Industrials: Yangzijiang Shipbuilding, China Conch Venture Holdings, MonotaRO Co Ltd, PSP Projects and more

• Yangzijiang Shipbuilding (YZJSGD SP) is looking to spin-off its investment segment, Yangzijiang Financial Holding Ltd (YZJFH). The EGM is on 18 April and the book closure is 25 April.
• There will be no flows from the MSCI and FTSE trackers given that both stocks should continue to remain members of the MSCI Small Cap and FTSE All-World indices.
• There will be a deletion from the FTSE Straits Times Index (STI) (STI INDEX) though, where either YZJSGD, YZJFH or Comfortdelgro Corp (CD SP) will be deleted from the index.

• Following CCEP spin-off and share price decline, China Conch Venture (586 HK) is now at more attractive valuations relative to the stub, on sum-of-the-parts and on PER multiple. 
• Growth profile should improve in next two years and it has an optimistic expectation of of 76% increase in waste treatment and 79% growth in on-grid electricity for FY22.
• New business initiatives including anode and cathode materials of lithium iron phosphate and lithium batteries and used lithium batteries treatment may provide potential medium term upside.

• Parent company sales in March were 19.771bn yen (+17.4% YoY), slightly below the company’s monthly target
• The number of business days was 22, one day less than in March 2021. The sales growth rate per business day was +22.7% YoY (+21.4% for February).
• Sales to SMEs (monotaro.com) increased by around +13% YoY, below the company’s target.

• PSP Projects (PSPPL) – incorporated in 2008 and led by Mr. P.S. Patel (CMD & CEO), has been working in the Buildings & Factories construction business
• PSPPL has gradually expanded its construction reach starting from Gujarat to other geographies over the years.
• We recommend a Buy the stock for a target price of Rs 620/ implying an upside of 11% from CMP

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