In today’s briefing:
- Furukawa (5715 JP) – Third Capital Policy Change in a Year Means Big Buyback
- Taiwan Top 50 ETF Rebalance Preview: Eva Air (2618 TT) Winging Its Way In
- China Pair Trade: Long China Comm Const (1800 HK), Short China Railway Group (390 HK)
- Emerson Electric: What Is The Reason Behind Its Multi-Billion Dollar Aftermarket Revenue?
- Uber Technologies: Expanding Network & Geographic Penetration To Shape the Future!
Furukawa (5715 JP) – Third Capital Policy Change in a Year Means Big Buyback
- In May 2023, Furukawa Co Ltd (5715 JP) decided it would review cross-holdings as part of its Actions to Implement Management Awareness of Capital Cost and Share Price.
- In February 2024, it announced a cross-holding reduction policy, and then accelerated it in May 2024. They’ve been selling. They did a small buyback too.
- Monday they announced a LARGE buyback (looks larger than it is) leaving future capital allocation policy better, but still wanting. The question is now the forward-forward bet.
Taiwan Top 50 ETF Rebalance Preview: Eva Air (2618 TT) Winging Its Way In
- Eva Airways (2618 TT) is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in March, replacing Formosa Chemicals & Fibre (1326 TT).
- Passive trackers will have 1 day of ADV to buy in Eva Airways (2618 TT) and over 3 days of ADV to sell in Formosa Chemicals & Fibre (1326 TT).
- Positioning on Eva Airways (2618 TT) does not appear excessive while Formosa Chemicals & Fibre (1326 TT) seems to be oversold.
China Pair Trade: Long China Comm Const (1800 HK), Short China Railway Group (390 HK)
- Long China Communications Construction (1800 HK), short China Railway Group Ltd H (390 HK) is a good strategy to capitalise on the recent underperformance of CCCC.
- CCCC has a stronger contract momentum than CRG – its FY24 new contracts were up 7.3%, but CRG was down 12.4%. CCCC is also better positioned for urban construction growth.
- In terms of dividend yield, CCCC is higher at 6.8% for FY25, yet CRG is only 6.3%. CCCC’s performance should pick up in the rest of 2025.
Emerson Electric: What Is The Reason Behind Its Multi-Billion Dollar Aftermarket Revenue?
- Emerson Electric Co. reported a solid start to fiscal year 2025, marked by robust operational performance, strategic investments, and a focus on growth markets.
- The company’s first-quarter results highlighted several key positive and negative aspects that are crucial for stakeholders considering investment in Emerson.
- Positively, Emerson reported underlying sales growth of 2% for the first quarter, driven largely by its process and hybrid businesses, which rose by around 5%.
Uber Technologies: Expanding Network & Geographic Penetration To Shape the Future!
- The fourth quarter and full year 2024 earnings report for Uber Technologies Inc. presents several key points pertinent to an investment thesis.
- Uber delivered growth across several metrics, surpassing its expectations and the guidance provided to investors a year prior.
- Gross bookings grew by 21% on a constant currency basis, exceeding the projected mid- to high-teens growth rate.
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