 • InPost / PostNL | residents of small municipalities champion in returns
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