Industrials

Danish Power (DANISH IN) stands to benefit from India’s aggressive shift towards renewable energy, particularly solar, supported by strong product offerings like Inverter Duty Transformers, which drive substantial revenue growth.
DPL’s strategic shift to higher-margin products, improved operating leverage, and expanded capacity should fuel margin expansion and support sustained profitability, positioning it well for continued growth and competitiveness.
With a robust order book exceeding INR 400 crore and an active pipeline, DPL has solid revenue visibility supported by strong demand in domestic and international markets.

The Beat Ideas- Shilchar Technologies: Powering the Grid, Energizing Growth

Shilchar’s focus on Inverter Duty Transformers positions it to capitalize on the booming renewable energy sector, especially solar, supporting long-term growth and profitability.
Shilchar’s recent capacity expansion, with a potential to scale further, ensures it can meet increasing domestic and export demand for transformers, positioning it for sustained market leadership.
Shilchar’s debt-free balance sheet and strong cash reserves enable strategic reinvestment in capacity and technology, ensuring continued growth in the competitive transformer industry.

Furukawa (5715 JP) – Course-Correcting for Growth

By Astris Advisory Japan

With a 150-year track record, Furukawa operates in Machinery and Materials production.
Machinery focuses on heavy equipment for infrastructure, mining, and crushed stone, while electrolytic copper and byproducts have traditionally led Materials.
The company is undergoing a strategic shift, prioritizing higher-margin Machinery growth while significantly reducing unprofitable electrolytic copper exports.

ASR US – Actinver Research – ASUR 1Q25: Positive Results In Line With Our Estimates (Quick View)

By Actinver

Operating Revenues of P$8.2bn were driven by solid aeronautical growth and positive performance on the non-aeronautical front.
Total operating sales growth of 14% YoY was driven by a 12% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+12% YoY), which supported the 0.2% gain in total PAX.
On the other hand, non-aeronautical revenues (36% of the total) gained 17% YoY, supported by an implicit gain of 17% YoY in the non-aeronautical revenue per PAX.

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Apr 23

Daily Brief Industrials: IHI Corp, Spindex Industries, Danish Power, Shilchar Technologies, Furukawa Co Ltd, Grupo Aeroportuario Sur-Adr and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

IHI Corp (7013 JP): Global Index Inclusion in May
Spindex (SPE SP) Illiquid but Very Cheap Company
The Beat Ideas: Danish Power Limited – Riding the Green Energy Wave
The Beat Ideas- Shilchar Technologies: Powering the Grid, Energizing Growth
Furukawa (5715 JP) – Course-Correcting for Growth
ASR US – Actinver Research – ASUR 1Q25: Positive Results In Line With Our Estimates (Quick View)

IHI Corp (7013 JP): Global Index Inclusion in May

By Brian Freitas

IHI Corp (7013 JP) has had a monster rally over the last year with the stock price tripling over the period. That could now result in a global index inclusion.
IHI Corp (7013 JP) has outperformed its peers over the last year but still trades cheaper than the average and median of its peers on quite a few valuation metrics.
The appears to be a lot of positioning in the stock, but we see a similar pattern in its peers too. There could be some upside over the near term.

Spindex (SPE SP) Illiquid but Very Cheap Company

By Punit Khanna

Spindex is an illiquid but well managed company listed in Singapore
It trades at less than 2X EV/EBDITA multiple while its competitor Innovalues got privatised at 9 X EV/EBDITA
With 60% of market cap in cash, ex-cash current assets are more than total liabilities, offering limited downside

The Beat Ideas: Danish Power Limited – Riding the Green Energy Wave

Danish Power (DANISH IN) stands to benefit from India’s aggressive shift towards renewable energy, particularly solar, supported by strong product offerings like Inverter Duty Transformers, which drive substantial revenue growth.
DPL’s strategic shift to higher-margin products, improved operating leverage, and expanded capacity should fuel margin expansion and support sustained profitability, positioning it well for continued growth and competitiveness.
With a robust order book exceeding INR 400 crore and an active pipeline, DPL has solid revenue visibility supported by strong demand in domestic and international markets.

The Beat Ideas- Shilchar Technologies: Powering the Grid, Energizing Growth

Shilchar’s focus on Inverter Duty Transformers positions it to capitalize on the booming renewable energy sector, especially solar, supporting long-term growth and profitability.
Shilchar’s recent capacity expansion, with a potential to scale further, ensures it can meet increasing domestic and export demand for transformers, positioning it for sustained market leadership.
Shilchar’s debt-free balance sheet and strong cash reserves enable strategic reinvestment in capacity and technology, ensuring continued growth in the competitive transformer industry.

