Smartkarma Daily Briefs

• More than $1 billion to be invested in electric power equipment and railway car production, plus a new automation center, to counter tariffs and support long-term expansion in the U.S.
• The rising share of sales accounted for by smart factory and other digital technologies should lead to higher profit margins and ROIC over the next several years. 
• The share price has dropped 13% from its recent high to 26x EPS guidance for FY Mar-26. Buy on weakness for long-term growth. The main risk is a slowing economy.

• Strong industry sales of wheel loaders (+10.4% YoY) and excavators (+18.8%) in Jul-Aug suggested that the current consensus earnings forecasts are too conservative. 
• Lonking Holdings (3339 HK) will also benefit from the strength of the equities market, given it has an investment portfolio of Rmb2.4bn, or 18.6% of its market capitalisation.
• Given net cash equalling HK$2.02/share, or 66.1% of its share price, its 10.3x PER and 4.5% dividend yield for FY25F still appear undemanding. 

• India’s spectacular underperformance over the past 12 months relative to Asia has been driven primarily by dismal earnings delivery by corporates, leading to persistent EPS estimate downgrades.
• We identify stocks with strong earnings delivery, i.e. EPS estimate upgrades over past 1, 3 and 6 months, forecast EPS growth >10%, net D/E < 1 and PEG < 1.4x.
• We screen 11 stocks from industrials, healthcare, materials and property. Most have appreciated significantly over 6- and 12-month timeframes, establishing that the market tends to reward superior earnings delivery.

Key points (machine generated)

• Clarivate operates in three main segments: Academia & Government, Intellectual Property, and Life Sciences & Healthcare.
• Academia & Government is the largest revenue contributor at 49-52%, followed by Intellectual Property at 29-33%, and Life Sciences & Healthcare at 13-17%.
• About half of Clarivate’s revenues come from the higher education sector, including the top 50 universities worldwide.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Macro: Nuclear restarts (Tomari-3, Aug-25) and record defense budgets underpin demand for JSW’s forgings.
• Results: Q1 FY25 showed solid YoY growth (revenue +7%, OP +21%) with margins lifted by defense/nuclear.
• Valuation/Risks: Shares trade at ~26× P/E on a ¥508 bn backlog; upside rests on execution, with delays the key risk.

• HK-Listed SF Intra is a leading player in Chinese on-demand delivery
• H1 results show strong top-line growth, but thin margins, -ive OpCF
• SF Intra’s structure suggests no fat to cut in local eComm fulfillment expense

• Smurfit Westrock posted a robust performance for the second quarter of 2025, demonstrating strength in several key areas while facing challenges in others.
• The company reported adjusted EBITDA of $1.213 billion, reflecting a solid margin performance of 15.3%.
• This marks a significant improvement particularly due to more focused operations in North America, where the EBITDA margin reached 15.8%.

• UFP Industries, Inc. has reported its second-quarter financial results for 2025, reflecting a continued trend of challenging market conditions.
• The company reported revenues of $1.8 billion, a decrease of 3.5% compared to the previous year.
• Declines in both unit volumes and pricing were noted across its business segments, although recent acquisitions provided some offsetting positive impacts.

• Verbrec Limited (ASX:VBC) provides engineering, asset management, operations and maintenance, and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands.
• The company operates two divisions in Engineering (~90% of FY25 revenue) and Competency Training (~10% of FY25 revenue).
• The company has announced that it has signed an agreement to sell Competency Training to RelyOn Australia Pty Ltd for a headline purchase price of $11.5m, payable full in cash on completion, but subject to adjustments for working capital and net cash/debt at completion.

• Concepcion Industrial (CIC PM — US$91 million) is an appliance company selling air conditioners and refrigerators in the Philippines.

• The business was started by the Concepcion family in 1962. One year after being formed, it received exclusive distribution rights for Carrier-branded air conditioners in the Philippines.

• In 1987, Concepcion launched its own brand, “Condura” — now one of the top five brands in the country.

