Industrials

Today at lunch, Nippon Yusen Kk (9101 JP) released a New Medium-Term Management Plan Presentation (FY2023 to 2026). “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing.”
It has basic investment plans, including growing scale of ONE container shipping alliance, growing auto logistics, spending on fuel conversions, offshore wind, hydrogen/ammonia, and doing some logistics M&A
They also plan a new Shareholder Return Policy. That raises minimum dividend, expected payout ratio, and involves ¥200bn of buybacks the next two fiscal years. Read on.

Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts

Today, Nippon Steel Corporation (5401 JP) and Mitsui & Co Ltd (8031 JP) announced they would launch the TOB to take over Nippon Steel Trading Corporation (9810 JP) starting Monday.
I wrote about the deal and its parameters in December 2022 in Nippon Steel & Mitsui & Co to Buy Out Nippon Steel Trading (9810) At 87% Premium.
This gets done easily I expect. Boring, but decent very short-term carry on the bid side.

Long Short Setup on KOSDAQ 150 Ad Hoc Change with SK Oceanplant’s KOSPI Transfer Listing

By Sanghyun Park

SK Oceanplant will likely be listed on KOSPI in late May or early June. There are no clear reasons for KRX to oppose SK Ocean Plant’s move to KOSPI.
The top reserved issue in INDUSTRIALS, Sun Kwang (003100 KS), will replace it in KOSDAQ 150. The effective date is the delisting day.
The impact size on the delisting day alone may be well above 1x ADTV for both companies, so we will likely see a significant price movement.

LG Corp: A Family Feud! (Mother & Sisters Sue Their Chairman Son) Enter the Private Equity Dragons?

There is a major family feud on LG Group. Koo Kwang-Mo (Chairman of LG Group)’s mum and sisters are suing Chairman Koo to demand more money.
We believe that this family feud among the members of the LG Group regarding the inheritance recovery is likely to heighten the importance of the controlling stake in LG Corp.
Similar to what has happened with Osstem Implant, it is very possible that mum and sisters are discussing various strategies with some of the biggest private equity dragons in Asia/globally.

Acceptance Period for Triton’s Offer Commences, Irrevocables for Bain’s Cease to Be in Effect

By Jesus Rodriguez Aguilar

On 8 March, the Bain’s consortium announced that it will lower the minimum acceptance threshold from over 66.66% to over 50%. Irrevocables seem to have ceased to be in effect.
Triton’s all in: the acceptance period for its offer commenced on 8 March, has agreed to purchase up to 22.8% and will resume buying in the market.
Gross spread is 1.1%. I’d be long in case the Bain’s consortium improves Triton’s offer, which may depend on the additional debt than private members of Bain’s consortium could afford.

[JD Logistics(2618 HK) DG to SELL]: JD’s Low-Price Strategy Hurts JD Logistics

By Shawn Yang

In C4Q22, JDL reported in line results for both revenue and profit. In C1Q23, we expect JDL’s topline growth continue to decelerate due to decline of parcels.
JD has adopted the low-price strategy, which hinders the growth of JDL. The price competition in eCommerce negatively affects JDL but benefits ZTO.
We cut our 2023 revenue forecast by 6%, which is (5%) below cons. Downgrade JDL to SELL with TP of HK$10.

Leonardo: +26% Since Initial Note. 2022 Results Are Strong.

By Alexis Dwek

2022 results were solid, exceeding guidance. 2024: Guidance in-line with consensus
Defense industry on fire. Refer to initial note for further info regarding increased defense budgets
Given the very strong performance YTD, we recommend taking some profit here for shorter-term investors. For long-term investors TP remains €12.80. We like the sector

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Mar 11

Daily Brief Industrials: Dai Nippon Printing, Nippon Yusen Kk, Nippon Steel Trading Corporation, Sun Kwang, LG Corp, Caverion Corp, JD Logistics, Leonardo SpA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Dai Nippon Printing – Gauging The Upside
Nippon Yusen – New MidTermPlan = New Shareholder Return Policy
Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts
Long Short Setup on KOSDAQ 150 Ad Hoc Change with SK Oceanplant’s KOSPI Transfer Listing
LG Corp: A Family Feud! (Mother & Sisters Sue Their Chairman Son) Enter the Private Equity Dragons?
Acceptance Period for Triton’s Offer Commences, Irrevocables for Bain’s Cease to Be in Effect
[JD Logistics(2618 HK) DG to SELL]: JD’s Low-Price Strategy Hurts JD Logistics
Leonardo: +26% Since Initial Note. 2022 Results Are Strong.

