In today’s briefing:
- A2B Australia (A2B AU): Scheme Vote on 25 March
- Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers
- Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights
- AerCap (AER US): Splendid 2023, More to Come in 2024
- STAR50 Index Rebalance: Three Changes a Side; One Surprise Change
- Ingersoll Rand: A Tale Of Expansion of Addressable Market through Strategic M&A Activity! – Major Drivers
A2B Australia (A2B AU): Scheme Vote on 25 March
- The A2B Australia (A2B AU) IE considers Comfortdelgro Corp (CD SP)’s A$1.45 offer fair and reasonable as it above the midpoint of its A$1.30-1.54 per share valuation range.
- The scheme is conditional on ACCC approval, which should be forthcoming as ComfortDelGro is not a significant player in Australia.
- Several substantial shareholders have sold or exited, lowering the scheme vote risk. At the last close and for the 11 April payment, the gross/annualised spread was 2.5%/22.3%.
Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers
- Deere & Company’s earnings revealed a company operating well in the midst of an increasingly competitive market landscape, with stable demand across the majority of sectors.
- The firm noted solid execution across the cycle with an 18.5% margin for equipment operations in the first quarter.
- Land sales fell by 4% to $12.658 billion while equipment operations also dropped 8% to $10.486 billion.
Last Week in Event SPACE: Outsourcing, Boral, Itoki, CIMC Vehicle, Dissentient Shareholder Rights
- There is no suggestion of precondition breach attached to Outsourcing Inc (2427 JP)‘s impairment losses.
- Seven Group, now holding 71.6%, has returned to the well, and made a cash/scrip Offer for shares not owned in Boral (BLD AU), with certain tendering thresholds triggering more cash.
- Itoki Corp (7972 JP)‘s mega ToSTNeT-3 buyback is now done.
AerCap (AER US): Splendid 2023, More to Come in 2024
- AerCap Holdings NV (AER US) (AerCap) 2023 result was excellent; record core profit of USD2.4b, 27% ROE, and share buyback of USD2.6b of shares (~18% shares in issue)
- Management guided continued growth in 2024 and announced a further USD500m share buyback (~3% shares in issue). We think it can easily beat this lowball target
- Poised for growth; aircraft lease rates and asset values are rising. Maintain BUY with higher TP of USD90.6 (+16% UPSIDE) pegged to FY24 P/BV of 0.94x (1SD above LT average)
STAR50 Index Rebalance: Three Changes a Side; One Surprise Change
- There are three constituent changes for the SSE STAR50 (STAR50 INDEX) at the March rebalance. One inclusion and one non-inclusion are surprises.
- One way turnover is estimated at 2.9% and will result in a one-way trade of CNY 4,075m with over 2.5x ADV to trade on all constituent changes.
- The adds have outperformed the deletes over the last few months with a jump in the last few trading sessions. There could be more outperformance over the next two weeks.
Ingersoll Rand: A Tale Of Expansion of Addressable Market through Strategic M&A Activity! – Major Drivers
- Ingersoll Rand reports strong performance for Q4 2023, marking another record-breaking year despite continued challenges within a fluctuating macroeconomic environment.
- This performance reinforces the importance of Ingersoll Rand’s employee ownership mindset, which is being credited for the successful results.
- In 2023, Ingersoll Rand delivered double-digit growth across revenue, adjusted EBITDA, adjusted EPS and free cash flow.
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