Smartkarma Daily Briefs

Adani Transmission (ADANIT IN) is one of the largest private player in transmission.
The management has guided for 20% YOY revenue & EBITDA growth for long term
Alongside it is trying to diversify from transmission & distribution which are regulated by the government and entered in Smart Meters, Cooling Services etc.

The Beat Ideas: Strides Pharma~ A Growth Play Post OneSource Demerger

Strides Pharma achieved record growth in the US, launched high-ticket generics, and is spinning off OneSource CDMO with a projected valuation of $1.8-$2 billion by Q4FY25.
Deleveraging efforts, diversified revenue streams, and regulatory approvals position Strides for profitability recovery, with expected FY26 EBITDA of ₹1,000 crore, driving long-term growth.
Strides is evolving into a leaner, growth-focused entity with reduced debt, a strong US portfolio, and OneSource spin-off, offering ~25% upside from its current market valuation.

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Dec 28

Daily Brief China: JD Logistics , ZTO Express Cayman , Xiaomi Corp and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express
China Logistics (Part 1): ZTO Has a Unit Economics Problem
Xiaomi’s Smartphone Share Gain in Japan Is a Harbinger of Good Things to Come

China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express

Despite being breakeven just quarters ago, JD Logistics (2618 HK) has achieved profitability on par with global peers nearly 3x its size. Margin still has upside with further subsidiary integration;
JDL is still positioned to accelerate revenue by taking share from S.F. Holding (6936 HK) in untapped opportunities, including domestic B2C (Taobao/Tmall), cross-border B2C (Kuayue acquisition), and B2B;
JDL’s stock price rose 60%+ while it was our top pick for 2024. We reiterate the company as our TOP buy idea in the China logistics space for 2025;

China Logistics (Part 1): ZTO Has a Unit Economics Problem

ZTO’s market share losses may accelerate as peers continue to cut prices. Worse yet, margins of its competitors are improving, which will sustain the war for a longer time;
ZTO has maintained profitability growth despite the price war, but we think this situation is unsustainable. Management will eventually need to sacrifice profitability or suffer accelerated share loss.
We now take a more bearish view on ZTO as we see no quick solution to the profit and market share balancing act.

Xiaomi’s Smartphone Share Gain in Japan Is a Harbinger of Good Things to Come

Xiaomi’s Japan market share rose to ~7% in C2Q24 from the year prior, driven by carrier partnerships and brand recognition from SU7 media coverage and a product partnership with LEICA;
Upon examination, we found Xiaomi filled a product gap left by the smartphone exits of Kyocera and Fujitsu, for the carriers, which account for 90% of handset sales in Japan;
In our view, Xiaomi’s success in Japan marks a turning point in its global brand perception, signaling potential for further growth in other developed and high end developing markets.

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Dec 28

Daily Brief Japan: Makino Milling Machine Co, Nippon Shinyaku, Nidec Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Nidec Goes Hostile On Makino Milling at ¥11,000/Share
Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000
Nippon Shinyaku (4516 JP): Unfavorable Patent Verdict; Company Vows to Fight Back
Nidec (6594 JP): Acquisition of Makino Milling Would Add Value

Nidec Goes Hostile On Makino Milling at ¥11,000/Share

This morning, Nidec Corp (6594 JP)announced that it intended to launch a Tender Offer on Makino Milling Machine Co (6135 JP) without the support of Makino management.
The same pattern as Takisawa Machine Tool (6121 JP). Nidec decides, relying on the METI Guidelines for Corporate Takeovers for procedure, announces, and puts the onus on the Target to accept.
But shareholders should hope Makino Milling takes a page from the example provided by Chilled & Frozen Logistics Holdings (9099 JP) back in spring 2024. This could get funky.

Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000

Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share, an 18.9% premium to the last close.
The offer is preconditioned on several regulatory approvals. It is scheduled to start on 4 April, even if the Board does not recommend it.
The Board has three options: engage to facilitate a friendly offer, find a white knight bidder and launch an ambitious MTM plan to thwart the offer.