Dai Nippon Printing – Gauging The Upside

By Mio Kato

Despite the strong performance from Dai Nippon Printing following the announcement of Elliott’s stake we feel upside remains.
Operating results should benefit from normalisation of the economy and light restructuring potential.
In addition, we do not see much evidence to suggest that valuations are particularly stretched.

Nippon Yusen – New MidTermPlan = New Shareholder Return Policy

Today at lunch, Nippon Yusen Kk (9101 JP) released a New Medium-Term Management Plan Presentation (FY2023 to 2026). “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing.”
It has basic investment plans, including growing scale of ONE container shipping alliance, growing auto logistics, spending on fuel conversions, offshore wind, hydrogen/ammonia, and doing some logistics M&A
They also plan a new Shareholder Return Policy. That raises minimum dividend, expected payout ratio, and involves ¥200bn of buybacks the next two fiscal years. Read on.

Nippon Steel/Mitsui TOB for Nippon Steel Trading (9810) Starts

Today, Nippon Steel Corporation (5401 JP) and Mitsui & Co Ltd (8031 JP) announced they would launch the TOB to take over Nippon Steel Trading Corporation (9810 JP) starting Monday.
I wrote about the deal and its parameters in December 2022 in Nippon Steel & Mitsui & Co to Buy Out Nippon Steel Trading (9810) At 87% Premium.
This gets done easily I expect. Boring, but decent very short-term carry on the bid side.

Long Short Setup on KOSDAQ 150 Ad Hoc Change with SK Oceanplant’s KOSPI Transfer Listing

By Sanghyun Park

SK Oceanplant will likely be listed on KOSPI in late May or early June. There are no clear reasons for KRX to oppose SK Ocean Plant’s move to KOSPI.
The top reserved issue in INDUSTRIALS, Sun Kwang (003100 KS), will replace it in KOSDAQ 150. The effective date is the delisting day.
The impact size on the delisting day alone may be well above 1x ADTV for both companies, so we will likely see a significant price movement.

LG Corp: A Family Feud! (Mother & Sisters Sue Their Chairman Son) Enter the Private Equity Dragons?

There is a major family feud on LG Group. Koo Kwang-Mo (Chairman of LG Group)’s mum and sisters are suing Chairman Koo to demand more money.
We believe that this family feud among the members of the LG Group regarding the inheritance recovery is likely to heighten the importance of the controlling stake in LG Corp.
Similar to what has happened with Osstem Implant, it is very possible that mum and sisters are discussing various strategies with some of the biggest private equity dragons in Asia/globally.

Acceptance Period for Triton’s Offer Commences, Irrevocables for Bain’s Cease to Be in Effect

By Jesus Rodriguez Aguilar

On 8 March, the Bain’s consortium announced that it will lower the minimum acceptance threshold from over 66.66% to over 50%. Irrevocables seem to have ceased to be in effect.
Triton’s all in: the acceptance period for its offer commenced on 8 March, has agreed to purchase up to 22.8% and will resume buying in the market.
Gross spread is 1.1%. I’d be long in case the Bain’s consortium improves Triton’s offer, which may depend on the additional debt than private members of Bain’s consortium could afford.

[JD Logistics(2618 HK) DG to SELL]: JD’s Low-Price Strategy Hurts JD Logistics

By Shawn Yang

In C4Q22, JDL reported in line results for both revenue and profit. In C1Q23, we expect JDL’s topline growth continue to decelerate due to decline of parcels.
JD has adopted the low-price strategy, which hinders the growth of JDL. The price competition in eCommerce negatively affects JDL but benefits ZTO.
We cut our 2023 revenue forecast by 6%, which is (5%) below cons. Downgrade JDL to SELL with TP of HK$10.

Leonardo: +26% Since Initial Note. 2022 Results Are Strong.

By Alexis Dwek

2022 results were solid, exceeding guidance. 2024: Guidance in-line with consensus
Defense industry on fire. Refer to initial note for further info regarding increased defense budgets
Given the very strong performance YTD, we recommend taking some profit here for shorter-term investors. For long-term investors TP remains €12.80. We like the sector

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Mar 10

Daily Brief Industrials: Dai Nippon Printing, Fangda Carbon New Material Co, Ltd., Doosan Robotics, Hosokawa Micron, SITC International and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs
Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months
Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp
Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback
SITC International (1308 HK): Still Not Easy to Find the Bright Spot

Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs

Elliott Management was noted several weeks ago to have bought near 5% of Dai Nippon Printing (7912 JP). The stock popped when people found out.
Then the stock popped when the company said they’d announce the outline for their new Mid-Term Management Plan on 9 March, and that would include more capital allocation measures.
Today we got the Outline. There are more capital allocation measures. The numbers look big. Nuance is required to understand the impacts over time.

Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months

By Clarence Chu

Fangda Carbon New Material Co, Ltd. (600516 CH) is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.
The firm is offering 13.91m GDRs (1 GDR to 10 A-shares) for sale at US$8.63-8.9/GDR, or at a 8.3-11.1% discount to last close on the A-share leg.
As per the firm, it plans to use the net proceeds from the offering to support its business expansion, repay debt, supplement working capital and for general corporate purposes.

Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp

The Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in 2023.
The local media have mentioned that Doosan Robotics could receive at least 1 trillion won (US$0.8 billion) in market cap valuation.
Established in 2015, Doosan Corp owns a 90.9% stake in Doosan Robotics, which is the largest collaborative robot manufacturer in Korea.

Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback

Today after the close, Hosokawa Micron (6277 JP) – a company which is all about powders and particles – announced a ToSTNeT-3 buyback of 1.35mm shares (8.26% TSO) tomorrow AM.
Nisshin Seifun Group (2002 JP) and subsidiary Nisshin Engineering said they would offer some shares in. The HM announcement said financial institutions might sell.
Hosokawa Micron is cheap, and this is accretive. Worth a closer look.

SITC International (1308 HK): Still Not Easy to Find the Bright Spot

By Osbert Tang, CFA

We stay bearish on SITC International (1308 HK) despite record net profit in FY22. The collapse in spot freight rate will take a toll on FY23 earnings.
Management is also conservative on outlook, citing both demand and supply issues. It expects gross margin to return to pre-pandemic levels (17-20%) in the future, vs. 41.8% in 2H22.
Market consensus is just too optimistic, projecting just 37% YoY decline in earnings for FY23. We believe actual earnings may be at least 18-27% lower than current street forecasts.

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Mar 10

Daily Brief Industrials: Dai Nippon Printing, Fangda Carbon New Material Co, Ltd., Doosan Robotics, Hosokawa Micron, SITC International and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs
Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months
Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp
Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback
SITC International (1308 HK): Still Not Easy to Find the Bright Spot

Dai Nippon Printing (7912) – Whoop There It Is! ¥100bn Buyback in a Year, ¥300bn in 3yrs

Elliott Management was noted several weeks ago to have bought near 5% of Dai Nippon Printing (7912 JP). The stock popped when people found out.
Then the stock popped when the company said they’d announce the outline for their new Mid-Term Management Plan on 9 March, and that would include more capital allocation measures.
Today we got the Outline. There are more capital allocation measures. The numbers look big. Nuance is required to understand the impacts over time.

Fangda Carbon New Material GDR Listing – Share Price Has Outperformed Index over the past 3 Months

By Clarence Chu

Fangda Carbon New Material Co, Ltd. (600516 CH) is looking to raise around US$124m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.
The firm is offering 13.91m GDRs (1 GDR to 10 A-shares) for sale at US$8.63-8.9/GDR, or at a 8.3-11.1% discount to last close on the A-share leg.
As per the firm, it plans to use the net proceeds from the offering to support its business expansion, repay debt, supplement working capital and for general corporate purposes.

Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp

The Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in 2023.
The local media have mentioned that Doosan Robotics could receive at least 1 trillion won (US$0.8 billion) in market cap valuation.
Established in 2015, Doosan Corp owns a 90.9% stake in Doosan Robotics, which is the largest collaborative robot manufacturer in Korea.

Hosokawa Micron (6277 JP) – Big Accretive Cross-Holder Share Buyback

Today after the close, Hosokawa Micron (6277 JP) – a company which is all about powders and particles – announced a ToSTNeT-3 buyback of 1.35mm shares (8.26% TSO) tomorrow AM.
Nisshin Seifun Group (2002 JP) and subsidiary Nisshin Engineering said they would offer some shares in. The HM announcement said financial institutions might sell.
Hosokawa Micron is cheap, and this is accretive. Worth a closer look.

SITC International (1308 HK): Still Not Easy to Find the Bright Spot

By Osbert Tang, CFA

We stay bearish on SITC International (1308 HK) despite record net profit in FY22. The collapse in spot freight rate will take a toll on FY23 earnings.
Management is also conservative on outlook, citing both demand and supply issues. It expects gross margin to return to pre-pandemic levels (17-20%) in the future, vs. 41.8% in 2H22.
Market consensus is just too optimistic, projecting just 37% YoY decline in earnings for FY23. We believe actual earnings may be at least 18-27% lower than current street forecasts.

