Daily Brief Industrials: AKR Corporindo, Hanwha Ocean , Teleperformance and more

• AKR Corporindo (AKRA IJ) hosted an analyst call to outline prospects for 2025, which revealed a more positive outlook for fuel distribution driven by growth in demand from mining. 
• The chemical distribution will also benefit from demand from new smelters as well as new chemicals, whilst land sales at JIIPE are set to increase significantly in 2025. 
• The retail gas station business is picking up momentum and should benefit from the government reducing fuel subsidies. Valuations are attractive with support from a 7% dividend yield.

• KEXIM ignoring this premium could be a breach of duty, making Hanwha Ocean a prime short play. With 20% of shares, past cases suggest a 5-10% pullback.
• This play’s tougher than HMM’s. Without step-ups, timing the conversion is tricky. Early redemption’s unlikely, so the focus is on when KEXIM pulls the trigger on the conversion.
• No hints from KEXIM on the CB conversion yet, so loading up aggressively could be risky. We’ll likely need to wait for a signal from KEXIM before jumping in.

• Teleperformance is undervalued with its Language Line Solutions business not fully reflected in its current market price
• Despite strong growth and high profit margins, concerns about AI disrupting the industry have overshadowed Teleperformance’s fundamentals
• Operating across three segments, Teleperformance is positioned to capitalize on the expected growth in the customer experience management market, projected to reach $14.9 billion by 2025

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.