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INDUSTRIALS Archives | Page 162 of 295 | Smartkarma

Aug 24
0

Daily Brief Industrials: TVS Supply Chain Solutions, Hanwha Ocean, S.F. Holding, JSW Infrastructure, Tecnoglass and more

By | Daily Briefs, Industrials

In today’s briefing:

  • TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates
  • Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart
  • S.F. Holding H Share Listing: The Investment Case
  • JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility
  • Tecnoglass: Massive Backlog Supported By Operational Efficiency

TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates

By Ethan Aw

  • TVS Supply Chain Solutions (TVSSCS IN) raised around US$108m in its India IPO, after downsizing from an earlier reported float of up to US$500m.
  • TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
  • We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand and trading dynamics.

Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart

By Brian Freitas

S.F. Holding H Share Listing: The Investment Case

By Arun George

  • S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, has filed for an H Share listing to raise US$2-3 billion, according to press reports.   
  • SF is the largest integrated logistics service player in China and Asia, and the fourth largest player globally, in terms of revenue in 2022, according to Frost & Sullivan.
  • The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage and undemanding PEG multiples.

JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility

By Clarence Chu

  • JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming 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 talk about the positive aspects of the deal.

Tecnoglass: Massive Backlog Supported By Operational Efficiency

By Pearl Gray Equity and Research

  • Tecnoglass Inc’s backlog of nearly $800 million, paired with a production capacity increase, might contribute to significant growth.
  • The company’s single-family offerings are gathering pace amid sound regional targeting by the firm.
  • A potential opportunity exists for expansion in Colombia, the firm says.

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Aug 23
0

Daily Brief Industrials: Hanwha Ocean, AP Moeller – Maersk A/S, Uber Technologies , Ingersoll Rand and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won
  • Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)
  • Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers
  • Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

By Douglas Kim

  • Hanwha Ocean’s share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won. 
  • Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months. 
  • We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments. 

Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)

By Daniel Hellberg

  • Our monthly index suggests that container rates have bottomed, with easier comps in H2
  • Lower fuel has been a tailwind for carriers for several months, but that could change
  • We still think the worst has passed for carriers, a few of which have performed well in ’23

Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers

By Baptista Research

  • Uber Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
  • However, it has faced its fair share of challenges in the competitive landscape and increasing complexity of marketplace management.
  • We give Uber Technologies a ‘Hold’ rating with a revised target price.

Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

By Baptista Research

  • Ingersoll Rand Inc. managed to exceed analyst expectations in terms of revenue and earnings.
  • Revenue and total company organic orders both saw a year-over-year increase.
  • While the PST segment margin grew by 240 basis points, the ITS segment margin increased by 200.

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Aug 23
0

Daily Brief Industrials: Hanwha Ocean, AP Moeller – Maersk A/S, Uber Technologies , Ingersoll Rand and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won
  • Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)
  • Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers
  • Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

By Douglas Kim

  • Hanwha Ocean’s share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won. 
  • Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months. 
  • We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments. 

Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)

By Daniel Hellberg

  • Our monthly index suggests that container rates have bottomed, with easier comps in H2
  • Lower fuel has been a tailwind for carriers for several months, but that could change
  • We still think the worst has passed for carriers, a few of which have performed well in ’23

Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers

By Baptista Research

  • Uber Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
  • However, it has faced its fair share of challenges in the competitive landscape and increasing complexity of marketplace management.
  • We give Uber Technologies a ‘Hold’ rating with a revised target price.

Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

By Baptista Research

  • Ingersoll Rand Inc. managed to exceed analyst expectations in terms of revenue and earnings.
  • Revenue and total company organic orders both saw a year-over-year increase.
  • While the PST segment margin grew by 240 basis points, the ITS segment margin increased by 200.

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Aug 22
0

Daily Brief Industrials: SK Rent A Car, Ventia Services Group Pty , Wisdom Marine Lines, Hanwha Ocean, HMM Co., Ltd., S.F. Holding, Emerson Electric Co, C.H. Robinson Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SK Rent A Car: SK Networks’ Tender Offer
  • Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
  • Quiddity Leaderboard T50/​​​100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
  • Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
  • Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
  • Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
  • Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
  • Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
  • C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

SK Rent A Car: SK Networks’ Tender Offer

By David Blennerhassett

  • Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%. 
  • SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded. 
  • The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms. 

Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well

By Sumeet Singh

  • Ventia Services Group Pty (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, will come off their placement linked lockup soon.
  • The two largest shareholders together owned nearly 30% of the company and have pared their stake twice this year.
  • In this note, we will talk about the likely placement and past deal performance.

