INDUSTRIALS Archives | Page 158 of 295 | Smartkarma

• Nidec Corp (6594 JP) has had ambitions in machine tool space. They wanted to buy Takisawa Machine Tool (6121 JP) but Takisawa wouldn’t give them the time of day.
• So Nidec announced hostile intentions and a 60-day period to negotiate. That’s done, and today they announced a now-friendly deal. 
• This looks like an easy done deal. There is one major risk factor remaining, then another consideration when thinking about path. 

• Contec is getting ready to complete an IPO on the KOSDAQ exchange in October 2023. The IPO price range is from 20,300 won to 22,500 won. 
• According to the bankers’ valuation, the expected IPO market cap is from 292 billion won to 324 billion won.
• Contec was spun off from Korea Aerospace Research Institute and offers Space Ground Station Services and Satellite Image Processing & Application Services.

• Seibu Giken (6223 JP) (SG) is looking to raise around US$120m in its Japan IPO via selling a mix of primary and secondary shares.
• SG sells desiccant dehumidifiers and VOC concentrators in over fifty countries globally. Its two main products accounted for over 90% of its revenue in 2022.
• In this note, we look at the company’s past performance.

• Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
• There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
• Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.

• IHI’s share price has declined 16% on news that Pratt & Whitney would need to ground more planes due to problems with its PW1100 turbofan engines
• IHI has a 15% share of the revenue and risk from this program. The new engine was expected to be a major earnings driver over the next several years
• We believe that IHI will be forced to revise down OP guidance to a loss. The bigger impact could be on FCF and future capex plans. 

• Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
• Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
• In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.

• The job openings in the US declined to 8.827m in July 2023, marking the lowest since March 2021, and falling well below projected 9.465m job openings for the month.
• On the other hand, web traffic on Recruit Holdings (6098 JP) ’s job platform Indeed has declined in July compared to June 2023 while it has improved slightly on Glassdoor.
• HR Tech segment’s top line growth declined 9.1% YoY in 1QFY03/2024 and the company has shifted into a new pricing model which we think would further impact segment’s growth.

• R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
• R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
• In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

• R R Kabel (2333180Z IN) ‘s IPO will go live this week.
• The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
• However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.

• S.F. Holding (002352 CH) (SFH), China’s largest express delivery company, aims to raise around US$2-3bn in its H-share listing in Hong Kong.
• SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
• We have looked at the company’s past performance in our previous notes. In this note, we look at its recent updates.

• Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
• There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
• Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.

• IHI’s share price has declined 16% on news that Pratt & Whitney would need to ground more planes due to problems with its PW1100 turbofan engines
• IHI has a 15% share of the revenue and risk from this program. The new engine was expected to be a major earnings driver over the next several years
• We believe that IHI will be forced to revise down OP guidance to a loss. The bigger impact could be on FCF and future capex plans. 

• Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
• Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
• In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.

• The job openings in the US declined to 8.827m in July 2023, marking the lowest since March 2021, and falling well below projected 9.465m job openings for the month.
• On the other hand, web traffic on Recruit Holdings (6098 JP) ’s job platform Indeed has declined in July compared to June 2023 while it has improved slightly on Glassdoor.
• HR Tech segment’s top line growth declined 9.1% YoY in 1QFY03/2024 and the company has shifted into a new pricing model which we think would further impact segment’s growth.

• R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
• R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
• In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

• R R Kabel (2333180Z IN) ‘s IPO will go live this week.
• The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
• However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.

• S.F. Holding (002352 CH) (SFH), China’s largest express delivery company, aims to raise around US$2-3bn in its H-share listing in Hong Kong.
• SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
• We have looked at the company’s past performance in our previous notes. In this note, we look at its recent updates.

• Our updated NAV analysis of Doosan Corp (000150 KS) suggests implied market cap of 3.6 trillion won or target price of 217,392 won which is 47% higher than current price. 
• To value Doosan Corp, we have assumed a market value of 2.8 trillion won for Doosan Robotics (454910 KS).
• The sharp increase in share price of Doosan Corp today (up 28%) is likely to have been a reflection of the initial strong demand for Doosan Robotics IPO.  

• Our updated NAV analysis of Doosan Corp (000150 KS) suggests implied market cap of 3.6 trillion won or target price of 217,392 won which is 47% higher than current price. 
• To value Doosan Corp, we have assumed a market value of 2.8 trillion won for Doosan Robotics (454910 KS).
• The sharp increase in share price of Doosan Corp today (up 28%) is likely to have been a reflection of the initial strong demand for Doosan Robotics IPO.  