Nippon Shinyaku (4516 JP): Unfavorable Patent Verdict; Company Vows to Fight Back

By Tina Banerjee

A US court found Nippon Shinyaku (4516 JP) guilty of patent infringement related to competitor Sarepta Therapeutics (SRPT US)‘s DMD drug Vyondys 53 and asked to pay $115M as compensation.
The jury verdict will have no bearing on Viltepso sales. Nippon Shinyaku disagreed with the verdict, and is considering all options including post jury motions and appeals.
An additional expense to the tune of $115M would surely be a huge drag on the profitability of the company which is already under pressure because of rising costs.

Nidec (6594 JP): Acquisition of Makino Milling Would Add Value

By Scott Foster

Nidec has announced its intention to acquire Makino Milling Machine (6135 JP) for ¥11,000 per share, a 42% premium over Thursday’s closing price.
The stock market liked the idea. Nidec’s share price rose 4% on Friday. Makino’s jumped 19%. The pice looks high, but at 17.7x Makino’s EPS guidance, it is not unreasonable.
The acquisition would be accretive to earnings and bring greater scale and competitiveness to Nidec’s machine tool business. It should support our Buy recommendation.

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Dec 28

Most Read: Sanrio, Kokusai Electric , LG CNS, Samsung Engineering, Makino Milling Machine Co, Shin Kong Financial Holding, Hyundai Motor , Samsung Electronics Pref Shares and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?
Japan: Potential Passive Selling in February
LG CNS IPO: Limited Float Pushes Back Passive Buying
Korea: Potential Relegations from K League 1
Nidec Goes Hostile On Makino Milling at ¥11,000/Share
Shin Kong/Taishin Merger – Proceeding Apace
Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st
Our Best Calls in 2024: Review and Outlook for 2025
What We’ve Got on Samsung Electronics’ Value-Up Disclosure
Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000

Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?

The Sanrio (8136 JP) placement is likely to be priced today. With the stock 8.8% lower from undisturbed, expect a small discount to today’s close.
The stock has traded as expected over the last 9 trading days – a sharp drop followed by a strong upward move and then profit taking.
We expect there will be strong interest in the placement and oversubscription could lead to upside from here. Shorts have increased and will look to cover into the placement.

Japan: Potential Passive Selling in February

Currently, 9 stocks could be deleted from global passive portfolios in February. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
There has been a buildup on shorts on few stocks with minimal positioning in the other stocks. That could change once the calendar ticks over to 2025.
Kokusai Electric (6525 JP) is a potential inclusion to the Nikkei 225 (NKY INDEX) in March and this deletion could provide liquidity to enter a position ahead of that announcement.

LG CNS IPO: Limited Float Pushes Back Passive Buying

LG CNS (LGCNSZ KS) is looking to raise up to KRW 1,199bn (US$830m), valuing the company at KRW 6 trillion (US$4.15bn) at the top end of the IPO price range.
As a member of the IT sector, inclusion in the KOSPI200 Index will only take place via Fast Entry (near impossible) or as a large-scale company.
Inclusion in global indices could commence in September 2025 and will be easier if the identity of the pre-IPO minority shareholders is disclosed or if the strategic investors sell.

Korea: Potential Relegations from K League 1

There are quite a few stocks in Korea that have underperformed their peers and could be deleted from global passive portfolios in February.
There are still 3 weeks left for the stocks to redeem themselves and avoid relegation from the K League, so watch out for big price moves.
Based on our estimate of passive assets, trackers will need to trade between US$45m to US$114m of the stocks. Impact will vary between 2.6x-30x of ADV to trade.

Nidec Goes Hostile On Makino Milling at ¥11,000/Share

This morning, Nidec Corp (6594 JP)announced that it intended to launch a Tender Offer on Makino Milling Machine Co (6135 JP) without the support of Makino management.
The same pattern as Takisawa Machine Tool (6121 JP). Nidec decides, relying on the METI Guidelines for Corporate Takeovers for procedure, announces, and puts the onus on the Target to accept.
But shareholders should hope Makino Milling takes a page from the example provided by Chilled & Frozen Logistics Holdings (9099 JP) back in spring 2024. This could get funky.

