In today’s briefing:
- ESOP Lockup Releases: Iljin HySolus & Hyundai Heavy Industries
- JD Logistics (2618 HK): Surged After 2Q22 Result, Still an Upside of 39%
- APM Human Services IPO Lock-Up – PE with a US$620m Stake Comes Free
- Samsung C&T: Closing the NAV Discount Gap
- Ametek Inc: Value Proposition
ESOP Lockup Releases: Iljin HySolus & Hyundai Heavy Industries
- Iljin HySolus and Hyundai Heavy Industries will release the ESOP volumes, 0.82% and 3.93% of SO, on September 1st and 17th. They have risen 2.3% and 145.8% from the listings.
- Despite the small profit, it seems more probable that the Iljin HySolus ESOP will attempt to dispose of its shares immediately after the release, potentially leading to another price correction.
- On the other hand, I would seek a hedge for the HHI ESOP lockup release. I would look at KSOE as a hedge for my short position on HHI.
JD Logistics (2618 HK): Surged After 2Q22 Result, Still an Upside of 39%
- Revenue grew by 20% YoY in 2Q22 with supply chain revenue up by 11% YoY and other revenue up by 42% YoY.
- The company was not impacted by lockdown, because the main business is to provide solution to delivery companies.
- We still believe the stock will has an upside of 39% after the surge on the day next to the result day.
APM Human Services IPO Lock-Up – PE with a US$620m Stake Comes Free
- APM Human Services (APM) raised about US$730m by selling a mix of primary and secondary shares in Nov 21. Its IPO linked lockup is set to expire later this month.
- 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.
Samsung C&T: Closing the NAV Discount Gap
- Our base case NAV valuation of Samsung C&T is 147,095 won per share, representing 20% higher than current share price.
- Samsung C&T is up 4.7% YTD, significantly outperforming the market and its major affiliates including Samsung Electronics (down 24.9% YTD).
- We mention four major factors leading Samsung C&T to outperform Samsung Electronics’ shares this year including shift to value stocks, Neom project, higher commodity prices, and downturn in semiconductor sector.
Ametek Inc: Value Proposition
- Ametek was able to surpass Wall Street expectations on all fronts in the previous quarter as a result of stronger-than-anticipated organic sales growth and impressive margin improvement.
- The demand in the company’s many specialty markets is very strong and broad-based, which has resulted in exceptional organic order growth and a robust backlog of $3.1 billion.
- Furthermore, the management continues to be committed to promoting higher rates of organic growth by recurrently making investments in new technologies to support their long-term growth plans.
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