In today’s briefing:
- Doosan Robotics: Strong Initial Book Building Results
- IHI (7013) | Brace for a ¥130b Charge
- Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Recruit Holdings: Weakening Job Markets and New Pricing Model to Impact HR Tech Further
- R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
- R R Kabel Ltd IPO- Forensic Analysis
- SF Holdings A/H Listing – Recent Filing and Other Updates
Doosan Robotics: Strong Initial Book Building Results
- Chosun Business Daily mentioned today that initial results of Doosan Robotics book building have been very strong. The current IPO price range is from 21,000 won to 26,000 won.
- There is a high probability that the IPO price will be set at 26,000 won or more and close to 30,000 won.
- Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.
IHI (7013) | Brace for a ¥130b Charge
- IHI’s share price has declined 16% on news that Pratt & Whitney would need to ground more planes due to problems with its PW1100 turbofan engines
- IHI has a 15% share of the revenue and risk from this program. The new engine was expected to be a major earnings driver over the next several years
- We believe that IHI will be forced to revise down OP guidance to a loss. The bigger impact could be on FCF and future capex plans.
Doosan Robotics IPO – Updated Thoughts on Valuation – Sentiments Going Out of Control
- Doosan Robotics (454910 KS) is looking to raise up to US$318m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In our previous notes, we assessed the company’s past performance, undertook a peer comparison and shared our thoughts on valuation. In this note, we share our updated thoughts on valuation.
Recruit Holdings: Weakening Job Markets and New Pricing Model to Impact HR Tech Further
- The job openings in the US declined to 8.827m in July 2023, marking the lowest since March 2021, and falling well below projected 9.465m job openings for the month.
- On the other hand, web traffic on Recruit Holdings (6098 JP) ’s job platform Indeed has declined in July compared to June 2023 while it has improved slightly on Glassdoor.
- HR Tech segment’s top line growth declined 9.1% YoY in 1QFY03/2024 and the company has shifted into a new pricing model which we think would further impact segment’s growth.
R R Kabel IPO – Peer Comp & Thoughts on Valuation – Fifth in Market Share but First in Sales Growth
- R R Kabel (2333180Z IN) is looking to raise up to US$238m in its India IPO.
- R R Kabel is an Indian consumer electrical company, which primarily sells wires, cables and fast moving electrical goods (FMEG).
- In our previous notes, we looked at the company’s past performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.
R R Kabel Ltd IPO- Forensic Analysis
- R R Kabel (2333180Z IN) ‘s IPO will go live this week.
- The company is the fifth largest player in the wires and cables market in India, having a market share of 5% overall and 7% among the branded players.
- However, there our numerous aspects about the company and financials that warrant attention. These include RPT with promoters, misleading high CFO, promoter classification, high discounting, etc.
SF Holdings A/H Listing – Recent Filing and Other Updates
- S.F. Holding (002352 CH) (SFH), China’s largest express delivery company, aims to raise around US$2-3bn in its H-share listing in Hong Kong.
- SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
- We have looked at the company’s past performance in our previous notes. In this note, we look at its recent updates.
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