In today’s briefing:
- Interglobe Aviation (INDIGO IN | SELL | TP: INR2,513): Not Worth a King’s Ransom
- Weekly Deals Digest (17 Dec) – Benefit One, Shinko Electric, Toyo, CPMC, Vinda, Hollysys, Rept
- Last Week in Event SPACE: Benefit One, CPMC, Samsung C&T, Sands China, Shinko Electric, Hankook & Co
Interglobe Aviation (INDIGO IN | SELL | TP: INR2,513): Not Worth a King’s Ransom
- InterGlobe Aviation Ltd (INDIGO IN) (Indigo) has turnaround and is on path to achieve record profits in FY2024 on strong demand, stable FX and lower jet fuel prices
- However, engine problems will hurt capacity deployment in 4QFY24 and FY2025, and the engine manufacturer has been very vague and unreliable in presenting its remedial plans
- Share price near all-time high and valuations (PE, EV/EBITDAR) are expensive compared to global LCCs. TP of INR2,513 (14% DOWNSIDE) pegged to 15x FY2025 PE (top-end LCC cycle)
Weekly Deals Digest (17 Dec) – Benefit One, Shinko Electric, Toyo, CPMC, Vinda, Hollysys, Rept
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – REPT BATTERO Energy (1998104D CH) IPO and Denso Corp (6902 JP)‘s US$4.0 Billion Secondary Offering and US$1.4 Billion Buyback.
- Event-Driven developments – Benefit One Inc (2412 JP), Shinko Electric Industries (6967 JP), Toyo Construction (1890 JP), CPMC Holdings (906 HK), Vinda International (3331 HK), Hollysys Automation Technologies (HOLI US).
Last Week in Event SPACE: Benefit One, CPMC, Samsung C&T, Sands China, Shinko Electric, Hankook & Co
- M3 extends its Tender Offer for Benefit One (2412 JP). M3 can match Dai-Ichi Life proposal, financially, if backed. And Dai Ichi Life Insurance (8750 JP) can probably bump further.
- Haier Electronics Group Co (1169 HK)‘s CEO and ORG Technology Co., Ltd. A (002701 CH) reckon they can trump SASAC’s Offer for CPMC Holdings (906 HK).
- First City of London Investment Management, then Palliser Capital and now Whitebox, urge Samsung C&T (028260 KS) to improve its cash spending, improve governance and communications and simplify its corporate structure
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