Industrials

It was reported in the local media that Hyundai Elevator Chairwoman Hyun Jeong-Eun is close to completing a deal with H&Q Korea in a deal worth nearly 300 billion won.
The three major reasons driving higher share price of Hyundai Elevator in the last three months include share buyback/cancellation, potential M&A, and solid 1Q 2023 results.
With noticeable downturn in the Korean construction sector, Hyundai Elevator could face worsening industry prospects for both residential and commercial elevators in the next 12-24 months in Korea.

Western Carriers Pre-IPO Tearsheet

Western Carriers (1489172D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by JM Financial and Kotak.
The firm provides multi-modal logistics services which include road, railway, ocean/coastal/river and air logistics services.
It also provides chartering services to overseas destinations, stevedoring services at Indian ports and coastal movement of cargo within India.

Monthly Express Tracker | ASPs Down Again | Volume Growth Moderates | J&T Express IPO | (June 2023)

In May, average pricing fell again Y/Y, and volume growth moderated somewhat vs April
We look forward to learning more about J&T Global Express IPO and its path to profits
Check out the weird China-US postage fraud case and YTD share performance

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Jun 22

Daily Brief Industrials: Hyundai Elevator Co, Western Carriers, ZTO Express and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hyundai Elevator Chairwoman Hyun Seeks Capital from H&Q Korea
Western Carriers Pre-IPO Tearsheet
Monthly Express Tracker | ASPs Down Again | Volume Growth Moderates | J&T Express IPO | (June 2023)

Hyundai Elevator Chairwoman Hyun Seeks Capital from H&Q Korea

It was reported in the local media that Hyundai Elevator Chairwoman Hyun Jeong-Eun is close to completing a deal with H&Q Korea in a deal worth nearly 300 billion won.
The three major reasons driving higher share price of Hyundai Elevator in the last three months include share buyback/cancellation, potential M&A, and solid 1Q 2023 results.
With noticeable downturn in the Korean construction sector, Hyundai Elevator could face worsening industry prospects for both residential and commercial elevators in the next 12-24 months in Korea.

Western Carriers Pre-IPO Tearsheet

Western Carriers (1489172D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by JM Financial and Kotak.
The firm provides multi-modal logistics services which include road, railway, ocean/coastal/river and air logistics services.
It also provides chartering services to overseas destinations, stevedoring services at Indian ports and coastal movement of cargo within India.

Monthly Express Tracker | ASPs Down Again | Volume Growth Moderates | J&T Express IPO | (June 2023)

In May, average pricing fell again Y/Y, and volume growth moderated somewhat vs April
We look forward to learning more about J&T Global Express IPO and its path to profits
Check out the weird China-US postage fraud case and YTD share performance

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

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Jun 21

Daily Brief Industrials: Doosan Bobcat Inc, J&T Global Express, Ask Automotive and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well
Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
J&T Global Express IPO: The Bear Case
ASK Automotive Pre-IPO Tearsheet

Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well

By Sumeet Singh

Doosan Enerbility (034020 KS) aims to raise around US$220m via selling around 4.9% of Doosan Bobcat Inc (241560 KS) .
This will be the third selldown in the company in less than a year with the previous two deals in Nov 22 and May 23 having delivered mixed results
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn

After the market close on 20 June, Doosan Enerbility announced that it will sell 5 million shares of Doosan Bobcat through a block deal worth about 300 billion won.
The block deal price range is from 54,800 won to 56,200 won, which represents a discount range from 6.18% to 8.51% (versus current price).
We have a negative view of Doosan Bobcat block deal as we expect lower share price of Doosan Bobcat in 2H 2023 due to construction sector downturn in North America.

J&T Global Express IPO: The Bear Case

J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
In J&T Global Express IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on organic revenue decline in SEA/China, deteriorating contract liabilities, SEA margin pressure, high cash burn and weak balance sheet.

ASK Automotive Pre-IPO Tearsheet

Ask Automotive (7175293Z IN) is looking to raise about US$145m in its upcoming India IPO. The deal will be run by Axis Capital, IIFL Securities, ICICI Securities and JM Financial.
ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India, according to CRISIL.
The company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing, developing and manufacturing capabilities.

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Jun 21

Daily Brief Industrials: Doosan Bobcat Inc, J&T Global Express, Ask Automotive and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well
Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
J&T Global Express IPO: The Bear Case
ASK Automotive Pre-IPO Tearsheet

Doosan Bobcat Placement – Past Deals Have Been Mixed but the Stock Has Been Doing Well

By Sumeet Singh

Doosan Enerbility (034020 KS) aims to raise around US$220m via selling around 4.9% of Doosan Bobcat Inc (241560 KS) .
This will be the third selldown in the company in less than a year with the previous two deals in Nov 22 and May 23 having delivered mixed results
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn

After the market close on 20 June, Doosan Enerbility announced that it will sell 5 million shares of Doosan Bobcat through a block deal worth about 300 billion won.
The block deal price range is from 54,800 won to 56,200 won, which represents a discount range from 6.18% to 8.51% (versus current price).
We have a negative view of Doosan Bobcat block deal as we expect lower share price of Doosan Bobcat in 2H 2023 due to construction sector downturn in North America.

