Daily Brief Industrials: CK Hutchison Holdings, BayCurrent Consulting , Sandvik AB, Full Truck Alliance , Arcadis NV, Avingtrans plc and more

• As part of a US$22.8bn transaction, BlackRock, Global Infrastructure Partners and Terminal Investment, have agreed to buy two contentious Panama ports from Li Ka-shing’s CK Hutchison (1 HK) (CKH).
• The transaction also includes an 80% stake in CKH’s ports subsidiaries, which operate 43 ports comprising 199 berths in 23 countries.
• CKH expects cash proceeds in excess of US$19bn. CKH’s current market cap was – at the time of deal – also  ~US$19bn. 

• In a big surprise, there is only one change for the Nikkei 225 (NKY INDEX) in March with BayCurrent Consulting (6532 JP) replacing Mitsubishi Logistics (9301 JP). 
• The non-inclusion of Kokusai Electric (6525 JP) is a big surprise given that the stock was ranked among the top 75 stocks by liquidity. There could be selling near-term.
• BayCurrent Consulting (6532 JP) has been added at a 0.5 PAF and that will increase to 1 in September. Fast Retailing (9983 JP) could be capped yet again in September.

• The March 2025 Nikkei 225 Average Review was announced last night. Something of a disaster for Team Quiddity. I had expected 2-3 ADDs and 2-3 DELETEs.
• We got only one change, and that was my second choice ADD and second choice DELETE. Top 75 name Kokusai Electric (6525 JP) was missing in action. BIG Disappointment. 🤔
• BayCurrent Consulting (6532 JP) is in at a PAF of 0.5, with an upweight end-Sep. Mitsubishi Logistics (9301 JP) is OUT. Fast Retailing (9983 JP) will see US$2.3bn of sells.

• Discussion with Darren Kwok from Barminko and Andrew Dawson from Sandvik about load and haul equipment in the mining industry
• Explanation of different types of load and haul equipment, including full battery, hybrid, and diesel electric
• Exploration of reasons why certain technologies, like diesel electric, have not been widely adopted in underground mining operations

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• On March 5 Chinese freight platform Full Truck Alliance posted another great set of results
• Strong Q424 top-line growth was matched by firm OpEx control, leading to higher margins
• We’ve upped our FY25 earnings numbers; we rate YMM a BUY with a US$17/ADS target

• In this edition: • Philips | recall of its Tack implants • Universal Music Group | independent labels file objections against Downtown Music deal • Arcadis | CFO will step down at the end of May

• The omni-channel specialist fishing tackle and equipment retailer updates on Trading for the Y/E January 2025.
• The Board expects to report revenue and adjusted EBITDA slightly ahead of market expectations.
• Its revenue is 11.9% ahead at £91.3m and 7.1% higher on a like for like basis. Its European online sales increased 7.1% to £4.6m.