In today’s briefing:
- KLINE (9107) – Chances for an Additional Buyback At Q3 Earnings?
- YFO To Take the Fight To Toyo Construction’s Board
- Nidec (6594) | Down but Not Out
- Comfortdelgro (CD): Now or Never
- Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth
- Sunrun Inc: Collaboration With The Enel Group & Other Drivers
- Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)
- United Airlines: Major Drivers
KLINE (9107) – Chances for an Additional Buyback At Q3 Earnings?
- KLine is the cheapest of the three Japan majors in terms of forward consensus PER. And forward EPS ratios are improving as the company buys back shares.
- The CEO mentioned in December the possibility of additional shareholder return this fiscal year based on cashflow.
- In this insight, we look at what he knew then, and what he might know now, and the chances for an additional buyback (and how it might work).
YFO To Take the Fight To Toyo Construction’s Board
- YFO offered another Press Release yesterday. This one outlines what they see as Corporate Governance failures and offers a NEW POLICY.
- The Corporate Governance failures are indeed, failures. Toyo’s Board has failed to be transparent with shareholders, and in not at least addressing the takeover proposal, has failed its duties.
- NEW POLICY? Elect new independent directors “capable of improving the long-term corporate value and maximizing the interests of the general shareholders.” Soft war starts now.
Nidec (6594) | Down but Not Out
- Nidec slashed its full year operating profit guidance by 48% to 110 billion yen
- For Q3, Nidec reported an operating profit of 28 billion yen (-37% YoY), significantly below street expectations (51 billion)
- We remain bullish, expecting cost cutting efforts to ignite a profit recovery next year
Comfortdelgro (CD): Now or Never
- New leadership with expertise in Australia could lead to value unlocking for Australian assets.
- Q3 22 ridership has gone up to 85% and 83% of pre-COVID level for NEL and DTL while in Q3 21 was only 49% for NEL and 43% for DTL.
- The reopening has brought tourists back and increased ridership level while China’s reopening has just started and is not yet priced in.
Baycurrent Consulting: High Value-Added Projects and New Consulting Areas Drive New Phase of Growth
- Baycurrent’s share price has moved up 41.3% YTD with the company reporting strong earnings for 3QFY02/2023 which beat consensus estimates by a huge margin.
- With pandemic conditions fading off, share price began to fall with top-line growth declining slightly. However, growth rates have bounced back, and margins have seen strong improvement reaching new highs.
- Though share priced has rallied significantly over the last few months, we think there is further upside driven by value-added projects and expansion into new consulting areas.
Sunrun Inc: Collaboration With The Enel Group & Other Drivers
- Sunrun delivered strong results in the last quarter as it continued expanding net subscriber value and delivering cost efficiency.
- During the quarter, Lunar Energy unveiled the clean energy company where Sunrun invested for accelerating whole-home electrification.
- Ford’s partnership with Sunrun continues to deliver strong results.
Enphase Energy Inc: Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)
- Enphase delivered solid results for the past quarter driven largely by solid revenues through microinverters which helped them produce an all-around beat.
- Enphase Energy has recently announced the launch of IQ8 Microinverters in the Netherlands and France, thereby making the foremost expansion into the international markets for this product.
- In the U.S., the microinverter channel inventory has been very healthy, and its storage channel inventory was slightly elevated because of longer installation times.
United Airlines: Major Drivers
- United Airlines faced a challenging operating environment during the last quarter but managed to deliver an all-around beat.
- Although the company had high load factors, it quickly accommodated thousands more passengers when other airlines’ flights were cancelled.
- Domestic capacity decreased by 8%, while international capacity decreased by 12%.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
