In today’s briefing:
- Kito (6409) – Now Sitting Pretty
- China United Lines Pre-IPO – Profitable and Growing Rapidly, However Market Is Concentrated
- Ashoka Buildcon Ltd – EPC Business Outlook Robust; Transitioning to Asset-Light Model
- Gateway Distripark Ltd – Strong Rail Performance Amid Partial Commissioning of DFC Route
Kito (6409) – Now Sitting Pretty
- Kito Corporation (6409 JP) is under offer by KKR unit Crosby, which announced a takeover in mid-May.
- Anti-Trust and foreign review will take a few months, and so we wait. In the meantime, the shareholder register has changed significantly. This remains an interesting option.
- And now, global market ructions offer arbitrageurs a meaningful opportunity.
China United Lines Pre-IPO – Profitable and Growing Rapidly, However Market Is Concentrated
- China United Lines (CUL HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
- China United Lines (CUL) is a container shipping company in China. CUL has grown rapidly and its large proportion of vessels being chartered-in, has allowed it to scale its capacity.
- Shipping volume growth was accompanied by topline growth, and margins have been on the uptrend. However, the firm is only a small player in a concentrated market.
Ashoka Buildcon Ltd – EPC Business Outlook Robust; Transitioning to Asset-Light Model
- Healthy Portfolio: ASBL currently has a sizeable order book of Rs155bn.
- CGD business: CGD business is Performing well vis-à-vis its competitors; company has already invested Rs1.4bn and has plans to invest total of Rs8.5bn within a span of 3-4 years.
- Resilient EPC performance; robust outlook: Company recorded 20% growth in EPC business in FY22 and margins in the range of 11-12%. In terms of pecking order, management has indicated that it would continue to focus on roads and highways, followed by power and railway projects.
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Gateway Distripark Ltd – Strong Rail Performance Amid Partial Commissioning of DFC Route
- Increase in freight volume post commissioning of partial western DFC route
- Company is able to deliver timely cargo by leveraging its strong infrastructure
- Strong and sustained market share in North India: Gateway Distriparks indicated that their market share grew at a faster rate compared to industry.in NCR region.
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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