In today’s briefing:
- Cie De Saint-Gobain (SGO FP): Deep Value
- Merger Arb Mondays (02 Jan) – Toyo Construction, Origin Energy, Warrego, Nitro, Fengxiang
- PCOMP Index Rebalance Preview Feb 23: Float Increases to Drive Changes & Flow
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: OZ Minerals, Warrego, Shandong Fengxiang, Toyo Construction
- Norfolk Southern Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Norfolk Southern Corporation: Initiation of Coverage – Business Strategy & Other Drivers
- Morning Views Asia: Zoomlion Heavy Industry H
Cie De Saint-Gobain (SGO FP): Deep Value
- New Management, New Targets, New Profile. Mission to change the underlying culture to one of ‘accountability’ and ‘delivery’
- Launch of the Grow & Impact program which sets out a clear and coherent strategy to 2025, a plan designed to accelerate the group’s profitable growth.
- Valuation upside. The stock trades on EV/Sales below 0.5x. Historical multiple above 1x. We see rerating potential. Price could double if the Company delivers on targets
Merger Arb Mondays (02 Jan) – Toyo Construction, Origin Energy, Warrego, Nitro, Fengxiang
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads – Alliance Aviation Services (AQZ AU), 21Vianet Group (VNET US), Golden Energy & Resources (GER SP), Genesis Minerals (GMD AU), 111 Inc (YI US), Origin Energy (ORG AU).
- Lowest spreads – Nitro Software Ltd (NTO AU), Norwest Energy NL (NWE AU), Chip Eng Seng Corp (CHIP SP), Conexio Corp (9422 JP), Elmo Software (ELO AU).
PCOMP Index Rebalance Preview Feb 23: Float Increases to Drive Changes & Flow
- Some creative float increases for AC Energy Corp (ACEN), San Miguel (SMC PM) and Emperador (EMP PM) should result in the stocks remaining in the index and getting passive inflows.
- DMCI Holdings (DMC PM) should replace Megaworld Corp (MEG PM), while UnionBank of the Philippines (UBP PM)‘s inclusion should result in Robinsons Land Co (RLC PM)‘s deletion from the index.
- There will be a big impact on the additions, deletions and stocks with float changes. The stocks have already started to move ahead of the passive flows.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: OZ Minerals, Warrego, Shandong Fengxiang, Toyo Construction
- There are 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- No new deals were discussed on Smartkarma in the past week.
- Key updates took place for: OZ Minerals Ltd (OZL AU), Warrego Energy (WGO AU), Shandong Fengxiang (9977 HK), and Toyo Construction (1890 JP).
Norfolk Southern Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
- Norfolk Southern is a rail transport major, known to offer its services in the Southeast, East and Midwest U.S.
- The company’s recent financial performance has been decent and the management has shown its commitment to productivity and efficiency by significantly improving its operating ratio.
- They are actively qualifying conductors, carrying out and fine-tuning their TOP|SPG operating strategy, and bolstering their leadership group and operations.
Norfolk Southern Corporation: Initiation of Coverage – Business Strategy & Other Drivers
- This is our first report on rail transport major, Norfolk Southern.
- The company delivered strong financial results in Q3 surpassing Wall Street expectations in terms of revenues as well as earnings.
- We initiate coverage on the stock of Norfolk Southern Corporation with a ‘Hold’ rating.
Morning Views Asia: Zoomlion Heavy Industry H
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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