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 Paper Packaging Industry Report H1 2020

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APAC Paper Packaging 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 paper packaging industry for the first half of 2020.

Paper packaging 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 have lowered slightly in the first quarter of 2020 compared to the same period in 2019, but bounced back in the second quarter.

Based on 200-300 constituent companies, the table above reflects that industry margins have been on a downtrend from its peak in 2018 (latest net income margin is 1.9% vs 3.5% in 2018). Over the same period, leverage of the industry constituents has increased and profitability has decreased.

Most of the paper packaging industry deals in the reported period were in the lower mid market segment (except Q2-2020 and Q1-2019 in which data were unavailable). The transaction values in Q4-2019 and Q2-2019. were pushed upwards by one large deal in each respective quarter. Overall, deal activity was down in the first half of 2020.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on implied enterprise value was available. The largest transaction in the period was the acquisition of Tailim Packaging – a South Korean company which manufactures corrugated boxes – in which the total transaction value was USD 347m.

Source: S&P Capital IQ, Armor Capital Analysis

Paper packaging 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 Software Industry Report H1 2020

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APAC Software Industry Report H1 2020

Published on 29 September 2020

Introduction

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


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

Valuations of Asia Pacific’s public companies have increased every quarter since Q2-2019. Median EBITDA was 44.4x by the end of Q2-2020 vs. 27.4x in Q2-2019 – an increase of 62% year-on-year.

Based on 400-500 selected companies, the table above illustrates that the industry returns have declined over the past few years. Meanwhile, although there is remarkable difference in industry margins between 2017 and 2018, it has remained relatively stable for the past 3 years.

M&A activity (majority stake only) by volume has maintained at 121 in H1-2020, an increase of 14% compared to the same period last year (there were 106 deals in H1-2019). Most of the deals were in the lower to mid-market segment, while 1 transaction drove most of the total transaction value in Q1-2020 (acquisition of Plaid Inc. by Visa Inc. at USD 4,900m).

Armor selected the largest M&A transactions across the region in H1-2020 for which information on Implied Enterprise Value were available. The most remarkable transaction was the acquisition of Creative Knowledge, a Singapore-based company which develops digital education products and solutions. (While the largest transaction was Visa Inc.’s acquisition of Plaid Inc., the relevant multiples of the transaction were private.)

Source: S&P Capital IQ, Armor Capital Analysis

Software 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 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 Healthcare Industry Report H1 2020

APAC Healthcare Industry Report H1 2020

Published on 9 September 2020

Introduction

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

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

Valuations of Asia Pacific’s public companies have increased significantly over H1-2020 compared to the same period in 2019. Median EBITDA was 35.4x by the end of Q2-2020 vs. 18.7x in Q2-2019 – an increase of nearly 39% year-on-year. In addition, there has been changes in the top 50 constituents, reflecting movement in the competitive environment of the industry.

Based on 400-500 selected companies, the table above illustrates that industry returns and have been stable for the past 4 years, with a slight dip in the latest statistics. Similarly, industry margins have been lower in the latest statistics in comparison to the past 2 years.

M&A activity by volume has been lower over the past 2 quarters with 55-59 transactions (majority stake only) per quarter. The first half of 2020 had fewer mega deals compared to the second half of 2019, lowering the total transaction value for these 2 quarters.

Armor selected the largest M&A transactions across the region in H1-2020 for which information on Implied Enterprise Value and selected multiples were available. The data shows a wide range of multiples for acquisitions.

Source: S&P Capital IQ, Armor Capital Analysis

Healthcare 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 Paper Packaging Industry Report H2 2019

APAC Healthcare Industry Report H2 2019

Published on 27 May 2020

Introduction

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

Paper Packaging 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 have been relatively stable in H2-2019 compared to the same period in 2018. Median EBITDA increased slightly from 7.2x in Q3-2019 to 7.4x in Q4-2019 while EBIT remained the same at 12.4x.

