Category

Industrials

Feb 25
0

Daily Brief Industrials: Eva Airways, Wan Hai Lines, Grab Holdings , Controladora Vuela Cia De-A, Ingersoll Rand , Grupo Aeroportuario Sur-Adr and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Leaderboard T50/​​​100 Mar25: Final Expectations; Tung Ho Steel Safe from TDIV Deletion
  • Taiwan Top 50 ETF Rebalance Preview: Wan Hai Lines (2615 TT) Sailing Its Way In
  • Sea Ltd & Grab Holdings: Non-Benchmark Attraction
  • VOLARA MM – Actinver Research – VOLAR 4Q24: Positive Quarterly Results (Quick View)
  • Ingersoll Rand’s Strategy for Asia-Pacific Growth & Major Growth Drivers!
  • ASR US – Actinver Research – ASUR 4Q24: Positive Results, Beating our estimates (Quick View)

Quiddity Leaderboard T50/​​​100 Mar25: Final Expectations; Tung Ho Steel Safe from TDIV Deletion

By Janaghan Jeyakumar, CFA

  • The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
  • Today is the base date for the March 2025 index rebal event and the expected ADDs/DELs discussed in this insight are our final index change expectations.
  • We expect one change for T50 and two changes for T100 index for the March 2025 rebalance.

Taiwan Top 50 ETF Rebalance Preview: Wan Hai Lines (2615 TT) Sailing Its Way In

By Brian Freitas

Sea Ltd & Grab Holdings: Non-Benchmark Attraction

By Steven Holden

  • Grab Holdings hits new high in EM fund ownership, Sea Ltd reverses downward momentum.
  • Both stocks lag more established players in the ASEAN region.
  • Grab Holdings attracted the highest number of new investors in the ASEAN region over the last 6-months, though Sea Ltd captures the larger portfolio positions among managers.

VOLARA MM – Actinver Research – VOLAR 4Q24: Positive Quarterly Results (Quick View)

By Actinver

  • Operating revenues of US$835 m decreased by 7% YoY.
  • Top-line results were negatively impacted by a 5% YoY contraction in the ASMs (due to mandatory engine inspections, which resulted in the landing of some airplanes) and a 6% YoY drop in RPMs. Yields in the quarter ended at US$50.0, implying an 8% YoY contraction.
  • The load factor in 4Q24 was 87.3%, with a 0.8 pp YoY contraction.

Ingersoll Rand’s Strategy for Asia-Pacific Growth & Major Growth Drivers!

By Baptista Research

  • Ingersoll Rand’s fourth-quarter 2024 earnings present a balanced view of the company’s current performance and future outlook.
  • The company reported strong financial results, including robust free cash flow margins and double-digit adjusted EPS growth, despite facing a dynamic global market.
  • This performance is attributed to their economic growth engine and the disciplined application of their competitive differentiation strategy, IRX.

ASR US – Actinver Research – ASUR 4Q24: Positive Results, Beating our estimates (Quick View)

By Actinver

  • Operating Revenues of P$7.3bn were driven by solid aeronautical growth.
  • Total operating sales growth of 19% YoY was driven by a 25% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+25% YoY), which offset the 0.3% drop in total PAX.
  • On the other hand, non-aeronautical revenues (34% of the total) gained 9% YoY, supported by an implicit gain of 9% YoY in the non-aeronautical revenue per PAX.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 24
0

Daily Brief Industrials: Sumitomo Corp, Grab Holdings , Sg Fleet, Republic Services, Deere & Co, Howmet Aerospace and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Warren Buffett and the Japanese Trading Houses I
  • Grab Holdings (GRAB US) – Solidifying Its Appeal
  • SG Fleet (SGF AU): 8th April Scheme Vote
  • Republic Services: The Secret Behind Its Pricing Power That’s Beating Inflation!
  • Deere’s Precision Ag Revolution – How AI & Tech Are Transforming Farming!
  • Howmet Aerospace: Can its Industrial Gas Turbine (IGT) Expansion Boost Revenue & Margins?

