APAC Logistics Industry Report H1 2020

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APAC Logistics Industry Report H1 2020

Published on 29 October 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific logistics industry for the first half of 2020.

Logistics is one of the key sectors which Armor specializes in and closely follows market trends. Please contact us for further discussions.

Valuations of Asia Pacific’s public companies were lower over the last two quarters ending June 2020. EBITDA multiples were over 17.7% lower by the end of Q2-2020 (10.7x in Q2-2020 vs 13.0x in Q2-2019).

Based on 90-100 selected companies, the table above illustrates that industry returns are on a downturn, while companies’ margins have been stable over the past five years. Leverage ratios indicate improved financial positions over the past few years.

While H2-2019 were characterized by smaller sized transactions, H1-2020 saw significantly sized deals, pushing up the total transaction volume. Although we observed a smaller M&A deal count in H1-2020, the total transaction value is higher in H1-2020 vs H1-2019.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on implied enterprise value (EV) was available. The median EV/revenue multiple that investors paid was 1.5x.

Source: S&P Capital IQ, Armor Capital Analysis

Logistics is one of the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Education Industry Report H1 2020

APAC Education Industry Report H1 2020

Published on 18 September 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific education services industry for the first half of 2020.

Education is one of the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussion.

Valuations of Asia Pacific’s public companies fluctuated over last 6 quarters ending June 2020. H1-2020 was characterized by lower multiples, EBITDA multiples were almost 33% lower by the end of Q1-2020 (10.8x in Q1-2020 vs 16.1x in Q1-2019) and almost 21% by end of Q2-2020 (12.5x in Q2-2020 vs 15.8x in Q2-2019).

Based on around 130 selected companies, the table above illustrates that industry returns and margins have been decreasing over the last eight months (latest values) in comparison with 2019.

Overall, first half of 2020 was characterised by lower M&A deal count, while total transaction value continue to show large fluctuations and is pushed up by a few large deals (e.g. China Distance Education – EV USD 284.3m).

Armor selected the largest M&A transactions across the region in 2020 H1 for which information on Implied Enterprise Value (EV) was available. Two transactions stand out, the acquisition of China Distance Education and the acquisition of Harbin Institute of Petroleum.

Source: S&P Capital IQ, Armor Capital Analysis

Education is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com

APAC Logistic Industry Report H2 2019

APAC Logistics Industry Report H2 2019

Published on 6 March 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific logistics industry for the second half of 2019.

Logistics is one of the key sectors in which Armor specializes in and closely follows market trends. Please contact us for further discussion.

Based on quarterly data, valuations of Asia Pacific’s public companies in Q4-2019 (based on EBIT) is at a similar level as Q3-2018.

Based on 90-100 selected companies, the table above illustrates that industry returns are on a downturn, while companies’ margins have been stable. Leverage ratios indicate improved financial positions over the past few years.

M&A deal count in H2-2019 remain lower than in H2-2018. The total transaction value in H2-2019 was less than a quarter of H2-2018 (USD 1,331m vs. 253m), mainly due to smaller sized transactions in 2019.

M&A deal count in H2-2019 remain lower than in H2-2018. The total transaction value in H2-2019 was less than a quarter of H2-2018 (USD 1,331m vs. 253m), mainly due to smaller sized transactions in 2019.

Source: S&P Capital IQ, Armor Capital Analysis

Logistics is one the key sectors in which Armor specializes and closely follows market trends.

Please contact us for an in-depth discussion via enquiry@armor-capital.com