In today’s briefing:
- SF Holdings A/H Listing – Lower End Looks Digestable
- Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500
- I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done
- SF Holding H Share Listing (6936 HK): Valuation Insights
- Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
- Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
- Is AST SpaceMobile Losing Its Shine? Reddit’s Darling Faces Tough Questions After Losses! – Major Drivers
- Japan Elevator Service Holdings (6544 JP) – Demonstrating High-Quality Characteristics
- Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers
- Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers
SF Holdings A/H Listing – Lower End Looks Digestable
- S.F. Holding (002352 CH), China’s largest express delivery company, is now looking to raise around US$800m in its H-share listing in Hong Kong.
- SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
- We have covered the company and deal background in our previous notes. In this note, we talk about the IPO pricing.
Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500
- Integrated Design & Engineering Holdings (9161 JP) has recommended Tokio Marine Holdings (8766 JP)’s tender offer at JPY6,500 per share, a 63.3% premium to the last close.
- The offer is attractive as it represents an all-time high, above NAV (including latent real estate gains) and above the midpoint of the IFA DCF valuation range.
- Despite the high required minority acceptance rate, an attractive offer facilitates deal completion. The tender runs from 20 November to 15 January 2025 (35 business days).
I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done
- In 2023, Integrated Design & Engineering Holdings (9161 JP) was created as a technical listing, succeeding Nippon Koei (1954 JP). It has been listed for decades.
- On Tuesday 19 November, Tokio Marine Holdings (8766 JP) announced an agreed/supported deal to buy out Integrated Design & Engineering Holdings (9161 JP). The register is open. Should be easy.
- It’s a nice high price for a boring stock, but it is cheap. They are NOT overpaying, but I don’t see who would want to run interference on this.
SF Holding H Share Listing (6936 HK): Valuation Insights
- S.F. Holding (002352 CH) has launched its H Share listing at HK$32.30-36.30 per share. Pricing will be on 25 November, and the listing on 27 November.
- We previously discussed the listing in SF Holding H Share Listing: Updates Point to Improving Fundamentals and SF Holding H Share Listing: AH Discount Views.
- Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.
Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
- Oswal Pumps (1019841D IN) (OPL), established in 2003, specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
- The company has established itself as a leading player in the solar pump market, benefiting from government initiatives such as the PM Kusum scheme
- OPL aims to use its IPO proceeds to fund its expansion plans, including increasing manufacturing capacity and diversifying its product offerings.
Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
- One important reason S.F. chose to go public on Hong Kong stock market is due to financial pressure, which mainly comes from its heavy asset development model and internationalization strategy.
- Considering the discount of the H-share price versus the A-share price, if the IPO pricing is at the lower limit of the range, then the safety margin would be higher.
- In the short term, S.F. is better than JD Logistics, so its valuation should be higher than JD Logistics and industry average. Future valuation expansion depends on international business performance.
Is AST SpaceMobile Losing Its Shine? Reddit’s Darling Faces Tough Questions After Losses! – Major Drivers
- AST SpaceMobile recently reported a challenging Q3, with widened losses overshadowing its operational progress.
- The company, which is transitioning from research and development (R&D) to commercial operations, highlighted key advancements such as the successful launch and activation of five Block 1 BlueBird satellites.
- These satellites are integral to AST SpaceMobile’s mission of creating a space-based cellular broadband network that directly connects with mobile phones without modification, addressing global connectivity gaps.
Japan Elevator Service Holdings (6544 JP) – Demonstrating High-Quality Characteristics
- Ongoing growth and margin expansion – The company continues to display positive characteristics of a high-quality franchise business with growth opportunities, with Q1-2 FY3/25 results showing sustained double-digit sales (+17.0% YoY) and OP growth (+30.6% YoY).
- Maintenance contracts grew 13.8% YoY organically, and Modernization units remain on a positive trajectory with strong underlying demand given the company’s competitive advantage as an independent provider.
- The company has maintained FY3/25 guidance; we believe the earnings outlook for H2 FY3/25 remains positive given the increasing utilization at the JIK (JES Innovation Center Kansai) and geographic reach, and ongoing productivity enhancement of its engineers resulting in operating leverage.
Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers
- Intuitive Machines presented a positive third-quarter 2024 performance with considerable revenue growth and strategic achievements.
- The company reported revenue of $58.5 million, marking more than a fourfold increase compared to the same quarter last year.
- This increase was driven by their core service pillars of delivery, data transmission, and infrastructure as services, coupled with key contract awards such as the Near Space Network Services (NSNS), valued up to $4.82 billion over a decade.
Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers
- Intuitive Machines presented a positive third-quarter 2024 performance with considerable revenue growth and strategic achievements.
- The company reported revenue of $58.5 million, marking more than a fourfold increase compared to the same quarter last year.
- This increase was driven by their core service pillars of delivery, data transmission, and infrastructure as services, coupled with key contract awards such as the Near Space Network Services (NSNS), valued up to $4.82 billion over a decade.
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