In today’s briefing:
- MonotaRO (3064) | Another Decade of Secular Growth
- Analyzing 51-Day Strike of Daewoo Shipbuilding & Marine Engineering Co.(DSME) From ESG Perspective
- WCP IPO: Kicking the Can Down the Road Through a Revised IPO Timetable
- Nocera Inc. – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 07/22
- Pacific Basin Shipping (2343 HK): Continue to Thrive in a Sound Market
- Growatt Technology Pre-IPO – Impressive Profitability Growth from Riding on Industry Tailwinds
MonotaRO (3064) | Another Decade of Secular Growth
- MonotaRo is well placed to monetise the shift of enterprise MRO spending as it moves increasingly online
- The company’s new distribution centre will enable the company to increase capacity, speed up deliveries, and offer improved services to enterprise clients
- Structural growth stories are few and far between in Japan. MonotaRo is one of them and appears expensive on most valuation metrics. Our LT DCF model suggests 30% upside
Analyzing 51-Day Strike of Daewoo Shipbuilding & Marine Engineering Co.(DSME) From ESG Perspective
- Subcontract workers of DSME went on strike demanding a 30 percent wage increase from the beginning of June which lasted for 51 days.
- The strike was captured as 2 ESG risk issues: ‘Working conditions’ and ‘Supply chain’ risks among 17 ESG risk issues.
- Although the agreement between the company and the union was reached last week, the conflict between the two parties over the sales losses during the strike is ongoing.
WCP IPO: Kicking the Can Down the Road Through a Revised IPO Timetable
- WCP (WCP KS), a lithium-ion batteries separator company, has pushed back its KRW900 billion (US$692 million) KRX IPO timeline from August to mid-September.
- We previously discussed the IPO In WCP IPO: Hooked on Lithium and WCP IPO: Valuation Insights.
- In this note, we benchmark WCP vs its peers in terms of historical and forecasted financials along with multiples. Our valuation analysis suggests that the IPO price range remains unattractive.
Nocera Inc. – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 07/22
- This is our first report on Nocera and we look to provide a detailed account of the various industries that the company operates in and the key macro-economic factors.
- While Nocera did report a net loss and incurred one-time costs related to its listing last year, things ought to be entirely different in 2022.
- However, given how quickly the company’s revenues are increasing, the stock price should also rise quickly.
Pacific Basin Shipping (2343 HK): Continue to Thrive in a Sound Market
- Pacific Basin Shipping (2343 HK) had an impressive 1H22 with 204.2% YoY growth in underlying profit. Overall dividend payout ratio of 75% is also ahead of expectations.
- It covered 58% Handysize days and 64% for Supramax for 2H22, though rates are lower HoH as spot market retreated. However, low costs mean it’s still enjoying very fat margin.
- Its 0.96x P/B for FY22 and 0.85x for FY23 look well justified by ROEs of 40.4% and 25.6%. Strong profitability and cash flow will allow for sustained high dividend yield.
Growatt Technology Pre-IPO – Impressive Profitability Growth from Riding on Industry Tailwinds
- Growatt Technology (1833969D CH) is looking to raise about US$500m in its upcoming Hong Kong IPO.
- Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption and energy digitalization.
- The firm has seen strong revenue growth on the backdrop of global PV inverter and energy storage industry tailwinds despite the effects of COVID-19.
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