In today’s briefing:
- Screen Holdings (7735): Share Price Straight Up, Financials Not so Simple
- Samhyun IPO Preview
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: QV Equities, Orecorp, Benesse, Glosel, Outsourcing
- Lockheed Martin: How Bad Is The Impact of Delays in Government Budget? – Major Drivers
- Weekly Deals Digest (04 Feb) – Benefit One, Benesse, Outsourcing, Glosel, Hollysys, OreCorp, QVE
- Last Week in Event SPACE: Benefit One, Guoco, Outsourcing, Hang Lung, Hollysys, Dalek
- 3M Company: How Geographic Shifts and Portfolio Magic Could Boost Growth! – Major Drivers
- PACCAR Inc: Can The Newly Refreshed Product Lineup Change The Game? – Major Drivers
- RTX Corporation: Can Their Investments In Differentiated Technologies Further Build Their Competitive Moat? – Major Drivers
Screen Holdings (7735): Share Price Straight Up, Financials Not so Simple
- The share price was up 4.4% on Friday – and up 2.3x since the end of October – raising forward valuations to the high side of their usual range.
- Management raised FY Mar-24 operating profit guidance slightly after 3Q results that were strong YoY but flat QoQ. 4Q should be better as finished goods inventory is shipped.
- Operating efficiency has improved and a new semiconductor up-cycle has begun, but the numbers suggest caution. Take profits and reassess.
Samhyun IPO Preview
- Samhyun is getting ready to complete its IPO on the KOSDAQ exchange in March. The IPO total offering amount is 40 billion won to 50 billion won.
- The company generated sales of 99.8 billion won (up 45.5% YoY) and operating profit of 9.8 billion won (up 250% YoY) in 2023.
- Samhyun developed one of the world’s first CVVD (Continuously Variable Valve Duration) technology for automobile engines, which improves fuel efficiency by controlling the engine’s valve opening time.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: QV Equities, Orecorp, Benesse, Glosel, Outsourcing
- I tally 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- One new deals discussed this week on Smartkarma: The all-scrip Offer for QV Equities Ltd (QVE AU) from WAM Leaders Ltd (WLE AU).
- Key updates took place on: Orecorp Ltd (ORR AU), Benesse Holdings (9783 JP), Glosel (9995 JP) and Outsourcing Inc (2427 JP).
Lockheed Martin: How Bad Is The Impact of Delays in Government Budget? – Major Drivers
- Lockheed Martin Corporation held its fourth quarter and year-end earnings conference call for 2023, outlining its performance, financial results, and future expectations.
- The company emphasized strong performance in 2023, driven by considerable demand for its aircraft, helicopters, satellites, radar systems, and other products and services.
- Lockheed Martin reported a record backlog of $161 billion, with sales for the full year of $67.6 billion, reflecting a 2% year-on year growth.
Weekly Deals Digest (04 Feb) – Benefit One, Benesse, Outsourcing, Glosel, Hollysys, OreCorp, QVE
- 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 – Amer Sports (AS US) is up 15% since listing. Ola Electric (1700674D IN) and FirstCry (0172540D IN) IPOs.
- Event-Driven developments – Benefit One Inc (2412 JP), Benesse Holdings (9783 JP), Glosel (9995 JP), Outsourcing Inc (2427 JP), Hollysys Automation Technologies (HOLI US), QV Equities Ltd (QVE AU).
Last Week in Event SPACE: Benefit One, Guoco, Outsourcing, Hang Lung, Hollysys, Dalek
- As totally expected, Dai Ichi Life Insurance (8750 JP) extended its expected start date for the Tender Offer on Benefit One Inc (2412 JP).
- The possibility of a fourth Offer attempt by the Queks is raised as Elliott surprisingly exits its position in Guoco Group Ltd (53 HK).
- Outsourcing Inc (2427 JP) is eminently bumpable, But unless investors force the issue, don’t expect a bump.
3M Company: How Geographic Shifts and Portfolio Magic Could Boost Growth! – Major Drivers
- 3M has shown solid operational improvements in its fourth-quarter results, which could translate into an exciting year ahead for the company, despite the ongoing pandemic-related challenges.
- The company reported strong adjusted EPS growth of 11% and operating margin expansion of 180 basis points, with significant contributions from its restructuring program aimed at streamlining operations, reducing costs and improving productivity.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
PACCAR Inc: Can The Newly Refreshed Product Lineup Change The Game? – Major Drivers
- PACCAR, a leading American truck manufacturing company, showcased impressive performance in their fourth quarter 2023 earnings conference call.
- The company reported record annual revenues of $35.1 billion and a net income of $4.6 billion, marking an impressive after-tax return on revenue of 13.1%.
- This positive trend was primarily driven by record deliveries of the company’s DAF, Kenworth and Peterbilt trucks, strong results in its parts division and consistent financial services performance.
RTX Corporation: Can Their Investments In Differentiated Technologies Further Build Their Competitive Moat? – Major Drivers
- RTX Corporation held its Q4 2023 earnings conference call with senior executives such as Chairman and CEO Greg Hayes, incoming CEO Chris Calio and Chief Financial Officer Neil Mitchill.
- The call highlighted a leadership change with the transition of current CEO, Greg Hayes, to Executive Chairman, and Chris Calio assuming the role of CEO.
- The company reported strong full-year results with $74.3 billion in adjusted sales, a growth of 11% organically, and adjusted EPS of $5.06, a growth of 6% year-over-year.
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