Industrials

After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price.
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis

By Nitin Mangal

Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

Daikin (6367) | Cooling on Heat Pumps

By Mark Chadwick

Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.

JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the not so positive aspects of the deal.

APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out

APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers

Republic Services exceeded analyst expectations in revenue and earnings.
The company is improving profitability while successfully expanding its business both organically and through acquisitions.
The company produced a revenue increase of 9% throughout the quarter, including more than 4% via acquisitions.

Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Illinois Tool Works delivered mixed results for the quarter, with revenues below the analyst consensus.
The expansion of operating margins indicates the company has adapted well to changing market dynamics.
While some factors impacted revenues, the stable underlying demand across various industrial end markets reflects the company’s resilience.

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Aug 25

Daily Brief Industrials: Hanwha Ocean, Polycab India , Vishnu Prakash R Punglia , Daikin Industries, JSW Infrastructure, APM Human Services Internation, Republic Services, Illinois Tool Works and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
Daikin (6367) | Cooling on Heat Pumps
JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers
Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price.
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)

Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis

By Nitin Mangal

Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.

Daikin (6367) | Cooling on Heat Pumps

By Mark Chadwick

Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.

JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the not so positive aspects of the deal.

APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out

APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers

Republic Services exceeded analyst expectations in revenue and earnings.
The company is improving profitability while successfully expanding its business both organically and through acquisitions.
The company produced a revenue increase of 9% throughout the quarter, including more than 4% via acquisitions.

Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts

Illinois Tool Works delivered mixed results for the quarter, with revenues below the analyst consensus.
The expansion of operating margins indicates the company has adapted well to changing market dynamics.
While some factors impacted revenues, the stable underlying demand across various industrial end markets reflects the company’s resilience.

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✓ Company Data and News
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Aug 24

Daily Brief Industrials: TVS Supply Chain Solutions, Hanwha Ocean, S.F. Holding, JSW Infrastructure, Tecnoglass and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates
Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart
S.F. Holding H Share Listing: The Investment Case
JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility
Tecnoglass: Massive Backlog Supported By Operational Efficiency

TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates

By Ethan Aw

TVS Supply Chain Solutions (TVSSCS IN) raised around US$108m in its India IPO, after downsizing from an earlier reported float of up to US$500m.
TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand and trading dynamics.

Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart

By Brian Freitas

Ecopro (086520 KS), Jyp Entertainment (035900 KS), Hanwha Ocean (042660 KS), Hanmi Semiconductor (042700 KS), CJ Corp (001040 KS) and E Mart (139480 KS) have been on investors/traders radars recently.
There will be liquidity demand on the stocks in a week and there is pre-positioning on a lot of the stocks.
Since 10 August, retail investors have net bought Jyp Entertainment and E Mart, foreigners have net bought Ecopro, Hanwha Ocean and Hanmi Semiconductor, while local institutions have net bought CJ Corp.

S.F. Holding H Share Listing: The Investment Case

By Arun George

S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, has filed for an H Share listing to raise US$2-3 billion, according to press reports.
SF is the largest integrated logistics service player in China and Asia, and the fourth largest player globally, in terms of revenue in 2022, according to Frost & Sullivan.
The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage and undemanding PEG multiples.

JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility

By Pearl Gray Equity and Research

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the positive aspects of the deal.

Tecnoglass: Massive Backlog Supported By Operational Efficiency

Tecnoglass Inc’s backlog of nearly $800 million, paired with a production capacity increase, might contribute to significant growth.
The company’s single-family offerings are gathering pace amid sound regional targeting by the firm.
A potential opportunity exists for expansion in Colombia, the firm says.

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Aug 24

Daily Brief Industrials: TVS Supply Chain Solutions, Hanwha Ocean, S.F. Holding, JSW Infrastructure, Tecnoglass and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates
Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart
S.F. Holding H Share Listing: The Investment Case
JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility
Tecnoglass: Massive Backlog Supported By Operational Efficiency

TVS Supply Chain Solutions IPO Trading – Offered at a Premium with Underwhelming Subscription Rates

By Ethan Aw

TVS Supply Chain Solutions (TVSSCS IN) raised around US$108m in its India IPO, after downsizing from an earlier reported float of up to US$500m.
TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer.
We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand and trading dynamics.

