Industrials
Much deeper automation looks like the only realistic solution to S.Korea’s fertility / working age population crisis - Doosan with its 90.9% stake is aiming to IPO Doosan Robotics in H2 this year, which is expected to be worth 1trn+ KRW, and the spin out will become one of the few global pure-play ‘cobot’ names. The group also fits the energy transition theme - Doosan Enerbility has been busy strengthening its small modular reactor and liquefied hydrogen businesses. Sean Maher replaces THK (+67% since inception; more fully valued) with Doosan in his automation basket (+120%), and once the robotics IPO is complete, Doosan will move into his energy transition basket (+230%).
Edition: 156
- 17 March, 2023
JD Logistics (2618 HK)
Industrials
Sean Maher has taken advantage of a modest day one IPO rally to add JD Logistics to his automation-themed basket of stocks (incl. Rockwell, Keyence, THK and Blue Prism). The logistics market has seen a brutal price war among major couriers, but JD Logistics’ differentiation is in offering “integrated supply chain” services. Stock to double within the next 2-3 years as a play on domestic consumption and technology licensing to third parties outside China. Its valuation vs. Ocado looks anomalous given its vastly superior relative scale, IP depth and growth opportunity.
Edition: 112
- 11 June, 2021