Furukawa (5715 JP) – Course-Correcting for Growth

By Astris Advisory Japan

With a 150-year track record, Furukawa operates in Machinery and Materials production.
Machinery focuses on heavy equipment for infrastructure, mining, and crushed stone, while electrolytic copper and byproducts have traditionally led Materials.
The company is undergoing a strategic shift, prioritizing higher-margin Machinery growth while significantly reducing unprofitable electrolytic copper exports.

ASR US – Actinver Research – ASUR 1Q25: Positive Results In Line With Our Estimates (Quick View)

By Actinver

Operating Revenues of P$8.2bn were driven by solid aeronautical growth and positive performance on the non-aeronautical front.
Total operating sales growth of 14% YoY was driven by a 12% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+12% YoY), which supported the 0.2% gain in total PAX.
On the other hand, non-aeronautical revenues (36% of the total) gained 17% YoY, supported by an implicit gain of 17% YoY in the non-aeronautical revenue per PAX.

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Apr 22

Daily Brief Industrials: LS Corp, HMM Co., Ltd., Hyundai Engineering & Construction, ABB Ltd, Green Impact Partners , Legrand SA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Lee Jae-Myung’s Camp Just Dropped Their Latest Market Stimulus Play
HMM’s 2T KRW Buyback Tender to Drop Before June End
Korea Value Up (3 Winners and 7 Losers Among KOSPI 200 Companies) In March and April 2025
Weekly Update (ABB, MEDXF, LION)
Sustainable Investing Surveyor Focus on Green Impact Partners (GIP)
Legrand S.A. – Company Update: March 21, 2025

Lee Jae-Myung’s Camp Just Dropped Their Latest Market Stimulus Play

They’re making it easier to spot stocks benefiting from policy shifts. Lee Jae-myung’s camp is giving more detail upfront, with a focus on FuriosaAI and related listed stocks.
If cumulative voting passes, expect a pop in stocks with governance issues, activist interest, or large NPS stakes, like Hyosung affiliates, Doosan, HL Mando, and POSCO Holdings.
They also aim to give parent shareholders first crack at spun-off subsidiaries going public and require buyback cancellations, likely benefiting SK and LS Group affiliates, Samsung Electronics, and POSCO Holdings.

HMM’s 2T KRW Buyback Tender to Drop Before June End

This buyback facilitates KDB’s exit, as rules prevent a block trade benefiting one shareholder. KDB plans to tender a 4–5% stake, or about 40% of the 2 trillion KRW buyback.
Given HMM’s tight float, the premium is likely above the usual 10%, making it a strong opportunity for short-term arbitrage trading.
The key is timing the announcement. With the June deadline, we need to monitor hot money flows into HMM to build our position before the news breaks.

Korea Value Up (3 Winners and 7 Losers Among KOSPI 200 Companies) In March and April 2025

By VRS (Valuation & Research Specialists)

In this insight, we provide the details of the 10 most recent companies in KOSPI 200 that have announced their Corporate Value Up plans (April and March 2025).
These 10 companies in KOSPI 200 that have announced their Corporate Value Up plans are down on average 1.3% versus KOSPI which is down 2% in the same period.
Three companies that have outperformed KOSPI (since their Corporate Value Up report announcement) include Hanmi Semiconductor, Hyundai Engineering & Construction, and Samyang Foods.

Weekly Update (ABB, MEDXF, LION)

By Richard Howe

April 17, 2025, ABB Ltd (ABB) announced its intention to spin off its entire robotics division.
The robotics unit, recognized as the world’s second-largest industrial robot manufacturer after Japan’s FANUC, generated $2.3 billion in revenue in 2024, accounting for approximately 7% of ABB’s total sales.
However, its profit margin stood at 12.1%, trailing the group’s overall margin of 18.1%, primarily due to subdued demand in the automotive sector.

