INDUSTRIALS Archives | Page 122 of 295 | Smartkarma

• MHI’s share price has risen more than 60% year-to-date and nearly tripled over the past 12 months on the improving outlook for Japanese defense contractors.
• A huge increase in new orders, prospects for a doubling of sales and a rapidly rising operating margin on Aircraft, Defense & Space have been factored into the price.
• The shares do not look expensive compared with international comparables, but neither are they particularly cheap. Potential problems, from Japanese defense budget constraints to production glitches, have been ignored. 

• Discover SCILAL’s debut in the stock market after demerger form Shipping Corp Of India (SCI IN), its strategic disinvestment, and the hidden value within its diverse asset portfolio.
• Real Estate Assets in company and future outlook by management of SCILAL over the years going forward.
• The market value of assets is twice more than the book value. Value bet but can take longer time to monetize the same.

• Symbotic is a warehouse automation technology leader and offers end-to-end AI-powered robotic and software platform for supply chains.
• SYM’s hi-tech platform forms its deep competitive moat underpinned by significant R&D spend of $800 million and 575 issued or pending patents.
• Our positive outlook for SYM is underpinned by its hi-tech platform , a large TAM, robust order backlog ($23.2B) and its JV deal with Softbank that opens a large market.

• Despite a 3.8% decline in FY23 net profit, China Everbright Environment (257 HK)‘s profitability has still outperformed its peers by significant magnitudes. 
• Positive notes in the result are an increase in operation service revenue proportion, expansion in EBITDA margin, improvement in financial position, and addition of new projects.
• It is easy for CEE to achieve the market expectation of a 9.8% growth in FY24. Yet, it just trade on 3.6x PER, 8.5% yield, and 0.34x P/B. 

• This is our our first report on household appliances distributor, SharkNinja.
• The company’s Q4 2023 Earnings revealed that it had a robust fourth quarter, with nearly 20% growth in adjusted net sales and more than 70% growth in adjusted EBITDA. The CEO, Mark Barrocas, attributed this to the company’s growth strategy, innovation and the support from both consumers and retail partners.
• The company’s full year sales grew by over 15% nearing to $4.2 billion and with an adjusted EBITDA increase by nearly 39% reaching $720 million.

• We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings.
• Adjusted EPS of $0.23 beat our estimate as well as consensus. Revenue of $775.2 million modestly missed estimates.
• 1QFY25: We tweaked our non-GAAP (adjusted) EPS estimate to $0.11 ($0.10 previously).

• This is our first report on building management solutions provider, Acuity Brands.
• The company reported fiscal first quarter earnings, indicating positive performance for the period.
• The company demonstrated strong overall execution as it increased its adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share.

• CIMC Vehicle Group Co Ltd (1839 HK) has despatched the offer document, and the H Share HK$7.50 offer is open. The H Shareholders class vote is on 18 April.  
• The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.  
• The de-rating of peers and ongoing US investigation favours meeting the 90% threshold. However, the dire minority AGM/EGM participation rates suggest that retail apathy may derail the offer. 

• Cost and business optimisations lead to increased profits as revenues drop due to freight rate declines
• Successfully pivoting by geography as the global trading environment changes
• The company increases its dividend payout in a sign of confidence for the future

• In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2024 index rebal event.
• There could be up to three intra-review changes for the F250 index during the next two months.
• Separately, there could be one change for F100 and two changes for F250 during the regular rebalance in June 2024.

• Despite weaker 2H23 results, CIMC Enric Holdings (3899 HK) guided for solid recovery in FY24. Order backlogs reached Rmb22.9bn, which almost equals the full-year revenue.
• Clean energy segment will be supported by vessel demand, hydrogen orders, and Angang Steel project contribution. Chemical and environmental segment should rebound in 2H24.
• Liquid food spin-off is in process and it has won several domestic whiskey projects. As net cash equals 13% of share price, payout will be maintained at 50% (FY22: 40%). 

• On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. 
• CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
• The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.