Warren Buffett and the Japanese Trading Houses I

By Travis Lundy

  • The Berkshire Hathaway Annual Shareholder Letter for 2024 was released this weekend. Much was made in Japanese twitter-space of the comments he made on the Japanese trading houses. 
  • He said Berkshire Hathaway’s admiration of these companies “has consistently grown” and Berkshire likes their capital deployment, managements, and their attitude in respect to investors. They also pay themselves reasonably.
  • He mentioned Berkshire will increase their stakes somewhat in the trading houses “over time.” That comment deserves some exploration, as does the comment about yen funding.

Grab Holdings (GRAB US) – Solidifying Its Appeal

By Angus Mackintosh

  • Grab Holdings (GRAB US) booked a strong finish to the year, beating its upwardly revised guidance, despite some decline in margins due to increased investment, partly due to competitive pressures.
  • The company continues to expand its total addressable market through its Saver initiatives, whilst successfully increasing monetization through its high-value products, and improving retention and engagement through Grab Unlimited.
  • Financial services and advertising are becoming increasingly important drivers for growth and profitability. Expect some seasonal slowdown in 1Q2025 but the outlook remains positive and valuations are attractive. 

SG Fleet (SGF AU): 8th April Scheme Vote

By David Blennerhassett

  • On the 25 November 2024, SG Fleet (SGF AU) (SGF), an Aussie provider of fleet leasing services, announced a A$3.50/share non-binding/indicative proposal from Sydney PE outfit Pacific Equity Partners (PEP).
  • On the 4th December, both parties entered into a SID on the same terms. SGF’s largest shareholder, Super Group (SUPER SP) (53.58%), was supportive. 
  • The Scheme Booklet is now out, with a Scheme Meeting on the 8th April. Expected implementation on the 30th April. The IE (Grant Thornton) says fair & reasonable.

Republic Services: The Secret Behind Its Pricing Power That’s Beating Inflation!

By Baptista Research

  • Republic Services, Inc. reported a strong financial performance for the fourth quarter and full year 2024, showcasing revenue growth across various sectors of its operations.
  • The company achieved 7% annual revenue growth and adjusted EBITDA growth of 12%, leading to a 140 basis point expansion in its adjusted EBITDA margin.
  • The adjusted earnings per share reached $6.46, accompanied by a remarkable generation of $2.18 billion in adjusted free cash flow.

Deere’s Precision Ag Revolution – How AI & Tech Are Transforming Farming!

By Baptista Research

  • Deere & Company’s latest financial results present a mixed outlook reflecting both challenges and opportunities within the company and its key markets.
  • For the first quarter, Deere reported net sales and revenues down substantially, with a 35% decline in equipment operation sales to $6.809 billion.
  • Net income attributable to the company stood at $869 million, impacted by a notable $163 million tax benefit.

Howmet Aerospace: Can its Industrial Gas Turbine (IGT) Expansion Boost Revenue & Margins?

By Baptista Research

  • Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
  • The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
  • The engine products and fasteners segments excelled, supported by robust structures performance.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 24
0

Daily Brief Industrials: Sumitomo Corp, Grab Holdings , Sg Fleet, Republic Services, Deere & Co, Howmet Aerospace and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Warren Buffett and the Japanese Trading Houses I
  • Grab Holdings (GRAB US) – Solidifying Its Appeal
  • SG Fleet (SGF AU): 8th April Scheme Vote
  • Republic Services: The Secret Behind Its Pricing Power That’s Beating Inflation!
  • Deere’s Precision Ag Revolution – How AI & Tech Are Transforming Farming!
  • Howmet Aerospace: Can its Industrial Gas Turbine (IGT) Expansion Boost Revenue & Margins?

Warren Buffett and the Japanese Trading Houses I

By Travis Lundy

  • The Berkshire Hathaway Annual Shareholder Letter for 2024 was released this weekend. Much was made in Japanese twitter-space of the comments he made on the Japanese trading houses. 
  • He said Berkshire Hathaway’s admiration of these companies “has consistently grown” and Berkshire likes their capital deployment, managements, and their attitude in respect to investors. They also pay themselves reasonably.
  • He mentioned Berkshire will increase their stakes somewhat in the trading houses “over time.” That comment deserves some exploration, as does the comment about yen funding.

