All Posts By

Smartkarma Daily Briefs

Mar 10
0

Daily Brief TMT/Internet: Tencent, Asustek Computer and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • [Tencent (700 HK, BUY, TP HK$362) TP Change]: Core Business Is Robust While VA Is Expanding Fast
  • PC Monitor: Long Dell Vs. Short Acer Update; Dell & HPQ Results Indicate Opportunity in Asus

[Tencent (700 HK, BUY, TP HK$362) TP Change]: Core Business Is Robust While VA Is Expanding Fast

By Ying Pan

  • We expect Tencent to report C4Q23 revenue, IFRS op. profit and IFRS net income in line, (3.3%) and (4.9%) vs. consensus.
  • The robust topline growth was mainly contributed by fast growing WeChat VA (Video Account) and strong performances of <Dream Star> in December.
  • We cut our TP to HK$362 to reflect operating margin decline caused by increased sales and marketing. 

PC Monitor: Long Dell Vs. Short Acer Update; Dell & HPQ Results Indicate Opportunity in Asus

By Vincent Fernando, CFA

  • Dell has outperformed Acer and other Taiwan PC names Asus and MSI by a wide margin. Close Long Dell vs. Short Acer. Dell’s value gap has dissipated.
  • Latest indications from Dell and HP highlight that the AI PC’s will drive upgrades from customers, but the PC recovery remains soft. AI PC impact only in 2025E.
  • Dell and HPQ’s recent results provide positive color for upcoming Asus, Acer, and MSI results. Trade: Long Asus into its upcoming earnings results.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 10
0

Daily Brief Industrials: Keisei Electric Railway Co, Comsys Holdings, Deutsche Lufthansa and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Keisei Electric, New World Development, Alumina Ltd, Azure Minerals, TDCX
  • Comsys Holdings (1721): Q3 FY03/24 Update
  • Lufthansa – Portfolio Carrier Catch up Requirements Analysed

Last Week in Event SPACE: Keisei Electric, New World Development, Alumina Ltd, Azure Minerals, TDCX

By David Blennerhassett

Comsys Holdings (1721): Q3 FY03/24 Update

By Shared Research

  • Comsys Holdings (1721 JP) is one of Japan’s three largest telecommunications construction companies.
  • In FY03/23, sales were JPY563.3bn, operating profit was JPY32.1bn, recurring profit was JPY30.9bn, and net income attributable to owners of the parent was JPY19.3bn. Orders totaled JPY553.1bn.
  • Comsys Holdings Corporation announced that it will change its representative directors, effective April 1, 2024.

Lufthansa – Portfolio Carrier Catch up Requirements Analysed

By Neil Glynn

  • We forecast €2.6bn Adjusted EBIT in 2024, below management guidance of €2.7bn, given concerns about margin management as capacity increases 12% yoy.
  • Detailed analysis of the margin gaps and key drivers of gaps at each of Lufthansa’s airlines illustrates remedial work required with new perspective.
  • Bringing each portfolio company towards the Group Adjusted EBIT margin target of >8% would represent the CEO’s finest achievement (apart from helping save the company through COVID).

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 10
0

Daily Brief Consumer: ZOZO Inc, SHEIN, Nihon Chouzai, TSE Tokyo Price Index TOPIX and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up
  • Shifting Its Planned IPO from New York to London Won’t Address Key Risks Facing SHEIN
  • Nihon Chouzai (3341): Q3 FY03/24 Update
  • TSE Should Aim for a Quality Market Rather than a Market Where Listed Companies Can Easily Inhabit

Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up

By Brian Freitas

  • There were a few rebalance announcements in the last week and the SSE STAR50 (STAR50 INDEX) and STAR100 Index rebalances were implemented at the close on Friday.
  • There are a lot of rebalances that will be implemented at the close on the coming Thursday and Friday.
  • Another big week of inflows for onshore China ETFs with Central Huijin likely behind the big flows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX). 

Shifting Its Planned IPO from New York to London Won’t Address Key Risks Facing SHEIN

By Daniel Hellberg

  • A listing in London would not remove de minimis reform risk in US market
  • A new report quantifies the potential cost of changes to US de minimis rules
  • Europe’s rigorous new ‘digital services’ laws are an emerging threat to SHEIN

Nihon Chouzai (3341): Q3 FY03/24 Update

By Shared Research

  • Nihon Chouzai (3341 JP) is an integrated healthcare company whose core business is the operation of dispensing pharmacies.
  • In FY03/23, Nihon Chouzai reported sales of JPY313.3bn, operating profit of JPY7.6bn, recurring profit of JPY7.7bn, and net income attributable to owners of the parent of JPY4.5bn.
  • Nihon Chouzai Co., Ltd. announced the retirement of treasury shares.

