In today’s briefing:
- Siemens Energy/Siemens Gamesa: Takeover Conundrum
- AKR Corporindo (AKRA IJ) – Chemically and Industrially Enhanced
- Japan’s Governance: Tsubaki Nakashima (6464) FY12/2021 Financial Results Analyst Meeting
- PNC Infratech: Strong Topline Performance
- PNC Infratech: HAM Monetisation – Key Trigger Ahead
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
- Mahindra Logistics Ltd: New Customers, Seasonality Impacts Margins
Siemens Energy/Siemens Gamesa: Takeover Conundrum
- Investors are pressing Siemens Energy (67% owner of Siemens Gamesa Renewable Energy, S.A. (SGRE SM)) to act in the wake of a downwards sliding share price.
- DFC valuation (WACC 7.5%, 5y EV/EBITDA exit multiple of 5.5x, which conservatively implies no growth rate, which I consider adequate in a low visibility environment) gives a fair value of €16.4/share.
- An exclusion bid could be on the cards, and the premium need not be high, 20% could be enough, but that would still amount to c. €3.7 billion.
AKR Corporindo (AKRA IJ) – Chemically and Industrially Enhanced
- AKR Corporindo (AKRA IJ) paints an optimistic finish to 2021, with indications of +20-30% QoQ growth for both chemical and fuel distribution in 4Q2021.
- The outlook for FY2022 looks equally promising for the distribution business, with a ramp-up of retail fuel distribution plus a strong pipeline of demand for its JIIPE industrial estate.
- AKR Corporindo (AKRA IJ) remains an interesting industrial proxy for the recovery of the overall Indonesian economy trading at a significant discount to its historical average.
Japan’s Governance: Tsubaki Nakashima (6464) FY12/2021 Financial Results Analyst Meeting
- This article will update on Tsubaki Nakashima, which I focused on in my previous article, as I attended the analyst meeting for its financial results for FY12/2021.
- A temporary issue with quality and inventory management in 4Q resulted in missed profits in FY12/2021, but the company resolved the issue early and it will not affect FY12/2022.
- As the demand for high-margin ceramic balls accelerates in line with the shift to high-power EVs, it is only a matter of time before it regains the confidence from investors,.
PNC Infratech: Strong Topline Performance
- PNC Infratech Ltd (PNCIL) reported a decent set of Q3FY22 numbers driven by its superior execution and a robust order book
- The company reported revenue of Rs 1,522 Cr (up 15% YoY), EBIDTA of Rs 166 Cr (down 7% YoY), and APAT of Rs 81 Cr (down 22% YoY)
- We retain our BUY rating on the stock with a target price of Rs 385/share, implying an upside of 39% from the CMP.
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PNC Infratech: HAM Monetisation – Key Trigger Ahead
- PNC Infratech has established itself as a strong executor in roads, water infra and airport runway segments
- Reported EBITDA at Rs 165.5 crore was down 7.3% YoY with margin at 10.9%, down 263 bps YoY.
- The company has booked Rs 39 crore towards impairment of Ghaziabad Aligarh Expressway Pvt Ltd. (associate company)
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.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
S&P and Nasdaq were lower again on Friday with the indices down 0.7% and 1.2% respectively. Most sectors were in the red, led by IT and Industrials down 0.9-1%. The US 10Y Treasury yield dropped 6bp to 1.93% as risk-off sentiment around Russia –Ukraine tensions weighted on markets. European markets were also lower with the DAX down 1.5% and the CAC and FTSE down 0.3% each. Brazil’s Bovespa closed 0.6% lower. In the Middle East, UAE’s ADX was down 0.6% and Saudi TASI closed 0.1% lower. Asian markets have opened broadly lower with Shanghai, HSI and Nikkei down 0.4%, 0.7% and 0.8% respectively, while STI was up marginally by 0.1%. US IG CDS spreads were 0.9bp wider and HY CDS spreads were 4bp wider. EU Main CDS spreads were 2.4bp wider and Crossover CDS spreads were 15bp wider. Asia ex-Japan CDS spreads were 0.7bp wider.
Mahindra Logistics Ltd: New Customers, Seasonality Impacts Margins
- Mahindra Logistics is an end-to-end 3PL logistics solution provider, from performing milk run to in-factory logistics, warehousing to first mile and last mile logistics
- Serves over 400 customers via its two business segment: supply chain management [(SCM), 96% of revenues] and enterprise mobility
- Revenues from Mahindra comprise 52% of SCM revenues (FY21) while the rest is contributed by non-Mahindra
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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