In today’s briefing:
- HD Hyundai Marine Solution: IPO Book Building Results Analysis
- A Review of Post IPO Price Performance of Top 13 IPOs in Korea Past 8 Months
- Fanuc (6954) | Profitability Problems Persist
- Quiddity Leaderboard F100/250 Jun 24: Potential ADDs Could Outperform the Index
- CIMC Enric (3899 HK): Robust Order Backlog Outshined Lower 1Q24 Revenue
- Afcons Infrastructure Limited Pre-IPO – The Positives – Profitability More than Doubled
HD Hyundai Marine Solution: IPO Book Building Results Analysis
- HD Hyundai Marine Solution’s IPO price has been determined at 83,400 won per share, which is at the high end of the IPO price range.
- A total of 2,021 institutional investors participated in this IPO book building. The demand ratio was 201 to 1. HD Hyundai Marine Solution will start trading on 8 May 2024.
- Our base case valuation of HD Hyundai Marine Solution is target price of 98,254 won per share, which represents an upside of 18% from the IPO price.
A Review of Post IPO Price Performance of Top 13 IPOs in Korea Past 8 Months
- In this insight, we review the share price performances of the top 13 IPOs (in terms of market cap) in Korea in the past 8 months.
- We review the the share price performances over different time periods (1 day, 1 week, and 1 month). We also analyze the demand ratios and lock-up periods of the IPOs.
- On average, 12.7% of the IPO shares are under lockup periods for the 13 companies listed below. HD Hyundai Marine Solution IPO has 45.8% of shares under lock-up.
Fanuc (6954) | Profitability Problems Persist
- Fanuc reported a -7% decline in revenue for FY3/24 and 26% decline in operating profit.
- The market will be disappointed by guidance for a further fall on the top line and 15% decline in profits as margins hit an all time low
- The valuation of 30x EV / EBIT suggests the market was hoping for a turnaround in profits this year. That recovery has now been pushed back
Quiddity Leaderboard F100/250 Jun 24: Potential ADDs Could Outperform the Index
- In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2024 index rebal event.
- I see two regular changes for the F100 index during the June 2024 review. There are more names very close to triggering F100 index changes.
- I see eight other changes for F250 in the run up to the June 2024 review including three intra-review changes. One of those intra-review changes will be confirmed later today.
CIMC Enric (3899 HK): Robust Order Backlog Outshined Lower 1Q24 Revenue
- Although the 1Q24 revenue of CIMC Enric Holdings (3899 HK) has edged down by 6.8%, this is not a concern as its order backlog suggested a resilient pipeline.
- New orders signed increased by 35.7% with that for clean energy surged 100.2%. Order backlog of Rmb26.9bn represents a growth of 41.9% YoY and 17.8% against end-FY23.
- Management also commented that there is a marked improvement in gross margin for 1Q24 and expects this trend to continue. Its 10.8x PER is inexpensive.
Afcons Infrastructure Limited Pre-IPO – The Positives – Profitability More than Doubled
- Afcons Infrastructure Limited (6595396Z IN) is looking to raise US$840m in its upcoming India IPO.
- Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
- In this note, we talk about the positive aspects of the deal.
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