TSE Should Aim for a Quality Market Rather than a Market Where Listed Companies Can Easily Inhabit

By Aki Matsumoto

  • Even if TSE requires new listed companies to disclose the reasons for listing and the possibility of raising funds, it’s questionable whether this will motivate them to grow their businesses.
  • Companies that are not eligible for investment in terms of market capitalization and trading liquidity criteria will not be effective if they seek contact with institutional investors.
  • If unlisted stock markets are created, IPOs will increase in size. If listing criteria are raised to tens billion yen in market capitalization, institutional interest in growth market will increase.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 10
0

Daily Brief Financials: Kolte Patil Developers, Standard Life UK Smaller Co Trust, Coinshares International and more

By | Daily Briefs, Financials

In today’s briefing:

  • Kolte Patil: Robust Execution and Guidance
  • abrdn UK Smaller Companies Growth Trust – Relative performance getting back on track
  • CoinShares International – Bli utdelningsbetalare

Kolte Patil: Robust Execution and Guidance

By Ankit Agrawal, CFA

  • Kolte Patil Developers (KPDL IN) reported a decent Q3FY24 led by record sales value and improved realization. It is on track to achieve its guided INR 2800cr sales value for FY24.
  • Demand environment continues to be robust. Kolte Patil has guided for 25%+ sales value growth even for FY25. Realization also has room to improve and should aid the growth.
  • New business development activity is strong. Kolte Patil is in advances stages of discussion for projects with sales value worth INR 8000-10000cr, INR 3000-4000cr of which could close soon.

abrdn UK Smaller Companies Growth Trust – Relative performance getting back on track

By Edison Investment Research

abrdn UK Smaller Companies Growth Trust’s (AUSC’s) managers, Abby Glennie and Amanda Yeaman, are looking forward to further improvement in the trust’s relative performance, as investors’ focus is now more on company fundamentals rather than macroeconomic developments. The managers are continuing to use the Matrix, a proprietary screening tool, to search for companies exhibiting high-quality, growth and positive momentum features. Despite a difficult period of performance during 2022, when rising interest rates led to a derating of growth stocks, the strategy employed by abrdn’s small-cap team has proved very successful over the last 25+ years across multiple business cycles.

CoinShares International – Bli utdelningsbetalare

By Edison Investment Research

CoinShares International (CS) avslutade sitt senaste räkenskapsår med justerad EBITDA för Q423 på 25,7 miljoner pund, vilket ökade vinsten för FY23 till 56,9 miljoner pund (det näst bästa resultatet i företagets historia). Bolaget inför nu en utdelningspolicy med målsättningen att utbetala 20–40 % av totalresultatet justerat för valutakursdifferenser. Vi beräknar att detta, baserat på resultatet för räkenskapsåret 2023 och nuvarande aktiekurs, innebär en god direktavkastning på ca 3,4–6,8 %. CS vill expandera till USA genom att utnyttja sin option att förvärva Valkyrie Funds (som har en bitcoin-ETF i USA i sitt erbjudande) och genom sin nyligen lanserade Hedge Fund Solutions-verksamhet.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 09
0

Most Read: Keisei Electric Railway Co, Shinko Electric Industries, JSR Corp, Shenzhen New Industries Biomedical Engineering-A, InterGlobe Aviation Ltd, Taiwan Semiconductor (TSMC), Abacus Storage King, Paradise Co Ltd, Hanon Systems, Nippon Express Holdings and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Oriental Land (4661) Placement by Keisei Rail (9009) Says “That’s the Door”
  • Shinko Electric (6967) – Break/Gap Risk Is Considerably Changed Now
  • JSR (4185) – Reporters Reportedly Report Conditions Such That JIC Deal Could Come Soon
  • CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows
  • Interglobe Aviation (Indigo) Lockup – Still Has US$3bn+ Stake Left, After Three Prior Selldowns
  • Emerging Markets Ex-China: Looking Back… And Forward
  • MVIS Australia A-REITs Index Rebalance Preview: One Deletion & Capping Changes
  • Paradise Announces A Switch in Listing from KOSDAQ to KOSPI
  • Local Observations on Carlyle’s Possible Buyout of Hanon Systems
  • Nippon Express (9147 JP): The Current Playbook

