Daily Brief Industrials: Karman Holdings, Samsung E&A, Cathay Pacific Airways, Ajax Engineering Limited, Punch Industry, Seika Corp, CAE Inc, en Japan Inc, Epco Co Ltd and more

• The Trive Capital (private equity) backed company priced 23.0mm shares (upsized from 21.05mm) at $22.00 ($2 Above Range) and opened at $30.00 for a 36.3% gain at first trade. 
• The deal finished roughly 17-times oversubscribed with the top ten percent of the deal receiving 50% of the offerings and top 25% of the transaction receiving 75% of the allocations.
• Given the success of the IPO on day one, we will be upwardly-revising our 30-day forecast on this IPO.

• In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.
• The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. 
• We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.

• Cathay Pacific carried a total of 2,248,950 passengers in December 2024, an increase of 26.4% compared with December 2023.
• The month’s revenue passenger kilometres (RPKs) increased 27.9% year on year.
• Passenger load factor increased by 3.6 percentage points to 84.8%, while available seat kilometres (ASKs) increased by 22.5% year on year. 

• Ajax Engineering Limited (0896529D IN) raised around US$145m in its India IPO.
• Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Revenue increased to JPY30.3bn (+5.5% YoY) with operating profit at JPY1.2bn (+25.5% YoY) and net income JPY624mn.
• Revenue in China rose 14.5% YoY, while Japan and Southeast Asia saw declines due to high costs.
• A capital and business alliance with Misumi Group Inc. aims to leverage precision machining and digital technology strengths.

• Revenue for cumulative Q3 FY03/25 increased 11.7% YoY to JPY67.7bn, with operating profit up 25.2% YoY.
• The company revised its FY03/25 forecasts: revenue to JPY94.0bn, operating profit to JPY6.2bn, and net income to JPY7.5bn.
• Seika’s long-term management vision targets for FY03/31 were revised: revenue to JPY180.0bn, operating profit to JPY12.0bn.

• CAE Inc. is expected to experience transitory challenges but presents a strong investment opportunity with impending earnings acceleration and multiple normalization.
• The company holds a dominant position in the outsourced pilot training market and has strong market share in the defense simulator segment, positioning it for continued growth and profitability.
• CAE benefits from high barriers to entry and secular tailwinds in both its Civil Aviation and Defense segments, making it a compelling choice for investors seeking long-term growth potential.

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.

• en Japan’s FY03/25 sales declined to JPY48.4bn (-2.6% YoY), with operating profit at JPY3.8bn (+48.6% YoY).
• HR-Tech engage segment sales rose to JPY6.9bn (+40.7% YoY), but incurred an operating loss of JPY2.0bn.
• en Japan revised its FY03/25 forecast, projecting sales of JPY65.8bn and operating profit of JPY5.2bn.

• In FY12/24, revenue increased 10.8% YoY to JPY5.6bn, with operating profit up 106.8% YoY to JPY335mn.
• The FY12/25 forecast projects revenue of JPY6.1bn (+9.0% YoY) and net income attributable to owners of JPY455mn (+39.1% YoY).
• The new medium-term plan targets FY12/27 revenue of JPY7.5bn (+33.8% from FY12/24) and recurring profit of JPY1.0bn.