Industrials

Nidec has become an auto parts and factory automation company and should be valued as such. At 24x EPS guidance for FY Mar-23, the shares do not look particularly cheap.
1H results were good, but heavy up-front investment in e-axle traction motor systems for electric vehicles points to deferred gratification for shareholders.
Recession is starting to bite, the Yen is up and Japanese interest rates have only started to rise. Be careful when buying for long-term growth.

Merger Arb Mondays (09 Jan) – Origin Energy, Warrego, Nitro, Norwest, Halcyon, Kingston

We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads – Alliance Aviation Services (AQZ AU), Genesis Minerals (GMD AU), 21Vianet Group (VNET US), Golden Energy & Resources (GER SP), Tyro Payments (TYR AU), Origin Energy (ORG AU).
Lowest spreads – Norwest Energy NL (NWE AU), Nitro Software Ltd (NTO AU), Chip Eng Seng Corp (CHIP SP), Conexio Corp (9422 JP), Nippon Steel Trading Corporation (9810 JP).

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Jan 09

Daily Brief Industrials: Nidec Corp, Halcyon Agri and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Nidec (6594 JP): New Valuation Benchmark
Merger Arb Mondays (09 Jan) – Origin Energy, Warrego, Nitro, Norwest, Halcyon, Kingston

Nidec (6594 JP): New Valuation Benchmark

Nidec has become an auto parts and factory automation company and should be valued as such. At 24x EPS guidance for FY Mar-23, the shares do not look particularly cheap.
1H results were good, but heavy up-front investment in e-axle traction motor systems for electric vehicles points to deferred gratification for shareholders.
Recession is starting to bite, the Yen is up and Japanese interest rates have only started to rise. Be careful when buying for long-term growth.

Merger Arb Mondays (09 Jan) – Origin Energy, Warrego, Nitro, Norwest, Halcyon, Kingston

We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads – Alliance Aviation Services (AQZ AU), Genesis Minerals (GMD AU), 21Vianet Group (VNET US), Golden Energy & Resources (GER SP), Tyro Payments (TYR AU), Origin Energy (ORG AU).
Lowest spreads – Norwest Energy NL (NWE AU), Nitro Software Ltd (NTO AU), Chip Eng Seng Corp (CHIP SP), Conexio Corp (9422 JP), Nippon Steel Trading Corporation (9810 JP).

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✓ Custom Watchlists
✓ Company Data and News
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Jan 08

Daily Brief Industrials: Halcyon Agri and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Warrego Energy, Acotec Scientific, Halcyon Agri, Thaicom

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Warrego Energy, Acotec Scientific, Halcyon Agri, Thaicom

There are 42 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
No new deals were discussed on Smartkarma in the past week.
Key updates took place for: Warrego Energy (WGO AU), Acotec Scientific Holdings (6669 HK), Halcyon Agri (HACL SP), and Thaicom Pcl (THCOM TB).

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✓ Company Data and News
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Jan 08

Daily Brief Industrials: Halcyon Agri and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Warrego Energy, Acotec Scientific, Halcyon Agri, Thaicom

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Warrego Energy, Acotec Scientific, Halcyon Agri, Thaicom

There are 42 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
No new deals were discussed on Smartkarma in the past week.
Key updates took place for: Warrego Energy (WGO AU), Acotec Scientific Holdings (6669 HK), Halcyon Agri (HACL SP), and Thaicom Pcl (THCOM TB).

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

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✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 06

Daily Brief Industrials: Halcyon Agri, Vikram Solar and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Halcyon Agri: MGO One Step Closer As SASAC Approves SPA
Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High

Halcyon Agri: MGO One Step Closer As SASAC Approves SPA

Back on the 16 November, Halcyon Agri (HACL SP) announced Sinochem, holding 65.2% of shares out, had entered into an SPA to sell 36% to China Hainan Rubber (601118 CH).
Upon completion of the SPA, Hainan Rubber will make an MGO, conditional on a 50% tendering acceptance. Sinochem has provided an undertaking not to tender its remaining 29.2% stake.
Halcyon has now announced SASAC has given the green light for the SPA. Outstanding conditions include MoC and NDRC. Those approvals should fall into place shortly.

Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High

By Clarence Chu

Vikram Solar (0490158D IN) is looking to raise around US$260m in its upcoming India IPO.
Vikram Solar (VS) is an integrated solar photo-voltaic (PV) modules producer and an integrated solar energy solutions provider.
As per CRISIL, it was one of India’s largest module manufacturers and held a 19% domestic market share, as per operational module capacity.