Quiddity Leaderboard T50/​​​100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL

By Janaghan Jeyakumar, CFA

  • Today is the base date for the T50 and T100 Indices for the September 2023 Rebalance.
  • In this insight, we take a look at the final expectations for ADDs/DELs for the T50 and T100 Indices.
  • Previously, I expected five and three changes for the T50 and T100 indices, respectively, but now I see four changes for both indices.

Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at Quiddity’s final flow expectations for the September 2023 index rebalance.
  • In my previous insight, I revised my AUM assumption upwards but now I have revised it downwards based on the latest available data.
  • Based on the latest available data, I see 47 names with positive index flow expectations and 3 names with negative index flow expectations (including the DEL Wisdom Marine).

Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It

By Sanghyun Park

  • Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
  • We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
  • It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.

Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

By Douglas Kim

  • After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
  • KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
  • We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.

Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)

By Daniel Hellberg

  • Chinese express parcel volume growth was 11.7% in July, far slower than in Feb-May
  • July ASP for all segments fell to 8.84 Yuan per piece, the lowest in at least ten years
  • Industry leader SF Holding partly insulated from margin pressure by air, international 

Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers

By Baptista Research

  • Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
  • The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
  • The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.

C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

By Baptista Research

  • C.H.
  • Robinson Worldwide delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
  • The company’s truckload and LTL businesses faced varying market conditions, with truckload volumes declining and LTL shipments remaining flat but declining AGP per order.

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Aug 22
0

Daily Brief Industrials: SK Rent A Car, Ventia Services Group Pty , Wisdom Marine Lines, Hanwha Ocean, HMM Co., Ltd., S.F. Holding, Emerson Electric Co, C.H. Robinson Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SK Rent A Car: SK Networks’ Tender Offer
  • Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
  • Quiddity Leaderboard T50/​​​100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
  • Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
  • Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
  • Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
  • Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
  • Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
  • C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

SK Rent A Car: SK Networks’ Tender Offer

By David Blennerhassett

  • Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%. 
  • SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded. 
  • The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms. 

Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well

By Sumeet Singh

  • Ventia Services Group Pty (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, will come off their placement linked lockup soon.
  • The two largest shareholders together owned nearly 30% of the company and have pared their stake twice this year.
  • In this note, we will talk about the likely placement and past deal performance.

Quiddity Leaderboard T50/​​​100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL

By Janaghan Jeyakumar, CFA

  • Today is the base date for the T50 and T100 Indices for the September 2023 Rebalance.
  • In this insight, we take a look at the final expectations for ADDs/DELs for the T50 and T100 Indices.
  • Previously, I expected five and three changes for the T50 and T100 indices, respectively, but now I see four changes for both indices.

Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at Quiddity’s final flow expectations for the September 2023 index rebalance.
  • In my previous insight, I revised my AUM assumption upwards but now I have revised it downwards based on the latest available data.
  • Based on the latest available data, I see 47 names with positive index flow expectations and 3 names with negative index flow expectations (including the DEL Wisdom Marine).

Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It

By Sanghyun Park

  • Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
  • We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
  • It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.

Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

By Douglas Kim

  • After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
  • KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
  • We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.

Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)

By Daniel Hellberg

  • Chinese express parcel volume growth was 11.7% in July, far slower than in Feb-May
  • July ASP for all segments fell to 8.84 Yuan per piece, the lowest in at least ten years
  • Industry leader SF Holding partly insulated from margin pressure by air, international 

Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers

By Baptista Research

  • Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
  • The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
  • The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.

C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

By Baptista Research

  • C.H.
  • Robinson Worldwide delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
  • The company’s truckload and LTL businesses faced varying market conditions, with truckload volumes declining and LTL shipments remaining flat but declining AGP per order.

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Aug 21
0

Daily Brief Industrials: JD Logistics and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JD Logistics (2618 HK): 2Q23, External Revenue Still Grew Rapidly, 70% Upside

JD Logistics (2618 HK): 2Q23, External Revenue Still Grew Rapidly, 70% Upside

By Ming Lu

  • In 2Q23, total revenue grew by 31% YoY and revenue from external customers grew by 56% YoY.
  • The operating margin can still breakeven during the rapid growth.
  • We believe the stock has an upside of 70% for yearend 2024. Buy.

