Category

Industrials

Feb 20
0

Daily Brief Industrials: Sembcorp Marine, Advantest Corp, Fujitec Co Ltd, Toshiba Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine (SMM SP): Short-Term Share Overhang Vs the Long-Term Value
  • Advantest (6857): Sell into the Rebound
  • Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina
  • Toshiba Bear Targets

Sembcorp Marine (SMM SP): Short-Term Share Overhang Vs the Long-Term Value

By Arun George

  • The transaction completes on 28 February and the distribution in-specie of 49% new Sembcorp Marine (SMM SP) shares will be credited to Keppel Corp (KEP SP)‘s shareholders on 1 March.   
  • While the potential index inclusions are likely to support new SMM shares, there is likely to be greater short-term downward pressure from the overhang created by the distribution in-specie. 
  • New SMM trades at a premium P/NAV multiple of 1.81x vs peers. However, New SMM’s order book of S$18.1 billion implies an undemanding EV/order book of 0.60x vs historical ranges.

Advantest (6857): Sell into the Rebound

By Scott Foster

  • Advantest’s share price has risen by 21.5% since the beginning of January, but sales and profits are peaking and YoY comparisons are becoming increasingly difficult.
  • Competitor Teradyne’s results and guidance give an indication of potential near-term risk, which could be more than 20%. 
  • Visibility is deteriorating and the longer-term outlook uncertain. We doubt the share price can hold up as profits decline. 

Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina

By Arun George

Toshiba Bear Targets

By Thomas Schroeder

  • Toshiba (6502) exhibits clear bear momentum as the MACD turns down from key trend resistance. A sharp draw down will set up a buying opportunity.
  • Near sell resistance to short lies at 4,450. Bear projection come in at 4,185 but the MACD coil suggests an undershoot toward 4,100.
  • Macro bet is to buy near spiked lows for a rally to 4,500 and then the bigger 5,000 barrier. Need to see sell volumes deteriorate into weakness.

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Feb 20
0

Daily Brief Industrials: Sembcorp Marine, Advantest Corp, Fujitec Co Ltd, Toshiba Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine (SMM SP): Short-Term Share Overhang Vs the Long-Term Value
  • Advantest (6857): Sell into the Rebound
  • Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina
  • Toshiba Bear Targets

Sembcorp Marine (SMM SP): Short-Term Share Overhang Vs the Long-Term Value

By Arun George

  • The transaction completes on 28 February and the distribution in-specie of 49% new Sembcorp Marine (SMM SP) shares will be credited to Keppel Corp (KEP SP)‘s shareholders on 1 March.   
  • While the potential index inclusions are likely to support new SMM shares, there is likely to be greater short-term downward pressure from the overhang created by the distribution in-specie. 
  • New SMM trades at a premium P/NAV multiple of 1.81x vs peers. However, New SMM’s order book of S$18.1 billion implies an undemanding EV/order book of 0.60x vs historical ranges.

Advantest (6857): Sell into the Rebound

By Scott Foster

  • Advantest’s share price has risen by 21.5% since the beginning of January, but sales and profits are peaking and YoY comparisons are becoming increasingly difficult.
  • Competitor Teradyne’s results and guidance give an indication of potential near-term risk, which could be more than 20%. 
  • Visibility is deteriorating and the longer-term outlook uncertain. We doubt the share price can hold up as profits decline. 

Weekly Deals Digest (19 Feb) – Fujitec, Toyo, AAG Energy, Yashili, Newcrest, Keppel, Pertamina

By Arun George

Toshiba Bear Targets

By Thomas Schroeder

  • Toshiba (6502) exhibits clear bear momentum as the MACD turns down from key trend resistance. A sharp draw down will set up a buying opportunity.
  • Near sell resistance to short lies at 4,450. Bear projection come in at 4,185 but the MACD coil suggests an undershoot toward 4,100.
  • Macro bet is to buy near spiked lows for a rally to 4,500 and then the bigger 5,000 barrier. Need to see sell volumes deteriorate into weakness.

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Feb 19
0

Daily Brief Industrials: Sembcorp Marine, Keppel Corp, Toshiba Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine (SMM SP):  Keppel O&M Takeover Completion Next Week = OOF!
  • Keppel Goes Ex- SMM Spinoff This Week – NEWKEP Is Still A Buy
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Toshiba, Jingnan, Newcrest, Yashili, Sembcorp, O2Micro, AAG

Sembcorp Marine (SMM SP):  Keppel O&M Takeover Completion Next Week = OOF!

