Industrials

Ecoeye announced that the IPO price has been determined at 34,700 won, which is at the high end of the IPO price range. The demand ratio was 75 to 1.
An 81.1% of the IPO shares applied thought that the company’s value is more than 34,700 won per share. The IPO offering amount is 72 billion won.
Our base case valuation of Ecoeye IPO is 45,421 won per share (31% higher than the IPO price). Given the solid upside, we have a positive view of Ecoeye IPO.

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Nov 10

Daily Brief Industrials: Renesas Electronics, Ps Mitsubishi Construction, Ecoeye and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Renesas Electronics Placement – Well Flagged US$1.8bn Deal, Accelerated but Index Flows Should Help
P.S. Mitsubishi Construction (1871 JP): Taisei’s Partial Tender Offer
Ecoeye IPO Book Building Results Analysis

Renesas Electronics Placement – Well Flagged US$1.8bn Deal, Accelerated but Index Flows Should Help

By Ethan Aw

INCJ aims to raise around US$1.8bn via a secondary sell-down in Renesas Electronics (6723 JP). This will be a clean-up trade as INCJ has been paring down its stake.
The deal is a slightly large one to digest at 12 days of three month ADV and around 6% of current mcap.
In this note, we will talk about the placement and run the deal through our ECM framework.

P.S. Mitsubishi Construction (1871 JP): Taisei’s Partial Tender Offer

By Arun George

Ps Mitsubishi Construction (1871 JP)/PSMIC announced a partial tender offer for Taisei Corp (1801 JP) at JPY1,010 per share, a 22.4% premium to the undisturbed price.
The partial offer is for a minimum of 20.4 million shares (42.94% ownership ratio) and a maximum of 23.8 million shares (50.20% ownership ratio).
Irrevocables represent a 42.94% ownership ratio, satisfying the minimum acceptance condition. The offer is attractive and represents a ten-year high. The tender offer runs from 10 November to 11 December.

Ecoeye IPO Book Building Results Analysis

Ecoeye announced that the IPO price has been determined at 34,700 won, which is at the high end of the IPO price range. The demand ratio was 75 to 1.
An 81.1% of the IPO shares applied thought that the company’s value is more than 34,700 won per share. The IPO offering amount is 72 billion won.
Our base case valuation of Ecoeye IPO is 45,421 won per share (31% higher than the IPO price). Given the solid upside, we have a positive view of Ecoeye IPO.

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Nov 09

Daily Brief Industrials: Recruit Holdings, Jyoti CNC Automation and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Recruit 2Q: Earnings Further Slows Down; 2H To Be Even More Challenging
Jyoti CNC IPO- Forensic Analysis

Recruit 2Q: Earnings Further Slows Down; 2H To Be Even More Challenging

Recruit Holdings (6098 JP) reported 2QFY03/2024 results today. Revenues decreased YoY due to decline in HR Tech revenues, while operating profit for the quarter increased YoY. OP missed consensus marginally.
As we expected, the new pricing model has negatively impacted HR Tech revenues, and the segment’s earnings are forecast to decline further going into the second half.
There is further downside to earnings and the company’s share price has moved up during the last few days, and we are set to nicely gain on the Short side.

Jyoti CNC IPO- Forensic Analysis

By Nitin Mangal

Jyoti CNC Automation (0907734D IN) plans to come up with ~INR 10 bn IPO
JCAL is an established player in manufacturing of metal cutting CNC machines, mostly in 5-Axis category. It has 8% market share in India and is 12th largest global player.
Even though JCAL has bright order book visibility, it remains unprofitable, largely because of concerns with subsidiaries.

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Nov 09

Daily Brief Industrials: Recruit Holdings, Jyoti CNC Automation and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Recruit 2Q: Earnings Further Slows Down; 2H To Be Even More Challenging
Jyoti CNC IPO- Forensic Analysis

Recruit 2Q: Earnings Further Slows Down; 2H To Be Even More Challenging

Recruit Holdings (6098 JP) reported 2QFY03/2024 results today. Revenues decreased YoY due to decline in HR Tech revenues, while operating profit for the quarter increased YoY. OP missed consensus marginally.
As we expected, the new pricing model has negatively impacted HR Tech revenues, and the segment’s earnings are forecast to decline further going into the second half.
There is further downside to earnings and the company’s share price has moved up during the last few days, and we are set to nicely gain on the Short side.

Jyoti CNC IPO- Forensic Analysis

By Nitin Mangal

Jyoti CNC Automation (0907734D IN) plans to come up with ~INR 10 bn IPO
JCAL is an established player in manufacturing of metal cutting CNC machines, mostly in 5-Axis category. It has 8% market share in India and is 12th largest global player.
Even though JCAL has bright order book visibility, it remains unprofitable, largely because of concerns with subsidiaries.

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Nov 08

Daily Brief Industrials: Doosan Fuel Cell , Amaero International Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Momentum Trading Opportunities Among Top 50 Stocks in KOSPI With Highest Short Interest Ratios
Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

Momentum Trading Opportunities Among Top 50 Stocks in KOSPI With Highest Short Interest Ratios

By Research as a Service (RaaS)

In this insight, we discuss near-term momentum trading opportunities among the top 50 stocks in KOSPI with highest short interest ratios.
Given the recent temporary ban on stock short selling in Korea, there is likely to be increased volatility in the stock market.
We have identified 10 companies in particular that have high short interest ratios, among the worst performing stocks YTD, but with strongest share price performance in the past two days.

Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
The company is developing a 1,000+-tonne a year critical metals alloy powder manufacturing facility in Tennessee, USA, and provided confirmation at its Annual General Meeting last week that it anticipated that on just one eight-hour shift a day the first EIGA gas atomiser, dedicated to the refractory alloy powder, C103 (niobium 89%, hafnium 10%, -titanium 1%), should be able to generate north of A$100m a year in revenue.
The Chairman and CEO Hank Holland also noted that as demand for C-103 ramps, Amaero will utilise excess production capacity to produce high-value, specialty alloy powders for next-generation defence systems.

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Nov 08

Daily Brief Industrials: Doosan Fuel Cell , Amaero International Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Momentum Trading Opportunities Among Top 50 Stocks in KOSPI With Highest Short Interest Ratios
Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

Momentum Trading Opportunities Among Top 50 Stocks in KOSPI With Highest Short Interest Ratios

By Research as a Service (RaaS)

In this insight, we discuss near-term momentum trading opportunities among the top 50 stocks in KOSPI with highest short interest ratios.
Given the recent temporary ban on stock short selling in Korea, there is likely to be increased volatility in the stock market.
We have identified 10 companies in particular that have high short interest ratios, among the worst performing stocks YTD, but with strongest share price performance in the past two days.

Amaero International Ltd – AGM Confirms Firming Timeline for Production and Revenue

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
The company is developing a 1,000+-tonne a year critical metals alloy powder manufacturing facility in Tennessee, USA, and provided confirmation at its Annual General Meeting last week that it anticipated that on just one eight-hour shift a day the first EIGA gas atomiser, dedicated to the refractory alloy powder, C103 (niobium 89%, hafnium 10%, -titanium 1%), should be able to generate north of A$100m a year in revenue.
The Chairman and CEO Hank Holland also noted that as demand for C-103 ramps, Amaero will utilise excess production capacity to produce high-value, specialty alloy powders for next-generation defence systems.

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Nov 07

Daily Brief Industrials: Mitsubishi Heavy Industries, Cainiao Smart Logistics Network, AP Moeller – Maersk A/S, Greatech Technology, ACCO Brands, HNI Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

MHI (7011) | Rockets and Renewables
CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds
Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%
ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem
ACCO: Sales Retraction Creates Headwinds
HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction

MHI (7011) | Rockets and Renewables

By Mark Chadwick

MHI reports impressive YoY growth in order intake, revenues, and profits across Energy Systems and Defense Equipment segments in Q2 2023.
Despite a 62% YTD stock price increase, strong order backlog and underlying drivers suggest resilience in a challenging economic climate.
The company benefits from global trends in decarbonization and increased national security spending, positioning itself as a leader in gas turbines and defense technology.

CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds

Acquiring parent Alibaba’s express investments could soak up much of CaiNiao’s IPO proceeds
Such transfers would help Alibaba, but the potential benefit to CaiNiao is less clear
The transfers of these stakes could become an important aspect of CaiNiao’s IPO process

Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%

Container shipping giant Maersk met Q3 expectations and maintained earlier FY23 guidance
However, downbeat commentary combined with capex and job cuts sent shares -17% lower
Maersk does not expect any recovery in ’24, but we believe this pessimism already in prices

ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem

EV Adoption in ASEAN is low compared to developed markets, however, development of a robust EV ecosystem remains a primary goal for the respective nations.
Governments in the region continues to introduce new policy measures and offer incentives to promote the sector, while companies continue to attract large investment to develop the EV market.
The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.

ACCO: Sales Retraction Creates Headwinds

By Hamed Khorsand

ACCO reported third quarter results without the expected back to school benefit. Instead, ACCO focused on profitable sales helping to lift gross margin and report higher earnings results
Retailers continue to tightly manage their inventory levels and the trend is expected to remain in the fourth quarter.
ACCO remains a free cash flow investment story. We are not expecting growth in 2024 putting greater pressure on how much free cash flow ACCO can generate

HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction

By Water Tower Research

This note corrects the version that was published on November 2. Due to errors in our model, the full-year estimate for 2024 was not calculated properly.
The correct full-year 2024 EPS estimate is $2.65.
We are raising our non-GAAP (adjusted) EPS estimates for 4Q23 and 2024 following HNI’s strong 3Q23 earnings report on Tuesday, October 31, 2023.

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Nov 07

Daily Brief Industrials: Mitsubishi Heavy Industries, Cainiao Smart Logistics Network, AP Moeller – Maersk A/S, Greatech Technology, ACCO Brands, HNI Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

MHI (7011) | Rockets and Renewables
CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds
Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%
ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem
ACCO: Sales Retraction Creates Headwinds
HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction

MHI (7011) | Rockets and Renewables

By Mark Chadwick

MHI reports impressive YoY growth in order intake, revenues, and profits across Energy Systems and Defense Equipment segments in Q2 2023.
Despite a 62% YTD stock price increase, strong order backlog and underlying drivers suggest resilience in a challenging economic climate.
The company benefits from global trends in decarbonization and increased national security spending, positioning itself as a leader in gas turbines and defense technology.

CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds

Acquiring parent Alibaba’s express investments could soak up much of CaiNiao’s IPO proceeds
Such transfers would help Alibaba, but the potential benefit to CaiNiao is less clear
The transfers of these stakes could become an important aspect of CaiNiao’s IPO process

Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%

Container shipping giant Maersk met Q3 expectations and maintained earlier FY23 guidance
However, downbeat commentary combined with capex and job cuts sent shares -17% lower
Maersk does not expect any recovery in ’24, but we believe this pessimism already in prices

ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem