In today’s briefing:
- Gensol Engineering: Debt Woes, Management Assurances and Lingering Red Flags
- [JD.com, Inc (JD US, BUY, TP US$52) Earnings Review]: Market Calls for Longer-Term Growth Drivers
- JD Logistics Q424 Earnings: Taobao / Tmall Access Fails to Generate Expected Benefits
- National Aluminium (NACL IN) New Capacities and Cheap Valuations to Drive Returns
- Hindalco (HNDL IN): Several Positive Triggers
- Jai Corp Ltd Under CBI Investigation: Allegations of Fund Diversion and Money Laundering
- Ameren Corporation: Renewable Energy & Infrastructure Development To Drive Community Economic Growth!
- CenterPoint Energy: These Are The 6 Critical Factors That Will Define Its Success In 2025 & Beyond!
- Brookfield Renewable Partners: Adapting to Regulatory and Market Changes to Bolster Resilience & Growth Prospects!
- American Water Works: Infrastructure Investment & Rate Base Growth to Sustain The Growth Trajectory!
Gensol Engineering: Debt Woes, Management Assurances and Lingering Red Flags
- Gensol clarified that debt woes are because of short term liability mismatch which contradicts with Lender’s clarification
- Promoter said they will buy from the open market and will also infuse money into company but their recent stake sale again contradicts.
- 2nd CFO Resignation within 6 months further raises alarm over governance issues.
[JD.com, Inc (JD US, BUY, TP US$52) Earnings Review]: Market Calls for Longer-Term Growth Drivers
- JD C4Q24 revenue exceeded our estimate/consensus by 3%/4% and adjusted NI by 16%/19%, driven by subsidies and logistic efficiency gains.
- We expect JD to maintain 11% YoY revenue growth in C1H25 but moderate to 5.9% in 2H.
- We maintain JD.com’s TP at US$ 52 and the BUY rating. Market concern on lack of details for long term driver is valid but JD.com still has time.
JD Logistics Q424 Earnings: Taobao / Tmall Access Fails to Generate Expected Benefits
- Investors had hoped to see tangible benefits of Taobao / Tmall access in Q424 results
- But revenue growth acceleration was unimpressive, and core margins fell noticeably
- We believe its disappointing Q424 numbers will result in near-term underperformance
National Aluminium (NACL IN) New Capacities and Cheap Valuations to Drive Returns
- NACL posted its best ever quarterly performance in 3QFY25, driven by a sharp spike in alumina prices. Alumina prices have since cooled off but remain elevated at above US$450/t
- NACL is set to expand its alumina capacity by 33% over the next 12 months. This will help double its external alumina sales from 1mt to 2mt.
- Trades at 25% discount to historic PE of 13x despite record earnings, healthy balance sheet and strong near-term volume growth driven by brownfield expansion.
Hindalco (HNDL IN): Several Positive Triggers
- Play on rising aluminium demand. Aluminium demand has outpaced supply with strong Chinese demand.
- Management has guided better margins at Novelis which faced a temporary drop in margins due to scrap shortages.
- Hindalco’s Indian operations are fully integrated with captive bauxite, alumina and to certain extent for energy. Trades at a 20%+ discount to its historic PE multiples.
Jai Corp Ltd Under CBI Investigation: Allegations of Fund Diversion and Money Laundering
- Jai Corp Ltd (JFI IN) allegedly misappropriated INR2,434 crore from investors, diverted funds offshore, and engaged in fraudulent trading, triggering CBI probe into financial misconduct, money laundering, illegal stock manipulation.
- The Bombay High Court directed a CBI investigation after allegations surfaced of fake exports, foreign currency loan diversion, and fund rotation through shell companies in Mauritius and Jersey.
- Jai Corp claims no official notice of the FIR yet but pledges full cooperation; investors await regulatory actions from SEBI, RBI, and ED, which could impact the company’s financial standing.
Ameren Corporation: Renewable Energy & Infrastructure Development To Drive Community Economic Growth!
- Ameren Corporation reported strong operational and financial results for 2024, marked by strategic investments and regulatory successes.
- The company achieved adjusted earnings of $4.63 per share, surpassing the previous year’s $4.38 per share and exceeding the adjusted earnings guidance midpoint for 2024.
- This growth was largely driven by strategic infrastructure investments and weather-normalized retail sales growth of approximately 2% across Ameren Missouri.
CenterPoint Energy: These Are The 6 Critical Factors That Will Define Its Success In 2025 & Beyond!
- CenterPoint Energy reported its fourth quarter and full year 2024 earnings, showcasing both positive and challenging aspects.
- The company achieved a non-GAAP earnings per share (EPS) of $0.40 for the fourth quarter and $1.62 for the full year, reflecting an 8% increase over the previous year.
- This marks the fourth consecutive year of meeting or exceeding annual non-GAAP EPS guidance.
Brookfield Renewable Partners: Adapting to Regulatory and Market Changes to Bolster Resilience & Growth Prospects!
- Brookfield Renewable Partners recently reported its fourth-quarter 2024 results, marking a year of significant operational and financial achievements.
- The company delivered its strongest financial performance to date, driven by a robust demand for its low-cost renewable energy.
- The company reported a 10% increase in funds from operations (FFO) per unit year-on-year, fueled by inflation-linked and contracted cash flows, strategic acquisitions, and organic growth initiatives.
American Water Works: Infrastructure Investment & Rate Base Growth to Sustain The Growth Trajectory!
- American Water’s recent conference call focused on several key aspects of their financial and operational performance during 2024, as well as future outlooks.
- Delivered earnings per share (EPS) for the year stood at $5.39, reflecting an 8% growth owing to favorable weather conditions and strategic investments.
- Notably, $3 billion was invested into capital initiatives, while regulatory efforts resulted in successful rate case agreements across multiple jurisdictions.
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