Oriental Land (4661) Placement by Keisei Rail (9009) Says “That’s the Door”

By Travis Lundy

  • Over two decades, Keisei Electric Railway Co (9009 JP) has been the subject of softer and harder activist efforts to have Keisei monetise its stake in affiliate Oriental Land (4661).
  • The most recent efforts were by Palliser last fall, briefly discussed here two weeks ago when Keisei announced a buyback. 
  • Today, Keisei announced (Japanese only) an Accelerated Block Offering of 1% of Oriental Land shares. The accompanying announcement is worth reading. It’s pretty clear.

Shinko Electric (6967) – Break/Gap Risk Is Considerably Changed Now

By Travis Lundy

  • Seven weeks ago I wrote about Shinko Electric Industries (6967 JP)‘s changing Break/Gap Risk as comps had gained. Shinko was cheap to its main comp and peers vs Announcement Date. 
  • Since then, Shinko is +4.1% and direct peer Ibiden Co Ltd (4062 JP) is -14.5%. This has erased Shinko’s underperformance since announcement, and shrunk a 9% spread to 3.3% yesterday. 
  • With the spread tighter and tech showing some weakness, I’d be happy unwinding at yesterday’s closing spread (3.3%). 

JSR (4185) – Reporters Reportedly Report Conditions Such That JIC Deal Could Come Soon

By Travis Lundy

  • JSR Corp (4185 JP) saw its stock pop Monday when an article in a Japanese paper said the Tender Offer would start “within the month.” 
  • Investors went from “concerned about delay or worse” to “anticipating resolution.” Then Wednesday just before the close the stock popped as media outlets reportedly reported no SAMR approval was required.
  • There has been no comment from either JIC or JSR but the discount to terms has gone from 6.9% last Friday to a 1.7% discount now.  

CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows

By Brian Freitas

  • With 85% of the review period complete, we see 11 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) in June.
  • We estimate one-way turnover of 1.2% at the rebalance leading to a one-way trade of CNY 7.3bn (US$1bn). There are a lot of stocks with multiple days ADV to trade.
  • The potential adds have outperformed the potential deletes despite large flows from the National Team into ETFs tracking the CSI 300 Index. That support for the potential deletes will reverse.

Interglobe Aviation (Indigo) Lockup – Still Has US$3bn+ Stake Left, After Three Prior Selldowns

By Sumeet Singh

  • InterGlobe Aviation Ltd (INDIGO IN)’s co-founder Rakesh Gangwal’s 25%+ stake will be released from lock-up tomorrow.
  • He had earlier stated his intention to pare down his stake. He has sold shares in Sep 2022, Feb 2023 and Aug 2023.
  • In this note, we will talk about the lockup dynamics and possible placement.

Emerging Markets Ex-China: Looking Back… And Forward

By Brian Freitas

MVIS Australia A-REITs Index Rebalance Preview: One Deletion & Capping Changes

By Brian Freitas

Paradise Announces A Switch in Listing from KOSDAQ to KOSPI

By Douglas Kim

  • On 7 March, Paradise Co Ltd (034230 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. 
  • Paradise will be excluded from KOSDAQ150 when it makes the switch to KOSPI. However, it is not certain if and when the company will be included in KOSPI200.
  • All in all, we would argue that the valuations are not especially appealing for Paradise, despite the sharp pick-up in business in 2023.

Local Observations on Carlyle’s Possible Buyout of Hanon Systems

By Sanghyun Park

  • Carlyle’s renewed interest in acquiring Hanon Systems is evident from recent local market news, indicating outreach to bankers for a potential buyout, as confirmed by a local brokerage.
  • Carlyle eyes majority control of Hanon Systems, targeting 50.5% from Hahn & Co and 19.5% from Hankook Tire. Carlyle may extend a tender offer for the remaining 30%.
  • Still early stages; no solid info on deal certainty or specifics. Limited immediate trading opportunities, but worth monitoring as it progresses.