Sustainable Investing Surveyor Focus on Green Impact Partners (GIP)

By Water Tower Research

The WTR Sustainable Index was up 1.2% W/W versus the S&P 500 Index (down 1.5%), the Russell 2000 Index (up 1.1%) and the Nasdaq Index (down 2.3%).
Energy Technology (12.5% of the index) was up 0.3%, while Industrial Climate and Ag Technology (46.5% of the index) was up 3.1%, ClimateTech Mining was up 0.5%, and Advanced Transportation Solutions (20.9% of the index) was down 1.7%.
Top 10 Performers: TMC, EGT, HCNWF, CVW, HLGN, GGR, SX, IPWR, ABML, WAVE

Legrand S.A. – Company Update: March 21, 2025

Our estimations for FY 2025 annual revenue range at around €9,168 million and for 2026 at around €9,718 million.
The company’s annual revenue reached €8,649 million in 2024 compared to €8,417 million in 2023, post- ing an increase by 2.76%. Legrand S.A. (or the company) gross profit for FY 2024 was €4,466 million, increased by 1.52% compared to €4,399 million for the corresponding period of 2023.
In addition, during FY 2024 EBITDA amounted to €2,022 million, while EBT and EATAM settled at €1,578 million and €1,166 million respectively.

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Apr 22

Daily Brief Industrials: LS Corp, HMM Co., Ltd., Hyundai Engineering & Construction, ABB Ltd, Green Impact Partners , Legrand SA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Lee Jae-Myung’s Camp Just Dropped Their Latest Market Stimulus Play
HMM’s 2T KRW Buyback Tender to Drop Before June End
Korea Value Up (3 Winners and 7 Losers Among KOSPI 200 Companies) In March and April 2025
Weekly Update (ABB, MEDXF, LION)
Sustainable Investing Surveyor Focus on Green Impact Partners (GIP)
Legrand S.A. – Company Update: March 21, 2025

Lee Jae-Myung’s Camp Just Dropped Their Latest Market Stimulus Play

They’re making it easier to spot stocks benefiting from policy shifts. Lee Jae-myung’s camp is giving more detail upfront, with a focus on FuriosaAI and related listed stocks.
If cumulative voting passes, expect a pop in stocks with governance issues, activist interest, or large NPS stakes, like Hyosung affiliates, Doosan, HL Mando, and POSCO Holdings.
They also aim to give parent shareholders first crack at spun-off subsidiaries going public and require buyback cancellations, likely benefiting SK and LS Group affiliates, Samsung Electronics, and POSCO Holdings.

HMM’s 2T KRW Buyback Tender to Drop Before June End

This buyback facilitates KDB’s exit, as rules prevent a block trade benefiting one shareholder. KDB plans to tender a 4–5% stake, or about 40% of the 2 trillion KRW buyback.
Given HMM’s tight float, the premium is likely above the usual 10%, making it a strong opportunity for short-term arbitrage trading.
The key is timing the announcement. With the June deadline, we need to monitor hot money flows into HMM to build our position before the news breaks.

Korea Value Up (3 Winners and 7 Losers Among KOSPI 200 Companies) In March and April 2025

By VRS (Valuation & Research Specialists)

In this insight, we provide the details of the 10 most recent companies in KOSPI 200 that have announced their Corporate Value Up plans (April and March 2025).
These 10 companies in KOSPI 200 that have announced their Corporate Value Up plans are down on average 1.3% versus KOSPI which is down 2% in the same period.
Three companies that have outperformed KOSPI (since their Corporate Value Up report announcement) include Hanmi Semiconductor, Hyundai Engineering & Construction, and Samyang Foods.

Weekly Update (ABB, MEDXF, LION)

By Richard Howe

April 17, 2025, ABB Ltd (ABB) announced its intention to spin off its entire robotics division.
The robotics unit, recognized as the world’s second-largest industrial robot manufacturer after Japan’s FANUC, generated $2.3 billion in revenue in 2024, accounting for approximately 7% of ABB’s total sales.
However, its profit margin stood at 12.1%, trailing the group’s overall margin of 18.1%, primarily due to subdued demand in the automotive sector.