Shin Kong/Taishin Merger – Proceeding Apace

Once shareholders of Shin Kong Financial Holding (2888 TT) and Taishin Financial Holding (2887 TT) agreed to the merger two months ago, that meant an FSC submission would come shortly.
It came on 3rd December. Normally it takes two months, but can be extended. It appears the TFTC submission (which is considered wholly separately) was made as early as September.
This should get approved within the timeframe or not long afterwards. There is one known “document” missing from the application as of submission, but it shouldn’t be a problem.

Korea FSC Official: New Rule to Block “Treasury Stock Magic” Takes Effect on 31st

By Sanghyun Park

Korea FSC announced on the 24th that the updated Capital Markets Act rules, approved by the Cabinet, will take effect on the 31st.
Banning new shares to treasury stocks during spin-offs could shift board focus in Korea, reducing big shareholder influence and prioritizing the broader shareholder base.
The capital markets law change could shift shareholder returns from buybacks to dividends, marking a key inflection point for traders, especially in Korea’s preferred stock market.

Our Best Calls in 2024: Review and Outlook for 2025

By Osbert Tang, CFA

With a range of 34.5-68.1%, our five best calls in 2024 generated an average return of 54.1% YTD, outperforming the Hang Seng Index by 26.2pp.
China Communications Construction (1800 HK) and Dongfang Electric (1072 HK) are expected to sustain strengths into 2025 on market value management and pick-up in new orders.
Xinhua Winshare (811 HK), China Everbright Environment (257 HK), and SITC International (1308 HK) may hold their share price, but gains are unlikely to be as much as 2024.

What We’ve Got on Samsung Electronics’ Value-Up Disclosure

By Sanghyun Park

Yesterday, the FSC pushed for value-up policies, but the real buzz was about Samsung Electronics hinting at rolling out its own value-up plan soon.
Samsung may raise its dividend payout from 50% to 60% and could issue a special dividend if semiconductor results improve or FCF exceeds expectations.
Samsung’s value-up disclosure may not cause short-term price action but could strengthen downside support. It may focus on dividends over buybacks, potentially boosting preferred stock.

Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000

Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share, an 18.9% premium to the last close.
The offer is preconditioned on several regulatory approvals. It is scheduled to start on 4 April, even if the Board does not recommend it.
The Board has three options: engage to facilitate a friendly offer, find a white knight bidder and launch an ambitious MTM plan to thwart the offer.

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Dec 28

Daily Brief Energy/Materials: HD Hyundai , ChampionX , Magnolia Oil & Gas , Plains All American Pipeline, L.P. and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Dividend Procedure Improvement Plan in Compliance with Global Standards Is Passed into Law
ChampionX Corporation: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
Magnolia Oil & Gas Corporation: Acquisition Strategy & Asset Optimization Driving Our ‘Outperform’ Rating! – Major Drivers
Plains GP Holdings: Strategic Capital Allocation & Bolt-On Acquisitions As A Strategic Growth Enabler! – Major Drivers

Dividend Procedure Improvement Plan in Compliance with Global Standards Is Passed into Law

By Douglas Kim

Amid chaos in Korean politics (including impeachment of the Acting President Han Duck Soo), the FSC announced that the change in the procedure for quarterly dividends was passed into law.
The main change that has been made is that the the investors will know in advance how much they will receive in quarterly dividends.
Amid market turmoil, numerous high dividend paying stocks such as Hankook & Company, HD Hyundai, and KT Corp have been outperforming the market this year.

ChampionX Corporation: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

ChampionX Corporation delivered a mixed set of results in the fourth quarter and full year 2023, revealing both strengths and challenges in its financial performance and market position.
The company reported fourth-quarter revenue of $944 million, which was slightly up sequentially but 4% lower year-over-year, reflecting the impacts of softer U.S. land drilling and completions activity.
However, the company’s adjusted EBITDA remained flat from the previous quarter at $198 million, marking a 10% increase over the prior year, driven by higher volumes, productivity, and cost management.

Magnolia Oil & Gas Corporation: Acquisition Strategy & Asset Optimization Driving Our ‘Outperform’ Rating! – Major Drivers

Magnolia Oil & Gas Corporation’s third-quarter 2024 earnings report reveals several notable strengths and challenges that potential investors should consider when evaluating the company’s investment profile.
On the positive side, Magnolia achieved consistent financial and operational performance.
The company generated total net income of $106 million and adjusted EBITDAX of $244 million, maintaining capital discipline by spending merely 42% of its adjusted EBITDAX on drilling and completing wells.