Nippon Express (9147 JP): The Current Playbook

By Arun George

  • Since the US$260 million secondary placement announcement, Nippon Express Holdings (9147 JP) shares are down 5.3% from the undisturbed price of JPY8,039 per share (1 March).
  • Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Nippon Express shares have followed the pattern of previous large placements.
  • The offering will likely be priced on 11 March. Investors who have participated in previous large Japanese placements tend to secure positive returns.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars
Sign Up for Free



Mar 09
0

Daily Brief Quantitative Analysis: ASX Short Interest Weekly (Mar 1st): Commonw Bk Austr and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • ASX Short Interest Weekly (Mar 1st): Commonw Bk Austr, Rio Tinto, Seven Group Hold, Wesfarmers, Igo
  • Hong Kong Buybacks Weekly (Mar 8th): Dongyue, Aia, Kuaishou Technology

ASX Short Interest Weekly (Mar 1st): Commonw Bk Austr, Rio Tinto, Seven Group Hold, Wesfarmers, Igo

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of ASX Stocks as of Mar 1st (reported today) which has an aggregated short interest worth USD19.3bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Commonw Bk Austr, Rio Tinto, Seven Group Hold, Wesfarmers, Igo, Yancoal Australi, Macquarie, Xero, Lovisa.

Hong Kong Buybacks Weekly (Mar 8th): Dongyue, Aia, Kuaishou Technology

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Mar 8th based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were Dongyue (189 HK), AIA (1299 HK), Kuaishou Technology (1024 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Dongyue (189 HK), AIA (1299 HK), HSBC (5 HK).

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 09
0

Daily Brief Credit: Delta Dunia Makmur – Event Flash – Tender Offer And Consent Solicitation – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Delta Dunia Makmur – Event Flash – Tender Offer And Consent Solicitation – Lucror Analytics

Delta Dunia Makmur – Event Flash – Tender Offer And Consent Solicitation – Lucror Analytics

By Trung Nguyen

Delta Dunia Makmur has launched a tender offer for the USD 7.75% 2026 notes (USD 365.7 mn outstanding), with a concurrent consent solicitation. We recommend that noteholders tender their bonds, and close our “Buy” call on the BUMAIJ 7.75 ’26s.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 09
0

Daily Brief Thematic (Sector/Industry): EU Real Estate Holds Steady Amidst Structural Slowdown and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • EU Real Estate Holds Steady Amidst Structural Slowdown
  • Silicon Wafers Area Shipments Decline 14.3% YoY in 2023
  • AUCTUS ON FRIDAY – 08/03/2024
  • Lithium producers pump brakes on North American projects amid low prices

EU Real Estate Holds Steady Amidst Structural Slowdown

By Raghav Chandra Mathur

  • Europe’s Real Estate sector has been dealing with a protracted slowdown in growth and financing availability that has seen the industry battle rising borrowing and refinancing costs, increasing the repayment burden on Developers, REITs and Real Estate Services providers.
  • The downturn has been especially pertinent for the Real Estate Owners and Developers as they navigate the higher-for-longer interest rate environment.
  • However, this trend hasn’t been pervasive throughout the Euro Area.

Silicon Wafers Area Shipments Decline 14.3% YoY in 2023

By William Keating

  • Silicon wafers area shipments (in MSI) declined by 14.3% YoY in 2023
  • Wafer revenues also declined by 10.9% to $12.3 billion over the same period
  • We expect Q124 revenues to be down ~20% QoQ and anticipate a further 5% YoY decline in full year 2024 shipments

AUCTUS ON FRIDAY – 08/03/2024

By Auctus Advisors

  • Panoro Energy (PEN NO)C; target price of NOK47 per share: Hibiscus South on stream at 5-6 mbbl/d – The Hibiscus South well has been put in production at a rate of 5-6 mbbl/d.
  • Once stabilized this should take production at Dussafu to ~30 mbbl/d.
  • Pulsar Helium (PLSR CN)C; target price of C$0.80 per share: High Helium concentration at high impact appraisal well – The Jetstream #1 appraisal well at the Topaz helium project in Minnesota encountered helium shows while drilling, with helium concentration of up to 12.4% according to the on-site spectrometer.

