Daily Brief Industrials: Tokyo Metro, United Integrated Services, Evergreen Marine Corp, Voltas Ltd, Doosan Bobcat Inc, Mineral Resources, NEXTracker , China Conch Venture Holdings, Ajax Engineering Limited and more

• Tokyo Metro (9023 JP) priced its IPO at the top end (JPY 1200/share), raised JPY 348.6bn (US$2.3bn) and the company is valued at JPY 697bn (US$4.62bn).
• The stock starts to trade today, and the grey market is indicating an open 20% higher. Not surprising considering that the IPO was heavily oversubscribed.
• Even at a price of JPY 1440/share, the estimated dividend yield is 2.78% and that should keep the stock supported. Index inclusions will result in more buying next week.

• The Tokyo Metro (9023 JP) IPO is one of the largest IPOs of recent years, well-flagged, and it is hot hot hot!  A super stable, well-known, well-respected, service provider.
• There are numerous attractions but I expect people have not thought too deeply about the demand and supply dynamics of different holder types. It’s worth thinking about. 
• This was priced “cheap” but everyone knows that so there may be flippers. This is probably more Japan Post Bank than Japan Post Insurance.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• In this insight, we take a look at the potential ADDs and DELs for the December 2024 index rebal event.
• Currently, we see one change for T50 and two changes for T100 but there are four more weeks to the base date and our expectations can change until then.

• In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
• I currently see 5 ADDs and 4 DELs but some of these names are different from what we had last time (link).
• The current estimate for one-way flow in December 2024 is US$1.54bn.

• There could be 16 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 30 December.
• If all changes are on expected lines, one-way turnover is estimated at 55.6% and that will result in a one-way trade of INR 62bn (US$736m).
• Since June, the potential adds to the index have outperformed the index and the potential deletes by a big margin. Momentum could keep the outperformance going till implementation date.

• Our overall assessment of the new reorganization plan by the Doosan Group continues to be Negative, because Doosan has not given up trying to eventually merge Bobcat and Robotics.
• Doosan Group’s new reorganization plan is the opposite of KISS strategy, involving several moving parts and complicated deal structure.
• We have also provided three main recommendations on how to raise the valuation of Doosan Bobcat without rushing to merge Bobcat and Robotics.

• Neil Chenoweth wrote a detailed investigative piece on Min Res founder Chris Allison and former top executives, alleging a tax evasion scheme using shareholder funds.
• The scheme involved buying machinery with inflated prices from a company named Far East Equipment Holdings in the British Virgin Islands.
• Min Res stock dropped 13% in response to the article, with implications on leadership and governance of the company.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Nextracker’s first-quarter earnings for the fiscal year 2025 have offered a mixed yet promising insight into the company’s financial and operational trajectory.
• The company reported a significant 50% year-on-year growth in revenue and recorded its highest-ever adjusted EBITDA.
• These figures underscore Nextracker’s strong performance, particularly in a financial landscape characterized by a keen focus on renewable energy solutions.

• China Conch Venture Holdings (586 HK) is sitting on a steep discount of 59% to its NAV. Its holding in Anhui Conch Cement (600585 CH) is already valued at HK$13.3/share.
• Its waste-to-energy business has a value of Rmb4.4bn by assuming 5x PER, but this business has a net book value of Rmb10bn. Pipeline capacity equals 21.7% of operational capacity.
• The new energy segment, including lithium battery recycling and the manufacture of positive and negative electrode materials, has solid prospects but is overlooked by the market.

• Ajax Engineering Limited (0896529D IN) is looking to raise about US$100m through its upcoming IPO in India. The lead bookrunners for the deal are ICICI , CITI, JM, Nuvama, SBI 
• Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain. 
• It is one of the top three global SLCM manufacturers, holding about 75% market share in India. In FY24, SLCMs contributed to 12% of India’s concrete production.