In today’s briefing:
- Doosan Enerbility Placement – Selldown by Parent Doesn’t Send the Best Signal
- Doosan Corp: A Block Deal Sale of 4.5% Stake in Doosan Enerbility
- Antony Waste Handling Cell Ltd – Forensic Analysis
- Shenzhen Intl (152 HK): The Toughest Time Should Be over Now
Doosan Enerbility Placement – Selldown by Parent Doesn’t Send the Best Signal
- Doosan Corp (000150 KS) is looking to raise up to US$435m from trimming a portion of its stake in Doosan Enerbility (034020 KS).
- The deal isn’t exactly a large one to process at just 5.2 days of three month ADV. Shares are offered at a discount range between 5.1-7.8%.
- As there wasn’t a specific mention of the former’s intention to sell, we would argue that the deal isn’t particularly well flagged.
Doosan Corp: A Block Deal Sale of 4.5% Stake in Doosan Enerbility
- After the market close today, Doosan Corp (000150 KS) announced that it plans to sell a 4.5% stake in Doosan Enerbility (034020 KS) in a block deal sale.
- The discount range on the block deal price is 5.1% to 7.8% based on today’s closing price of 21,700 won.
- This block deal sale should have a positive impact on Doosan Corp but a negative impact on Doosan Enerbility.
Antony Waste Handling Cell Ltd – Forensic Analysis
- Antony Waste Handling Cell Limited (AWHCL IN) is one of the key players operating in the Municipal Solid Waste (MSW) industry.
- Key takeaways that warrant attention overlooked include disparity between accounting and management commentary on margins and reimbursements and stained auditor qualifications since F13
- Other forensic checks consist of poor quality of debtors, subsidiary stress and few eye-brow raising related party transactions.
Shenzhen Intl (152 HK): The Toughest Time Should Be over Now
- The 1H22 result of Shenzhen International (152 HK) is 4% ahead of indicated in profit warning. Key drags are toll roads and Shenzhen Airlines, but their 2H22 outlook is better.
- It will see many new logistics projects to commence operations in the next 12-18 months. Also, SZI guided that it will continue to realise underlying asset value through strategic disposals.
- We think the toughest time should be behind and expect more positive news on asset gains. The stock is very cheap at 0.41x P/B and 58% discount to appraised NAV.
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