Sustainable Investing Surveyor Focus on Green Impact Partners (GIP)

By Water Tower Research

The WTR Sustainable Index was up 1.2% W/W versus the S&P 500 Index (down 1.5%), the Russell 2000 Index (up 1.1%) and the Nasdaq Index (down 2.3%).
Energy Technology (12.5% of the index) was up 0.3%, while Industrial Climate and Ag Technology (46.5% of the index) was up 3.1%, ClimateTech Mining was up 0.5%, and Advanced Transportation Solutions (20.9% of the index) was down 1.7%.
Top 10 Performers: TMC, EGT, HCNWF, CVW, HLGN, GGR, SX, IPWR, ABML, WAVE

Legrand S.A. – Company Update: March 21, 2025

Our estimations for FY 2025 annual revenue range at around €9,168 million and for 2026 at around €9,718 million.
The company’s annual revenue reached €8,649 million in 2024 compared to €8,417 million in 2023, post- ing an increase by 2.76%. Legrand S.A. (or the company) gross profit for FY 2024 was €4,466 million, increased by 1.52% compared to €4,399 million for the corresponding period of 2023.
In addition, during FY 2024 EBITDA amounted to €2,022 million, while EBT and EATAM settled at €1,578 million and €1,166 million respectively.

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Apr 21

Daily Brief Industrials: Daihatsu Diesel Mfg, Adani Ports & Special Economic Zone, Evergreen Marine Corp, Lalatech Holdings Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

*NEW* USTR Section 301 Proposed Actions on China Maritime Dominance
Adani Ports: Riding the Global Ports Wave with Scale, Margin, and Visibility
Monthly Container Shipping Tracker | Price Turns Negative | Tariff, Ship Levy Impacts (April 2025)
Lalatech IPO | Review of FY24 Financials & OpStats | Mostly Solid Numbers | Plus a Few Questions

NEW USTR Section 301 Proposed Actions on China Maritime Dominance

By Travis Lundy

Biden’s USTR came out with a flawed Section 301 report on Chinese maritime “dominance” in January. It is not that China shipbuilding is not dominant, but the report was flawed.
In February/March (flawed) measures were proposed. Then mostly minimally-insightful hearings were held. Then Trump came out with an Executive Order “Restoring America’s Maritime Dominance” (that requires looking back 80yrs).
Now we have new USTR Proposed Measures which water down the old ones quite considerably.

Adani Ports: Riding the Global Ports Wave with Scale, Margin, and Visibility

By Rahul Jain

NQXT brings structural leverage: 35 MMT of throughput, 65% EBITDA margin, and zero-debt funding makes this a clean, long-cycle infrastructure asset. Pro forma FY27E EV/EBITDA compresses to 12.6x; P/E 19x.
FY25 guidance upgraded: Revenue now pegged at Rs29,000–31,000 Cr (vs Rs26,000–27,000 Cr earlier), EBITDA at Rs18,800–18,900 Cr, and cargo volume at 460–480 MMT — upper band implies a strong Q4.
Trades at 12.6x FY27E EV/EBITDA, APSEZ offers growth, operating leverage, and global strategic footprint and ramping port utilization. Likely disruptions in trade flows post Trump tariffs is a risk.

Monthly Container Shipping Tracker | Price Turns Negative | Tariff, Ship Levy Impacts (April 2025)

For the first time since Q322, our price momentum index flipped to negative
We see few signs of US tariff impacts in the March data — not surprising
New US levies on China-built ships unhelpful, but most carriers can adjust

Lalatech IPO | Review of FY24 Financials & OpStats | Mostly Solid Numbers | Plus a Few Questions

FY24 revenue growth of 19% solid, but mostly driven by one operating segment
Gross margin in FY24 fell on mix, but platform monetization down, too
Sharp growth in FY24 working capital requires investors’ close attention

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Apr 21

Daily Brief Industrials: Daihatsu Diesel Mfg, Adani Ports & Special Economic Zone, Evergreen Marine Corp, Lalatech Holdings Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

*NEW* USTR Section 301 Proposed Actions on China Maritime Dominance
Adani Ports: Riding the Global Ports Wave with Scale, Margin, and Visibility
Monthly Container Shipping Tracker | Price Turns Negative | Tariff, Ship Levy Impacts (April 2025)
Lalatech IPO | Review of FY24 Financials & OpStats | Mostly Solid Numbers | Plus a Few Questions

NEW USTR Section 301 Proposed Actions on China Maritime Dominance

By Travis Lundy

Biden’s USTR came out with a flawed Section 301 report on Chinese maritime “dominance” in January. It is not that China shipbuilding is not dominant, but the report was flawed.
In February/March (flawed) measures were proposed. Then mostly minimally-insightful hearings were held. Then Trump came out with an Executive Order “Restoring America’s Maritime Dominance” (that requires looking back 80yrs).
Now we have new USTR Proposed Measures which water down the old ones quite considerably.