Grab Holdings (GRAB US) – Solidifying Its Appeal

By Angus Mackintosh

  • Grab Holdings (GRAB US) booked a strong finish to the year, beating its upwardly revised guidance, despite some decline in margins due to increased investment, partly due to competitive pressures.
  • The company continues to expand its total addressable market through its Saver initiatives, whilst successfully increasing monetization through its high-value products, and improving retention and engagement through Grab Unlimited.
  • Financial services and advertising are becoming increasingly important drivers for growth and profitability. Expect some seasonal slowdown in 1Q2025 but the outlook remains positive and valuations are attractive. 

SG Fleet (SGF AU): 8th April Scheme Vote

By David Blennerhassett

  • On the 25 November 2024, SG Fleet (SGF AU) (SGF), an Aussie provider of fleet leasing services, announced a A$3.50/share non-binding/indicative proposal from Sydney PE outfit Pacific Equity Partners (PEP).
  • On the 4th December, both parties entered into a SID on the same terms. SGF’s largest shareholder, Super Group (SUPER SP) (53.58%), was supportive. 
  • The Scheme Booklet is now out, with a Scheme Meeting on the 8th April. Expected implementation on the 30th April. The IE (Grant Thornton) says fair & reasonable.

Republic Services: The Secret Behind Its Pricing Power That’s Beating Inflation!

By Baptista Research

  • Republic Services, Inc. reported a strong financial performance for the fourth quarter and full year 2024, showcasing revenue growth across various sectors of its operations.
  • The company achieved 7% annual revenue growth and adjusted EBITDA growth of 12%, leading to a 140 basis point expansion in its adjusted EBITDA margin.
  • The adjusted earnings per share reached $6.46, accompanied by a remarkable generation of $2.18 billion in adjusted free cash flow.

Deere’s Precision Ag Revolution – How AI & Tech Are Transforming Farming!

By Baptista Research

  • Deere & Company’s latest financial results present a mixed outlook reflecting both challenges and opportunities within the company and its key markets.
  • For the first quarter, Deere reported net sales and revenues down substantially, with a 35% decline in equipment operation sales to $6.809 billion.
  • Net income attributable to the company stood at $869 million, impacted by a notable $163 million tax benefit.

Howmet Aerospace: Can its Industrial Gas Turbine (IGT) Expansion Boost Revenue & Margins?

By Baptista Research

  • Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
  • The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
  • The engine products and fasteners segments excelled, supported by robust structures performance.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 23
0

Daily Brief Industrials: SCREEN Holdings, Sg Fleet, Curtiss Wright, Msa Safety Inc, Waste Connections and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Screen Holdings (7735 JP): 25%+ Upside Potential
  • SG Fleet (SGF AU): Scheme Vote on 8 April
  • Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!
  • MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!
  • Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Screen Holdings (7735 JP): 25%+ Upside Potential

By Scott Foster

  • FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC. 
  • Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
  • FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

SG Fleet (SGF AU): Scheme Vote on 8 April

By Arun George

  • The Sg Fleet (SGF AU) IE considers Pacific Equity Partners’ A$3.50 offer fair and reasonable. 
  • The key conditions are shareholder (Super Group (SPG SJ) and SG Fleet) and regulatory (FIRB, OIO and FCA) approval. 
  • The offer is attractive compared to peer multiples and represents an all-time high. At the last close and for a 30 April payment, the gross/annualised spread is 1.5%/8.5%.  

Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!

By Baptista Research

  • Curtiss-Wright Corporation’s latest earnings report reflects a balanced outlook with both growth opportunities and challenges.
  • The company reported a 5% year-over-year increase in sales for the fourth quarter of 2024, driven primarily by strong performances in its Defense Electronics and Naval & Power segments.
  • However, operating income remained flat, with an operating margin holding steady at 19.8%.

MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!

By Baptista Research

  • MSA Safety Inc. reported its financial results for the fourth quarter and full-year 2024, providing insights into its operating performance and strategic direction.
  • Throughout 2024, the company executed well amidst a complex operating environment, demonstrating resilience across most product categories despite facing some challenges.
  • In 2024, MSA Safety achieved 1% growth in net sales on a reported basis and 2% on an organic basis.

Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

By Baptista Research

  • Waste Connections Inc. delivered solid financial and operational results in Q4 2024, marking a strong conclusion to the fiscal year.
  • The company’s key highlights include double-digit growth in revenue and adjusted EBITDA, indicating robust financial health.
  • However, it’s crucial to remain cognizant of both the underlying positives and potential challenges the company faces.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 23
0

Daily Brief Industrials: SCREEN Holdings, Sg Fleet, Curtiss Wright, Msa Safety Inc, Waste Connections and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Screen Holdings (7735 JP): 25%+ Upside Potential
  • SG Fleet (SGF AU): Scheme Vote on 8 April
  • Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!
  • MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!
  • Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

Screen Holdings (7735 JP): 25%+ Upside Potential

By Scott Foster

  • FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC. 
  • Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
  • FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

SG Fleet (SGF AU): Scheme Vote on 8 April

By Arun George

  • The Sg Fleet (SGF AU) IE considers Pacific Equity Partners’ A$3.50 offer fair and reasonable. 
  • The key conditions are shareholder (Super Group (SPG SJ) and SG Fleet) and regulatory (FIRB, OIO and FCA) approval. 
  • The offer is attractive compared to peer multiples and represents an all-time high. At the last close and for a 30 April payment, the gross/annualised spread is 1.5%/8.5%.  

Curtiss-Wright: The Resilience & Adaptation to Economic & Policy Shifts!

By Baptista Research

  • Curtiss-Wright Corporation’s latest earnings report reflects a balanced outlook with both growth opportunities and challenges.
  • The company reported a 5% year-over-year increase in sales for the fourth quarter of 2024, driven primarily by strong performances in its Defense Electronics and Naval & Power segments.
  • However, operating income remained flat, with an operating margin holding steady at 19.8%.

MSA Safety: Leveraging Market Demand & Standards to Fuel Sales Growth & Market Expansion!

By Baptista Research

  • MSA Safety Inc. reported its financial results for the fourth quarter and full-year 2024, providing insights into its operating performance and strategic direction.
  • Throughout 2024, the company executed well amidst a complex operating environment, demonstrating resilience across most product categories despite facing some challenges.
  • In 2024, MSA Safety achieved 1% growth in net sales on a reported basis and 2% on an organic basis.

Waste Connections: Tackling Rail Network Expansion Obstacles & 4 Critical Challenges!

By Baptista Research

  • Waste Connections Inc. delivered solid financial and operational results in Q4 2024, marking a strong conclusion to the fiscal year.
  • The company’s key highlights include double-digit growth in revenue and adjusted EBITDA, indicating robust financial health.
  • However, it’s crucial to remain cognizant of both the underlying positives and potential challenges the company faces.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 22
0

Daily Brief Industrials: HD Hyundai Marine Solution , Brunel International Nv, Allison Transmission Holdings, Masco Corp, Sensata Technologies Holding P, Wesco International, Lyft and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector
  • What’s New(s) in Amsterdam – 21 February (SBM Offshore | Brunel Int’l | PostNL)
  • Allison Transmission: The Electrification Bet That Could Reshape Its Future!
  • Masco Corporation: An Insight Into The $88 Billion R&R Market That’s Driving Its Growth!
  • Sensata Technologies: Automotive Market Expansion to Grow & Capture Market Share Of Automotive Industry!
  • WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine!
  • Lyft Inc.: The AV Race & Why It Could Make Or Break the Company!

Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector

By Douglas Kim

  • On 19 February, KKR sold 2 million shares (4.49%) stake in HD Hyundai Marine Solution at 147,500 won (9.3% discount to the previous day’s closing price), representing 295 billion won.
  • Therefore, we would argue that these major shipbuilding shares in Korea (such as HD Hyundai Heavy Industries and Hanwha Ocean) could face more difficult headwinds in the coming months. 
  • KKR’s timing of its block deal sale of HD Hyundai Marine Solution also reflects its attempt to partially sell its shares while the stock price is still at lofty levels. 

What’s New(s) in Amsterdam – 21 February (SBM Offshore | Brunel Int’l | PostNL)

By The IDEA!

