Daily Brief Industrials: S.F. Holding, Avon Rubber PLC, Oneteam, ZIM Integrated Shipping Services and more

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: S.F. Holding (6936 HK) H Share listing,FineToday Holdings Co Ltd (289A JP) IPO, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
• Event-Driven developments: Seven & I Holdings (3382 JP), Kadokawa Dwango (9468 JP), Integrated Design & Engineering Holdings (9161 JP), HKBN Ltd (1310 HK), Arcadium Lithium (LTM AU).

Avon Technologies’ FY24 results show the continued momentum seen throughout the year, with revenue growth of 12.2% y-o-y ($275m), adjusted operating profit growth of 53.4% y-o-y ($31.6m) and a record closing order book value of $225m, up 64.3% y-o-y. Return on invested capital (ROIC) grew 500bp y-o-y to 13.7%. Given Avon’s record order pipeline, disciplined capital allocation and strong cash generation, management expects the company to achieve both its medium-term operating margin (14–16%) and ROIC (>17%) targets a year ahead of schedule in FY26.

• Oneteam, a Singapore-based startup focused on transforming succession at small and medium-sized enterprises (SMEs) through employee ownership, has raised SGD 3.5 million (US$2.6 million) in seed funding.
• Wavemaker Ventures, the early-stage fund of Wavemaker Partners, led the round.
• About 70 per cent of the funding will be used to acquire small businesses, while the remaining funds will be used to build a strong core team and infrastructure to provide shared services for its portfolio.

• Price momentum softened dramatically in October, mirroring steep declines in H221, FY22
• We believe price momentum, rather than earnings, drives medium-term share performance
• Reaction to ZIM’s stellar Q324 results & guidance raise suggests more downside ahead