Category

Industrials

Dec 29
0

Daily Brief Industrials: Boart Longyear and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Boart Longyear’s (ASX:BLY) Ignominious Exit

Boart Longyear’s (ASX:BLY) Ignominious Exit

By David Blennerhassett

  • Drilling services company Boart Longyear (BLY AU) has agreed to a takeover by American Industrial Partners. Boart’s five largest shareholders – collectively holding 98.86% of shares out – are supportive.
  • Highly-Leveraged Boart copped the brunt of the GFC, and never fully recovered. American Industrial Partners’ Offer values Boart at A$543mn against its 2007 IPO value of A$2.3bn.
  • The takeover is expected to be completed in the first quarter of 2024. This is done.

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Dec 29
0

Daily Brief Industrials: Boart Longyear and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Boart Longyear’s (ASX:BLY) Ignominious Exit

Boart Longyear’s (ASX:BLY) Ignominious Exit

By David Blennerhassett

  • Drilling services company Boart Longyear (BLY AU) has agreed to a takeover by American Industrial Partners. Boart’s five largest shareholders – collectively holding 98.86% of shares out – are supportive.
  • Highly-Leveraged Boart copped the brunt of the GFC, and never fully recovered. American Industrial Partners’ Offer values Boart at A$543mn against its 2007 IPO value of A$2.3bn.
  • The takeover is expected to be completed in the first quarter of 2024. This is done.

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Dec 28
0

Daily Brief Industrials: Grab Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Grab Holdings (GRAB US) – Risks and Rewards in 2024

Grab Holdings (GRAB US) – Risks and Rewards in 2024

By Angus Mackintosh

  • Grab Holdings looks set to move toward cashflow breakeven in 2H2024 having hit adjusted EBITDA breakeven in 3Q2023 as it successfully struck a delicate balance between growth and profitability.
  • The sale of 75% of Tokopedia by GoTo may mean more intense competition in Indonesia as it focuses on online delivery services but Grab is well-positioned to deal with this.
  • 2024 will see the potential completion of the Transcab deal plus a potential acquisition in food delivery increasing scale and competitiveness. Valuations are attractive relative to growth and financial position.

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Dec 28
0

Daily Brief Industrials: Grab Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Grab Holdings (GRAB US) – Risks and Rewards in 2024

Grab Holdings (GRAB US) – Risks and Rewards in 2024

By Angus Mackintosh

  • Grab Holdings looks set to move toward cashflow breakeven in 2H2024 having hit adjusted EBITDA breakeven in 3Q2023 as it successfully struck a delicate balance between growth and profitability.
  • The sale of 75% of Tokopedia by GoTo may mean more intense competition in Indonesia as it focuses on online delivery services but Grab is well-positioned to deal with this.
  • 2024 will see the potential completion of the Transcab deal plus a potential acquisition in food delivery increasing scale and competitiveness. Valuations are attractive relative to growth and financial position.

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Dec 27
0

Daily Brief Industrials: Air China Ltd (H), Qantas Airways and more

By | Daily Briefs, Industrials

In today’s briefing:

  • 2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement
  • Qantas Airways (QAN AU | BUY | TP:AU$6.58): Smooth Operator

2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement

By Osbert Tang, CFA

  • Air China (H) (753 HK) is proposing a new share placement to raise Rmb6bn and HK$2bn. EPS dilution is manageable at 6% so we view the proposal positively.  
  • The new equity will enhance book value by 11.5% and lower its gearing by 103pp to 399.8%. The full subscription by the parent is also a vote of confidence. 
  • Recent share price weakness is due to the overall weakness in the Chinese equity market, but both macro and operating environments are improving. Selldown is unjustified.

