In today’s briefing:
- Keisei Electric: Activists Arrive As Expected
- Ecopro Innovation Is Selling Ecopro BM Shares
- J&T Global Express IPO: Trading Debut
- Quiddity Leaderboard NIFTY Mar 24: Bharat Electronics Vs L&T Might Be Interesting
- HNI Corporation – 3Q Preview: Looking for Steady Demand in WF Segment
Keisei Electric: Activists Arrive As Expected
- Just as we suspected earlier in the year, there is now talk of an impending investor activism campaign targeting Keisei Electric Railway Co (9009 JP).
- The activist is Palliser Capital, a multi-strategy fund based in London and run by former employees of Elliott Management, a company well-known for its activist campaigns in Japan.
- Their proposal is simple and straightforward, requesting for a 35% reduction in Keisei Electric’s Oriental Land holding.
Ecopro Innovation Is Selling Ecopro BM Shares
- On 26 October, it was announced that Ecopro Innovation is selling 160k shares of Ecopro BM shares (0.2% of outstanding shares), representing about 32 billion won.
- Although the percentage of shares is small relative to its outstanding shares, this additional selling is likely to further negatively impact Ecopro BM’s shares in the near term.
- Ecopro BM’s shares have seen a significant drop in price over the past few months, but its current P/E (87.3x in 2023) and EV/EBITDA (46.9x in 2023) multiples remain unattractive.
J&T Global Express IPO: Trading Debut
- J&T priced its IPO at a fixed price of HK$12.00 per share to raise the gross proceeds of the offering of US$500 million. The shares will start trading tomorrow.
- We previously discussed the IPO in J&T Global Express IPO: The Bull Case, J&T Global Express IPO: The Bear Case and J&T Global Express IPO: Valuation Insights.
- The market sentiment on the sector continues to weaken. The de-rating of peers lowers our SoTP valuation to HK$10.01 per share, 16.5% below the IPO price.
Quiddity Leaderboard NIFTY Mar 24: Bharat Electronics Vs L&T Might Be Interesting
- NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY Next 50 indices in the March 2024 rebalance.
- According to my latest estimates, there could be up to three changes or NIFTY 50 and five changes for NIFTY Next 50. The NIFTY 50 changes could have high impact.
HNI Corporation – 3Q Preview: Looking for Steady Demand in WF Segment
- HNI reports 3Q23 on Tuesday, October 31 before the market opens, with its earnings conference call scheduled for 11:00 am ET.
- We expect 3Q23 non-GAAP EPS of $0.64 on consolidated sales of $713 million. Consensus is $0.63 EPS on consolidated sales of $713 million.
- In 3Q22, HNI delivered $0.71 in non-GAAP EPS on consolidated sales of $598.8 million.
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