In today’s briefing:
- Timee Pre-IPO – The Positives – Exponential Growth Since Inception
- Malaysia Airports (MAHB MK)’s Offer: Buckle Up!
- Redox IPO Lock-Up Expiry – Limited Liquidity Might Provide a Good Excuse to Sell
- Sanil Electric IPO – Strong Profitability Growth, but Highly Dependent on Its Top Customers
- Mexican Airlines – Capacity Management to Drive Bumper 2024; Gains Beyond Difficult
- Zuiko Corp (6279 JP): Q1 FY02/25 flash update
- Clean Harbors Inc.: Enhancing Environmental Services Through Expanded Solutions & PFAS Regulation Response! – Major Drivers
- Southwest Airlines: Dissecting the Drivers of Profitability Drag
Timee Pre-IPO – The Positives – Exponential Growth Since Inception
- Timee Inc (215A JP) is looking to raise US$290m from its Japan IPO. The IPO will be a 100% secondary selldown by existing shareholders.
- Timee operates an on-demand staffing platform that connects part-time jobseekers with businesses in Japan.
- In this note, we will talk about the positive aspects of the deal.
Malaysia Airports (MAHB MK)’s Offer: Buckle Up!
- Back on the 15th May, Khazanah Nasional, the EPF, the Abu Dhabi Investment Authority, and GIP, offered to buy shares not already owned in Malaysia Airports (MAHB MK) at RM11.00/share.
- The premium to undisturbed appears reasonable. The price is a life-time high. The 90% acceptance hurdle was not insurmountable, and the consortium had the flexibility to lower the %.
- But the Offer is now facing unexpected political pushback, amid protests against the Israel-linked bid.
Redox IPO Lock-Up Expiry – Limited Liquidity Might Provide a Good Excuse to Sell
- Redox (RDX AU), a chemical and ingredients distributor, raised US$270m in its IPO in Jun 2023. Some of its founding family shareholders will be released from their IPO lockup soon.
- Redox primarily serves the ANZ market, and it has a presence in Malaysia and the US. It is one of the largest chemicals and ingredients distributors in Australia.
- In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.
Sanil Electric IPO – Strong Profitability Growth, but Highly Dependent on Its Top Customers
- Sanil Electric (062040 KS) is looking to raise up to US$164m in its Korean IPO.
- Sanil Electric is a specialized company that manufactures and sells reactors, transformers, railway vehicle parts, and switchboards. As an industrial transformer manufacturer, the company mainly manufactures power and distribution transformers.
- In this note, we talk about the company’s historical performance.
Mexican Airlines – Capacity Management to Drive Bumper 2024; Gains Beyond Difficult
- We update forecasts for Mexican carriers Aeromexico, Viva Aerobus and Volaris following extremely strong 1Q results, driven by capacity management.
- We expect each carrier to produce record performances in 2024 as pricing gains continue through the year.
- However, we expect market conditions to normalise beyond 2024 and see further gains as a lot more difficult, particularly given drag from higher aircraft ownership costs.
Zuiko Corp (6279 JP): Q1 FY02/25 flash update
- Revenue: JPY3.9bn (-4.1% YoY); Operating loss: JPY133mn; Recurring loss: JPY39mn; Net loss: JPY759mn.
- Revenue by product type: Adult diaper machinery JPY887mn (-48.8% YoY), Sanitary napkin machinery JPY1.1bn (+82.7% YoY).
- Gross profit margin rose to 18.0% from 12.9%; Net income improved due to JPY534mn gain on sale of securities.
Clean Harbors Inc.: Enhancing Environmental Services Through Expanded Solutions & PFAS Regulation Response! – Major Drivers
- Clean Harbors reported a firm start to 2024, with various elements of the business performing strongly, though challenges linger primarily in pricing environments affecting some segments.
- The Environment Services (ES) division, a pivotal part of the company’s operations, showcased an impressive 10% revenue increase, bolstered by both organic growth and strategic mergers, including recent acquisitions like Thompson and HEPACO.
- With a particular strength displayed in technical services which saw an 11% spike driven by high operation volumes, ES stands out as a robust contributor to Clean Harbors’ overall financial health.
Southwest Airlines: Dissecting the Drivers of Profitability Drag
- Southwest continues to suffer revenue generation challenges and issued another profit warning today, yet pricing pressure simply exposes a lack of control over its costs
- Our detailed analysis of Southwest’s financial performance illustrates it has seen labor inflation decimate its conversion of gross profit to EBITDAR, now ranking among the bottom tier of the sector
- Our deep dive on peer financial performances illustrates that only American, Delta and United have managed to broadly protect gross profit/EBITDAR conversion while all others have seen labor costs bite
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