In today’s briefing:
- Dow Jones – Spooky Chart Update I
- Guodian Tech’s Privatisation Offer
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
- Container Corporation of India: DFC Leading to Higher Double Stacking, Assured Transit Times
- Havells India: Slower Price Hikes Delay Margin Recovery
Dow Jones – Spooky Chart Update I
- This chart draws a fascinating historical comparison between the behaviour of the stock market today with that seen 100 years ago around the Spanish Influenza
- It clearly shows that what we are seeing today has some sort of reflection of the past
- We have fresh developments that indicate further weakness for Equities [relative to Gold]
Guodian Tech’s Privatisation Offer
- Guodian Technology & Environment Group (1296 HK) announced a pre-conditional privatisation offer from China Energy at HK$1.08 per H share, a 47.59% premium to the last close.
- The key conditions for the delisting will be approval by at least 75% independent H-shareholders (<10% of all independent H-shareholders rejection). There is no minimum acceptance condition.
- The offer is attractive in comparison to long-term historical share prices and multiples. We think that the privatisation proposal will likely succeed.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets dropped yet another day on Friday, with the S&P and Nasdaq down 1.9% and 2.7% as the risk-off sentiment continued to weigh on markets. Most sectors were in the red with Communication Services and Consumer Discretionary down 3.1% and 3.9%. US 10Y Treasury yields were flat at 1.77% after easing 8bp on Thursday. European markets closed mostly higher with the DAX and CAC down 1.9%, 1.8% and 1.2%. Brazil’s Bovespa closed 0.2% lower. In the Middle East, UAE’s ADX was up 0.3% and Saudi TASI was down 1.1%. Asian markets have broadly opened in the red – HSI, STI and Nikkei were down 1%, 0.1%, 0.6% while Shanghai was up 0.2%. US IG CDS spreads were 1.1bp wider and HY CDS spreads were 5.7bp wider, EU Main CDS spreads were 1.7bp wider and Crossover CDS spreads were 7.9bp wider. Asia ex-Japan CDS spreads were 1.5bp wider.
Container Corporation of India: DFC Leading to Higher Double Stacking, Assured Transit Times
- Concor is the dominant player in the CTO business (65% market share) with ~60 terminals
- Revenue from rail transportation comprised 75% of total revenues (rest 4% by road, 13% via handling income, 2% warehousing and 4% others)
- Target Price and Valuation: We value the stock at Rs 780 i.e. 21x P/E on FY24E EPS
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Havells India: Slower Price Hikes Delay Margin Recovery
- Havells India (HIL) is India’s leading electrical appliances & equipment manufacturer with a diversified product portfolio
- In all its business segments, Havells has a strong presence in the organised product category with market share ranging between 6% and 20%
- We value the stock at 53x FY24 EPS and revise the target price to Rs 1515/share
- Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
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