By Travis Lundy

  • This insight comes as one-half of a pair. The problem: I cannot label one insight as a pair trade, and there are different dynamics at play.
  • This insight discusses the dynamics of Sembcorp Marine (SMM SP) as the takeover of Keppel O&M nears. The deal goes effective 28 February after last week’s SMM shareholder approval.
  • That will mean overhang. Lots of active overhang. There WILL be some index upweights, but index treatment remains nebulous, and one has to expect a lot more net index outflow.

Keppel Goes Ex- SMM Spinoff This Week – NEWKEP Is Still A Buy

By Travis Lundy

  • This insight comes as one-half of a pair. The problem: I cannot label one insight as a pair trade, and there are different dynamics at play.
  • This insight discusses the dynamics of Keppel Corp (KEP SP) as the SMM takeover of Keppel O&M nears. The deal goes effective 28 February but KEP trades ex- on 23 February.
  • While not as egregiously mis-priced as SCI vs SMM in autumn 2021, NEW KEPPEL appears under-priced here. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Toshiba, Jingnan, Newcrest, Yashili, Sembcorp, O2Micro, AAG

By David Blennerhassett

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Feb 19
0

Daily Brief Industrials: Sembcorp Marine, Keppel Corp, Toshiba Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sembcorp Marine (SMM SP):  Keppel O&M Takeover Completion Next Week = OOF!
  • Keppel Goes Ex- SMM Spinoff This Week – NEWKEP Is Still A Buy
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Toshiba, Jingnan, Newcrest, Yashili, Sembcorp, O2Micro, AAG

Sembcorp Marine (SMM SP):  Keppel O&M Takeover Completion Next Week = OOF!

By Travis Lundy

  • This insight comes as one-half of a pair. The problem: I cannot label one insight as a pair trade, and there are different dynamics at play.
  • This insight discusses the dynamics of Sembcorp Marine (SMM SP) as the takeover of Keppel O&M nears. The deal goes effective 28 February after last week’s SMM shareholder approval.
  • That will mean overhang. Lots of active overhang. There WILL be some index upweights, but index treatment remains nebulous, and one has to expect a lot more net index outflow.

Keppel Goes Ex- SMM Spinoff This Week – NEWKEP Is Still A Buy

By Travis Lundy

  • This insight comes as one-half of a pair. The problem: I cannot label one insight as a pair trade, and there are different dynamics at play.
  • This insight discusses the dynamics of Keppel Corp (KEP SP) as the SMM takeover of Keppel O&M nears. The deal goes effective 28 February but KEP trades ex- on 23 February.
  • While not as egregiously mis-priced as SCI vs SMM in autumn 2021, NEW KEPPEL appears under-priced here. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Toshiba, Jingnan, Newcrest, Yashili, Sembcorp, O2Micro, AAG

By David Blennerhassett

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Feb 18
0

Daily Brief Industrials: Adani Enterprises, Jiangnan, ABB India Ltd, Honeywell International, Illinois Tool Works and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse
  • Jiangnan Group (1366 HK): Powering Up
  • NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover
  • Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
  • Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers
  • Illinois Tool Works Inc.: Major Drivers

Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse

By Travis Lundy

  • On 8 February, MSCI announced special treatment for the Adani names in its indices, discussed in Adani Group – MSCI Will Treat Very Adani Funds as a Very Special Case. 
  • Late on 15 February they came out with a revision of their implementation – which was problematic because some stocks had gone limit down many days in a row. 
  • The stocks responded. But it clearly isn’t an easy implementation, and it clearly isn’t over. 

Jiangnan Group (1366 HK): Powering Up

By David Blennerhassett

  • Jiangnan (1366 HK), a manufacturer of wires and cables for power transmission and distribution systems, was suspended yesterday at lunchtime pursuant to Hong Kong’s Code on Takeovers and Mergers.
  • But not before the share price gained 63% on clear news leakage.
  • Chu Hui, the chairman, CEO, and major shareholder, mulled taking the private six years ago. 

NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover

By Brian Freitas

Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?

By Arun George

  • Jiangnan (1366 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 16 February. 
  • It is likely that Mr Chu Hui (Chairman and CEO), the largest shareholder representing 34.99% of outstanding shares is reattempting to privatise Jiangnan. 
  • The 83.9% share price run prior to the trading halt suggests that the offeror is very close to finalising a formal proposal at a hefty premium to the undisturbed price. 

Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers

By Baptista Research

  • Honeywell had another challenging quarter with inflation headwinds and supply chain constraints still at play.
  • Modest improvement in the supply chain helped Honeywell to reduce its cost to use backlog and deliver more building management systems and fire products resulting in organic growth in the building products.
  • Advanced materials grew in the quarter, as seen from the strong value capture across the demand and portfolio in fluorine products.

Illinois Tool Works Inc.: Major Drivers

By Baptista Research

  • Illinois Tool Works continues to face various challenges in this operating environment which is why it had a mixed financial performance in the last quarter of the year.
  • Automotive OEM revenues were up, and food equipment delivered a very strong quarter.
  • Welding delivery had quite a strong organic growth in the quarter, with a rise in equipment and consumables.

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Feb 18
0

Daily Brief Industrials: Adani Enterprises, Jiangnan, ABB India Ltd, Honeywell International, Illinois Tool Works and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse
  • Jiangnan Group (1366 HK): Powering Up
  • NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover
  • Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
  • Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers
  • Illinois Tool Works Inc.: Major Drivers

Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse

By Travis Lundy

  • On 8 February, MSCI announced special treatment for the Adani names in its indices, discussed in Adani Group – MSCI Will Treat Very Adani Funds as a Very Special Case. 
  • Late on 15 February they came out with a revision of their implementation – which was problematic because some stocks had gone limit down many days in a row. 
  • The stocks responded. But it clearly isn’t an easy implementation, and it clearly isn’t over. 

Jiangnan Group (1366 HK): Powering Up

By David Blennerhassett

  • Jiangnan (1366 HK), a manufacturer of wires and cables for power transmission and distribution systems, was suspended yesterday at lunchtime pursuant to Hong Kong’s Code on Takeovers and Mergers.
  • But not before the share price gained 63% on clear news leakage.
  • Chu Hui, the chairman, CEO, and major shareholder, mulled taking the private six years ago. 

NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover

By Brian Freitas

Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?

By Arun George

  • Jiangnan (1366 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 16 February. 
  • It is likely that Mr Chu Hui (Chairman and CEO), the largest shareholder representing 34.99% of outstanding shares is reattempting to privatise Jiangnan. 
  • The 83.9% share price run prior to the trading halt suggests that the offeror is very close to finalising a formal proposal at a hefty premium to the undisturbed price. 

Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers

By Baptista Research

  • Honeywell had another challenging quarter with inflation headwinds and supply chain constraints still at play.
  • Modest improvement in the supply chain helped Honeywell to reduce its cost to use backlog and deliver more building management systems and fire products resulting in organic growth in the building products.
  • Advanced materials grew in the quarter, as seen from the strong value capture across the demand and portfolio in fluorine products.

Illinois Tool Works Inc.: Major Drivers

By Baptista Research

  • Illinois Tool Works continues to face various challenges in this operating environment which is why it had a mixed financial performance in the last quarter of the year.
  • Automotive OEM revenues were up, and food equipment delivered a very strong quarter.
  • Welding delivery had quite a strong organic growth in the quarter, with a rise in equipment and consumables.

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Feb 17
0

Daily Brief Industrials: Samsung C&T, UBTech Robotics, Keppel Corp, Toyo Construction, Va-Q-Tec AG, Orient Overseas International, Pentamaster Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Samsung C&T Shareholder Return: Directly Related to Lee Family’s Inheritax Tax Issue
  • UBTECH ROBOTICS IPO: Bad Idea
  • A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T
  • Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion
  • Toyo Construction (1890 JP): The Board Uses the Smokescreen of a Special Committee
  • EQT/Va-Q-Tec: Deal Will Complete
  • Orient Overseas Intl (316 HK): Still Not Too Late to Be Bearish
  • Pentamaster Corp: In The (EV) Driver’s Seat

Samsung C&T Shareholder Return: Directly Related to Lee Family’s Inheritax Tax Issue

By Sanghyun Park

  • The target volume is 24,718,099 ordinary shares (13.2%) and 159,835 preferred shares (9.8%). That is, C&T will cancel all of its treasury shares in the next five years.
  • C&T’s decision to cancel treasury shares clearly indicates that the family’s fundraising strategy is focused on stake sales rather than dividend increases.
  • The number of shares inherited will be the volume Lee Seo-hyun will sell in the short term as this is within the range that minimizes the tax liability through LIFO.