• The most noteworthy developments include Samsung Electronics being newly added to the Semicon sector, while SK Square has been removed.
• We must be mindful of the potential concentration of shorting flow on SK Square as most names expected to experience negative flows do not fall under the KS200/KQ150 membership.
• Our strategic approach can take three directions: 1. aim at only those receiving positive flows, 2. heavy shorting SK Square, and 3. long-short the four with the most flow size.

• Starting in 2024, Shimadzu plans to produce high-end analytical instruments and medical systems in China. It must do this in order to maintain market access. 
• China is the company’s largest and fastest growing market outside Japan. Concerns about IP protection notwithstanding, we regard this as a positive development.
• The shares are down 10% from its 52-week high and selling at 23x this fiscal year’s EPS guidance, which looks conservative. Buy for the long term.

• H1 results from KEX Thailand and Kerry Logistics can help us understand J&T Global Express
• Thailand likely to be a medium-term drag on J&T’s earnings, in our view
• But if KLN’s H1 results are representative, rest of SE Asia is probably OK

• In Q2, Full Truck Alliance posted strong revenue growth and dramatic margin expansion
• Revenue mix continues to improve, which is driving down unit costs and lifting margins
• At just 19x forecast 2023 adjusted net earnings, the company’s shares are not expensive

• The most noteworthy developments include Samsung Electronics being newly added to the Semicon sector, while SK Square has been removed.
• We must be mindful of the potential concentration of shorting flow on SK Square as most names expected to experience negative flows do not fall under the KS200/KQ150 membership.
• Our strategic approach can take three directions: 1. aim at only those receiving positive flows, 2. heavy shorting SK Square, and 3. long-short the four with the most flow size.

• Starting in 2024, Shimadzu plans to produce high-end analytical instruments and medical systems in China. It must do this in order to maintain market access. 
• China is the company’s largest and fastest growing market outside Japan. Concerns about IP protection notwithstanding, we regard this as a positive development.
• The shares are down 10% from its 52-week high and selling at 23x this fiscal year’s EPS guidance, which looks conservative. Buy for the long term.

• H1 results from KEX Thailand and Kerry Logistics can help us understand J&T Global Express
• Thailand likely to be a medium-term drag on J&T’s earnings, in our view
• But if KLN’s H1 results are representative, rest of SE Asia is probably OK

• In Q2, Full Truck Alliance posted strong revenue growth and dramatic margin expansion
• Revenue mix continues to improve, which is driving down unit costs and lifting margins
• At just 19x forecast 2023 adjusted net earnings, the company’s shares are not expensive

Severfield’s AGM statement highlights that FY24 is expected be in line with management expectations and that the quality of the orderbooks – both in the UK and Europe, and India – remains a key support for the future. That said, the outlook for the UK and continental Europe is less robust in the short term than it was due to the impact of high inflation and the rising interest rate cycle. The FY24e P/E rating of c 7x remains comfortably below the long-term average of 10.0x, implying that some risk is discounted in the rating. The stock yields more than 5%.

Severfield’s AGM statement highlights that FY24 is expected be in line with management expectations and that the quality of the orderbooks – both in the UK and Europe, and India – remains a key support for the future. That said, the outlook for the UK and continental Europe is less robust in the short term than it was due to the impact of high inflation and the rising interest rate cycle. The FY24e P/E rating of c 7x remains comfortably below the long-term average of 10.0x, implying that some risk is discounted in the rating. The stock yields more than 5%.

• AKR Corporindo (AKRA IJ) has secured another major land plot sale at its JIIPE industrial estate in Gresik, with an area of 67 hectares to a Chinese chemical manufacturer.
• The sale puts the company on track to exceed its full-year target sales for the estate. It has also been divulged that the Freeport Smelter is now 75% complete.
• AKR Corporindo (AKRA IJ) remains a crucial proxy for the Indonesian economy through its fuel and chemical distribution business, with JIIPE targeting the EV Battery value chain as future tenants. 

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view SPIE’s ESG as “Adequate”, given its Environmental and Governance scores. The company’s Social pillar is “Strong”. Controversies are “Immaterial” and Disclosure is “Strong”.