Daily Brief Equity Bottom-Up: Unloved Japan Round Up Jan. 3: Set Up for A Banner Year? and more

• 2025 will start with more attractive turnaround opportunities than we have seen in a long time. 
• An uptick in TOBs, MBOs and merger discussions makes it suddenly no longer safe to short low-PBR companies indiscriminately.
• Investors are noticing. More than two-dozen large- and medium-cap stocks with deep discounts to the benchmark began to bounce off well-defined support levels in late December.

• Reliance bought 5,286 acres of prime industrial land in Navi Mumbai, which was sold for a surprisingly low INR 2,200 cr whose economic value is around INR 1 Lakh cr.
• This complex transaction done at a steep discount raises corporate governance issues for other shareholders like Jai Corp owing to valuations, disclosure lapses and minority shareholder rights.
• We delve into details of the deal structure and what it means for respective companies’s shareholders.

• NewMarket Corporation reported its financial results for the third quarter of 2024, presenting a mixed performance with noteworthy insights into its operations and strategic initiatives.
• In terms of financial performance, the company achieved a net income of $132 million, translating to $13.79 per share, compared to $111 million or $11.60 per share in the same period last year.
• This indicates an improvement in profitability on a year-over-year basis.

• AI agents are becoming more powerful assistants but need careful management to avoid potential risks.
• Honor is preparing for an IPO with corporate restructuring and rebranding efforts.
• Taiwan tightens restrictions on tech exports to China while the US considers banning Chinese drones like DJI.

• Admiral shares have shown strong performance with a 13% CAGR since May 2018 and reaching all-time-highs after 1H24 results
• Despite recent pullbacks, Admiral’s market cap of £8.6bn is considered very cheap
• The market underestimates Admiral’s potential, with the business transitioning from a “sell” to a “buy” consensus in recent years and earnings upgrades through 2024

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.

• Triumph Group presented a mix of performance outcomes in its second quarter fiscal 2025 results.
• The company demonstrated a commendable increase in its aftermarket growth, which surged 13% year-over-year and contributed over 60% to its profit.
• This was achieved through robust spares and repairs activities within both commercial and military sectors, setting a positive trend amid some broader market challenges.

• Valvoline Inc. announced its fourth-quarter and full fiscal year 2024 earnings, underlining its solid market position in the retail services sector, yet facing specific growth challenges.
• For fiscal 2024, Valvoline reported a significant 12% increase in system-wide store sales reaching $3.1 billion, along with adjusted EBITDA growth of 17% to $443 million.
• However, there were concerns as net revenue and same-store sales growth landed just below expectations.

• Great portfolio of assets, most notably 10 hotels under the Peninsula brand name
• Capex has been excessive over the past 10 years, especially in London, but the company is now focused on execution and paying back debt. Both London and Istanbul ramping up.
• NAV per share of HK$24 per share, putting at the HK$6.2 price at a 74% discount to NAV. Key is whether Philip Kadoorie will unlock value once he takes over.

• Tri Pointe Homes’ (TPH) latest financial results for the third quarter of 2024 present a combination of robust performance metrics and strategic market positioning, alongside noted challenges in certain geographies and market segments.
• As a residential home builder operating across diverse U.S. markets, Tri Pointe achieved notable gains in home deliveries, revenue growth, and profitability, yet remains vigilant of macroeconomic and regional headwinds impacting future outlook.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Stevanato Group’s third-quarter 2024 financial results present a complex picture that warrants a balanced examination of both its organizational strategies and market dynamics.
• The company reported a modest 2% revenue growth year-over-year, slightly tempered by persistent challenges in its Engineering segment and vial destocking effects.
• These factors influenced management’s decision to lower the full-year 2024 guidance for adjusted EBITDA and adjusted diluted EPS.