Plains GP Holdings: Strategic Capital Allocation & Bolt-On Acquisitions As A Strategic Growth Enabler! – Major Drivers

Plains All American Pipeline, L.P. (PAGP) provided insights into its financial and operational performance in the third quarter of 2024.
The company reported a robust operational quarter, with expectations to hit the upper range of its adjusted EBITDA guidance for the year, between $2.725 billion and $2.775 billion.
This positive outlook is fueled by strong performance across several key areas.

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Dec 28

Daily Brief Industrials: Makino Milling Machine Co, JD Logistics , ZTO Express Cayman , Watts Water Technologies A, Applied Industrial Tech, Federal Signal, Boeing Co, Esab , Avis Budget Group and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Nidec Goes Hostile On Makino Milling at ¥11,000/Share
Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000
China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express
China Logistics (Part 1): ZTO Has a Unit Economics Problem
Watts Water’s Smart Solutions Revolution: How Nexa is Solving Critical Industry Challenges! – Major Drivers
Applied Industrial Technologies (AIT): Emerging Market Growth & Margin Expansion To Change The Game! – Major Drivers
Federal Signal’s Bold Capacity Expansion: Why New Facilities Will Dominate the Competition! – Major Drivers
Boeing’s Bold Comeback: Inside The $36 Billion Deal, 787 Ramp-Up & Cultural Overhaul
ESAB Corporation: Geographic Expansion & Market Penetration & Other Major Drivers
Avis Budget Group: Its Efforts Towards Fleet Optimization & Other Major Drivers

Nidec Goes Hostile On Makino Milling at ¥11,000/Share

This morning, Nidec Corp (6594 JP)announced that it intended to launch a Tender Offer on Makino Milling Machine Co (6135 JP) without the support of Makino management.
The same pattern as Takisawa Machine Tool (6121 JP). Nidec decides, relying on the METI Guidelines for Corporate Takeovers for procedure, announces, and puts the onus on the Target to accept.
But shareholders should hope Makino Milling takes a page from the example provided by Chilled & Frozen Logistics Holdings (9099 JP) back in spring 2024. This could get funky.

Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000

Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share, an 18.9% premium to the last close.
The offer is preconditioned on several regulatory approvals. It is scheduled to start on 4 April, even if the Board does not recommend it.
The Board has three options: engage to facilitate a friendly offer, find a white knight bidder and launch an ambitious MTM plan to thwart the offer.

China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express

Despite being breakeven just quarters ago, JD Logistics (2618 HK) has achieved profitability on par with global peers nearly 3x its size. Margin still has upside with further subsidiary integration;
JDL is still positioned to accelerate revenue by taking share from S.F. Holding (6936 HK) in untapped opportunities, including domestic B2C (Taobao/Tmall), cross-border B2C (Kuayue acquisition), and B2B;
JDL’s stock price rose 60%+ while it was our top pick for 2024. We reiterate the company as our TOP buy idea in the China logistics space for 2025;

China Logistics (Part 1): ZTO Has a Unit Economics Problem

ZTO’s market share losses may accelerate as peers continue to cut prices. Worse yet, margins of its competitors are improving, which will sustain the war for a longer time;
ZTO has maintained profitability growth despite the price war, but we think this situation is unsustainable. Management will eventually need to sacrifice profitability or suffer accelerated share loss.
We now take a more bearish view on ZTO as we see no quick solution to the profit and market share balancing act.

Watts Water’s Smart Solutions Revolution: How Nexa is Solving Critical Industry Challenges! – Major Drivers

Watts Water Technologies, Inc. reported a mixed performance for the third quarter of 2024, with some regions and product lines experiencing growth, while others faced challenges.
The company’s results exceeded expectations in general, though organic sales were down 4% overall.
This was primarily due to strong growth in Asia-Pacific, Middle East, and Africa (APMEA) offset by declines in the Americas and Europe.

