Industrials

Ventia Services Group Pty (VNT AU) (VSG)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$214m via selling 14% of the company.
The two largest shareholders together owned nearly 30% of the company and have pared their stake twice this year.
In this note, we will talk about the deal dynamics.

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Sep 02

Daily Brief Industrials: Ventia Services Group Pty and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Ventia Services Group Placement – Well Flagged and All past Deals Have Done Well

Ventia Services Group Placement – Well Flagged and All past Deals Have Done Well

Ventia Services Group Pty (VNT AU) (VSG)’s two largest shareholders, Apollo Global Management and CIMIC Group, aim to raise around US$214m via selling 14% of the company.
The two largest shareholders together owned nearly 30% of the company and have pared their stake twice this year.
In this note, we will talk about the deal dynamics.

💡 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

Sep 01

Daily Brief Industrials: Doosan Robotics, Auckland Intl Airport, Elecon Engineering, Lixil Group, Epack Durable, Uponor OYJ and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst
Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky
Doosan Robotics IPO: Valuation Insights
Elecon Engineering Co. Ltd- Forensic Analysis
Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure
Epack Durable Pre-IPO Tearsheet
Georg Fischer/Uponor: Extension of Offer Period

Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.

Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Doosan Robotics IPO: Valuation Insights

Doosan Robotics (454910 KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
We previously discussed the IPO in Doosan Robotics IPO: The Bull Case and Doosan Robotics IPO: The Bear Case.
In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.

Elecon Engineering Co. Ltd- Forensic Analysis

By Nitin Mangal

Elecon Engineering (ELCN IN) (EECL) is one of the renowned manufacturers of Gears, often used in Industrials.
The company has gathered operational momentum in the last few years, coupled with debt reduction.
However, its balance sheet still has some concerns that are important. This relates to unaudited subsidiary, fixed asset disposals, write offs and ECL policy and large RPTs.

Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure

By Robert C Prather Jr

2/3 of sales face secular decline in housing demand/shrinking population and the other 1/3 facing weak housing environment due to rising rates
Competition from private label and weak trends and ratios exist
The valuation does not seem to reflect the risks highlighted

Epack Durable Pre-IPO Tearsheet

Epack Durable (1936389D IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, DAM Capital and ICICI Securities.
Epack Durable (ED) is the fastest Indian growing room air conditioner original design manufacturer (ODM) based on growth in volume manufactured between FY20-23 (Year ended 31st Mar), according to F&S.
Further, it is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with 29% market share in terms of volume manufactured in FY23, as per F&S.

Georg Fischer/Uponor: Extension of Offer Period

By Jesus Rodriguez Aguilar

Georg Fischer AG (FI/N SW) has so far purchased a 9.5% stake of Uponor OYJ (UNR1V FH) in the market. Georg Fischer’s shareholding plus irrevocable undertakings represent in total 46.4% (30 August).
There has been no disclosure about the shares tendered so far. Georg Fischer has extended the offer period until 31 October, while waiting to receive clearance from the European Commission.
Gross spread is 0.03%, so probably it is not worth becoming involved. The reason for this low spread is the acquisition of shares in the market by Georg Fischer.

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✓ Company Data and News
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Sep 01

Daily Brief Industrials: Doosan Robotics, Auckland Intl Airport, Elecon Engineering, Lixil Group, Epack Durable, Uponor OYJ and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst
Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky
Doosan Robotics IPO: Valuation Insights
Elecon Engineering Co. Ltd- Forensic Analysis
Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure
Epack Durable Pre-IPO Tearsheet
Georg Fischer/Uponor: Extension of Offer Period

Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.

Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Doosan Robotics IPO: Valuation Insights

Doosan Robotics (454910 KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
We previously discussed the IPO in Doosan Robotics IPO: The Bull Case and Doosan Robotics IPO: The Bear Case.
In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.

Elecon Engineering Co. Ltd- Forensic Analysis

By Nitin Mangal

Elecon Engineering (ELCN IN) (EECL) is one of the renowned manufacturers of Gears, often used in Industrials.
The company has gathered operational momentum in the last few years, coupled with debt reduction.
However, its balance sheet still has some concerns that are important. This relates to unaudited subsidiary, fixed asset disposals, write offs and ECL policy and large RPTs.

Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure

By Robert C Prather Jr

2/3 of sales face secular decline in housing demand/shrinking population and the other 1/3 facing weak housing environment due to rising rates
Competition from private label and weak trends and ratios exist
The valuation does not seem to reflect the risks highlighted

Epack Durable Pre-IPO Tearsheet

Epack Durable (1936389D IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, DAM Capital and ICICI Securities.
Epack Durable (ED) is the fastest Indian growing room air conditioner original design manufacturer (ODM) based on growth in volume manufactured between FY20-23 (Year ended 31st Mar), according to F&S.
Further, it is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with 29% market share in terms of volume manufactured in FY23, as per F&S.

Georg Fischer/Uponor: Extension of Offer Period

By Jesus Rodriguez Aguilar

Georg Fischer AG (FI/N SW) has so far purchased a 9.5% stake of Uponor OYJ (UNR1V FH) in the market. Georg Fischer’s shareholding plus irrevocable undertakings represent in total 46.4% (30 August).
There has been no disclosure about the shares tendered so far. Georg Fischer has extended the offer period until 31 October, while waiting to receive clearance from the European Commission.
Gross spread is 0.03%, so probably it is not worth becoming involved. The reason for this low spread is the acquisition of shares in the market by Georg Fischer.

💡 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

Aug 31

Daily Brief Industrials: Doosan Robotics, Greenland Technologies Holdi and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Robotics IPO: The Bear Case
Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

Doosan Robotics IPO: The Bear Case

Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
In Doosan Robotics IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on business plan forecasts based on shaky assumptions, high cash burn, rising cash collection cycle and deteriorating balance sheet strength.

Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

By Water Tower Research

Reported EPS of $0.18 on revenues of $3.6 million, up from $0.13 in 2Q22 and $0.11 in 1Q23.
The performance was driven by increased traction in the recovering China/Asian market and higher-margin products contributing more to the overall revenue mix.
Excluding the impact of FX headwinds, revenues would have been up 19% Y/Y.

💡 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

Aug 31

Daily Brief Industrials: Doosan Robotics, Greenland Technologies Holdi and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Robotics IPO: The Bear Case
Greenland Technologies Holding Corp. – Strong 2Q Results as Transmission Business Accelerates

Doosan Robotics IPO: The Bear Case