Daily Brief Industrials: Tokyo Metro, Doosan Robotics , S.F. Holding, T.S. Lines, Danaher Corp, Ocean Wilsons Holdings, General Dynamics, Amaero International Ltd and more

• Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
• We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
• The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.

• The big question is how to cash in on the dissenters’ rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.
• To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.
• With NPS unlikely to ignore the government’s nuclear push, Robotics’ spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.

• SF Holding proposes interim & special dividends for owners of A-shares
• Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
• Meeting October 29 to approve dividends, Q3 results, planned HK listing

• T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
• In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.

• Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO. 
• Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Danaher has a history of long-term growth, with a 15% increase in stock price over the past 10 years.
• Founded in the 1980s by Steven and Mitchell Rales, Danaher focused on acquiring industrial companies with a private equity strategy.
• Strategic management and operational improvements have allowed Danaher to consistently grow its free cash flow per share at a double-digit rate, making it a solid investment despite its current valuation.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Ocean Wilsons announced today that it has agreed to sell its 56.47% stake in Wilson Sons to SAS Shipping Agencies Services, a wholly owned subsidiary of MSC Mediterranean Shipping Company, for R$4.4bn (equivalent to R$17.50 per share). The consideration will be converted into US dollars, which, at the current exchange rate, implies a purchase price of US$768m. The transaction is expected to trigger a Brazilian withholding tax liability of up to US$142m and to ultimately realise net cash proceeds of ‘at least US$593m’. The transaction is expected to complete in H225. A ‘meaningful’ proportion of the proceeds will be returned to shareholders and some may be reinvested in Ocean Wilsons.

• General Dynamics is a global aerospace and defense firm with a diverse portfolio of businesses and strong market presence
• The company has solid financial performance with $42.3 billion in revenue, $3.3 billion in net income, and a strong balance sheet with $8.2 billion in net debt
• The investment thesis is focused on the strength of Gulfstream business, with a healthy backlog of $21 billion, new product introductions, and a leading position in the business/private jet market, making it a promising investment opportunity.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• RaaS Research Group has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its Q1 result in which it reported first commercial revenues of $1.0m, marking its first quarter of material commercial revenue from its Tennessee operation.
• The revenue includes approximately $0.6m from powder sales and $0.45m from PM HIP manufacturing.
• The powder sales made during the quarter included test material to ADDMAN Group, with which the company has a five-year preferred supplier agreement, as well as custom atomisation of C103 for a NYSE-listed materials company, custom atomisation of C103 for a US government-funded laboratory and custom atomisation of a development refractory alloy for another US government-funded laboratory.