Applied Industrial Technologies (AIT): Emerging Market Growth & Margin Expansion To Change The Game! – Major Drivers

Applied Industrial Technologies reported their fiscal 2025 first-quarter results, indicating a mixed performance amid ongoing economic uncertainties and strategic investments.
The company experienced a moderate decline in organic daily sales of 3% compared to the previous year, though this was somewhat offset by a robust September performance, surpassing initial expectations.
On the positive side, the company achieved a record first quarter for free cash flow generation, nearly doubling compared to the prior year, and maintained steady EBITDA performance, consistent with internal targets.

Federal Signal’s Bold Capacity Expansion: Why New Facilities Will Dominate the Competition! – Major Drivers

Federal Signal Corporation reported on its third-quarter 2024 performance, demonstrating a combination of year over-year growth in sales, margin expansion, and improved earnings.
Consolidated net sales grew by 6% to $474 million, marking a $28 million increase purely from organic growth.
This growth was primarily driven by their Environmental Solutions Group (ESG), whose sales increased by 7%, and the Safety and Security Systems Group (SSG), which saw a 4% rise.

Boeing’s Bold Comeback: Inside The $36 Billion Deal, 787 Ramp-Up & Cultural Overhaul

Boeing, a global aviation giant, is making waves as it navigates a pivotal turnaround after facing a tumultuous period marred by operational lapses, financial strain, and reputation challenges.
The company has recently demonstrated notable progress across several fronts.
On December 18, Boeing resumed production of its 737, 767, and 777/777X airplane programs, signaling an operational revival after a three-month machinists’ strike.

ESAB Corporation: Geographic Expansion & Market Penetration & Other Major Drivers

ESAB Corporation’s third quarter of 2024 depicts a nuanced picture of the company’s performance amid challenging market conditions.
The results highlight a blend of strategic decisions and market dynamics that, collectively, present a mixed outlook for potential investors.
On the positive side, ESAB posted record third-quarter margins and robust cash flow, setting adjusted EBITDA margins at an impressive 19.6%, marking a 130 basis point expansion.

Avis Budget Group: Its Efforts Towards Fleet Optimization & Other Major Drivers

Avis Budget Group’s third quarter of 2024 earnings report highlighted a mixed performance amid challenging conditions.
The company reported quarterly revenue of nearly $3.5 billion and adjusted EBITDA of $503 million.
The focus remains on aligning fleet size with demand to improve utilization, driven by high fleet carrying costs and vehicle interest expenses.

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Dec 28

Daily Brief Utilities: Adani Transmission and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

The Beat Ideas- Adani Energy Solution: Riding the Electricity Wave

The Beat Ideas- Adani Energy Solution: Riding the Electricity Wave

Adani Transmission (ADANIT IN) is one of the largest private player in transmission.
The management has guided for 20% YOY revenue & EBITDA growth for long term
Alongside it is trying to diversify from transmission & distribution which are regulated by the government and entered in Smart Meters, Cooling Services etc.

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Dec 28

Daily Brief Industrials: Makino Milling Machine Co, JD Logistics , ZTO Express Cayman , Watts Water Technologies A, Applied Industrial Tech, Federal Signal, Boeing Co, Esab , Avis Budget Group and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Nidec Goes Hostile On Makino Milling at ¥11,000/Share
Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000
China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express
China Logistics (Part 1): ZTO Has a Unit Economics Problem
Watts Water’s Smart Solutions Revolution: How Nexa is Solving Critical Industry Challenges! – Major Drivers
Applied Industrial Technologies (AIT): Emerging Market Growth & Margin Expansion To Change The Game! – Major Drivers
Federal Signal’s Bold Capacity Expansion: Why New Facilities Will Dominate the Competition! – Major Drivers
Boeing’s Bold Comeback: Inside The $36 Billion Deal, 787 Ramp-Up & Cultural Overhaul
ESAB Corporation: Geographic Expansion & Market Penetration & Other Major Drivers
Avis Budget Group: Its Efforts Towards Fleet Optimization & Other Major Drivers

Nidec Goes Hostile On Makino Milling at ¥11,000/Share

This morning, Nidec Corp (6594 JP)announced that it intended to launch a Tender Offer on Makino Milling Machine Co (6135 JP) without the support of Makino management.
The same pattern as Takisawa Machine Tool (6121 JP). Nidec decides, relying on the METI Guidelines for Corporate Takeovers for procedure, announces, and puts the onus on the Target to accept.
But shareholders should hope Makino Milling takes a page from the example provided by Chilled & Frozen Logistics Holdings (9099 JP) back in spring 2024. This could get funky.

