IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> is Australia’s largest airport and the only listed airport on ASX. Sydney Airport has received a binding proposal and entered a scheme implementation deed (SID) with the Sydney Aviation Alliance consortium.</p><p>The offer price is A$8.75 per share is a 52% premium to the unaffected price of A$5.75 (1 July). The offer is also a marginal 3.6% bump to the first revised offer of A$8.45 per share received from the consortium on 16 August.</p><p>UniSuper will reinvest its 15.01% equity interest for an equivalent equity interest in the consortium’s holding vehicle. The scheme is conditional on shareholder approval, ACCC approval, FIRB approval and EU merger clearance. The scheme meeting is scheduled for 24 January 2022 with an implementation date of 21 February 2022.  </p><div class="content-highlight"><p>The offer will prove attractive to shareholders who are looking for valuation certainty in an environment where the pace of the recovery in international air travel remains unclear. At the last close price of A$8.46, the gross spread is 3.4% and the annualised spread to the implementation date is 12.3%.</p></div>

Sydney Airport (SYD AU) is Australia’s largest airport and the only listed airport on ASX. Sydney Airport has received a binding proposal and entered a scheme implementation deed (SID) with the Sydney Aviation Alliance consortium.The offer price is A$8.75 per share is a 52% premium to the unaffected price of A$5.75 (1 July). The offer is also a marginal 3.6% bump to the first revised offer of A$8.45 per share received from the consortium on 16 August.UniSuper will reinvest its 15.01% equity interest for an equivalent equity interest in the consortium’s holding vehicle. The scheme is conditional on shareholder approval, ACCC approval, FIRB approval and EU merger clearance. The scheme meeting is scheduled for 24 January 2022 with an implementation date of 21 February 2022.  The offer will prove attractive to shareholders who are looking for valuation certainty in an environment where the pace of the recovery in international air travel remains unclear. At the last close price of A$8.46, the gross spread is 3.4% and the annualised spread to the implementation date is 12.3%.

Sydney Airport Enters a Scheme Implementation Deed

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Thematic (Sector/Industry)

<div>In light of the coordinated reopening movement in ASEAN that stems from the high vaccination rate and pent-up demand to restart cross border as well as similar policy in mind (live with COVID rather zero COVID policy), investors will find short notes on each stock related to the reopening theme. While the majority are long ideas, there is a short investment idea on the back of the normalizing freight rate. <br><br>
</div>
<div>The rebound in the travel and tourism-related names is about to hit an inflection point that could torpedo the share price back into the pre-COVID-19 level or even higher as flows may start to come back to this region. </div>

In light of the coordinated reopening movement in ASEAN that stems from the high vaccination rate and pent-up demand to restart cross border as well as similar policy in mind (live with COVID rather zero COVID policy), investors will find short notes on each stock related to the reopening theme. While the majority are long ideas, there is a short investment idea on the back of the normalizing freight rate.   

The rebound in the travel and tourism-related names is about to hit an inflection point that could torpedo the share price back into the pre-COVID-19 level or even higher as flows may start to come back to this region. 

ASEAN Reopening: Tourism and Transport Reboot

External broker reports(aggregated public sources), TA Securities Holdings Berhad

TA Securities Holdings Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

Malaysia Airports Holdings / Equity Bottom-Up

<h3>September still weak but recovering fast</h3>
<p>Malaysia Airport (MAHB) recorded total passenger movements of 458k for September with close to 80% came from the domestic sector. Overall, September’s traffic marked an encouraging recovery with a significant MoM growth of 54.8%, thanks to the launch of Langkawi travel bubble on September 16. On YoY basis, however, the traffic declined by 73.2% YoY as Sep-20’s traffic was spurred by Sabah state election, in our opinion.</p>
<div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

September still weak but recovering fast
Malaysia Airport (MAHB) recorded total passenger movements of 458k for September with close to 80% came from the domestic sector. Overall, September’s traffic marked an encouraging recovery with a significant MoM growth of 54.8%, thanks to the launch of Langkawi travel bubble on September 16. On YoY basis, however, the traffic declined by 73.2% YoY as Sep-20’s traffic was spurred by Sabah state election, in our opinion.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Malaysia Airports Holdings: Red Light, Green Light

