In today’s briefing:
- Hitachi Transport (9086 JP): STILL Trading Too Wide
- NIFTY100 Index Rebalance Preview: Couple of Changes in August, Then 5 More in September
- WCP IPO: Additional Important Considerations
- Yamato Builds Courier Ecosystem
- DAX/MDAX/SDAX Quiddity Leaderboard Sep 2022: Some Changes for SDAX and MDAX
- Mayar Capital Q1 2022 Letter To Partners
- Cooper Investors Australian Equities Fund Quarterly Update – June 2022
- Waste Management, Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Waste Management, Inc.: Initiation of Coverage – Market Leadership, Macro, & Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Republic Services, Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
Hitachi Transport (9086 JP): STILL Trading Too Wide
- Overnight we got news that the EU had cleared the purchase of Hitachi Transport System (9086 JP) by the KKR bidco.
- What started as an expected five-month process to gain regulatory clearances should now be down to two months. Risk arb is trading wide, but this is an “easy” deal.
- Now trading at 10% annualised to the cash-out date implied by a 30-Sep start date, this is a “good risk.”
NIFTY100 Index Rebalance Preview: Couple of Changes in August, Then 5 More in September
- Life Insurance Corp of India (LIC) (LICI IN) and Tata Power (TPWR IN) will replace Nmdc Ltd (NMDC IN) and Piramal Enterprises (PIEL IN) at the close on 5 August.
- In September, Adani Wilmar (AWLTD IN), Indian Railway Catering and Tourism (IRCTC IN), Bharat Electronics (BHE IN), Hindustan Aeronautics Ltd (HNAL IN) and Mphasis Ltd (MPHL IN) are potential inclusions.
- At over 4 days of deliverable volume to trade, the impact is especially large on Bharat Electronics (BHE IN), Zydus Lifesciences Ltd (ZYDUSLIF IN) and Lupin Ltd (LPC IN).
WCP IPO: Additional Important Considerations
- We remain Bearish on the WCP IPO. Our base case valuation of WCP is implied market cap of 3.0 trillion won and target price of 87,805 won per share.
- In this insight, we highlight four additional important considerations to the WCP IPO including comparison to SK IE Technology, 1Q22 earnings comparison, higher IPO discount, and overly optimistic EBITDA estimates.
- We would categorize WCP as an excellent company but not exceptional as HPSP. Therefore, the weak market conditions will likely have a negative impact on the WCP IPO pricing.
Yamato Builds Courier Ecosystem
- Yamato Transport is Japan’s largest courier service, owning nearly 50% share, but even the biggest player needs to race to keep up with booming demand for e-commerce.
- Over the past six years, it has gradually built an ecosystem of online tools and physical infrastructure to help vendors and customers, importing knowhow when needed.
- So far, these measures have helped it stay on top of spiralling demand but there remain pressures.
DAX/MDAX/SDAX Quiddity Leaderboard Sep 2022: Some Changes for SDAX and MDAX
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the DAX, MDAX, and SDAX Indices for the September 2022 Rebalance.
- While no names currently satisfy the requirements to move into or out of the DAX Index, there could be some changes for the MDAX and SDAX Index.
- Below is a closer look at the recent price and volume performance of these names.
Mayar Capital Q1 2022 Letter To Partners
- Mayar Capital provides investment management services to institutions, family offices, and high net-worth individuals.
- For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees.
- Several of our SMA clients have chosen to switch their investment to the Fund, so we expect Fund assets to increase to approximately $170 million once the transfer is complete.
Cooper Investors Australian Equities Fund Quarterly Update – June 2022
- Cooper Investors Pty Limited (“CI”) is a specialist equities fund manager with funds under management of approximately A$13 billion.
- Both stocks and bonds performed poorly over the last 12 months, pulling back 10 year returns to single digit levels.
- Only physical commodities offered respite, a function of the inflationary forces driving their prices higher.
Waste Management, Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Waste Management Inc is the market leader in the waste management business with a dominant share in the U.S. market.
- The company’s strong performance in the initial months of the year has set the tone for the remainder of 2022.
- Among major developments, the seventeenth R&D plant in their network and the fifth created by Waste Management will be coming online shortly in Oklahoma.
Waste Management, Inc.: Initiation of Coverage – Market Leadership, Macro, & Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- This is our first report on Waste Management Inc, the market leader in the waste management business.
- Waste Management has also been working towards optimizing cost structures and reducing operating expenses.
- Among major developments, the seventeenth R&D plant in their network and the fifth created by Waste Management will be coming online shortly in Oklahoma.
Republic Services, Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Republic Services is a major player within the waste management and environmental services space.
- The management has invested more than $900 million in acquisitions that increased free cash flow and enhanced the market position of the company.
- Among major developments, Republic Services entered into a joint venture with Archaea Energy Inc. to develop 39 RNG projects over the U.S.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