Makino Milling Machine (6135 JP): Nidec’s (6594 JP) Hostile Preconditional Tender Offer at JPY11,000

Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share, an 18.9% premium to the last close.
The offer is preconditioned on several regulatory approvals. It is scheduled to start on 4 April, even if the Board does not recommend it.
The Board has three options: engage to facilitate a friendly offer, find a white knight bidder and launch an ambitious MTM plan to thwart the offer.

China Logistics (Part 2): All JD Logistic Roads Lead Back to S.F. Express

Despite being breakeven just quarters ago, JD Logistics (2618 HK) has achieved profitability on par with global peers nearly 3x its size. Margin still has upside with further subsidiary integration;
JDL is still positioned to accelerate revenue by taking share from S.F. Holding (6936 HK) in untapped opportunities, including domestic B2C (Taobao/Tmall), cross-border B2C (Kuayue acquisition), and B2B;
JDL’s stock price rose 60%+ while it was our top pick for 2024. We reiterate the company as our TOP buy idea in the China logistics space for 2025;

China Logistics (Part 1): ZTO Has a Unit Economics Problem

ZTO’s market share losses may accelerate as peers continue to cut prices. Worse yet, margins of its competitors are improving, which will sustain the war for a longer time;
ZTO has maintained profitability growth despite the price war, but we think this situation is unsustainable. Management will eventually need to sacrifice profitability or suffer accelerated share loss.
We now take a more bearish view on ZTO as we see no quick solution to the profit and market share balancing act.

Watts Water’s Smart Solutions Revolution: How Nexa is Solving Critical Industry Challenges! – Major Drivers

Watts Water Technologies, Inc. reported a mixed performance for the third quarter of 2024, with some regions and product lines experiencing growth, while others faced challenges.
The company’s results exceeded expectations in general, though organic sales were down 4% overall.
This was primarily due to strong growth in Asia-Pacific, Middle East, and Africa (APMEA) offset by declines in the Americas and Europe.

Applied Industrial Technologies (AIT): Emerging Market Growth & Margin Expansion To Change The Game! – Major Drivers

Applied Industrial Technologies reported their fiscal 2025 first-quarter results, indicating a mixed performance amid ongoing economic uncertainties and strategic investments.
The company experienced a moderate decline in organic daily sales of 3% compared to the previous year, though this was somewhat offset by a robust September performance, surpassing initial expectations.
On the positive side, the company achieved a record first quarter for free cash flow generation, nearly doubling compared to the prior year, and maintained steady EBITDA performance, consistent with internal targets.

Federal Signal’s Bold Capacity Expansion: Why New Facilities Will Dominate the Competition! – Major Drivers

Federal Signal Corporation reported on its third-quarter 2024 performance, demonstrating a combination of year over-year growth in sales, margin expansion, and improved earnings.
Consolidated net sales grew by 6% to $474 million, marking a $28 million increase purely from organic growth.
This growth was primarily driven by their Environmental Solutions Group (ESG), whose sales increased by 7%, and the Safety and Security Systems Group (SSG), which saw a 4% rise.

Boeing’s Bold Comeback: Inside The $36 Billion Deal, 787 Ramp-Up & Cultural Overhaul

Boeing, a global aviation giant, is making waves as it navigates a pivotal turnaround after facing a tumultuous period marred by operational lapses, financial strain, and reputation challenges.
The company has recently demonstrated notable progress across several fronts.
On December 18, Boeing resumed production of its 737, 767, and 777/777X airplane programs, signaling an operational revival after a three-month machinists’ strike.

ESAB Corporation: Geographic Expansion & Market Penetration & Other Major Drivers

ESAB Corporation’s third quarter of 2024 depicts a nuanced picture of the company’s performance amid challenging market conditions.
The results highlight a blend of strategic decisions and market dynamics that, collectively, present a mixed outlook for potential investors.
On the positive side, ESAB posted record third-quarter margins and robust cash flow, setting adjusted EBITDA margins at an impressive 19.6%, marking a 130 basis point expansion.

