In today’s briefing:
- Recruit Holdings (6098) | 2024 High Conviction
- Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal
- 2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER
- Forgital – ESG Report – Lucror Analytics
- Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)
- QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year
- Atalian – ESG Report – Lucror Analytics
Recruit Holdings (6098) | 2024 High Conviction
- We are bullish on Recruit at the current share price and believe that the stock has around 40% upside potential to our fair value estimate of Y7,700.
- We believe that investors have been overly concerned with the cyclical slowdown in the job market as it normalizes from the post-Covid recovery
- Indeed.com remains a disruptor in the HR recruiting market and the potential monetization of this asset is significantly under-appreciated by the market.
Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal
- Wuxi Lead Intelligent Equipmen (300450 CH) is looking to raise around US$300m in its upcoming Switzerland GDR listing.
- As per media reports, Wuxi Lead was said to be looking to raise US$495m via a Swiss GDR issuance, having secured approval to sell up to 78.3m shares.
- Given the decline in its share price over the year, the eventual deal size could come to around US$300m as of its current last close.
2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER
- Full Truck Alliance reported strong growth in Q3, from the right sources
- Improved sales mix & progress on expense control lifted core margins
- With 22% upside to US$9.5 based on 21x PER, our high conviction pick
Forgital – ESG Report – Lucror Analytics
- Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
- We assess Forgital’s ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Weak” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
- Forgital is a vertically integrated company that focuses on manufacturing forged components for the aerospace and industrial markets.
Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)
- October’s industry numbers hide pricing turmoil seen at company level
- STO Express appears to be using price to gain share from Yunda, others
- We believe price competition continues to hurt ‘ground’ express margins
QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year
- QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys, and Sortify.tm.
- It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market, and has a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
- The company has provided a trading update at its annual general meeting (AGM) noting that revenue and earnings (EBITDA) to the end of October were well ahead of last year and ahead of budget.
Atalian – ESG Report – Lucror Analytics
- Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
- We assess Atalian’s ESG as “Adequate”, in line with its Social score. The company has “Weak” scores for the Environmental and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.
- French building-services management company Atalian offers a range of facility management and cleaning services.
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