UBTECH ROBOTICS IPO: Bad Idea

By Shifara Samsudeen, ACMA, CGMA

  • UBTech Robotics (1683374D HK) is engaged in smart service robotics solutions in China and has filed for an IPO on the Hong Kong Stock Exchange.
  • Though the company operates across a number of business segments, the growth prospects seems limited for most of these businesses.
  • UBTECH’s cashflow and liquidity also seems to be getting drained as the company needs to spend heavily on R&D and marketing to keep up with constantly evolving technology.

A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T

By Douglas Kim

  • Samsung C&T announced the cancellation of its entire treasury shares over the next five years. It has 24.7 million shares of common shares (accounting for 13.2% of common shares outstanding).
  • We like a pair trade between Samsung C&T (go long) and Samsung Electronics (go short). Samsung C&T’s share cancellation is likely to have a positive impact on its shares.
  • The recent sell-down of most of its shares in TSMC by Berkshire Hathaway is also likely to be viewed negatively by some investors in Samsung Electronics. 

Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion

By Arun George

  • Sembcorp Marine (SMM SP) shareholders voted overwhelmingly for the merger between Keppel O&M and Sembcorp Marine. The transaction is expected to close by 28 February.  
  • The divestment of Keppel O&M will further move Keppel Corp (KEP SP) towards a more asset-light and recurring earnings model, providing a helpful tailwind to hit its 15% ROE target.
  • Pre-Dividend in specie distribution, our Keppel SoTP valuation based on Sembcorp Marine’s reference issue price (S$0.122) and last close (S$0.136) is S$8.49 and S$8.72 per share, respectively. 

Toyo Construction (1890 JP): The Board Uses the Smokescreen of a Special Committee

By Arun George

  • Toyo Construction (1890 JP) will set up a special committee to evaluate YFO’s JPY1,100 offer. The Board will decide “after respecting the content of the decision of the special committee.”
  • YFO rightly points out the special committee is a ruse and is an attempt by the Board to demonstrate ‘a fair process’ for the predictable decision to reject its proposal.
  • The Board’s anxious move shows that protracted conflict is shifting in favour of YFO. At the last close, the gross spread to the tender offer is 10.3%.  

EQT/Va-Q-Tec: Deal Will Complete

By Jesus Rodriguez Aguilar

  • The offer price is attractive for shareholders, even more so following an enthusiastic recommendation from the Board and a profit warning during the acceptance period. 
  • The main hurdle was always the acceptance rate, but at 62.46% on the last count, it is just shy of the minimum threshold condition of 62.5%.
  • Some shareholders may feel tempted to explore the benefits of a domination agreement (as in participating in future synergies, with liquidity risk). Spread (gross/annualised) is 1.73%/6.11%. Long and tender. 

Orient Overseas Intl (316 HK): Still Not Too Late to Be Bearish

By Osbert Tang, CFA

  • We believe the 11.4% decline in share price of Orient Overseas International (316 HK) YTD is not sufficient to reflect the plunge in freight rate and weakened load performance.
  • Its 4Q22 average revenue/TEU of US$1,822.3 has returned to 2Q21 level; but with latest spot rate already plunged to early-2020 times, there is further downside for OOIL’s realised rate.
  • Export outlook is uninspiring as well, indicating pressure on demand. With similar ROE, OOIL only trades at 0.3x P/B in FY20, that makes its current P/B of 0.9x expensive.

Pentamaster Corp: In The (EV) Driver’s Seat

By David Blennerhassett

  • Automation systems play Pentamaster Corp (PENT MK) expects the supply of semiconductors testers to the electric vehicle business will be key growth driver in 2023.
  • PENT estimates half of the orders for its semiconductor testers will be sourced from the EV segment, generating ~40% of the group’s revenue.
  • PENT is a curious stock in which its pseudo dual-listed twin trades under Pentamaster International (1665 HK), but at a significant discount. 