Avis Budget Group: Its Efforts Towards Fleet Optimization & Other Major Drivers

Avis Budget Group’s third quarter of 2024 earnings report highlighted a mixed performance amid challenging conditions.
The company reported quarterly revenue of nearly $3.5 billion and adjusted EBITDA of $503 million.
The focus remains on aligning fleet size with demand to improve utilization, driven by high fleet carrying costs and vehicle interest expenses.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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Dec 28

Daily Brief Consumer: Daesang Corporation, Installed Building Products, Netflix Inc, Universal Corp/Va and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Korea Small Cap Gem #31: Daesang – A Consistently Profitable F&B Company Run by the Lim Sisters
Installed Building Products (IBP): Can It Really Sustain Its Margins Amidst Market Fluctuations? – Major Drivers
Netflix’s Bold Leap Into Live Entertainment: Will It Streamline Success or Buffer Disappointment?
Universal Corp/Va (UVV) – Friday, Sep 27, 2024

Korea Small Cap Gem #31: Daesang – A Consistently Profitable F&B Company Run by the Lim Sisters

By Douglas Kim

Daesang is one of the leading F&B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients.
Daesang has relatively attractive valuation multiples. It is trading at P/E of 5.6x, P/B of 0.46x, and EV/EBIT of 6.4x in 2025. Daesang consistently generates positive net profit.
Daesang Holdings (084690 KS) is the largest shareholder of Daesang Corp with a 39.3% stake. Two sisters (Lim Sang-Min and Lim Se-Ryeong) are the two largest shareholders of Daesang Holdings.

Installed Building Products (IBP): Can It Really Sustain Its Margins Amidst Market Fluctuations? – Major Drivers

Installed Building Products Inc. (IBP) reported a strong third quarter for 2024, displaying record revenue and profitability driven by organic growth and strategic acquisitions.
The quarter’s earnings highlighted robust performance across residential and commercial segments, although some challenges persist.
On the positive side, IBP achieved a consolidated net revenue increase of 8% year-over-year, reaching $761 million.

Netflix’s Bold Leap Into Live Entertainment: Will It Streamline Success or Buffer Disappointment?

Netflix has become synonymous with on-demand entertainment, revolutionizing how viewers consume content.
Yet, in a bid to diversify its offerings and capture a broader audience, the streaming giant is making a calculated foray into live entertainment.
On Christmas Day 2024, Netflix is set to air its first-ever NFL games, a high-stakes move that includes major star power like Beyoncé performing at halftime.

Universal Corp/Va (UVV) – Friday, Sep 27, 2024

By Value Investors Club

Universal Corporation is experiencing challenges due to questions about its terminal value and high leverage, making its equity more vulnerable
The company has significantly increased its debt in recent years, leading to a decrease in market cap while enterprise value has risen
Universal is the top producer of tobacco leaf, primarily used in American-blend cigarettes, but faces competition from other producers like Alliance One in a declining market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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Dec 28

Daily Brief Health Care: Strides Pharma Science , Eli Lilly & Co, Nippon Shinyaku and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

The Beat Ideas: Strides Pharma~ A Growth Play Post OneSource Demerger
Eli Lilly’s Weight Loss Revolution: Is It Edging Out Novo Nordisk?
Nippon Shinyaku (4516 JP): Unfavorable Patent Verdict; Company Vows to Fight Back

The Beat Ideas: Strides Pharma~ A Growth Play Post OneSource Demerger

Strides Pharma achieved record growth in the US, launched high-ticket generics, and is spinning off OneSource CDMO with a projected valuation of $1.8-$2 billion by Q4FY25.
Deleveraging efforts, diversified revenue streams, and regulatory approvals position Strides for profitability recovery, with expected FY26 EBITDA of ₹1,000 crore, driving long-term growth.
Strides is evolving into a leaner, growth-focused entity with reduced debt, a strong US portfolio, and OneSource spin-off, offering ~25% upside from its current market valuation.

Eli Lilly’s Weight Loss Revolution: Is It Edging Out Novo Nordisk?