In today’s briefing:
- Nidec (6594) | Big Revision Down to E-Axle Sales
- Quiddity Primer for CSI 300/500 Index Rebalance Events
- Tryt IPO Trading – Subscription Rates Mostly Outdid Recent Large Japan Deals
- FedEx Corporation: What Is The Secret Sauce To Bending The Cost Curve? – Key Drivers
- Expeditors International of Washington: 5 Critical Factors Driving Our Rating On The Stock! – Financial Forecasts
- Amaero International Ltd – US Location Positive for Earnings Profile and Valuation
- Fastenal Company: 4 Key Contributing Factors To Its Growth – Financial Forecasts
Nidec (6594) | Big Revision Down to E-Axle Sales
- Nidec reported strong Q1 results – operating profit of ¥60.2 billion (+35% YoY), significantly above Street expectations of ¥45 billion
- The big positive was a rebound in profitability following successful structural cost cuts last year. The key negative is a cut to unit shipments for key growth driver, E-axles.
- We remain bearish for now given valuation of 25x EV/EBIT. We are not sure that the new growth driver in Motion & Energy will offset lowered expectations for EVs.
Quiddity Primer for CSI 300/500 Index Rebalance Events
- CSI 300 represents the 300 largest stocks by market capitalization and liquidity from the entire universe of Shanghai and Shenzhen Stock Exchanges. CSI 500 represents the next largest 500 names.
- During the periodic index rebalance events, a large number of stocks move into or out of these indices giving rise to significant flow events and attractive trading opportunities.
- In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of the CSI 300/500 index rebalance baskets.
Tryt IPO Trading – Subscription Rates Mostly Outdid Recent Large Japan Deals
- Tryt Inc (9164 JP) raised around US$344m in its Japan IPO. The IPO consisted of 100% secondary shares.
- Tryt Inc (Tryt) offers employee placement services and temporary staffing services for the elderly care, nursing care and childcare workers segments.
- In this note we will talk about the trading dynamics.
FedEx Corporation: What Is The Secret Sauce To Bending The Cost Curve? – Key Drivers
- FedEx Corporation delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.
- Though total revenue declined due to soft demand and yield pressure in international markets, the company maintained revenue quality with disciplined pricing.
- In the quarter, they launched FedEx Sustainability Insights to improve consumer access to emissions information.
Expeditors International of Washington: 5 Critical Factors Driving Our Rating On The Stock! – Financial Forecasts
- Expeditors International of Washington delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- In addition to their impressive brokerage operations, Expeditors has successfully leveraged technology and digital solutions to streamline their processes and enhance customer experience.
- We give Expeditors International of Washington a ‘Underperform’ rating with a revised target price.
Amaero International Ltd – US Location Positive for Earnings Profile and Valuation
- Amaero International Ltd (ASX:3DA) is a global specialist in titanium and specialty alloy powder production and advanced manufacturing for the defence, aerospace, and other industrial sectors.
- The company has announced that it has greenlighted its flagship 827-tonne a year titanium powder manufacturing facility in Tennessee, USA, following commitments for economic incentives from government and business organisations that were more advantageous when compared with the previous location of the United Arab Emirates.
- The new “nearing completion” industrial facility in Cleveland, Tennessee, will allow Amaero to accelerate the installation of its titanium powder manufacturing facility, delivering first production more than 12-months ahead of the slated UAE start.
Fastenal Company: 4 Key Contributing Factors To Its Growth – Financial Forecasts
- Fastenal had a disappointing second quarter of 2023 as it failed to meet the revenue expectations of analysts despite a 5.9% increase in daily sales.
- Its overall business activity has moderated since March, culminating in June with a 4.7% daily sales growth.
- We give Fastenal Company a ‘Hold’ rating with a revised target price.
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