In today’s briefing:
- Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule
- Airport of Thailand (AOT): Not the Right Time
- JSW Infrastructure IPO – Would Need a Wider Discount to Its Larger and More Dominant Peer
- Steelcase, Inc. – 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured
Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule
- The JIP Tender Offer for Toshiba Corp (6502 JP) closes today. I expect that we will see results announced as early as late tonight, but by law, by latest tomorrow.
- There will be at least three major index downweights, and possibly deletions, most likely in the following five trading days.
- This shows the approximate maximum share and dollar amounts to be sold, and approximate dates.
Airport of Thailand (AOT): Not the Right Time
- Visa-Free travel for Chinese tourists is certainly a boost for the Airports of Thailand (AOT TB) .
- Compared to 2019 operational numbers, the 2023 number is still very low despite the large YoY gain thanks to the low base in 2022.
- The valuation is still high as the share price has run ahead of its fundamentals.
JSW Infrastructure IPO – Would Need a Wider Discount to Its Larger and More Dominant Peer
- JSW Infrastructure (5978490Z IN) is looking to raise US$336m in its India IPO.
- JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
- In this note, we will look at JSWI’s RHP updates, undertake a peer comparison, and share our thoughts on valuation.
Steelcase, Inc. – 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured
Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.
Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.
Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.
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