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Aug 21
0

Daily Brief Industrials: JD Logistics and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JD Logistics (2618 HK): 2Q23, External Revenue Still Grew Rapidly, 70% Upside

JD Logistics (2618 HK): 2Q23, External Revenue Still Grew Rapidly, 70% Upside

By Ming Lu

  • In 2Q23, total revenue grew by 31% YoY and revenue from external customers grew by 56% YoY.
  • The operating margin can still breakeven during the rapid growth.
  • We believe the stock has an upside of 70% for yearend 2024. Buy.

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Aug 19
0

Daily Brief Industrials: SK Rent A Car and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Fully Disseting SK Rent A Car’s Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

Fully Disseting SK Rent A Car’s Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

By Sanghyun Park

  • With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.
  • We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it’s subject to short selling, making a Long Short play possible.
  • Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.

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Aug 19
0

Daily Brief Industrials: SK Rent A Car and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Fully Disseting SK Rent A Car’s Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

Fully Disseting SK Rent A Car’s Hybrid Tender Offer Disclosure, Whose Cash Offer at a 5.7% Spread

By Sanghyun Park

  • With just the SK Networks stake, both of these conditions are already satisfied. So, the key point will be how quickly the spread of the cash offer narrows next Monday.
  • We need to watch whether the spread for the exchange offer opens. As SK Networks is a K200 constituent, it’s subject to short selling, making a Long Short play possible.
  • Worth noting, among the 24% minority shareholders, NPS and KIT hold a combined 15%, potentially leading to limited market circulation volume. This is something we should also be mindful of.

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Aug 18
0

Daily Brief Industrials: Advantest Corp, Astral Ltd, China Communications Construction, Sodick Co Ltd, iPower and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Advantest (6857 JP): High Gearing on the Downside
  • Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23
  • China Comm Const (1800 HK): New Contract Growth Accelerated
  • Sodick (6143) – Aiming to Steer Through Current Circumstances
  • IPower, Inc. – Water Tower Hour Recap: A Conversation with CFO Kevin Vassily

Advantest (6857 JP): High Gearing on the Downside

By Scott Foster

  • Advantest is highly geared to changes in sales, with average contribution margins of 36% and 51% at the gross and operating profit levels, respectively.
  • This works on the downside as well as the upside, something that has perhaps not received sufficient attention as optimists imagine a repeat of the recent extraordinary up-cycle.
  • The share price is down 19% from its July 18 high, but at the top of its 5-year P/E range even vs historical peak EPS.

Narrative and Numbers | Astral Ltd (ASTRA IN) | FY23

By Pranav Bhavsar

  • Astral Ltd (ASTRA IN) is a manufacturer of Chlorinated Poly Vinyl Chloride (CPVC) and Poly Vinyl Chloride (PVC) plumbing systems, catering to both residential and industrial applications. 
  • The company offers a compelling narrative, propelled by the larger market trends of agriculture, housing, and market share expansion.
  • Despite the confident growth outlook, the current valuation at 75x NTM appears relatively high. It might be prudent to await a more appealing entry opportunity.

China Comm Const (1800 HK): New Contract Growth Accelerated

By Osbert Tang, CFA

  • China Communications Construction (1800 HK) saw stronger new contract growth in 2Q23, increasing by 15.5% YoY. Sharp pick-up in domestic contracts is the key driver.
  • We estimate its backlog at end-1H23 at Rmb3.9trn, up 15% from end-FY22. This equals 5.1x the projected FY23 revenue, indicating very comfortable forward coverage.
  • Despite a 22.5% share price increase YTD, it trades on just 0.21x P/B. Compared with an ROE of 7-8%, it is inexpensive. Upside will come from asset value realisation.

Sodick (6143) – Aiming to Steer Through Current Circumstances

By Astris Advisory Japan

  • Digging in for the duration – continuing weak demand from China contributed significantly to weak Q1-2 FY12/2023 numbers, with sales declining 14.8% YoY and resulting in an operating loss.
  • The key issue is that customers are experiencing low utilization rates at production facilities, and hence do not require new capacity.
  • Sodick revised its guidance for FY12/2023, with expectations of similar market conditions persisting into H2 FY12/2023. 

IPower, Inc. – Water Tower Hour Recap: A Conversation with CFO Kevin Vassily

By Water Tower Research

  • iPower CFO Kevin Vassily joined the Water Tower Hour to discuss the company’s business and existing and new business opportunities for FY24.

  • A return to bottom-line profitability and the development of the new Business Services segment will be the focus for the company in FY24.

  • iPower is an e-commerce platform operating as an online retailer and supplier of home goods, hydroponics, pet, and wellbeing products. 

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