Adani Ports: Riding the Global Ports Wave with Scale, Margin, and Visibility

By Rahul Jain

NQXT brings structural leverage: 35 MMT of throughput, 65% EBITDA margin, and zero-debt funding makes this a clean, long-cycle infrastructure asset. Pro forma FY27E EV/EBITDA compresses to 12.6x; P/E 19x.
FY25 guidance upgraded: Revenue now pegged at Rs29,000–31,000 Cr (vs Rs26,000–27,000 Cr earlier), EBITDA at Rs18,800–18,900 Cr, and cargo volume at 460–480 MMT — upper band implies a strong Q4.
Trades at 12.6x FY27E EV/EBITDA, APSEZ offers growth, operating leverage, and global strategic footprint and ramping port utilization. Likely disruptions in trade flows post Trump tariffs is a risk.

Monthly Container Shipping Tracker | Price Turns Negative | Tariff, Ship Levy Impacts (April 2025)

For the first time since Q322, our price momentum index flipped to negative
We see few signs of US tariff impacts in the March data — not surprising
New US levies on China-built ships unhelpful, but most carriers can adjust

Lalatech IPO | Review of FY24 Financials & OpStats | Mostly Solid Numbers | Plus a Few Questions

FY24 revenue growth of 19% solid, but mostly driven by one operating segment
Gross margin in FY24 fell on mix, but platform monetization down, too
Sharp growth in FY24 working capital requires investors’ close attention

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✓ Company Data and News
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Apr 20

Daily Brief Industrials: TRYT , Hanwha Aerospace, Hyundai Rotem Company and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Tryt (9164 JP): Take Profits as Takeover Speculation Swirls
Hanwha Aero: Base Case Is the Raise Goes Through
Hyundai Rotem: Surging Growth of Defense Exports

Tryt (9164 JP): Take Profits as Takeover Speculation Swirls

By Arun George

TRYT (9164 JP) shares were up 38.5% over the last two days based on a report that EQT, the controlling shareholder, had made progress in identifying bidders for its stake.
The exploration of the privatisation process is unsurprising, as Tryt was pre-rumour trading 69% below its JPY1,200 IPO price.
The upside is limited, as the last close already reflects a significant takeover premium, and a binding proposal that satisfies EQT’s price aspirations will be challenging.

Hanwha Aero: Base Case Is the Raise Goes Through

FSS has quietly greenlit Hanwha Aero’s raise — current pushback is just optics, with defense being too strategic for regulators to risk sending the wrong signal.
Hanwha Aero’s second updated filing should check the FSS box, and Hanwha Energy swapping cash for equity gives regulators cover to bless the deal without catching heat.
Base case is the raise goes through — trade the window between the amended filing and effective date, and shorts can still join the deal if they cover in time.

Hyundai Rotem: Surging Growth of Defense Exports

We remain impressed with Hyundai Rotem’s aggressive new orders for defense and railway systems.
Defense exports as a percentage of total sales increased from 0% in 2021 to 6.1% in 2022, 19% in 2023, and 36.4% in 2024.
Hyundai Rotem had an order backlog of 14.1 trillion won at the end of 2024. Order backlog/sales ratio was 3.2x in 2024.

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Apr 20

Daily Brief Industrials: TRYT , Hanwha Aerospace, Hyundai Rotem Company and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Tryt (9164 JP): Take Profits as Takeover Speculation Swirls
Hanwha Aero: Base Case Is the Raise Goes Through
Hyundai Rotem: Surging Growth of Defense Exports

Tryt (9164 JP): Take Profits as Takeover Speculation Swirls

By Arun George

TRYT (9164 JP) shares were up 38.5% over the last two days based on a report that EQT, the controlling shareholder, had made progress in identifying bidders for its stake.
The exploration of the privatisation process is unsurprising, as Tryt was pre-rumour trading 69% below its JPY1,200 IPO price.
The upside is limited, as the last close already reflects a significant takeover premium, and a binding proposal that satisfies EQT’s price aspirations will be challenging.

Hanwha Aero: Base Case Is the Raise Goes Through

FSS has quietly greenlit Hanwha Aero’s raise — current pushback is just optics, with defense being too strategic for regulators to risk sending the wrong signal.
Hanwha Aero’s second updated filing should check the FSS box, and Hanwha Energy swapping cash for equity gives regulators cover to bless the deal without catching heat.
Base case is the raise goes through — trade the window between the amended filing and effective date, and shorts can still join the deal if they cover in time.

Hyundai Rotem: Surging Growth of Defense Exports