Korea – Positioning in Ecopro, JYP Entertainment, Hanwha Ocean, Hanmi Semi, CJ Corp, E-Mart

By Brian Freitas

Ecopro (086520 KS), Jyp Entertainment (035900 KS), Hanwha Ocean (042660 KS), Hanmi Semiconductor (042700 KS), CJ Corp (001040 KS) and E Mart (139480 KS) have been on investors/traders radars recently.
There will be liquidity demand on the stocks in a week and there is pre-positioning on a lot of the stocks.
Since 10 August, retail investors have net bought Jyp Entertainment and E Mart, foreigners have net bought Ecopro, Hanwha Ocean and Hanmi Semiconductor, while local institutions have net bought CJ Corp.

S.F. Holding H Share Listing: The Investment Case

By Arun George

S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, has filed for an H Share listing to raise US$2-3 billion, according to press reports.
SF is the largest integrated logistics service player in China and Asia, and the fourth largest player globally, in terms of revenue in 2022, according to Frost & Sullivan.
The key elements of the investment case rest on the primary business’ improving fundamentals, margin trajectory, cash generation, modest leverage and undemanding PEG multiples.

JSW Infra Pre-IPO – The Positives – Grown Its Concessions and Long-Term Contracts Provide Visibility

By Pearl Gray Equity and Research

JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
In this note, we will talk about the positive aspects of the deal.

Tecnoglass: Massive Backlog Supported By Operational Efficiency

Tecnoglass Inc’s backlog of nearly $800 million, paired with a production capacity increase, might contribute to significant growth.
The company’s single-family offerings are gathering pace amid sound regional targeting by the firm.
A potential opportunity exists for expansion in Colombia, the firm says.

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Aug 23

Daily Brief Industrials: Hanwha Ocean, AP Moeller – Maersk A/S, Uber Technologies , Ingersoll Rand and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won
Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)
Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers
Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

Hanwha Ocean’s share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won.
Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months.
We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments.

Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)

Our monthly index suggests that container rates have bottomed, with easier comps in H2
Lower fuel has been a tailwind for carriers for several months, but that could change
We still think the worst has passed for carriers, a few of which have performed well in ’23

Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers

Uber Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
However, it has faced its fair share of challenges in the competitive landscape and increasing complexity of marketplace management.
We give Uber Technologies a ‘Hold’ rating with a revised target price.

Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Ingersoll Rand Inc. managed to exceed analyst expectations in terms of revenue and earnings.
Revenue and total company organic orders both saw a year-over-year increase.
While the PST segment margin grew by 240 basis points, the ITS segment margin increased by 200.

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Aug 23

Daily Brief Industrials: Hanwha Ocean, AP Moeller – Maersk A/S, Uber Technologies , Ingersoll Rand and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won
Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)
Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers
Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

Hanwha Ocean’s share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won.
Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months.
We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments.

Monthly Container Shipping Tracker | Rates Bottoming | Fuel Tailwind Easing? | (August 2023)

Our monthly index suggests that container rates have bottomed, with easier comps in H2
Lower fuel has been a tailwind for carriers for several months, but that could change
We still think the worst has passed for carriers, a few of which have performed well in ’23

Uber Technologies Inc.: Breaking the Mold With New Strategies! – Major Drivers

Uber Technologies delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
However, it has faced its fair share of challenges in the competitive landscape and increasing complexity of marketplace management.
We give Uber Technologies a ‘Hold’ rating with a revised target price.

Ingersoll Rand Inc.: Cracking The Code To Overcoming Global Supply Chain Hurdles! – Major Drivers

Ingersoll Rand Inc. managed to exceed analyst expectations in terms of revenue and earnings.
Revenue and total company organic orders both saw a year-over-year increase.
While the PST segment margin grew by 240 basis points, the ITS segment margin increased by 200.

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✓ Company Data and News
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Aug 22

Daily Brief Industrials: SK Rent A Car, Ventia Services Group Pty , Wisdom Marine Lines, Hanwha Ocean, HMM Co., Ltd., S.F. Holding, Emerson Electric Co, C.H. Robinson Worldwide and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SK Rent A Car: SK Networks’ Tender Offer
Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

SK Rent A Car: SK Networks’ Tender Offer

By David Blennerhassett

Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%.
SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded.
The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms.

Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well

Ventia Services Group Pty (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, will come off their placement linked lockup soon.
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 likely placement and past deal performance.

Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL

Today is the base date for the T50 and T100 Indices for the September 2023 Rebalance.
In this insight, we take a look at the final expectations for ADDs/DELs for the T50 and T100 Indices.
Previously, I expected five and three changes for the T50 and T100 indices, respectively, but now I see four changes for both indices.

Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index

In this insight, we take a look at Quiddity’s final flow expectations for the September 2023 index rebalance.
In my previous insight, I revised my AUM assumption upwards but now I have revised it downwards based on the latest available data.
Based on the latest available data, I see 47 names with positive index flow expectations and 3 names with negative index flow expectations (including the DEL Wisdom Marine).

Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It

By Sanghyun Park

Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.

Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.

Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)

Chinese express parcel volume growth was 11.7% in July, far slower than in Feb-May
July ASP for all segments fell to 8.84 Yuan per piece, the lowest in at least ten years
Industry leader SF Holding partly insulated from margin pressure by air, international

Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers

Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.

C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

C.H.
Robinson Worldwide delivered disappointing results as the company could not meet the revenue and earnings expectations of Wall Street.
The company’s truckload and LTL businesses faced varying market conditions, with truckload volumes declining and LTL shipments remaining flat but declining AGP per order.

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Aug 22

Daily Brief Industrials: SK Rent A Car, Ventia Services Group Pty , Wisdom Marine Lines, Hanwha Ocean, HMM Co., Ltd., S.F. Holding, Emerson Electric Co, C.H. Robinson Worldwide and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SK Rent A Car: SK Networks’ Tender Offer
Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well
Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL
Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index
Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It
Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]
Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)
Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts

SK Rent A Car: SK Networks’ Tender Offer

By David Blennerhassett

Korean car rental play SK Rent A Car (068400 KS) has announced a Tender Offer from SK Networks (001740 KS), its largest shareholder with ~76%.
SK Rent shareholders have the option of receiving cash or SK Networks scrip. Appraisal rights are also afforded.
The shareholder vote is a lock. The current trade is the cash offer, which is trading tight to terms.

Ventia Services Group US$450m Placement Lockup Expiry – Past Deals Have Done Well

Ventia Services Group Pty (VNT AU)’s two largest shareholders, Apollo Global Management and CIMIC Group, will come off their placement linked lockup soon.
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 likely placement and past deal performance.

Quiddity Leaderboard T50/100 Sep 23: Final Expectations; AI Frenzy Fades; Wisdom Marine TDIV DEL

Today is the base date for the T50 and T100 Indices for the September 2023 Rebalance.
In this insight, we take a look at the final expectations for ADDs/DELs for the T50 and T100 Indices.
Previously, I expected five and three changes for the T50 and T100 indices, respectively, but now I see four changes for both indices.

Quiddity Leaderboard TDIV Sep 23: Wisdom Marine Could Underperform the Index

In this insight, we take a look at Quiddity’s final flow expectations for the September 2023 index rebalance.
In my previous insight, I revised my AUM assumption upwards but now I have revised it downwards based on the latest available data.
Based on the latest available data, I see 47 names with positive index flow expectations and 3 names with negative index flow expectations (including the DEL Wisdom Marine).

Hanwha Ocean’s Massive Issuance: Clearly, This Is Test-The-Water and How to Approach It

By Sanghyun Park

Multiple local news outlets reported Hanwha Ocean is undergoing a 2.5 trillion won equity increase. The official disclosure regarding this matter is expected to be released within this month.
We have repeatedly observed a pattern of testing the waters through leaks to the local media. The case of Hanwha Ocean can also be seen in this light.
It’s challenging to envision this magnitude being absorbed seamlessly by the market. There is a considerable likelihood that both issuers and bankers will aggressively attract inflows of arbitrage-seeking hot money.

Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.

Monthly Chinese Express Tracker | July Growth Slows | Pricing Hits Record Low | (August 2023)

Chinese express parcel volume growth was 11.7% in July, far slower than in Feb-May
July ASP for all segments fell to 8.84 Yuan per piece, the lowest in at least ten years
Industry leader SF Holding partly insulated from margin pressure by air, international

Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers

Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.

C.H. Robinson Worldwide Inc.: 3 Catalysts Responsible For Its Growth! – Financial Forecasts