Daily Brief Industrials: SITC International, Quanta Services, SIA Engineering, Deutsche Post and more

• SITC International (1308 HK)‘s positive profit alert beat the FY24 forecast by 12%. It also suggests an acceleration in growth to 1.9-2.1x in 2H24, from +13% in 1H24. 
• The muted share price performance reflects concerns about an influx of capacity, intra-Asia demand outlook, and freight rate prospects. We refute such worries.
• It stands on an attractive dividend yield of 11.1% for FY24. Even under conservative earnings forecasts, its 8.1% and 6.6% yields for FY25 and FY26 are appealing.

Key points

• Quanta Services has addressed issues and made investments in its electric power infrastructure solutions segment
• Surge in demand due to regulatory shifts and one-off projects has benefitted Quanta Services, but demand is expected to decrease in 2024
• Limited total addressable market and unsustainable peak expectations make Quanta Services a compelling short opportunity

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.

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