In today’s briefing:
- VinFast: Inexplicable Valuation
- SITC International (1308 HK): Uneasy Times
- Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing
- Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’
- 10 in 10 with Marco Polo Marine – Voyage into a sustainable future
- NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson
VinFast: Inexplicable Valuation
- VinFast (1905332D VN), a Vietnamese EV (electric vehicle) manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), completed its merger with Black Spade.
- The shares closed 3.7x up on the first day with a market cap of US$86bn. The pop is partly due to low float resulting from the controlling shareholder’s 99.0% stake.
- VinFast faces headwinds of poor reviews, declining customer traction, ongoing losses and cash burn. VinFast is trading at a material premium to peers on growth-adjusted multiples.
SITC International (1308 HK): Uneasy Times
- While management of SITC International (1308 HK) thinks that the worst is over, we are less positive given the lacklustre demand and the disappointing Jul-Aug market freight rates.
- Its gross margin is still significantly ahead of the pre-COVID levels, and financially, its net cash balance has been coming down. The dividend payout ratio has also lowered slightly.
- The FY23 consensus earnings forecast is too optimistic given 1H23 net profit is only 33.5% of the full-year estimate. The downside risk will cap near-term share price performance.
Singapore’s Waste Management Firm Blue Planet Gets Bintang Capital’s Backing
- Singapore-based waste management company Blue Planet has secured an undisclosed sum in funding from Malaysian PE firm Bintang Capital Partners.
- The startup will utilise the capital to expand its operational teams and waste management technologies to pave the way for handling a broader range of waste types in current and emerging markets.
- Founded in 2017 by Madhujeet Chimni, Prashant Singh, and Bharadwaj Chivukula, Blue Planet provides waste collection, transportation, segregation, processing, and treatment services.
Evergreen Marine: ‘H1 Earnings Plunged Dramatically Y/Y’ | Also, ‘H1 Earnings Were Pretty Damn Good’
- Yes, carrier margins and returns in Q2/H1 plunged dramatically compared to 2022
- Yes, carrier margins and returns in Q2/H1 were quite good by historical standards
- In this insight we provide context to help readers evaluate carrier performance in 2023
10 in 10 with Marco Polo Marine – Voyage into a sustainable future
10 in 10 with Marco Polo Marine – Voyage into a sustainable future
NOW, Inc. – Fulfillment Model to Meet Customers’ Evolving Needs August 16, 2023 Jeff Robertson
DistributionNOW gained share during 2Q23 as US drilling activity slowed. US revenue per rig averaged ~$631k, up from ~$561k in 1Q23 and ~$570k in 2Q22.
Gains reflect the benefits of the company’s fulfillment model, geared to make DistributionNOW the supply chain solution provider of choice for customers by supplying the products they require in the quantities they need by increasing the efficiency of their procurement process, lowering transactions costs, and increasing returns on their investments.
2Q23 total revenue grew 10% Y/Y and 2% from 1Q22 revenue.
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