In today’s briefing:
- Keppel Infra Trust Placement – While the Raising Is Relatively Large, Its past Deals Have Done Well
- Understanding Potential Issues Within SK Group from Hynix’s Kioxia CB Conversion
- Manjushree Technopack Pre-IPO Tearsheet
- Monthly Container Shipping Tracker | Rates Up | Transpac Volume Up | Fuel Price Down (August 2024)
- MHI (7011 JP): Election Unlikely to Affect Defense Budget
- Ohba (9765 Jp) – 4Q Follow-Up
Keppel Infra Trust Placement – While the Raising Is Relatively Large, Its past Deals Have Done Well
- Keppel Infrastructure Trust (KIT SP) is looking to raise around S$206m (US$158m) in its primary placement.
- Proceeds will be used to pay down its bridge loan facility linked to its Ventura acquisition. KIT also appears to have secured its unitholders’ approval for the raising earlier.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
Understanding Potential Issues Within SK Group from Hynix’s Kioxia CB Conversion
- Hynix’s potential 15% stake in Kioxia doesn’t violate the 20% rule because KFTC’s mandatory stake rule doesn’t apply to foreign investments.
- SK Group may transfer Hynix’s 15% Kioxia stake to SK Square by splitting Hynix and merging its investment arm with SK Square for future AI investments.
- SK Square may attract more attention than Hynix short-term, as Kioxia’s stake via Hynix could boost market expectations for value transfer to SK Square.
Manjushree Technopack Pre-IPO Tearsheet
- Manjushree Technopack (MTPL IN) is looking to raise about US$360m in its upcoming India IPO. The deal will be run by Avendus, Citi, GS, JM Fin and ICICI Sec.
- Manjushree Technopack Limited is a one stop packaging solutions provider with end-to-end capabilities (from design to delivery) across containers, preforms, caps and closures, pumps and dispensers and captive recycling capabilities.
- It is the largest rigid plastic packaging (RPP) player in terms of installed capacity in India as of March 31, 2024, according to the Technopak Report.
Monthly Container Shipping Tracker | Rates Up | Transpac Volume Up | Fuel Price Down (August 2024)
- Backed by strong US demand, spot container rates remain very firm
- On top of higher average freight rates, carriers now enjoying lower fuel prices
- Dispersion of returns on carrier shares is eye-opening, only a few performed
MHI (7011 JP): Election Unlikely to Affect Defense Budget
- The next leader of Japan’s ruling LDP, who will almost certainly become prime minister in October, will probably not make major changes to the nation’s defense policy.
- Guidance remains unchanged after 1Q results that suggest the possibility of a better than expected order flow but also a material negative impact from a stronger yen.
- MHI’s valuation is not yet in speculative territory, but neither is it compelling. If the yen remains stable, we expect the share price to test its recent highs.
Ohba (9765 Jp) – 4Q Follow-Up
- OHBA (hereafter, the Company) reported profit lines slightly above initial forecasts.
- In FY24/5, operating profit rose 7.4% YoY to ¥1.84 bn against its initial plan of ¥1.8 bn, with profit attributable to owners of parent (hereafter, Profit ATOP) rising 24.6% YoY to ¥1.34 bn versus its initial plan of ¥1.15 bn.
- On the other hand, sales fell just short of plan.
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