<p>THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* As expected, Malaysia Airports (MAHB) was still struggling with Covid-19 pandemic and border closures in August, recording only 296k passenger movements for the month (Figure 1). [...] In Istanbul, ISG chalked up another strong performance in August with total passenger movements of 3.2mn (4.5% MoM, 70.9% YoY). [...] In terms of breakdown, the international and domestic segments recorded passenger movements of 1.1mn and 2.1mn respectively. [...] On the flip side, the resurgent of Covid-19 cases in Sabah and Sarawak could pose a threat to the recovery in passenger movements in 2021.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* As expected, Malaysia Airports (MAHB) was still struggling with Covid-19 pandemic and border closures in August, recording only 296k passenger movements for the month (Figure 1). [...] In Istanbul, ISG chalked up another strong performance in August with total passenger movements of 3.2mn (4.5% MoM, 70.9% YoY). [...] In terms of breakdown, the international and domestic segments recorded passenger movements of 1.1mn and 2.1mn respectively. [...] On the flip side, the resurgent of Covid-19 cases in Sabah and Sarawak could pose a threat to the recovery in passenger movements in 2021.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Looking Forward to Langkawi Travel Bubble

<p><a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> is Australia’s largest airport and the only listed airport on ASX. Sydney Airport has granted a consortium (Sydney Aviation Alliance) non-exclusive due diligence access based on a further revised indicative proposal of A$8.75 cash per share. The revised indicative offer is A$8.75 per share is a 52% premium to the unaffected price of A$5.75 (1 July). The revised indicative offer is also a marginal 3.6% bump to the first revised offer of A$8.45 per share received from the consortium on 16 August.</p><p>Pushing for a better price is part of the M&amp;A game. The Board were said to be seeking a price around A$9.00 per share, according to press reports. However, the Board faced increasing shareholder pushback to engage with the consortium and facilitate due diligence. The consortium viewed A$9.00 per share as excessive but shareholder feedback suggested that the price of A$8.75 per share would get the Board onside. UniSuper, the largest independent shareholder, will rollover its shares instead of receiving cash under the scheme and will be required to vote as a separate class on the scheme. </p><p>The Board intends to recommend the revised offer subject to a binding scheme implementation agreement and no superior offer. The due diligence which is expected to take four weeks should be relatively straightforward due to the consortium’s expertise in airport infrastructure. The deal requires regulatory approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board. The ACCC will commence a review of the proposed transaction “<em>in due course</em>” and the review should take about three months to complete. The shareholder vote for approval is likely to be held in 1Q22. </p><div class="content-highlight"><p>Overall, we think that the further revised indicative offer is attractive and marginally above the pre-COVID-19 rights adjusted share price high reached in December 2019. The offer will prove attractive to shareholders who are looking for valuation certainty in an environment where the pace of the recovery in international air travel remains unclear. At the last close price of A$8.23, the shares are trading at a 6.3% gross spread to the indicative offer.</p></div>

Sydney Airport (SYD AU) is Australia’s largest airport and the only listed airport on ASX. Sydney Airport has granted a consortium (Sydney Aviation Alliance) non-exclusive due diligence access based on a further revised indicative proposal of A$8.75 cash per share. The revised indicative offer is A$8.75 per share is a 52% premium to the unaffected price of A$5.75 (1 July). The revised indicative offer is also a marginal 3.6% bump to the first revised offer of A$8.45 per share received from the consortium on 16 August.Pushing for a better price is part of the M&amp;A game. The Board were said to be seeking a price around A$9.00 per share, according to press reports. However, the Board faced increasing shareholder pushback to engage with the consortium and facilitate due diligence. The consortium viewed A$9.00 per share as excessive but shareholder feedback suggested that the price of A$8.75 per share would get the Board onside. UniSuper, the largest independent shareholder, will rollover its shares instead of receiving cash under the scheme and will be required to vote as a separate class on the scheme. The Board intends to recommend the revised offer subject to a binding scheme implementation agreement and no superior offer. The due diligence which is expected to take four weeks should be relatively straightforward due to the consortium’s expertise in airport infrastructure. The deal requires regulatory approval from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board. The ACCC will commence a review of the proposed transaction “in due course” and the review should take about three months to complete. The shareholder vote for approval is likely to be held in 1Q22. Overall, we think that the further revised indicative offer is attractive and marginally above the pre-COVID-19 rights adjusted share price high reached in December 2019. The offer will prove attractive to shareholders who are looking for valuation certainty in an environment where the pace of the recovery in international air travel remains unclear. At the last close price of A$8.23, the shares are trading at a 6.3% gross spread to the indicative offer.

Sydney Airport’s Further Revised Offer Gets the Board’s Approval

Malaysia

Westports Holdings Berhad provides port services. The Company offers container and cargo services, marine services, rental services and other ancillary services. Westports provides its services to the import and export industries.

Bintulu Port Holdings Berhad operates as a holding company. The Company, through its subsidiaries, provides port services. Bintulu Port Holdings serves customers in Malaysia.

Suria Capital Holdings Berhad is an investment holding and property development company.  The Company, through its subsidiaries, provides, maintains, regulates, and controls port services and facilities.