Qantas Airways (QAN AU | BUY | TP:AU$6.58): Smooth Operator

By Mohshin Aziz

  • Qantas Airways (QAN AU) (QAN) is enjoying the best time of its life on industry consolidation benefits, demand exceeding supply to many sectors, and flourishing air cargo  
  • Domestic Australia is an ironclad goldmine, with a benign competitive environment as the archrival is busy restructuring. International sector capacity deployment is picking up, but still deep in underserved territory     
  • Target price AUD6.58 (+23% UPSIDE), based on 7x CY2024 PE – long-term historical mean. AUD500 million share buyback should provide downside support 

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Dec 27
0

Daily Brief Industrials: Air China Ltd (H), Qantas Airways and more

By | Daily Briefs, Industrials

In today’s briefing:

  • 2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement
  • Qantas Airways (QAN AU | BUY | TP:AU$6.58): Smooth Operator

2024 High Conviction: Air China (753 HK) – Update on Proposed Share Placement

By Osbert Tang, CFA

  • Air China (H) (753 HK) is proposing a new share placement to raise Rmb6bn and HK$2bn. EPS dilution is manageable at 6% so we view the proposal positively.  
  • The new equity will enhance book value by 11.5% and lower its gearing by 103pp to 399.8%. The full subscription by the parent is also a vote of confidence. 
  • Recent share price weakness is due to the overall weakness in the Chinese equity market, but both macro and operating environments are improving. Selldown is unjustified.

Qantas Airways (QAN AU | BUY | TP:AU$6.58): Smooth Operator

By Mohshin Aziz

  • Qantas Airways (QAN AU) (QAN) is enjoying the best time of its life on industry consolidation benefits, demand exceeding supply to many sectors, and flourishing air cargo  
  • Domestic Australia is an ironclad goldmine, with a benign competitive environment as the archrival is busy restructuring. International sector capacity deployment is picking up, but still deep in underserved territory     
  • Target price AUD6.58 (+23% UPSIDE), based on 7x CY2024 PE – long-term historical mean. AUD500 million share buyback should provide downside support 

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Dec 26
0

Daily Brief Industrials: Seedheiwa and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Meldia DC (1739 JP) – Open House Group Cleans Up Sanei Architecture Sub in TOB.

Meldia DC (1739 JP) – Open House Group Cleans Up Sanei Architecture Sub in TOB.

By Travis Lundy

  • Open House (3288 JP) took over Sanei Architecture Planning (3228 JP) this past autumn when banks forced the issue over the former CEO/owner’s mafia ties discovered in an investigation.
  • Seedheiwa (1739 JP) now better known as Meldia DC, is ~60% held by Sanei Architecture Planning, and 3% by Mr Koike. It has debt. So it needs cleaning up too.
  • This is too light for minorities, and even lighter for whole co, but it’s a done deal. 

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Dec 26
0

Daily Brief Industrials: Seedheiwa and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Meldia DC (1739 JP) – Open House Group Cleans Up Sanei Architecture Sub in TOB.

Meldia DC (1739 JP) – Open House Group Cleans Up Sanei Architecture Sub in TOB.

By Travis Lundy

  • Open House (3288 JP) took over Sanei Architecture Planning (3228 JP) this past autumn when banks forced the issue over the former CEO/owner’s mafia ties discovered in an investigation.
  • Seedheiwa (1739 JP) now better known as Meldia DC, is ~60% held by Sanei Architecture Planning, and 3% by Mr Koike. It has debt. So it needs cleaning up too.
  • This is too light for minorities, and even lighter for whole co, but it’s a done deal. 

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Dec 24
0

Daily Brief Industrials: Contemporary Amperex Technology (CATL), Benefit One Inc, MillerKnoll and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Mainland Connect NORTHBOUND Flows (To 22 Dec 23): CATL Is the BIG BUY This Week
  • Last Week in Event SPACE: Benefit One, Hankook, Toyo Construction, Hanwha, Tsuruha, Livent/Allkem
  • MillerKnoll, Inc. – Raising 3Q Estimate; Seeing Strength in Retail
  • Weekly Deals Digest (24 Dec) – Benefit One, JSR, Weiqiao Textile, A2B, Adbri, Azure, Link, Probiotec

Mainland Connect NORTHBOUND Flows (To 22 Dec 23): CATL Is the BIG BUY This Week

By Travis Lundy

  • The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
  • Last week saw NORTHBOUND net sell RMB 2.2bn of A-shares on sharply lighter activity. Quieter all week.
  • Looking at the change in the weekly position charts over the last year is striking (easiest in the Sectors table to start). Still.