  • In this edition: • SBM Offshore | main takeaways earnings call • Brunel International | strong FY24 free cash flow – optimism for FY25 a bit tempered?
  • • PostNL | reiterates its urgent appeal for a financial contribution from the Dutch state

Allison Transmission: The Electrification Bet That Could Reshape Its Future!

By Baptista Research

  • Allison Transmission’s fourth-quarter and full-year 2024 results showcase a solid performance, marked by record net sales of $3.2 billion for the year.
  • The company’s strategic focus on expanding its market share and diversifying product offerings has contributed positively to its financial outcomes.
  • On the positive side, Allison Transmission experienced a 15% increase in net sales for its North America on highway market, driven by strong demand for its 3000 and 4000 Series products.

Masco Corporation: An Insight Into The $88 Billion R&R Market That’s Driving Its Growth!

By Baptista Research

  • Masco Corporation’s recent fiscal year results and strategic initiatives present a multifaceted picture for potential investors.
  • The company concluded 2024 with a modest performance, encapsulated by a 3% decrease in fourth-quarter top-line revenue, largely due to its divestiture of Kichler Lighting.
  • Adjusting for this divestment and currency impacts, sales saw a marginal increase of 1%, driven by higher volumes in the decorative architectural segment.

Sensata Technologies: Automotive Market Expansion to Grow & Capture Market Share Of Automotive Industry!

By Baptista Research

  • Sensata Technologies reported its financial results for the fourth quarter and full year 2024, presenting a mixed performance.
  • The company recorded revenue of $908 million for the fourth quarter, surpassing the top end of its guidance range of $870 million to $900 million.
  • This represents a sequential improvement in adjusted operating margins for the fourth consecutive quarter.

WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine!

By Baptista Research

  • WESCO International, Inc. reported a mixed set of results during their fourth quarter and full-year 2024 earnings call.
  • The company highlighted a return to sales growth in Q4, primarily led by an over 70% growth in its Data Center business and a 20% growth in its Broadband business.
  • However, this was offset by a slowdown in sales with industrial customers in December and a continued weakness in their Utility segment.

Lyft Inc.: The AV Race & Why It Could Make Or Break the Company!

By Baptista Research

  • Lyft’s recent financial performance and strategic initiatives provide a multifaceted outlook for potential investors.
  • In 2024, Lyft achieved several milestones that signal its efforts toward strengthening its market position.
  • The company reported substantial records with a peak in rides, riders, and driver hours, resulting in increased market share compared to previous years.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 22
0

Daily Brief Industrials: HD Hyundai Marine Solution , Brunel International Nv, Allison Transmission Holdings, Masco Corp, Sensata Technologies Holding P, Wesco International, Lyft and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector
  • What’s New(s) in Amsterdam – 21 February (SBM Offshore | Brunel Int’l | PostNL)
  • Allison Transmission: The Electrification Bet That Could Reshape Its Future!
  • Masco Corporation: An Insight Into The $88 Billion R&R Market That’s Driving Its Growth!
  • Sensata Technologies: Automotive Market Expansion to Grow & Capture Market Share Of Automotive Industry!
  • WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine!
  • Lyft Inc.: The AV Race & Why It Could Make Or Break the Company!

Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector

By Douglas Kim

  • On 19 February, KKR sold 2 million shares (4.49%) stake in HD Hyundai Marine Solution at 147,500 won (9.3% discount to the previous day’s closing price), representing 295 billion won.
  • Therefore, we would argue that these major shipbuilding shares in Korea (such as HD Hyundai Heavy Industries and Hanwha Ocean) could face more difficult headwinds in the coming months. 
  • KKR’s timing of its block deal sale of HD Hyundai Marine Solution also reflects its attempt to partially sell its shares while the stock price is still at lofty levels. 

What’s New(s) in Amsterdam – 21 February (SBM Offshore | Brunel Int’l | PostNL)

By The IDEA!

  • In this edition: • SBM Offshore | main takeaways earnings call • Brunel International | strong FY24 free cash flow – optimism for FY25 a bit tempered?
  • • PostNL | reiterates its urgent appeal for a financial contribution from the Dutch state

Allison Transmission: The Electrification Bet That Could Reshape Its Future!

