Daily Brief Industrials: Wisdom Marine Lines, Europcar Mobility Group, GS Engineering & Construction, MillerKnoll and more

• Using data from the close on 19 July, there could be 5 changes to the Yuanta/​P-Shares Taiwan Top 50 ETF and 2 deletions for the Yuanta/​P-Shares Taiwan Dividend Plus ETF.
• Stocks that are expected to benefit from the AI revolution could gain ETF inclusion while shipping stocks are the ones expected to be deleted from the ETF.
• There has been a huge increase in shorts on some of the potential inclusions and on most of the potential deletions. That will affect how stocks trade near term.

• In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the September 2023 Rebalance.
• Some semiconductor/electronic component stocks have seen their share prices skyrocket in recent months due to AI-related excitement causing drastic shifts in Leaderboard rankings.
• In my last insight, I expected two T50 changes and one T100 change. Now I expect five T50 changes and three T100 changes.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Europcar’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Strong”.

• The Ministry of Land, Infrastructure and Transport’s investigation revealed that the collapse of GS E&C’s underground parking lot was due to deficiencies in design, construction, and supervision.
• As a response, GS E&C will undergo a comprehensive reconstruction of the entire apartment complex, costing approximately KRW 300 billion, which is equivalent to approximately USD 264 million.
• ESG risks have risen due to consumer relations regarding occupational health and safety and risk oversight, with GS E&C’s company risk rating at a ‘very high’ level of 3.1.

• Herein we revise and update MLKN estimates following MillerKnoll’s FY23 earnings report and FY24 guidance.

• Our 1QFY24 diluted non-GAAP EPS estimate is now $0.20, down $0.10 from our previous (reduced) $0.30 estimate.

• Our FY24 annual estimate is now $1.82 (down from $2.00), below the midpoint of the $1.70-$2.00 management outlook.