• More than $1 billion to be invested in electric power equipment and railway car production, plus a new automation center, to counter tariffs and support long-term expansion in the U.S.
• The rising share of sales accounted for by smart factory and other digital technologies should lead to higher profit margins and ROIC over the next several years. 
• The share price has dropped 13% from its recent high to 26x EPS guidance for FY Mar-26. Buy on weakness for long-term growth. The main risk is a slowing economy.

• Strong industry sales of wheel loaders (+10.4% YoY) and excavators (+18.8%) in Jul-Aug suggested that the current consensus earnings forecasts are too conservative. 
• Lonking Holdings (3339 HK) will also benefit from the strength of the equities market, given it has an investment portfolio of Rmb2.4bn, or 18.6% of its market capitalisation.
• Given net cash equalling HK$2.02/share, or 66.1% of its share price, its 10.3x PER and 4.5% dividend yield for FY25F still appear undemanding. 

• India’s spectacular underperformance over the past 12 months relative to Asia has been driven primarily by dismal earnings delivery by corporates, leading to persistent EPS estimate downgrades.
• We identify stocks with strong earnings delivery, i.e. EPS estimate upgrades over past 1, 3 and 6 months, forecast EPS growth >10%, net D/E < 1 and PEG < 1.4x.
• We screen 11 stocks from industrials, healthcare, materials and property. Most have appreciated significantly over 6- and 12-month timeframes, establishing that the market tends to reward superior earnings delivery.

Key points (machine generated)

• Clarivate operates in three main segments: Academia & Government, Intellectual Property, and Life Sciences & Healthcare.
• Academia & Government is the largest revenue contributor at 49-52%, followed by Intellectual Property at 29-33%, and Life Sciences & Healthcare at 13-17%.
• About half of Clarivate’s revenues come from the higher education sector, including the top 50 universities worldwide.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Macro: Nuclear restarts (Tomari-3, Aug-25) and record defense budgets underpin demand for JSW’s forgings.
• Results: Q1 FY25 showed solid YoY growth (revenue +7%, OP +21%) with margins lifted by defense/nuclear.
• Valuation/Risks: Shares trade at ~26× P/E on a ¥508 bn backlog; upside rests on execution, with delays the key risk.

• HK-Listed SF Intra is a leading player in Chinese on-demand delivery
• H1 results show strong top-line growth, but thin margins, -ive OpCF
• SF Intra’s structure suggests no fat to cut in local eComm fulfillment expense

• Smurfit Westrock posted a robust performance for the second quarter of 2025, demonstrating strength in several key areas while facing challenges in others.
• The company reported adjusted EBITDA of $1.213 billion, reflecting a solid margin performance of 15.3%.
• This marks a significant improvement particularly due to more focused operations in North America, where the EBITDA margin reached 15.8%.

• UFP Industries, Inc. has reported its second-quarter financial results for 2025, reflecting a continued trend of challenging market conditions.
• The company reported revenues of $1.8 billion, a decrease of 3.5% compared to the previous year.
• Declines in both unit volumes and pricing were noted across its business segments, although recent acquisitions provided some offsetting positive impacts.

• Verbrec Limited (ASX:VBC) provides engineering, asset management, operations and maintenance, and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands.
• The company operates two divisions in Engineering (~90% of FY25 revenue) and Competency Training (~10% of FY25 revenue).
• The company has announced that it has signed an agreement to sell Competency Training to RelyOn Australia Pty Ltd for a headline purchase price of $11.5m, payable full in cash on completion, but subject to adjustments for working capital and net cash/debt at completion.

• Concepcion Industrial (CIC PM — US$91 million) is an appliance company selling air conditioners and refrigerators in the Philippines.

• The business was started by the Concepcion family in 1962. One year after being formed, it received exclusive distribution rights for Carrier-branded air conditioners in the Philippines.

• In 1987, Concepcion launched its own brand, “Condura” — now one of the top five brands in the country.