In today’s briefing:
- Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse
- Jiangnan Group (1366 HK): Powering Up
- NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover
- Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
- Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers
- Illinois Tool Works Inc.: Major Drivers
Adani Group – MSCI’s Special Treatment Gets More Special, and Partially Delayed, and Possibly Worse
- On 8 February, MSCI announced special treatment for the Adani names in its indices, discussed in Adani Group – MSCI Will Treat Very Adani Funds as a Very Special Case.
- Late on 15 February they came out with a revision of their implementation – which was problematic because some stocks had gone limit down many days in a row.
- The stocks responded. But it clearly isn’t an easy implementation, and it clearly isn’t over.
Jiangnan Group (1366 HK): Powering Up
- Jiangnan (1366 HK), a manufacturer of wires and cables for power transmission and distribution systems, was suspended yesterday at lunchtime pursuant to Hong Kong’s Code on Takeovers and Mergers.
- But not before the share price gained 63% on clear news leakage.
- Chu Hui, the chairman, CEO, and major shareholder, mulled taking the private six years ago.
NIFTY NEXT50 / NIFTY100 Index Rebalance: 5 Changes + Capping = Big Turnover
- ABB India Ltd (ABB IN), Adani Wilmar (AWLTD IN), Canara Bank (CBK IN), Page Industries (PAG IN) and Varun Beverages Ltd (VBL IN) will be added to the index.
- Bandhan Bank Ltd (BANDHAN IN), Biocon Ltd (BIOS IN), Gland Pharma Ltd (GLAND IN), Mphasis Ltd (MPHL IN) and Paytm (PAYTM IN) will be deleted from the index.
- Given the large drop in the stock prices of the Adani Group companies, capping changes will result in buying on all non-F&O stocks in the index.
Jiangnan Group (1366 HK): Is the Chairman/CEO Reattempting Privatisation?
- Jiangnan (1366 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 16 February.
- It is likely that Mr Chu Hui (Chairman and CEO), the largest shareholder representing 34.99% of outstanding shares is reattempting to privatise Jiangnan.
- The 83.9% share price run prior to the trading halt suggests that the offeror is very close to finalising a formal proposal at a hefty premium to the undisturbed price.
Honeywell International Inc.: Hydrogen Fuel Cells For Aviation & Other Drivers
- Honeywell had another challenging quarter with inflation headwinds and supply chain constraints still at play.
- Modest improvement in the supply chain helped Honeywell to reduce its cost to use backlog and deliver more building management systems and fire products resulting in organic growth in the building products.
- Advanced materials grew in the quarter, as seen from the strong value capture across the demand and portfolio in fluorine products.
Illinois Tool Works Inc.: Major Drivers
- Illinois Tool Works continues to face various challenges in this operating environment which is why it had a mixed financial performance in the last quarter of the year.
- Automotive OEM revenues were up, and food equipment delivered a very strong quarter.
- Welding delivery had quite a strong organic growth in the quarter, with a rise in equipment and consumables.
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