Daily Brief Industrials: Singamas Container Holdings, Contemporary Amperex Technology (CATL), Nidec Corp and more

In today’s briefing:

Singamas (716 HK): Further Positive Indications from CIMC Profit Alert
ECM Weekly (27th Jan 2025) – CATL, HDB Financial, Dr Agarwal’s, Eco-Shop, Vikran, Sanil, Timee
Nidec (6594 JP): Growth Prospects Improving

Singamas (716 HK): Further Positive Indications from CIMC Profit Alert

China International Marine Cntnrs Gp (2039 HK)‘s positive profit alert suggested a very solid performance for Singamas Container Holdings (716 HK) in 4Q24.
Annualising Singamas’ 1H24 earnings for the full year will mean a 78% profit surge in 2H24, but this is still conservative – CIMC’s 2H24 profit leaped 93x YoY.
Trading on 6x PER, versus CIMC’s 10.3x, the stock is cheap. Net cash equals 86% of market capitalisation, potentially providing a yield higher than the 8.8% currently projected.

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we had a look at the possible A/H listing for Contemporary Amperex Technology (CATL) (300750 CH), along with a few large IPOs in India .
On the placements front, while there weren’t any large deals launched, we did look at the lockup expiry for Timee Inc (215A JP) and Sanil Electric (062040 KS).

Outlook improving with rising demand for energy storage systems and near-line HDDs and water cooling modules for AI servers.
3Q results point to FY sales above and profits in line with management’s guidance. Proceeding toward acquisition of Makino Milling next fiscal year.
At 17.5x projected earnings and 10x cash flow, the shares are at the bottom of their 10-year valuation range. Buy for the medium- to long term.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network