Lithium producers pump brakes on North American projects amid low prices

By Commodities Focus

  • Developers scrambled to advertise projects to potential investors in the US between 2021-2023
  • Prices for lithium reached all time highs due to impact of COVID on supply chains
  • Prices have since plunged nearing a three-year low, causing uncertainty for companies with viable projects and automakers scaling back EV production forecasts

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 09
0

Daily Brief ECM: Nippon Express (9147 JP): The Current Playbook and more

By | Daily Briefs, ECM

In today’s briefing:

  • Nippon Express (9147 JP): The Current Playbook
  • Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends
  • Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside
  • Shanghai Zhida Technology Development Pre-IPO Tearsheet

Nippon Express (9147 JP): The Current Playbook

By Arun George

  • Since the US$260 million secondary placement announcement, Nippon Express Holdings (9147 JP) shares are down 5.3% from the undisturbed price of JPY8,039 per share (1 March).
  • Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Nippon Express shares have followed the pattern of previous large placements.
  • The offering will likely be priced on 11 March. Investors who have participated in previous large Japanese placements tend to secure positive returns.

Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends

By Douglas Kim

  • Classys is one of the top beauty medical device companies in Korea. Classys’ main products include Shurink Universe and Volnewmer.
  • We have a positive view of Classys (214150 KS). Classys is trading at relatively reasonable valuations, considering the company’s strong growth in sales and profits.
  • On 28 February, Classys announced a shareholder return amount of 38 billion won (including share cancellation of about 25 billion won and dividend payout of 13 billion won).

Astera Labs IPO Valuation Update: Multiples Appear Rich, Limited Post-IPO Upside

By Andrei Zakharov

  • Astera Labs, which offers connectivity solutions tailored for AI accelerators, GPUs, FPGAs and other high-performance computing platforms, announced terms for its IPO today.
  • California-Based semiconductor company plans to raise ~$392M by offering ~14.8M shares at a price range of $27 to $30. Selling stockholders offer ~3M shares of common stock in this IPO.  
  • At the midpoint of the proposed price range, Astera Labs would command a fully diluted market value of $5B, above their last private round of $3.15B.

Shanghai Zhida Technology Development Pre-IPO Tearsheet

By Clarence Chu

  • Shanghai Zhida Technology Development Co Ltd (SZTD HK) is looking to raise about US$130m in its upcoming Hong Kong IPO. Shenwan Hongyuan is the sole bookrunner.
  • Shanghai Zhida Technology Development (SZTD) is a provider of electric vehicle (EV) home charging solutions.
  • As per F&S, the firm was the world’s largest provider of EV home charging solutions in terms of sales volume of home EV chargers over its track record period.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Mar 09
0

Daily Brief Event-Driven: Local Observations on Carlyle’s Possible Buyout of Hanon Systems and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Local Observations on Carlyle’s Possible Buyout of Hanon Systems
  • Eureka Group (EGH AU): Aspen’s Offer Is A Non-Starter
  • Iberdrola/Avangrid: Logical Move

Local Observations on Carlyle’s Possible Buyout of Hanon Systems

By Sanghyun Park

  • Carlyle’s renewed interest in acquiring Hanon Systems is evident from recent local market news, indicating outreach to bankers for a potential buyout, as confirmed by a local brokerage.
  • Carlyle eyes majority control of Hanon Systems, targeting 50.5% from Hahn & Co and 19.5% from Hankook Tire. Carlyle may extend a tender offer for the remaining 30%.
  • Still early stages; no solid info on deal certainty or specifics. Limited immediate trading opportunities, but worth monitoring as it progresses.

Eureka Group (EGH AU): Aspen’s Offer Is A Non-Starter

By David Blennerhassett

  • On the 23 January, Aspen (APZ AU) improved its scrip terms to 0.26 Aspen shares per Eureka (EGH AU) share, up from 0.225 Aspen shares on the 2 March 2023.
  • Two weeks later, Eureka said they still had not received a formal Offer. Aspen has now released its Bidder’s Statement. Its Offer has a 50.1% acceptance condition.
  • Complicating the Offer was the recent disclosures from FDC Group that it held a 12.89% stake, preventing Aspen compulsory acquiring shares.

Iberdrola/Avangrid: Logical Move

By Jesus Rodriguez Aguilar

  • Iberdrola SA (IBE SM) launches a $34.25/share cash offer to acquire the minorities (18.4%) in its US subsidiary Avangrid (AGR US). Premium is 6.8%, and the cost c. $2.5 billion.
  • The market was awaiting this move since the cancellation of the PNM deal, which explains the recent rise in the share price of Avangrid.
  • Gross spread is 4.5%. It seems investors are buying in the hope of an offer sweetening, knowing that Iberdrola has some cash available to spend from the profitable Mexico exit.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free