Lingkaran Trans Kota Holdings Berhad is an investment holding company.  The Company, through its subsidiaries, designs and constructs Lebuh Raya Damansara-Puchong and manages toll operations.  The Company also provides highway maintenance services.

Complete Logistic Services Bhd. is an investment holding company. The Company, through its subsidiaries, owns ships, provides marine transportation services, general trading, trading of freight, lorry and trucking services, and logistics.

Shin Yang Shipping Corp Bhd. provides shipping services. The Company provides domestic and international shipping services through its fleet of vessels.  The Company also builds and repairs ships and fabricates metal vessels.

GD Express Carrier Bhd offers package delivery services.  The Company delivers parcels by truck throughout Malaysia.

AirAsia X Berhad is a long-haul, low-cost airline based in Malaysia. The Company is an affiliate carrier of the AirAsia Group. AirAsia X offers flights on the Airbus A330-300 aircraft on routes beyond 4 hours flight duration across Asia Pacific and the Middle East.

Dialog Group Berhad is an investment holding company.  The Company, through its subsidiaries, provides engineering, procurement, construction and commissioning services, and plant maintenance services. Dialog also retails petroleum to oil, gas, and petrochemical industries, as well as markets specialty chemical and equipments.

Harbour-Link Group Berhad is an investment holding company and provides management service. The Company, through its subsidiaries, provides shipping, forwarding, and transportation services. Harbour-Link also operates plant and machinery renting business and provides engineering and civil works services.

Shenzhen Expressway Company Limited offers toll expressway and road construction and investment services. The Company provides expressway operation, maintenance, and service station leasing services. Shenzhen Expressway also conducts real estate development, advertising, and engineering consulting businesses.

Qube Holdings Ltd. is a logistics company. The Group operates in divisions covering Automotive, Bulk and General Stevedoring, Landside Logistics and Strategic Development Assets.

Zhejiang Expressway Co., Ltd., through its subsidiaries, designs, constructs, operates, and manages high grade roads, as well as develops and operates certain ancillary services, such as technical consultation, advertising, automobile servicing, and fuel facilities.

Guangzhou Baiyun International Airport Co., Ltd. operates the Guangzhou Baiyun International Airport and provides related transportation services, including ground, passenger, storage, airplane maintenance and repair, and other services.  The Company also provides food, space rental, and advertising services.

Guangzhou Baiyun International Airport (600004 CH)

Tangshan Port Group Co., Ltd. provides bulk cargo handling, transport, warehousing and other logistics business.  The Company also offers utilities, port information and other professional port services.

Japan Airport Terminal Co., Ltd. constructs, manages and maintains passenger terminals and airport facilities at Haneda and Narita airports.  The Company operates parking-lots, souvenir shops, and duty-free stores.  Japan Airport Terminal, through its subsidiaries, manages restaurants and in-flight meal services.

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

Hamburger Hafen und Logistik AG (HHLA) provides services to the port in the European North Range.  The Company's container terminals, transport systems, and logistic services provide a network between overseas port and European hinterland.

Hamburger Hafen und Logistik AG (HHFA GR)

Bangkok Expressway and Metro PCL is a transportation company. The Company combines toll and metro line networks. Bangkok Expressway and Metro is based in Thailand.

China Merchants Port Group Co., Ltd. offers port operation services. The Company mainly develops, operates, and manages ports. China Merchants Port Group also provides bonded logistics services.

Malaysia Airports Holdings Berhad is an investment holding company.  The Company, through its subsidiaries, provides management, maintenance, and operation of designated airports.  Malaysia Airports also operates duty-free and non-duty free stores as well as provides food and beverage outlets at the airports.

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Malaysia Airports Holdings (MAHB MK)

Sydney Airport Enters a Scheme Implementation Deed

Sydney Airport has entered a SID with the Sydney Aviation Alliance at A$8.75 per share. At the last close, the gross spread is 3.4% and the...

Arun George

ASEAN Reopening: Tourism and Transport Reboot

Rebound in the travel and tourism-related names is about to hit an inflection point that could torpedo the share price back into the pre-COVID-19...

Henry Soediarko

Malaysia Airports Holdings: Red Light, Green Light

Malaysia Airport (MAHB) recorded total passenger movements of 458k for September with close to 80% came from the domestic sector. Overall,...

TA Securities Holdings Bhd

Looking Forward to Langkawi Travel Bubble

<p>THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* As expected, Malaysia Airports (MAHB) was still struggling with Covid-19 pandemic and...

TA Securities Holdings Bhd

Sydney Airport’s Further Revised Offer Gets the Board’s Approval

Sydney Airport has granted DD to a Sydney Aviation Alliance based on a revised price of A$8.75. The offer is attractive and at the last price of...

Arun George

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