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Feb 17
0

Daily Brief Industrials: Samsung C&T, UBTech Robotics, Keppel Corp, Toyo Construction, Va-Q-Tec AG, Orient Overseas International, Pentamaster Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Samsung C&T Shareholder Return: Directly Related to Lee Family’s Inheritax Tax Issue
  • UBTECH ROBOTICS IPO: Bad Idea
  • A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T
  • Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion
  • Toyo Construction (1890 JP): The Board Uses the Smokescreen of a Special Committee
  • EQT/Va-Q-Tec: Deal Will Complete
  • Orient Overseas Intl (316 HK): Still Not Too Late to Be Bearish
  • Pentamaster Corp: In The (EV) Driver’s Seat

Samsung C&T Shareholder Return: Directly Related to Lee Family’s Inheritax Tax Issue

By Sanghyun Park

  • The target volume is 24,718,099 ordinary shares (13.2%) and 159,835 preferred shares (9.8%). That is, C&T will cancel all of its treasury shares in the next five years.
  • C&T’s decision to cancel treasury shares clearly indicates that the family’s fundraising strategy is focused on stake sales rather than dividend increases.
  • The number of shares inherited will be the volume Lee Seo-hyun will sell in the short term as this is within the range that minimizes the tax liability through LIFO.

UBTECH ROBOTICS IPO: Bad Idea

By Shifara Samsudeen, ACMA, CGMA

  • UBTech Robotics (1683374D HK) is engaged in smart service robotics solutions in China and has filed for an IPO on the Hong Kong Stock Exchange.
  • Though the company operates across a number of business segments, the growth prospects seems limited for most of these businesses.
  • UBTECH’s cashflow and liquidity also seems to be getting drained as the company needs to spend heavily on R&D and marketing to keep up with constantly evolving technology.

A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T

By Douglas Kim

  • Samsung C&T announced the cancellation of its entire treasury shares over the next five years. It has 24.7 million shares of common shares (accounting for 13.2% of common shares outstanding).
  • We like a pair trade between Samsung C&T (go long) and Samsung Electronics (go short). Samsung C&T’s share cancellation is likely to have a positive impact on its shares.
  • The recent sell-down of most of its shares in TSMC by Berkshire Hathaway is also likely to be viewed negatively by some investors in Samsung Electronics. 

Keppel (KEP SP): Keppel O&M/Sembcorp Marine Transaction Moves Towards Completion

By Arun George

  • Sembcorp Marine (SMM SP) shareholders voted overwhelmingly for the merger between Keppel O&M and Sembcorp Marine. The transaction is expected to close by 28 February.  
  • The divestment of Keppel O&M will further move Keppel Corp (KEP SP) towards a more asset-light and recurring earnings model, providing a helpful tailwind to hit its 15% ROE target.
  • Pre-Dividend in specie distribution, our Keppel SoTP valuation based on Sembcorp Marine’s reference issue price (S$0.122) and last close (S$0.136) is S$8.49 and S$8.72 per share, respectively. 

Toyo Construction (1890 JP): The Board Uses the Smokescreen of a Special Committee

By Arun George

  • Toyo Construction (1890 JP) will set up a special committee to evaluate YFO’s JPY1,100 offer. The Board will decide “after respecting the content of the decision of the special committee.”
  • YFO rightly points out the special committee is a ruse and is an attempt by the Board to demonstrate ‘a fair process’ for the predictable decision to reject its proposal.
  • The Board’s anxious move shows that protracted conflict is shifting in favour of YFO. At the last close, the gross spread to the tender offer is 10.3%.  

EQT/Va-Q-Tec: Deal Will Complete

By Jesus Rodriguez Aguilar

  • The offer price is attractive for shareholders, even more so following an enthusiastic recommendation from the Board and a profit warning during the acceptance period. 
  • The main hurdle was always the acceptance rate, but at 62.46% on the last count, it is just shy of the minimum threshold condition of 62.5%.
  • Some shareholders may feel tempted to explore the benefits of a domination agreement (as in participating in future synergies, with liquidity risk). Spread (gross/annualised) is 1.73%/6.11%. Long and tender. 

Orient Overseas Intl (316 HK): Still Not Too Late to Be Bearish

By Osbert Tang, CFA

  • We believe the 11.4% decline in share price of Orient Overseas International (316 HK) YTD is not sufficient to reflect the plunge in freight rate and weakened load performance.
  • Its 4Q22 average revenue/TEU of US$1,822.3 has returned to 2Q21 level; but with latest spot rate already plunged to early-2020 times, there is further downside for OOIL’s realised rate.
  • Export outlook is uninspiring as well, indicating pressure on demand. With similar ROE, OOIL only trades at 0.3x P/B in FY20, that makes its current P/B of 0.9x expensive.

