In today’s briefing:
- Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears
- Sai Gon Cargo Service (SCS VN) Q2 FY25: Maintaining 75% Operating Margins and 50% ROCEs
- AeroEdge (7409 JP)
Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears
- In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
- The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
- Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.
Sai Gon Cargo Service (SCS VN) Q2 FY25: Maintaining 75% Operating Margins and 50% ROCEs
- Sai Gon Cargo Service (SCS VN) reported flat earnings for Q2 FY25, with operating margins/net margins at 75%/65% and ROCEs topping 50%.
- The tariff increases (16% YoY) offset the degrowth in volumes (-5%YoY) and the increase in effective taxation (from 11% to 20%).
- Based on management guidance, the stock trades at 9.3x FY25 PE, with an 8.6% dividend yield
AeroEdge (7409 JP)
- Earlier this month, Substack writer Gezzogero mentioned AeroEdge (7409 JP) (7409 JP — US$88 million) on his blog.
- I thought it was a fantastic write-up and wanted to dig into it myself.
- The company is a supplier of aircraft components. It manufactures low-pressure turbine blades for the well-regarded LEAP jet engine, which is used in narrow-body aircraft such as the Airbus (AIR FP) A320neo and Boeing (BA US) 737 MAX.
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