J&T Global Express IPO: The Bear Case

J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
In J&T Global Express IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on organic revenue decline in SEA/China, deteriorating contract liabilities, SEA margin pressure, high cash burn and weak balance sheet.

ASK Automotive Pre-IPO Tearsheet

Ask Automotive (7175293Z IN) is looking to raise about US$145m in its upcoming India IPO. The deal will be run by Axis Capital, IIFL Securities, ICICI Securities and JM Financial.
ASK Automotive is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2W) in India, according to CRISIL.
The company has been supplying safety systems and critical engineering solutions for more than three decades with in-house designing, developing and manufacturing capabilities.

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✓ Company Data and News
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Jun 20

Daily Brief Industrials: J&T Global Express, CJ Logistics and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

J&T Global Express Pre-IPO Tearsheet
J&T Global Express IPO: The Bull Case
Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus

J&T Global Express Pre-IPO Tearsheet

By Clarence Chu

J&T Global Express (1936374D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
J&T Global Express (J&T) is a global logistics service provider.
As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.

J&T Global Express IPO: The Bull Case

J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
J&T is the number one express delivery operator in Southeast Asia by parcel volume from 2020 to 2022, according to Frost & Sullivan.
The key elements of the bull case rest on large addressable markets, market share gains, robust reported revenue growth and narrowing losses which set a path to profitability.

Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus

Previously, we criticized CJ Logistics as unfocused, pursuing deals in low-margin segments around the world as if to fill a logistics ‘Bingo!’ card rather than in-line with a rational strategy
In recent years, investors have punished the company’s shares, which have fallen by more than half since reaching a high of over 184,000 won per share in March 2021.
However, with management de-emphasizing its Global segment and focusing instead on the more promising Parcel / E-commerce line of business, there is cause for optimism, in our view

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Jun 20

Daily Brief Industrials: J&T Global Express, CJ Logistics and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

J&T Global Express Pre-IPO Tearsheet
J&T Global Express IPO: The Bull Case
Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus

J&T Global Express Pre-IPO Tearsheet

By Clarence Chu

J&T Global Express (1936374D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
J&T Global Express (J&T) is a global logistics service provider.
As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.

J&T Global Express IPO: The Bull Case

J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China has filed for a HKEx IPO to raise US$1 billion, according to press reports.
J&T is the number one express delivery operator in Southeast Asia by parcel volume from 2020 to 2022, according to Frost & Sullivan.
The key elements of the bull case rest on large addressable markets, market share gains, robust reported revenue growth and narrowing losses which set a path to profitability.

Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus

Previously, we criticized CJ Logistics as unfocused, pursuing deals in low-margin segments around the world as if to fill a logistics ‘Bingo!’ card rather than in-line with a rational strategy
In recent years, investors have punished the company’s shares, which have fallen by more than half since reaching a high of over 184,000 won per share in March 2021.
However, with management de-emphasizing its Global segment and focusing instead on the more promising Parcel / E-commerce line of business, there is cause for optimism, in our view

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

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Company Data and News
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Jun 19

Daily Brief Industrials: Toshiba Corp, Evergreen Marine Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (18 Jun) – Toshiba, Kenedix, Abacus Storage King, Austal, Hailan, Yitai Coal
Monthly Container Shipping Tracker | Rates Stable | Strike Averted | Fuel Prices Lower (June 2023)

Weekly Deals Digest (18 Jun) – Toshiba, Kenedix, Abacus Storage King, Austal, Hailan, Yitai Coal

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Amman Mineral Internasional (1416286D IJ), Tata Technologies (TATATECH IN), JD Industrials (2231713D CH) and JD Property (JDP HK) IPOs.
Event-Driven developments Toshiba Corp (6502 JP), Kenedix Office Investment Co (8972 JP), Abacus Property (ABP AU), Austal Ltd (ASB AU), Tesserent Ltd (TNT AU), Hailan Holdings (2278 HK), Yitai Coal.

Monthly Container Shipping Tracker | Rates Stable | Strike Averted | Fuel Prices Lower (June 2023)

Our index suggests long-haul rates remained stable in May as carriers approach peak season
Cleanup of West Coast slowdown, lower fuel prices should both serve as Summer tailwinds
We believe conditions could improve in H2 2023, and shares remain cheap on Price / Assets

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

Jun 19

Daily Brief Industrials: Toshiba Corp, Evergreen Marine Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (18 Jun) – Toshiba, Kenedix, Abacus Storage King, Austal, Hailan, Yitai Coal
Monthly Container Shipping Tracker | Rates Stable | Strike Averted | Fuel Prices Lower (June 2023)

Weekly Deals Digest (18 Jun) – Toshiba, Kenedix, Abacus Storage King, Austal, Hailan, Yitai Coal

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Amman Mineral Internasional (1416286D IJ), Tata Technologies (TATATECH IN), JD Industrials (2231713D CH) and JD Property (JDP HK) IPOs.
Event-Driven developments Toshiba Corp (6502 JP), Kenedix Office Investment Co (8972 JP), Abacus Property (ABP AU), Austal Ltd (ASB AU), Tesserent Ltd (TNT AU), Hailan Holdings (2278 HK), Yitai Coal.

Monthly Container Shipping Tracker | Rates Stable | Strike Averted | Fuel Prices Lower (June 2023)