Daily Brief Industrials: Jeil Machine & Solution, Old Dominion Freight Line, Severfield PLC, Singapore Post, Sunrun Inc and more

• Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S’s IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).
• A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024. 
• Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.

• Old Dominion Freight Line released its fourth-quarter earnings.
• In the quarter, the company saw a slowdown in the domestic economy which affected volume levels.
• Despite this, the company saw a quarterly revenue and earnings per share increase for the first time in 2023, owing to an increase in the quality of its revenue.

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appears compelling.

• kopi-C with SingPost’s CFO: “We’re building a Singapore-branded global logistics company” Its Group Chief Financial Officer Vincent Yik explains its strategy.
• With the decline in demand for postal services over the years, Singapore Post (SingPost), the country’s postal service provider, is pivoting to the logistics sector to survive and thrive, shares its Group Chief Financial Officer Vincent Yik.

• Sunrun is a renewable energy company that had a strong fourth quarter and a full-year result in 2023.
• The company exceeded its guidance on storage capacity installation and landed in its guidance range on installed solar capacity.
• As a result, there were significant increases in its subscriber values, up 7% from Q3 and 18% year-over-year.