In today’s briefing:
- StubWorld: Japan Post Holdings Coming Up “Cheap”
- JD Industrials Pre-IPO – Peer Comparison
- Stuck With Each Other: Toyo “Special Committee” Against Toyo Tender, Toyo Against YFO Proposals
- Monthly Express Tracker | Prices Continue to Slide | Volume Pops | (May 2023)
- Japan-Based Nuclear Fusion Firm Powers up with $79m Raise
- JD Industrials Pre-IPO – Peer Comparison – Some Interesting Nuggets from Peer Filings
- Horizon Construction Dev IPO Trading – Subscription Rates Still Weak, Despite Cornerstone Support
- Greenland Technologies Holding Corp. – Pen Market Purchase by CEO Shows Confidence in Outlook
- Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers
- Honeywell International Inc.: Acquisition of Compressor Controls & Other Drivers
StubWorld: Japan Post Holdings Coming Up “Cheap”
- At 0.3x, Japan Post Holdings (6178 JP) is top of the heap in terms of dollar “UpValue” to move to PBR 1.0x under Japan’s governance changes.
- Preceding my comments on Japan Post are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
JD Industrials Pre-IPO – Peer Comparison
- JD Industrials (JDI) is looking to raise about US$1bn in its upcoming HK IPO.
- JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
- In this note, we will undertake a peer comparison versus domestic and international peers.
Stuck With Each Other: Toyo “Special Committee” Against Toyo Tender, Toyo Against YFO Proposals
- Today, Toyo Construction (1890 JP) announced it was against YFO’s AGM shareholder proposals. And that the Special Committee was unanimously against YFO’s tender proposal.
- The content is mixed. Some is probably correct (YFO hasn’t done a great job it appears). Some is clearly taking management’s statements at face value where it shouldn’t.
- And some is just the passage of time. Last year, ¥1,000 was “too high.” This year it is “not enough.” Now Toyo and YFO are stuck with each other.
Monthly Express Tracker | Prices Continue to Slide | Volume Pops | (May 2023)
- Industry and company reports show ASP declines gained momentum in April
- April volume jumped 36% Y/Y on a weak comp from 2022 (Covid-19 lockdowns)
- Our thesis: pricing is getting weaker, and this trend will soon impact margins
Japan-Based Nuclear Fusion Firm Powers up with $79m Raise
- Kyoto Fusioneering, a Japan-based energy company, has raised US$79 million in an oversubscribed round.
- The firm develops equipment that harnesses fusion energy, which involves merging two or more hydrogen atoms – the same process that powers the sun.
- According to the company, its method of energy generation produces no greenhouse emissions, no long-lived radioactive waste, and no risk of nuclear reaction-triggered meltdowns.
JD Industrials Pre-IPO – Peer Comparison – Some Interesting Nuggets from Peer Filings
- JD Industrials is looking to raise about US$1bn in its upcoming HK IPO.
- JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
- We undertook a peer comparison in our previous note, in this note we talk about some additional useful information that we found interesting from peer filings.
Horizon Construction Dev IPO Trading – Subscription Rates Still Weak, Despite Cornerstone Support
- Horizon Construction Development (1887128D HK) raised around US$210m in its Hong Kong IPO.
- HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
- In this note, we will talk about the trading dynamics and valuation.
Greenland Technologies Holding Corp. – Pen Market Purchase by CEO Shows Confidence in Outlook
- GTEC CEO Raymond Wang has purchased 66,500 shares in the open market at a cost of $1.50 per share, with the Form 4 filing made after the close on May 23.
- The shares acquired represent slightly more than one half a percent of the total shares outstanding and have increased the CEO’s ownership by more than 55%.
- We note that these shares are not part of an incentive program or corporate grant.
Caterpillar Inc.: Collaboration With Nouveau Monde Graphite & Other Drivers
- Caterpillar had a strong start to 2023 with an all-around beat.
- The company’s result was marked by double-digit top-line growth across all segments, higher operating profit margins, and significant adjusted profit per share.
- Caterpillar experienced healthy customer demand across most end markets for its products and services, reflecting the successful execution of its long-term growth strategy.
Honeywell International Inc.: Acquisition of Compressor Controls & Other Drivers
- Honeywell International delivered a strong first quarter that exceeded Wall Street expectations in terms of revenues as well as earnings.
- The company’s organic sales, adjusted earnings, and segment margins were above the management’s expectations as well.
- The segment margin of Honeywell expanded, led by robust expansion in Honeywell Building Technologies and Safety and Productivity Solutions.
💡 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
