In today’s briefing:
- LG Chem: To Issue Exchangeable Bonds Worth US$2 Billion
- Initiation – OHBA (9765 JP)
- J&T Global Express Pre-IPO, Part 3: ‘New Markets’ & X-Border | Our Initial EV Estimate Is US$8.6 Bn
- Stanley Black & Decker: Are The $200 Million Cost Savings Enough? – Key Drivers
- Sunrun Inc.: A Game-Changing New Home Solar Offering! – Key Drivers
LG Chem: To Issue Exchangeable Bonds Worth US$2 Billion
- On 11 July, LG Chem announced that it would issue foreign currency exchangeable bonds worth US$2 billion to raise funs to expansion into its rechargeable battery materials.
- Investors in LG Energy Solution will likely have a more positive view of this EB issue rather than a block sale of common shares, because of lack of price discount.
- We believe LG Chem is not done in selling its shares of LGES as we think LG Chem is likely to sell additional 5-10% stake in LGES in 3-5 years.
Initiation – OHBA (9765 JP)
- OHBA is a general construction consulting firm boasting a leading market share in the field of urban development, with potential to reap the benefits of the long- term shift to compact and smart cities in rural areas.
- Since its establishment in 1922, the company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory
- This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei and Mitsui Trust.
J&T Global Express Pre-IPO, Part 3: ‘New Markets’ & X-Border | Our Initial EV Estimate Is US$8.6 Bn
- After analyzing J&T’s Chinese and SE Asian operations in previous insights, in this note we turn to the company’s ‘Others’ segment, made up of New Markets and X-Border logistics
- Compared to China and SE Asia, J&T’s New Markets and X-Border logistics business lines are small (just 11% of 2022 Revenue) but could offer attractive growth in the medium-term
- We conclude this insight with a preliminary sum-of-parts valuation of J&T as a whole. Based on available information, our initial estimate of J&T’s EV is US$8.6 bn (pre-IPO)
Stanley Black & Decker: Are The $200 Million Cost Savings Enough? – Key Drivers
- Stanley Black & Decker delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- Stanley Black & Decker generated free cash flow of $1.1 billion, up 36% year-over-year, and returned $1.2 billion to shareholders through dividends and share repurchases.
- We give Stanley Black & Decker a ‘Hold’ rating with a revised target price.
Sunrun Inc.: A Game-Changing New Home Solar Offering! – Key Drivers
- Sunrun delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings.
- Sunrun’s outlook includes guiding growth in solar energy capacity installed and an expected increase in storage attachment rates.
- This service is designed to optimize the value of solar energy following California’s latest solar policy, the net billing tariff.
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