Pentamaster Corp: In The (EV) Driver’s Seat

By David Blennerhassett

  • Automation systems play Pentamaster Corp (PENT MK) expects the supply of semiconductors testers to the electric vehicle business will be key growth driver in 2023.
  • PENT estimates half of the orders for its semiconductor testers will be sourced from the EV segment, generating ~40% of the group’s revenue.
  • PENT is a curious stock in which its pseudo dual-listed twin trades under Pentamaster International (1665 HK), but at a significant discount. 

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Feb 16
0

Daily Brief Industrials: InterGlobe Aviation Ltd, US Treasury (10 Yr Generic), Ametek Inc, Virgin Orbit Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Interglobe Aviation (Indigo) Placement – Has Sold Before, Will Sell Again
  • Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?
  • AMETEK Inc: Major Drivers
  • First UK Mission’s Root Cause Was a Dislodged Fuel Filter; Space Is Hard

Interglobe Aviation (Indigo) Placement – Has Sold Before, Will Sell Again

By Sumeet Singh

  • Indigo’s co-founder Rakesh Gangwal aims to raise around US$375m via selling around 4.0% of the company.
  • He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with the other co-founder. He last sold in Sep 2022.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?

By Joe Jasper

  • We continue to expect the 4165-4200 level to cap upside on the S&P 500, but cannot rule out a trip to 4300-4325 (August 2022 highs)
  • Either way, we continue to preach caution and believe that upside is limited on the market indexes.
  • Treasury yields are starting to reverse above multi-month downtrends, and we are monitoring for similar reversals on the U.S. dollar (DXY) and high yield spreads.

AMETEK Inc: Major Drivers

By Baptista Research

  • Ametek continued to deliver excellent results with strong growth in the fourth quarter as well.
  • The company delivered an all-around beat in this quarter and has seen a positive impact in the organic growth initiatives.
  • On the other hand, the organic sales growth was 9%.

First UK Mission’s Root Cause Was a Dislodged Fuel Filter; Space Is Hard

By Water Tower Research

  • Virgin Orbit’s first international launch, after four 100% successful commercial ones, failed to deliver its payload because an in-line fuel filter was dislodged, which caused a fuel pump to run in a degraded mode.
  • Thus, the engine was starved for fuel and the rocket did not deliver its payload.
  • On the January 9 attempt, Cosmic Girl released the rocket, which began accelerating to 11,000 mph.

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Feb 16
0

Daily Brief Industrials: InterGlobe Aviation Ltd, US Treasury (10 Yr Generic), Ametek Inc, Virgin Orbit Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Interglobe Aviation (Indigo) Placement – Has Sold Before, Will Sell Again
  • Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?
  • AMETEK Inc: Major Drivers
  • First UK Mission’s Root Cause Was a Dislodged Fuel Filter; Space Is Hard

Interglobe Aviation (Indigo) Placement – Has Sold Before, Will Sell Again

By Sumeet Singh

  • Indigo’s co-founder Rakesh Gangwal aims to raise around US$375m via selling around 4.0% of the company.
  • He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with the other co-founder. He last sold in Sep 2022.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Treasury Yields Reversing Higher; U.S. Dollar and High Yield Spreads to Follow?

By Joe Jasper

  • We continue to expect the 4165-4200 level to cap upside on the S&P 500, but cannot rule out a trip to 4300-4325 (August 2022 highs)
  • Either way, we continue to preach caution and believe that upside is limited on the market indexes.
  • Treasury yields are starting to reverse above multi-month downtrends, and we are monitoring for similar reversals on the U.S. dollar (DXY) and high yield spreads.

AMETEK Inc: Major Drivers

By Baptista Research

  • Ametek continued to deliver excellent results with strong growth in the fourth quarter as well.
  • The company delivered an all-around beat in this quarter and has seen a positive impact in the organic growth initiatives.
  • On the other hand, the organic sales growth was 9%.

First UK Mission’s Root Cause Was a Dislodged Fuel Filter; Space Is Hard

By Water Tower Research

  • Virgin Orbit’s first international launch, after four 100% successful commercial ones, failed to deliver its payload because an in-line fuel filter was dislodged, which caused a fuel pump to run in a degraded mode.
  • Thus, the engine was starved for fuel and the rocket did not deliver its payload.
  • On the January 9 attempt, Cosmic Girl released the rocket, which began accelerating to 11,000 mph.

💡 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