The Government of India plans to raise around US$372m via an offer for sale of Hindustan Aeronautics Ltd stock. TMA uses three pillars of technical analysis to deliver high probability outcomes, and their bearish recommendation for Xinjiang Goldwind Science & Technology came true. BOS Research suggests a base case valuation of 70,272 won per share for HD Hyundai, which is attractive, and China Railway Construction has seen growth in net profit. Green and Smart Mobility will support Be Group’s efforts to use electric vehicles in Vietnam.
The industrial sector had some interesting news today, starting with Toshiba’s Board agreeing on a JPY2tn JIP deal, as reported by the Nikkei. However, Toshiba confirmed that the language was still being hashed out, and the dividend was cancelled. Toshiba “supports” the deal, as it aligns a single shareholder with management goals, but they cannot recommend it to general shareholders due to the low price. The pricing of JPY2tn is a relatively modest premium, and the offer has several negatives, including a 14% price reduction during the process, below the undisturbed price, below the mid-point IFA DCF range, and no serious effort on Plan B.
In other news, Hindustan Aeronautics Placement is still running hot due to the focus on defense spending, while China Railway Construction continues to secure orders. Meanwhile, Vietnam’s Vingroup has invested in Grab competitor Be, and HD Hyundai has seen a NAV boost from record results at Hyundai Oilbank, along with a high dividend yield.
Xinjiang Goldwind Science & Technology has achieved a 9.1% profit target in 3-4 weeks, and it remains to be seen whether activists will submit to “Toshiba Fatigue” at what the Board admits is too low a price, or whether there is still fight left. All that remains for Toshiba is shareholder approval, and while celebrations may be scarce, relief is likely.
The Government of India aims to raise around US$372m (INR30.7bn) through an offer for sale of Hindustan Aeronautics Ltd stock, with a floor price of INR2,450 per share, set at approximately 6.7% to Wednesday’s (22nd Mar 2023) last close. This deal represents 10.5 days of ADV.
In other news, TMA focuses on their 3 pillars of technical analysis, including response to key levels, price action, and momentum confirmation. In February 2023, they published a bearish recommendation in Xinjiang Goldwind Science & Technology, targeting a 9.1% multi-week decline in Q1 2023, which came to fruition.
BOS Research suggests a base case valuation of 70,272 won per share for HD Hyundai, representing a 23% upside from current levels. The expected dividend yield of HD Hyundai in 2023 is 7.8%, which is attractive. Hyundai Oilbank’s record results have been a key boost to the NAV of HD Hyundai.
China Railway Construction has seen 9.5% YoY growth in net profit in 1H22, and valuations are undemanding. However, share price performance depends on investors’ style preferences, and deleveraging efforts are being monitored.
Green and Smart Mobility will back ride-hailer Be Group’s efforts to use electric vehicles in Vietnam, with the first phase of their collaboration partnering with Vietnam Prosperity Joint-Stock Commercial Bank to offer exclusive policy deals for Be drivers to rent or purchase VinFast electric cars and motorbikes.
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