In today’s briefing:
- Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
- India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
- Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
- Daikin (6367) | Cooling on Heat Pumps
- JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
- APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
- Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers
- Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts
Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won
- After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
- The expected rights offering price is 22,350 won, which is 36% discount to current price.
- We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean’s share price.
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
- In this Insight, we review the recent performance of ABB India Ltd (ABB IN), Siemens Ltd (SIEM IN), Polycab India (POLYCAB IN) and Havells India (HAVL IN)
- Most companies have performed in line with our expectations, except for Polycab, which has exceeded our performance expectations.
- We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL)
Vishnu Prakash R Punglia Ltd IPO- Forensic Analysis
- Vishnu Prakash R Punglia (1636911D IN) IPO has opened for subscription.
- The company operates in the EPC space with a prominence in Water Supply Projects and a strong geographic presence in Rajasthan.
- The financials of the company should be looked at carefully, especially given the fact that margins are boosted by inventory, and there are plenty of RPT with the promoters.
Daikin (6367) | Cooling on Heat Pumps
- Daikin’s air conditioning business continues to benefit from the secular trends of urbanization, climate change, and rising incomes.
- However, the same logic might not apply to heat pumps, which face far more “structural” issues, warranting a lower valuation.
- Overall, we believe that Daikin deserves to trade at its historical multiple of 15x EV/EBIT and see 20% downside from here.
JSW Infra Pre-IPO – The Negatives – Fees Rose Quicker than Escalations. High Related Party Dealings
- JSW Infrastructure (5978490Z IN) is looking to raise around US$340m in its upcoming India IPO.
- JSW Infrastructure (JSWI) is the fastest growing port-related infrastructure company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY20 to FY22, according to CRISIL.
- In this note, we will talk about the not so positive aspects of the deal.
APM Human Services IPO Lock-Up – US$400m of Shares Come Free but First PE Needs to Clear Out
- APM Human Services (APM AU) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. The second IPO linked lockup is set to expire next week.
- APM is an international human services provider, it runs 800 sites spanning 10 countries with its largest market being Australia.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Republic Services Inc.: Advancement of Sustainable Packaging Solutions & Other Drivers
- Republic Services exceeded analyst expectations in revenue and earnings.
- The company is improving profitability while successfully expanding its business both organically and through acquisitions.
- The company produced a revenue increase of 9% throughout the quarter, including more than 4% via acquisitions.
Illinois Tool Works Inc.: 4 Success Strategies Behind Their Recent Performance! – Financial Forecasts
- Illinois Tool Works delivered mixed results for the quarter, with revenues below the analyst consensus.
- The expansion of operating margins indicates the company has adapted well to changing market dynamics.
- While some factors impacted revenues, the stable underlying demand across various industrial end markets reflects the company’s resilience.
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