Last Week in Event SPACE: Benefit One, Hankook, Toyo Construction, Hanwha, Tsuruha, Livent/Allkem

By David Blennerhassett

  • Stay long Benefit One (2412 JP). Dai-Ichi Life can pay more, if pushed on pricing. May not be huge, but it could be a few percent or even 10%. 
  • Hankook & Company (000240 KS)‘s family feud goes public. The public tender looks set to fail. Coal in stockings all-round.
  • If you had any Toyo Construction (1890 JP) left over from the rally up to ¥1,300+, get out. There may be a better opportunity later, but not here.

MillerKnoll, Inc. – Raising 3Q Estimate; Seeing Strength in Retail

By Water Tower Research

  • Following a strong margin performance in 2Q, we are raising our 3QFY24 EPS estimate to $0.43, just below the midpoint of guidance, from $0.38.
  • The increase is the result of higher margin assumptions on a lower revenue forecast.
  • We are also reviewing and lowering our revenue assumptions for the remainder of FY24 and FY25. 

Weekly Deals Digest (24 Dec) – Benefit One, JSR, Weiqiao Textile, A2B, Adbri, Azure, Link, Probiotec

By Arun George

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Dec 24
0

Daily Brief Industrials: Contemporary Amperex Technology (CATL), Benefit One Inc, MillerKnoll and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Mainland Connect NORTHBOUND Flows (To 22 Dec 23): CATL Is the BIG BUY This Week
  • Last Week in Event SPACE: Benefit One, Hankook, Toyo Construction, Hanwha, Tsuruha, Livent/Allkem
  • MillerKnoll, Inc. – Raising 3Q Estimate; Seeing Strength in Retail
  • Weekly Deals Digest (24 Dec) – Benefit One, JSR, Weiqiao Textile, A2B, Adbri, Azure, Link, Probiotec

Mainland Connect NORTHBOUND Flows (To 22 Dec 23): CATL Is the BIG BUY This Week

By Travis Lundy

  • The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
  • Last week saw NORTHBOUND net sell RMB 2.2bn of A-shares on sharply lighter activity. Quieter all week.
  • Looking at the change in the weekly position charts over the last year is striking (easiest in the Sectors table to start). Still.

Last Week in Event SPACE: Benefit One, Hankook, Toyo Construction, Hanwha, Tsuruha, Livent/Allkem

By David Blennerhassett

  • Stay long Benefit One (2412 JP). Dai-Ichi Life can pay more, if pushed on pricing. May not be huge, but it could be a few percent or even 10%. 
  • Hankook & Company (000240 KS)‘s family feud goes public. The public tender looks set to fail. Coal in stockings all-round.
  • If you had any Toyo Construction (1890 JP) left over from the rally up to ¥1,300+, get out. There may be a better opportunity later, but not here.

MillerKnoll, Inc. – Raising 3Q Estimate; Seeing Strength in Retail

By Water Tower Research

  • Following a strong margin performance in 2Q, we are raising our 3QFY24 EPS estimate to $0.43, just below the midpoint of guidance, from $0.38.
  • The increase is the result of higher margin assumptions on a lower revenue forecast.
  • We are also reviewing and lowering our revenue assumptions for the remainder of FY24 and FY25. 

Weekly Deals Digest (24 Dec) – Benefit One, JSR, Weiqiao Textile, A2B, Adbri, Azure, Link, Probiotec

By Arun George

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