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Mar 09

Daily Brief Industrials: HNI Corp, Fortive Corp, NOW Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment
Fortive Corporation: Major Drivers
Transformed Fulfillment Model Driving Results

HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment

Before market open on March 8, HNI announced the acquisition of Kimball International (NASDAQ: KBAL), a smaller competitor of HNI’s Workplace Furnishings segment.
HNI will pay about $485 million, consisting of cash ($9/KBAL share), stock (0.1301 HNI/KBAL share), and ~$46 million in KBAL net debt.
We see the deal as an excellent fit on strategic and cultural levels.

Fortive Corporation: Major Drivers

Fortive delivered its fourth consecutive all-around beat and managed to report core revenue growth, operating margin expansion, adjusted earnings per share growth, and free cash flow growth.
IOS grew core revenue, representing its double-digit core revenue growth.
In the quarter, strong end-market demand drove revenue growth of double-digit EMEA SaaS.

Transformed Fulfillment Model Driving Results

DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.
A client-focused global technical sales force aims to make DistributionNOW a strategic partner with customers to help them manage their energy supply chain.
The fulfillment model, if built around Supercenters, combines multiple business lines into a single location, making it easier to work with both suppliers and customers.

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Mar 09

Daily Brief Industrials: HNI Corp, Fortive Corp, NOW Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment
Fortive Corporation: Major Drivers
Transformed Fulfillment Model Driving Results

HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment

Before market open on March 8, HNI announced the acquisition of Kimball International (NASDAQ: KBAL), a smaller competitor of HNI’s Workplace Furnishings segment.
HNI will pay about $485 million, consisting of cash ($9/KBAL share), stock (0.1301 HNI/KBAL share), and ~$46 million in KBAL net debt.
We see the deal as an excellent fit on strategic and cultural levels.

Fortive Corporation: Major Drivers

Fortive delivered its fourth consecutive all-around beat and managed to report core revenue growth, operating margin expansion, adjusted earnings per share growth, and free cash flow growth.
IOS grew core revenue, representing its double-digit core revenue growth.
In the quarter, strong end-market demand drove revenue growth of double-digit EMEA SaaS.

Transformed Fulfillment Model Driving Results

DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.
A client-focused global technical sales force aims to make DistributionNOW a strategic partner with customers to help them manage their energy supply chain.
The fulfillment model, if built around Supercenters, combines multiple business lines into a single location, making it easier to work with both suppliers and customers.

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Mar 08

Daily Brief Industrials: Ana Holdings, Doosan Bobcat Inc, Ventia, Balaji Speciality Chemicals, China Southern Airlines, Southwest Airlines Co, American Airlines Group and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

ANA and NYK to Trade NCA, So JAL/ANA GTG
Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares
Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
Ventia Services Group Placement – Well-Flagged and Coming off Escrow
Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize
China Southern Airlines Co Ltd (1055 HK) – LT Charts Delivering Potential for a 20%+ Uptrend in 2023
Southwest Airlines Co.: Major Drivers
American Airlines Group Inc.: Major Drivers

ANA and NYK to Trade NCA, So JAL/ANA GTG

ANA announced their FY23-25 Mid-Term Corporate Strategy last month. In it, a plan to increase cargo.
Today, Ana Holdings (9202 JP) and Nippon Yusen Kk (9101 JP) announced ANA would take over NYK sub Nippon Cargo Airlines 1 October 2023 – price and method TBD.
This would add ~45-50% to ANA’s cargo volume, and more to its capacity. But it means NYK sells cheap OR it means a chunk of ANA cash/stock. Overhang.

Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares

On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount range is from 6.11% to 8.03%.
We have a Negative view on this block deal sale and we continue to have a Negative view on Doosan Bobcat’s shares.
There are visible signs of the construction sector slowdown in North America and Europe driven by higher interest rates, housing price declines, and decline in the residential/commercial construction markets.

Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different

By Sumeet Singh

A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Ventia Services Group Placement – Well-Flagged and Coming off Escrow

Ventia (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$272m via a secondary block deal.
The deal is a relatively large one to digest at 77 days of three month ADV and about 19.5% of current mcap.
In this note, we will talk about the placement and run the deal through our ECM framework.

Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize

Balaji Speciality Chemicals (1742663D IN) is looking to raise about US$126m in its upcoming India IPO.
Balaji Speciality Chemicals (BSC) is the sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, according to CRISIL.
BSC’s profitability growth has been stupendous, given its quick production ramp up. However, its growth is very likely to normalize.

