In today’s briefing:
- Doosan Corp Placement – Large Deal but Price Momentum Has Been Solid
- Doosan Corp: Block Deal Sale of Former Chairman Park & His Sons’ Stakes
- Screen Holdings (7735 JP): Book-To-Bill 1.2x in 3Q
- Gamuda (GAMU.KL) – 2 Qfy22: Above Expectations
Doosan Corp Placement – Large Deal but Price Momentum Has Been Solid
- Park Yong-maan, Park Seo-won and Park Jae-won are looking to sell down their stakes in Doosan Corp (000150 KS) . The share sale will be a cleanup.
- In our view, the deal should bode well for the current management, giving them free rein in management coupled with the share sale being a clean-up.
- In this note, we will talk about the firm’s track record and run the deal through our ECM framework.
Doosan Corp: Block Deal Sale of Former Chairman Park & His Sons’ Stakes
- The former Doosan Group Chairman Park Yong-Man and his sons will sell 1.296 million shares of Doosan Corp (000150 KS) in a block deal, representing 7.85% of outstanding shares.
- We have a positive view of this block deal sale and we would take the deal.
- Our NAV analysis of Doosan Corp suggests NAV per share of 188,511 won per share, representing a 61% upside from current levels.
Screen Holdings (7735 JP): Book-To-Bill 1.2x in 3Q
- The share price has bounced back from the Ukraine war sell-off. Attention should now shift to orders, sales and profits. 26% potential upside to our price target
- New SPE orders exceeded sales by 20% in the December quarter, taking the backlog to a new high and pointing to further sales and profit growth next fiscal year.
- Management’s FY Mar-22 guidance remains unchanged, with sales up 41% and operating profit up 2.2x. Upside potential of 26% to our price target.
Gamuda (GAMU.KL) – 2 Qfy22: Above Expectations
- Remains our preferred pick; BUY
- Property provided the lift
- MYR15.6b E&C orderbook + unbilled property sales
- Revising FY22E forecast; raising minimum wage
Gamuda’s earnings rebound in 2QFY22 was stronger than expected, with 1HFY22 net profit (+41% YoY) coming in at 55% of house/street’s full-year forecasts; the beat was due to margin expansion at its E&C ops. We raise FY22E net profit by 10%, maintain for FY23/FY24E. Our RNAV-TP is unchanged at MYR4.28. We continue to like Gamuda for its delivery track record, strong balance sheet and ESG initiatives. Maintain BUY.
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