In today’s briefing:
- TOPIX Index Upweights: An Early Preview Of “The Big April Basket” 2025
- Fanuc (6594) | Robots in Reverse
- Doosan Enerbility: Thoughts on the IPO of Doosan Skoda Power
- Karman Holdings Inc.(KRMN): Peeking at the Prospectus of Upcoming Space and Defense IPO
- Duplicate of CSX Corporation: A Hurricane-Hit Performance But Fundamentals Remain Strong! – Major Drivers
- Fastenal Company: Expanding Onsite & Branch Sales Strategy To Up Their Game! – Major Drivers
- Monthly Container Shipping Tracker: December Respite Likely Short-Lived | Stay SHORT (January 2025)
- Union Pacific Corporation: Its Efforts Towards Volume Growth & Market Resilience! – Major Drivers
- Alaska Air Group: International Expansion & Fleet Modernization As A Critical Factor Driving Growth! – Major Drivers
- 3M Company: Will Innovation & Product Development Keep Its Stock Attractive For Long-Term Investors? – Major Drivers
TOPIX Index Upweights: An Early Preview Of “The Big April Basket” 2025
- The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation.
- For companies with “low liquidity” the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation.
- Every April, the application of this liquidity factor is reviewed by the TSE. In this insight, we take an early look at what could happen in April 2025.
Fanuc (6594) | Robots in Reverse
- Consolidated net sales slipped 0.4% to ¥197 billion, while operating income slipped 14.6%, hitting ¥34.9 billion
- The yen’s Q3 weakness erased ¥11 billion in unrealised inventory profits, dragging reported operating profit below expectations
- Recovery in order book is key positive. However, given the stock’s outperformance over the past 3 months, there is less upside.
Doosan Enerbility: Thoughts on the IPO of Doosan Skoda Power
- Doosan Skoda Power is getting ready to complete an IPO on the Prague Stock Exchange. The IPO is aiming to gather up to 2.53 billion crowns, or about US$105.5 million.
- Post IPO, Doosan Power System plans to maintain a 67% ownership. Doosan Enerbility (034020 KS) owns a 100% stake in Doosan Power Systems.
- If Doosan Skoda Power is valued at 8.3 billion crowns and if we annualize the company’s net profit to 473 billion in 2024, this would suggest a P/E of 17.5x.
Karman Holdings Inc.(KRMN): Peeking at the Prospectus of Upcoming Space and Defense IPO
- Private Equity backed Karman Holdings filed a S-1 with the SEC for a potential February debut.
- For the nine months ended September 30, 2024, they generated $254.0 million in revenue, representing a 24.7% growth rate from the same period in 2023.
- Their integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense and space sector initiatives.
Duplicate of CSX Corporation: A Hurricane-Hit Performance But Fundamentals Remain Strong! – Major Drivers
- The CSX Corporation’s earnings reveal a complex landscape influenced by numerous external factors, while also showcasing internal resilience and growth initiatives.
- For the fiscal year 2024, CSX faced a multitude of challenges, including adverse weather events like hurricanes, weaker commodity prices, and infrastructure disruptions, notably the collapse of the Francis Scott Bridge.
- These external pressures led to fluctuations in financial performance, especially in specific segments like coal and intermodal transportation.
Fastenal Company: Expanding Onsite & Branch Sales Strategy To Up Their Game! – Major Drivers
- Fastenal Company recently held its 2024 annual and fourth-quarter earnings call, providing insights into its financial and operational performance.
- The company reported a modest fourth-quarter sales growth of 3.7% (2.1% on a daily sales rate), indicating a stabilization in sales amidst a challenging industrial economy.
- Although sales grew slightly, the company did not meet its own expectations, with earnings per share (EPS) decreasing by 2% to $0.46.
Monthly Container Shipping Tracker: December Respite Likely Short-Lived | Stay SHORT (January 2025)
- After four straight months of decline, our index of price momentum stabilized in December
- But unsustainably strong US imports & potential Suez re-opening suggest rates to keep falling
- We retain our bearish view of the container shipping segment, and suggest staying SHORT
Union Pacific Corporation: Its Efforts Towards Volume Growth & Market Resilience! – Major Drivers
- Union Pacific Corporation’s latest earnings release for the fourth quarter of 2024 highlights a mixture of both positive and challenging aspects in the company’s financial performance and operational execution.
- This nuanced overview can aid potential investors and stakeholders in forming a balanced investment thesis regarding the company.
- For the positive aspects, Union Pacific demonstrated solid financial growth, with quarterly net income reaching $1.8 billion and earnings per share increasing by 7% to $2.91.
Alaska Air Group: International Expansion & Fleet Modernization As A Critical Factor Driving Growth! – Major Drivers
- Alaska Air Group, Inc. reported its financial performance for the fourth quarter of 2024, giving investors insight into its trajectory post-acquisition of Hawaiian Airlines.
- The company finished 2024 with a GAAP net income of $71 million for the fourth quarter and $395 million for the full year.
- When adjusted for special items and mark-to-market fuel hedge adjustments, these numbers rose to $125 million for the quarter and $625 million annually.
3M Company: Will Innovation & Product Development Keep Its Stock Attractive For Long-Term Investors? – Major Drivers
- The Fourth Quarter earnings call for 3M, held on January 21, 2025, highlighted the company’s strong financial performance despite ongoing challenges.
- The quarter was marked by a 2.1% organic revenue growth with an adjusted earnings per share (EPS) of $1.68.
- 3M generated $1.3 billion in free cash flow, maintaining a conversion rate of 145% and returned $1.1 billion to shareholders through dividends and repurchases.
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