China Southern Airlines Co Ltd (1055 HK) – LT Charts Delivering Potential for a 20%+ Uptrend in 2023

By David Coloretti, CMT

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
The 2021/2023 period has produced definitive evidence of bullish LT trend change. We see this in both trend structure and also LT momentum triggers.
Since 2015, peaks have been in the 8.50/11.00 range. Conservatively, the 2023 uptrend targets the top of the parallel uptrend channel in the 7.25/7.45 range (20%+), likely in H2 2023.

Southwest Airlines Co.: Major Drivers

Southwest Airlines had a disastrous quarter and failed to meet the revenue expectations of Wall Street while continuing to face a variety of new difficulties.
Also, consumer refunds and reimbursements continue to be a top priority as they remain laser-focused on their clients and future plans.
Although disappointing, Southwest Airlines anticipates another loss in Q1 of this year due to a drag on revenue from the operational disruption.

American Airlines Group Inc.: Major Drivers

American Airlines Group’s performance was solid in the last quarter as it delivered an all-around beat.
The company reported a net income of $827 million for the fourth quarter and $328 million for the entire year and performed considerably better than peers, particularly Southwest.
We give American Airlines Group a ‘Hold’ rating with a revised target price.

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Mar 08

Daily Brief Industrials: Ana Holdings, Doosan Bobcat Inc, Ventia, Balaji Speciality Chemicals, China Southern Airlines, Southwest Airlines Co, American Airlines Group and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

ANA and NYK to Trade NCA, So JAL/ANA GTG
Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares
Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different
Ventia Services Group Placement – Well-Flagged and Coming off Escrow
Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize
China Southern Airlines Co Ltd (1055 HK) – LT Charts Delivering Potential for a 20%+ Uptrend in 2023
Southwest Airlines Co.: Major Drivers
American Airlines Group Inc.: Major Drivers

ANA and NYK to Trade NCA, So JAL/ANA GTG

ANA announced their FY23-25 Mid-Term Corporate Strategy last month. In it, a plan to increase cargo.
Today, Ana Holdings (9202 JP) and Nippon Yusen Kk (9101 JP) announced ANA would take over NYK sub Nippon Cargo Airlines 1 October 2023 – price and method TBD.
This would add ~45-50% to ANA’s cargo volume, and more to its capacity. But it means NYK sells cheap OR it means a chunk of ANA cash/stock. Overhang.

Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares

On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount range is from 6.11% to 8.03%.
We have a Negative view on this block deal sale and we continue to have a Negative view on Doosan Bobcat’s shares.
There are visible signs of the construction sector slowdown in North America and Europe driven by higher interest rates, housing price declines, and decline in the residential/commercial construction markets.

Doosan Bobcat Placement – Past Deal Didn’t Do Well, This Time Could Be Different

By Sumeet Singh

A group of shareholders aim to raise around US$138m by selling all of their remaining stake in Doosan Bobcat.
The same shareholders had earlier sold in Nov 22, see Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag. That deal didn’t do well.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Ventia Services Group Placement – Well-Flagged and Coming off Escrow

Ventia (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$272m via a secondary block deal.
The deal is a relatively large one to digest at 77 days of three month ADV and about 19.5% of current mcap.
In this note, we will talk about the placement and run the deal through our ECM framework.

Balaji Speciality Chemicals Pre-IPO – Stupendous Growth but Likely to Normalize

Balaji Speciality Chemicals (1742663D IN) is looking to raise about US$126m in its upcoming India IPO.
Balaji Speciality Chemicals (BSC) is the sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, according to CRISIL.
BSC’s profitability growth has been stupendous, given its quick production ramp up. However, its growth is very likely to normalize.

China Southern Airlines Co Ltd (1055 HK) – LT Charts Delivering Potential for a 20%+ Uptrend in 2023

By David Coloretti, CMT

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
The 2021/2023 period has produced definitive evidence of bullish LT trend change. We see this in both trend structure and also LT momentum triggers.
Since 2015, peaks have been in the 8.50/11.00 range. Conservatively, the 2023 uptrend targets the top of the parallel uptrend channel in the 7.25/7.45 range (20%+), likely in H2 2023.

Southwest Airlines Co.: Major Drivers

Southwest Airlines had a disastrous quarter and failed to meet the revenue expectations of Wall Street while continuing to face a variety of new difficulties.
Also, consumer refunds and reimbursements continue to be a top priority as they remain laser-focused on their clients and future plans.
Although disappointing, Southwest Airlines anticipates another loss in Q1 of this year due to a drag on revenue from the operational disruption.

American Airlines Group Inc.: Major Drivers