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✓ Company Data and News
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Jan 06

Daily Brief Industrials: Halcyon Agri, Vikram Solar and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Halcyon Agri: MGO One Step Closer As SASAC Approves SPA
Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High

Halcyon Agri: MGO One Step Closer As SASAC Approves SPA

Back on the 16 November, Halcyon Agri (HACL SP) announced Sinochem, holding 65.2% of shares out, had entered into an SPA to sell 36% to China Hainan Rubber (601118 CH).
Upon completion of the SPA, Hainan Rubber will make an MGO, conditional on a 50% tendering acceptance. Sinochem has provided an undertaking not to tender its remaining 29.2% stake.
Halcyon has now announced SASAC has given the green light for the SPA. Outstanding conditions include MoC and NDRC. Those approvals should fall into place shortly.

Vikram Solar Pre-IPO – Has Diversified Its Sales, Although Concentration Risk Remains High

By Clarence Chu

Vikram Solar (0490158D IN) is looking to raise around US$260m in its upcoming India IPO.
Vikram Solar (VS) is an integrated solar photo-voltaic (PV) modules producer and an integrated solar energy solutions provider.
As per CRISIL, it was one of India’s largest module manufacturers and held a 19% domestic market share, as per operational module capacity.

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

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

Jan 05

Daily Brief Industrials: Hyundai Mipo Dockyard, Halcyon Agri and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

What Is NPS Buying & Selling?
Halcyon Agri (HACL SP) MGO: SPA Effective, Next Is Satisfaction of Conditions Precedent

What Is NPS Buying & Selling?

By Douglas Kim

In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce).
Among the stocks NPS increased its stake, many of them are clear beneficiaries of the end of zero COVID policies in China including Hotel Shilla, Amorepacific Corp, and GKL.
Among the top market cap stocks where the NPS decreased its stake by 1% or more, they include Lg Innotek, Hyundai E&C, Hyundai Mipo, and Posco International.

Halcyon Agri (HACL SP) MGO: SPA Effective, Next Is Satisfaction of Conditions Precedent

The SPA for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is effective.
Conditions precedent which relate to Chinese regulatory approvals should be satisfied shortly. Completion will trigger an MGO at US$0.315 or S$0.423 (US$/S$ rate fixed on the closing date).
The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities acceptance rate. We think that this is achievable as the offer is attractive.

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✓ Company Data and News
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Jan 05

Daily Brief Industrials: Hyundai Mipo Dockyard, Halcyon Agri and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

What Is NPS Buying & Selling?
Halcyon Agri (HACL SP) MGO: SPA Effective, Next Is Satisfaction of Conditions Precedent

What Is NPS Buying & Selling?

By Douglas Kim

In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce).
Among the stocks NPS increased its stake, many of them are clear beneficiaries of the end of zero COVID policies in China including Hotel Shilla, Amorepacific Corp, and GKL.
Among the top market cap stocks where the NPS decreased its stake by 1% or more, they include Lg Innotek, Hyundai E&C, Hyundai Mipo, and Posco International.

Halcyon Agri (HACL SP) MGO: SPA Effective, Next Is Satisfaction of Conditions Precedent

The SPA for China Hainan Rubber Industry (601118 CH) to acquire 36.00% of Halcyon Agri (HACL SP)’s outstanding shares from Sinochem International Corporation A (600500 CH) at US$0.315 is effective.
Conditions precedent which relate to Chinese regulatory approvals should be satisfied shortly. Completion will trigger an MGO at US$0.315 or S$0.423 (US$/S$ rate fixed on the closing date).
The MGO has a 50%+ minimum acceptance condition which requires around 40% of minorities acceptance rate. We think that this is achievable as the offer is attractive.

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

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✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 04

Daily Brief Industrials: Ibiden Co Ltd, Adani Enterprises and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Ibiden (4062 JP): Another Chance for Long-Term Investors
SENSEX Index Rebalance Preview: Adani Enterprises Could Replace Wipro

Ibiden (4062 JP): Another Chance for Long-Term Investors

Operating profit hit a 15-year high in the six months to September. That appears to have been the cyclical peak.
Guidance for 2H of FY Mar-23 is probably conservative, but year-on-year profit comparisons will probably be negative for at least a year.
After rising by 44% from mid-October to mid-November, Ibiden’s share price has given up more than half that gain. Long term investors may again look for an entry point.

SENSEX Index Rebalance Preview: Adani Enterprises Could Replace Wipro

By Brian Freitas

A third of the way through the review period of the June rebalance, we see one potential index change with Adani Enterprises (ADE IN) replacing Wipro Ltd (WPRO IN).
Adani Enterprises (ADE IN) could move lower in the short-term due to the public issue of shares but should find support from passive buying from local and global index trackers.
Wipro Ltd (WPRO IN) has underperformed most of its peers by a wide margin over the last year and the passive selling could provide an entry point.

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

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✓ Company Data and News
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Jan 04

Daily Brief Industrials: Ibiden Co Ltd, Adani Enterprises and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Ibiden (4062 JP): Another Chance for Long-Term Investors
SENSEX Index Rebalance Preview: Adani Enterprises Could Replace Wipro

Ibiden (4062 JP): Another Chance for Long-Term Investors