In today’s briefing:
- China Infrastructure & Logistics Group (1719 HK): Potential Unconditional MGO
- FTSE All-World/All-Cap Index Rebalance: Potential Liquidity Deletes in March
- Hyundai Engineering IPO Initiation: Building on Good Foundations
- BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022
- 8 New $ Deals incl. MUFG, AgBank; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers a…
- MonotaRO (3064): December Sales Announced.
China Infrastructure & Logistics Group (1719 HK): Potential Unconditional MGO
- After shares were halted midday on the 30 December pursuant to the Takeovers Code, China Infrastructure & Logistics Group (1719 HK) (“CILG”) has announced a possible MGO from Hubei Ports.
- Hubei Ports has entered into a SPA with co-chairman Yan Zhi to acquire his 74.81% stake in CILG. Upon completion, this will trigger an unconditional MGO. The price is HK$1.15/share.
- A key condition to the SPA is approval from SASAC of Wuhan, which is turn controls 82.8571% of Hubei Ports. This transaction is done.
FTSE All-World/All-Cap Index Rebalance: Potential Liquidity Deletes in March
- We see five stocks failing the Median Liquidity test at the March SAIR and expect them to be deleted from the FTSE AW/AC index at the close on 18 March.
- The stocks are Hap Seng Consolidated (HAP MK), IOI Properties Group (IOIPG MK), Sime Darby Property Bhd (SDPR MK), SM Investments (SM PM) and Sundaram Finance (SUF IN).
- Impact ranges from 34-82 days of ADV. The largest outflows will be seen on SM Investments and Sundaram Finance, while the flows on the other stocks are smaller.
Hyundai Engineering IPO Initiation: Building on Good Foundations
- Hyundai Engineering Co Ltd (HEC KS)/HEC is a leading global EPC (Engineering, Procurement and Construction) contractor. It is seeking to raise up to $1 billion.
- HEC is offering 16.0 million shares with a primary/secondary split of 25/75 at an indicative price range of KRW57,900-66,800 per share.
- HEG has attractive fundamentals with a strong backlog, healthy book-to-bill, improving 3Q21 revenue growth and improving margins.
BEM: Expect 4Q21 Earnings to Recover Strongly and Onward to 2022
- We maintain BEM with a BUY rating and a target price of Bt10.30 derived from SOTP methodology, which is equivalent to 51.5xPE’22E.
- We expect the company to report net profit of Bt290m in 4Q21. (+168%QoQ -49%YoY), the highest level in the past three quarters.
- YoY contraction will be mainly due to impact from 3rd wave of COVID-19 widespread, which trimmed down average daily toll traffic to 984k trips/day(-13%YoY +47%QoQ) and MRT ridership to 175k
8 New $ Deals incl. MUFG, AgBank; Macro; Rating Changes; New Issues; Talking Heads; Top Gainers a…
US equity markets mixed with the S&P down 0.1% and the Nasdaq flat. Healthcare led the gainers, up 1% while Industrials led the losers, down 1.2%. US 10Y Treasury yields were down 1bp to 1.76%. European markets were lower with the DAX, CAC and FTSE down 1.1%, 1.4% and 0.5% respectively. Brazil’s Bovespa was down 0.8%. In the Middle East, UAE’s ADX was down 1% while Saudi TASI was up 0.9%. Asian markets have opened mixed – Shanghai and Nikkei were down 0.1% and 0.9% while HSI and STI were up 0.1% and 0.3%. US IG CDS spreads were 0.1bp tighter and HY CDS spreads widened 4.6bp. EU Main CDS spreads were 0.6bp wider and Crossover CDS spreads were 1.3bp wider. Asia ex-Japan CDS spreads widened 1.1bp.
MonotaRO (3064): December Sales Announced.
Parent company sales in December were 16.678bn yen (+20.5% YoY), above the company’s target
The number of new customer acquisitions was 106.5 thousand accounts(-3.8% YoY), below the company’s target.
Jan-Dec cumulative parent sales were 182.467bn yen (+20.2% YoY), 97.7% vs. the full-year guidance of 186.759bn yen (+23.0% YoY)
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