In today’s briefing:
- LG Energy Solution: End of 6 Months Lock-Up Period & Valuation Sensitivity Analysis
- Merger Arb Mondays (13 Jun) – China VAST, True/DTAC, Hwa Hong, Link Admin, Ramsay Health, Link Net
- V.S. Industry (VSID.KL) – Foreign Labour Arriving In Stages
LG Energy Solution: End of 6 Months Lock-Up Period & Valuation Sensitivity Analysis
- Our base case valuation LG Energy Solution is implied market cap of 75 trillion won or target price of 319,089 won, representing 25% below current share price.
- Currently, LGES is trading at a premium valuation multiple on a EV/EBITDA (2023E) versus CATL. We believe LGES should trade at a discount to CATL in the next 6-12 months.
- LGES’s 6 months lock-up ends on 27 July and there are 4.3% of outstanding shares that can be sold which is likely to put negative pressure on share price.
Merger Arb Mondays (13 Jun) – China VAST, True/DTAC, Hwa Hong, Link Admin, Ramsay Health, Link Net
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- This week, the highest spreads are Sezzle Inc (SZL AU), 21Vianet Group (VNET US), Link Administration Holdings (LNK AU), Alliance Aviation Services (AQZ AU), Ramsay Health Care (RHC AU).
- The lowest gross spreads are Virtus Health (VRT AU), Crown Resorts (CWN AU), Irongate Group (IAP AU), AKM Industrial (1639 HK), Beijing Enterprises Urban Resources (3718 HK).
V.S. Industry (VSID.KL) – Foreign Labour Arriving In Stages
- Maintain HOLD; Labour and raw mat issues remain
- Addt’l 3k workers to arrive in the coming months
- One-off levy and recruitment costs could drag 4Q NP
- Costs impact within expectations
Before it’s here, it’s on Smartkarma