By Baptista Research

  • Allison Transmission’s fourth-quarter and full-year 2024 results showcase a solid performance, marked by record net sales of $3.2 billion for the year.
  • The company’s strategic focus on expanding its market share and diversifying product offerings has contributed positively to its financial outcomes.
  • On the positive side, Allison Transmission experienced a 15% increase in net sales for its North America on highway market, driven by strong demand for its 3000 and 4000 Series products.

Masco Corporation: An Insight Into The $88 Billion R&R Market That’s Driving Its Growth!

By Baptista Research

  • Masco Corporation’s recent fiscal year results and strategic initiatives present a multifaceted picture for potential investors.
  • The company concluded 2024 with a modest performance, encapsulated by a 3% decrease in fourth-quarter top-line revenue, largely due to its divestiture of Kichler Lighting.
  • Adjusting for this divestment and currency impacts, sales saw a marginal increase of 1%, driven by higher volumes in the decorative architectural segment.

Sensata Technologies: Automotive Market Expansion to Grow & Capture Market Share Of Automotive Industry!

By Baptista Research

  • Sensata Technologies reported its financial results for the fourth quarter and full year 2024, presenting a mixed performance.
  • The company recorded revenue of $908 million for the fourth quarter, surpassing the top end of its guidance range of $870 million to $900 million.
  • This represents a sequential improvement in adjusted operating margins for the fourth consecutive quarter.

WESCO International: Why Its Vendor Consolidation Strategy Is a Potential Goldmine!

By Baptista Research

  • WESCO International, Inc. reported a mixed set of results during their fourth quarter and full-year 2024 earnings call.
  • The company highlighted a return to sales growth in Q4, primarily led by an over 70% growth in its Data Center business and a 20% growth in its Broadband business.
  • However, this was offset by a slowdown in sales with industrial customers in December and a continued weakness in their Utility segment.

Lyft Inc.: The AV Race & Why It Could Make Or Break the Company!

By Baptista Research

  • Lyft’s recent financial performance and strategic initiatives provide a multifaceted outlook for potential investors.
  • In 2024, Lyft achieved several milestones that signal its efforts toward strengthening its market position.
  • The company reported substantial records with a peak in rides, riders, and driver hours, resulting in increased market share compared to previous years.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 21
0

Daily Brief Industrials: Sotetsu Holdings, Adani Ports & Special Economic Zone, Mastech Digital , NOW Inc, Urban-Gro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring
  • Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance
  • Lucror Analytics – Morning Views Asia
  • MHH: Mastech Digital Starts the Year with a New CEO
  • DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity
  • UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring

By Travis Lundy

  • Sotetsu Holdings (9003 JP) today announced a large-ish secondary equity offering – 10% of shares out and 20% of Max Real World Float. 
  • This is crossholders selling down roughly 30% of what they own. Sotetsu announced a buyback for a quarter of the offering over the next six months.
  • The shareholder structure and distribution within Max Real World Float tells you all you need to know.

Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance

By Nicholas Tan

  • A group of shareholders are looking to raise US$135m from selling their respective stakes in Sotetsu Holdings (9003 JP) .
  • While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, ReNew Energy

  • In the US, January 2025 housing starts fell 9.8% m-o-m (-7.3% e / 16.1% p) to an annualised pace of 1.37 mn units, as builders pulled back on construction after a surge in December 2024. Meanwhile, building permits rose 0.1% (-1.5% e / -0.7% p) in January 2025.

  • The minutes of the US FOMC’s January 28-29th meeting showed that Fed officials expressed readiness to hold the policy rate at a restrictive level, if the economy remains strong and inflation stays elevated.

MHH: Mastech Digital Starts the Year with a New CEO

By Zacks Small Cap Research

  • Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
  • The company trades below its peers and we expect stock price appreciation now that the company has returned to growth and taken on a new extremely experienced CEO.
  • It also plans to grow through acquisition.

DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity

By Water Tower Research

  • DNOW’s capacity to generate free cash flow, coupled with its strong balance sheet, position the company to capitalize on accretive growth opportunities in 2025 and continue returning cash to shareholders through its share repurchase program.
  • The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.
  • fter completing an $80 million share repurchase program in 4Q24, the board authorized a new $160 million repurchase program in January 2025.

UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

By Small Cap Consumer Research

  • We are reiterating our Buy rating on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance with their financial filings after switching auditors at the end of May 2024.
  • While the re-audited changes are (in our opinion) minor, the simultaneous release of results for 2Q24 and 3Q24 show urban-gro is still in transition, even while management aggressively reduces costs and focuses on profitable projects.
  • As such, and given UGRO now trades near historic lows as investors lost patience with the lengthy accounting review and the expected approval of cannabis in Florida and Federal cannabis category shifts have not occurred, we believe it is appropriate for us to be less aggressive in the near term.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 21
0

Daily Brief Industrials: Sotetsu Holdings, Adani Ports & Special Economic Zone, Mastech Digital , NOW Inc, Urban-Gro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring
  • Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance
  • Lucror Analytics – Morning Views Asia
  • MHH: Mastech Digital Starts the Year with a New CEO
  • DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity
  • UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring

By Travis Lundy

  • Sotetsu Holdings (9003 JP) today announced a large-ish secondary equity offering – 10% of shares out and 20% of Max Real World Float. 
  • This is crossholders selling down roughly 30% of what they own. Sotetsu announced a buyback for a quarter of the offering over the next six months.
  • The shareholder structure and distribution within Max Real World Float tells you all you need to know.

Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance

By Nicholas Tan

  • A group of shareholders are looking to raise US$135m from selling their respective stakes in Sotetsu Holdings (9003 JP) .
  • While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, ReNew Energy

  • In the US, January 2025 housing starts fell 9.8% m-o-m (-7.3% e / 16.1% p) to an annualised pace of 1.37 mn units, as builders pulled back on construction after a surge in December 2024. Meanwhile, building permits rose 0.1% (-1.5% e / -0.7% p) in January 2025.

  • The minutes of the US FOMC’s January 28-29th meeting showed that Fed officials expressed readiness to hold the policy rate at a restrictive level, if the economy remains strong and inflation stays elevated.

MHH: Mastech Digital Starts the Year with a New CEO

By Zacks Small Cap Research

  • Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
  • The company trades below its peers and we expect stock price appreciation now that the company has returned to growth and taken on a new extremely experienced CEO.
  • It also plans to grow through acquisition.

DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity

By Water Tower Research

  • DNOW’s capacity to generate free cash flow, coupled with its strong balance sheet, position the company to capitalize on accretive growth opportunities in 2025 and continue returning cash to shareholders through its share repurchase program.
  • The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.
  • fter completing an $80 million share repurchase program in 4Q24, the board authorized a new $160 million repurchase program in January 2025.

UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

By Small Cap Consumer Research

  • We are reiterating our Buy rating on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance with their financial filings after switching auditors at the end of May 2024.
  • While the re-audited changes are (in our opinion) minor, the simultaneous release of results for 2Q24 and 3Q24 show urban-gro is still in transition, even while management aggressively reduces costs and focuses on profitable projects.
  • As such, and given UGRO now trades near historic lows as investors lost patience with the lengthy accounting review and the expected approval of cannabis in Florida and Federal cannabis category shifts have not occurred, we believe it is appropriate for us to be less aggressive in the near term.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Feb 20
0

Daily Brief Industrials: Canvest Environmental Protection Group, HD Hyundai Marine Solution , Rainbow Robotics, Geek+, Watts Water Technologies A, Rockwell Automation, Synergy Green Industries and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Canvest (1381 HK): Regulatory Precondition Satisfied
  • HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains
  • Insider Selling at Rainbow Robotics
  • Beijing Geekplus Pre-IPO: Losses Narrowing but Revenue Concentration Is High
  • Canvest (1381 HK): SAFE In The Bag, But Oddly, Still Not Free From Pre-Cons
  • Watts Water Technologies: An Insight Into Its Market Dynamics and Regional Opportunities!
  • Rockwell Automation: An Insight Into Its Megaproject Initiatives & Legislative Tracking!
  • Synergy Green Industries Ltd Q3 Update: Set to Triple Capacity and Maximize Growth

Canvest (1381 HK): Regulatory Precondition Satisfied

By Arun George

  • The regulatory precondition concerning Canvest Environmental Protection Group (1381 HK)’s privatisation offer from Grandblue Environment Co A (600323 CH) has been satisfied. 
  • The sole remaining precondition concerns resolving loan guarantee issues. Canvest is taking steps to resolve these issues, and satisfying this precondition is low-risk. 
  • Despite peers’ re-rating, the offer remains attractive, and the vote is low-risk. At the last close, the gross/annualised spread was 4.5%/15.0% for a mid-June payment. 

HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains

By Sumeet Singh

  • KKR & Co (KKR US) is looking to raise around US$160m via selling some of its stake in HD Hyundai Marine Solution (443060 KS) .
  • KKR had come out of its IPO linked lockup in Nov 2024 and had earlier tried to launch a deal in Dec 2024. Hence, the selldown is very well flagged.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Insider Selling at Rainbow Robotics

By Douglas Kim

  • On 19 February, it was reported that Rainbow Robotics’ VP Kim In-Hyeok sold 30,000 of his 55,000 shares (0.28% stake) on the 14th. Disposal price was 413,796 won per share.
  • At end of 2024, Samsung Electronics announced that it will become the largest shareholder of Rainbow Robotics which has been the key reason why Rainbow Robotics’ share price has surged.
  • Despite Samsung Electronics becoming the largest shareholder of Rainbow Robotics, the overly stretched valuations could result in higher downside risk ahead. It is trading at P/S of 106x in 2026.

Beijing Geekplus Pre-IPO: Losses Narrowing but Revenue Concentration Is High

By Nicholas Tan

  • Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
  • It is a leader in the global autonomous mobile robots (AMR) market, offering a series of AMR solutions to empower warehouse fulfillment and industrial material transport.
  • In this note, we look at the firm’s past performance.

Canvest (1381 HK): SAFE In The Bag, But Oddly, Still Not Free From Pre-Cons

By David Blennerhassett

  • After Canvest Environmental Protection Group (1381 HK) announced on the 23rd Jan it had secured Mofcom approval, after securing NDRC earlier that month, that left SAFE. Or so I thought. 
  • SAFE has now been secured, yet two pre-cons concerning certain (internal) guarantees remain outstanding. It’s rare to see SAFE sign off with other pre-cons still hanging. 
  • The consolation here is that KM Lai (ED, DC) and Loretta Lee (ED, CL) are on the hook for a chunk of change if they cause the proposal to lapse.

Watts Water Technologies: An Insight Into Its Market Dynamics and Regional Opportunities!

By Baptista Research

  • Watts Water Technologies Inc. reported strong financial performance in 2024 with record metrics in several areas, despite some challenges.
  • The year marked their 150th anniversary, underscoring the company’s long-standing presence in the industry.
  • The recorded results demonstrated the impact of strategic investments and operational efficiencies in mitigating broader economic pressures.

Rockwell Automation: An Insight Into Its Megaproject Initiatives & Legislative Tracking!

By Baptista Research

  • Rockwell Automation’s recent earnings provides a detailed overview of its Q1 fiscal 2025 performance and forward-looking statements.
  • The company reported a 10% year-over-year increase in orders, but an 8.5% decline in sales, attributable in part to difficult year-over-year comparisons and a sizable product backlog from fiscal 2024.
  • This backdrop reflects both the challenges posed by currency headwinds and geopolitical uncertainties, alongside strategic wins that invigorate the company’s outlook.

Synergy Green Industries Ltd Q3 Update: Set to Triple Capacity and Maximize Growth

By Sudarshan Bhandari

  • Synergy Green Industries (SYGIL IN) Q3 FY2025 results show 10.5% YoY revenue growth, 61% PBT and 128% PAT improvements, alongside capacity upgrades and increased export revenue.
  • Robust financial performance and strategic CAPEX investments in capacity expansion and green initiatives strengthen Synergy’s market position amid rising renewable energy demand.
  • The company has an installed capacity of 30,000 MT per annum, with an ongoing upgrade to 45,000 MT which is anticipated to start the production in Q2 FY2026.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free