Daily BriefsIndustrials

Daily Brief Industrials: Toshiba Corp, Horizon Construction Development, Jiangsu Expressway (H), Lian Beng and more

In today’s briefing:

  • Weekly Deals Digest (14 May) – Toshiba, Arteria, Shinsei, Yitai Coal, Allkem, Horizon Construction
  • Horizon Construction Development IPO – Peer Comparison & Thoughts on Valuation
  • Jiangsu Expressway (177 HK): A Decent Play Even After Rally
  • Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

Weekly Deals Digest (14 May) – Toshiba, Arteria, Shinsei, Yitai Coal, Allkem, Horizon Construction

By Arun George


Horizon Construction Development IPO – Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO.
  • HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
  • In our previous notes, we looked at the company’s past performance and refiled PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.

Jiangsu Expressway (177 HK): A Decent Play Even After Rally

By Osbert Tang, CFA

  • We find good value in Jiangsu Expressway (H) (177 HK) – its 8.3x PER is cheap relative to 10.4% EPS CAGR and P/B multiple of 1.06x is below historical average.
  • It has an extremely secured dividend stream for the next two years, yielding at least 6.3%. 1Q23 result showed a solid recovery, and potentially adding upside to earnings outlook.
  • Key drivers are stronger traffic recovery, rise in contribution from clean energy, margin expansion through cost control and completion of new projects in the next two years.

Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair

By David Blennerhassett

  • In response to media feedback calling out the low-balled Offer, the Ong family bumped the Offer Price for Lian Beng (LBG SP) by 9.7% to S$0.68/share and declared terms final.
  • At 0.43x P/RNAV, and with the bulk of the assets related to investment/development property, the price was still wrong,  
  • The Circular is now out. The IFA considered terms to be not fair and not reasonable. The same opinion as in the 2021 Offer.

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