The table above reflects that industry margins are on a downtrend from its peak in 2018 (latest net income margin is 0.2% vs 7.4% in 2018). Over the same period, leverage of the industry constituents have increased. Returns have lowered in the recent years.

With the exception of Q1-2019, each quarter saw 7-9 deals in APAC’s Paper Packaging. Most of the deals were in the lower mid market segment, while in Q4-2019 a transaction in Australia drove most of the total transaction value (Australasian Fibre Business of Orora Limited – transaction value USD 1,163m), this was also the case for Q2-2019.

Armor selected the largest M&A transactions across the region in H2-2019 for which information on Implied Enterprise Value was available. Although the largest transaction by value was driven by an Australian deal (see above), the transaction details were private.

Source: S&P Capital IQ, Armor Capital Analysis

Paper packaging 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 Healthcare Industry Report H2 2019

APAC Healthcare Industry Report H2 2019

Published on 27 May 2020

Introduction

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

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

Valuations of Asia Pacific’s public companies have increased over H2-2019 compared to the same period in 2018. Median EBIT was 31.2x by the end of Q4-2019 vs. 25.1x in Q4-2018 – an increase of nearly 24% year-on-year.

Based on 400-500 selected companies, the table above illustrates that industry returns and have been stable for the past 4 years, with a slight dip in the latest statistics. Meanwhile, industry margins have shown improvements in 2019 and the latest statistics (especially in gross margin and EBITDA).

M&A activity by volume has been relatively consistent over the last 6 quarters with 59-74 transactions (majority stake only) per quarter. The second half of 2019 was characterised by a few mega-deals (e.g. Hitachi’s diagnostic imaging related business) pushing up the total transaction value for the year.

Armor selected the largest M&A transactions across the region in H2-2019 for which information on Implied Enterprise Value and selected multiples were available. The data shows a wide range of multiples for acquisitions.

Source: S&P Capital IQ, Armor Capital Analysis

Healthcare 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

APAC Education Industry Report H2 2019

APAC Education Industry Report H2 2019

Published on 15 May 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 second half of 2019.

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 were lower over last 5 quarters ending December 2019. EBITDA multiples were over 29% lower by the end of Q4-2019 (12.0x in Q4-2019 vs 17.1x in Q3- 2018).

Based on around 250 selected companies, the table above illustrates that industry returns and leverage ratios have been relatively stable over the past five years. Companies margins reflect an upwards trend (EBITDA margin +4.6% between 2016 and beginning of May 2020).

Overall, Q3-2019 and Q4-2019 was characterized by lower M&A deal count, while total transaction value continue to show large fluctuations. In particular, the total transaction value in Q3-2019 was pushed up by a few large deals (e.g. Jinan Shuangsheng Education Consulting Company Limited – EV USD 234m).

Armor selected the largest M&A transactions across the region in H2 2019 for which information on Implied Enterprise Value (EV) was available.

Source: S&P Capital IQ, Armor Capital Analysis

Education 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

Global Toys & Games Industry Report 2020

Global Toys & Games Industry Report 2020

Published on 3 March 2020

Introduction

We are pleased to share with you a summary update of market valuations and activities in the Global Toys and Games industry based on the year 2019.

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

Valuations of public companies have increased in recent years. Median EBITDA was 9.7x by the end of 2019 vs. 7.7x in Q4-2015.

Key highlights from the above table are that margins have recovered over 2018-2019 from the drop in 2017. Over the same period, leverage of the industry constituents have slightly decreased over the last 24 months.

The number of transactions announced per year amounted 14 to 23 over the past 5 years. In the second quarter of 2019, two transactions in Spain (see below) and US drove the most of the total transaction value for the year.

Armor selected the largest M&A transactions across the globe in 2019 for which information on Implied Enterprise Value was available.

Source: S&P Capital IQ, Armor Capital Analysis

The toy industry 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