• Our bullish outlook initiated on November 7, 2023 remains intact; this intermediate-to-long-term outlook is likely to stay in place as long as 4800 support holds on the SPX (7-10% downside).
• To be clear, we aren’t calling for a pullback to 4800; we view it as a worst-case scenario for the S&P 500, and we want to be prepared for anything.
• Shorter-Term, we remain bullish on the S&P 500 and Nasdaq 100 (QQQ) as they both refuse to close below their 20-day MAs for more than 2-3 consecutive days.

• kopi-C with ISOTeam’s CEO: “I’m investing in both drones and professional development” For people who live in Housing Development Board (HDB) flats in Singapore, drones may soon become a common sight.
• ISOTeam, which specialises in maintaining and upgrading buildings, has been using drones for façade inspections since 2021.

• This is our first report on the AZEK Company, leading manufacturer of eco-friendly building products.
• The company reported an 11% net sales increase year-over-year in Q1 2024.
• Excluding the recently divested Vycom business, net sales increased 22% year-over-year, driven by the strong performance of its residential sector.

• This is our first report on building construction product manufacturer, Simpson Manufacturing Company.
• The company showcased strong execution in 2023 amid a challenging year, outperforming the housing market via robust customer demand and expansion of production lines.
• With annual net sales of $2.2 billion, a 21.5% operating income margin, and a record $8.26 of earnings per diluted share, the company emerged resilient.

• CIMC Vehicle Group Co Ltd (1839 HK) has despatched the offer document, and the H Share HK$7.50 offer is open. The H Shareholders class vote is on 18 April.  
• The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.  
• The de-rating of peers and ongoing US investigation favours meeting the 90% threshold. However, the dire minority AGM/EGM participation rates suggest that retail apathy may derail the offer. 

• Cost and business optimisations lead to increased profits as revenues drop due to freight rate declines
• Successfully pivoting by geography as the global trading environment changes
• The company increases its dividend payout in a sign of confidence for the future

• In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2024 index rebal event.
• There could be up to three intra-review changes for the F250 index during the next two months.
• Separately, there could be one change for F100 and two changes for F250 during the regular rebalance in June 2024.

• Despite weaker 2H23 results, CIMC Enric Holdings (3899 HK) guided for solid recovery in FY24. Order backlogs reached Rmb22.9bn, which almost equals the full-year revenue.
• Clean energy segment will be supported by vessel demand, hydrogen orders, and Angang Steel project contribution. Chemical and environmental segment should rebound in 2H24.
• Liquid food spin-off is in process and it has won several domestic whiskey projects. As net cash equals 13% of share price, payout will be maintained at 50% (FY22: 40%). 

• On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. 
• CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
• The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.

• Our bullish outlook initiated on November 7, 2023 remains intact; this intermediate-to-long-term outlook is likely to stay in place as long as 4800 support holds on the SPX (7-10% downside).
• To be clear, we aren’t calling for a pullback to 4800; we view it as a worst-case scenario for the S&P 500, and we want to be prepared for anything.
• Shorter-Term, we remain bullish on the S&P 500 and Nasdaq 100 (QQQ) as they both refuse to close below their 20-day MAs for more than 2-3 consecutive days.

• kopi-C with ISOTeam’s CEO: “I’m investing in both drones and professional development” For people who live in Housing Development Board (HDB) flats in Singapore, drones may soon become a common sight.
• ISOTeam, which specialises in maintaining and upgrading buildings, has been using drones for façade inspections since 2021.

• This is our first report on the AZEK Company, leading manufacturer of eco-friendly building products.
• The company reported an 11% net sales increase year-over-year in Q1 2024.
• Excluding the recently divested Vycom business, net sales increased 22% year-over-year, driven by the strong performance of its residential sector.

• This is our first report on building construction product manufacturer, Simpson Manufacturing Company.
• The company showcased strong execution in 2023 amid a challenging year, outperforming the housing market via robust customer demand and expansion of production lines.
• With annual net sales of $2.2 billion, a 21.5% operating income margin, and a record $8.26 of earnings per diluted share, the company emerged resilient.

• Marine and subsea services provider MMA Offshore (MRM AU) has entered into a Scheme with Singapore’s Cyan Renewables. 
• Cyan, wholly-owned by Seraya Partners, is offering A$2.60/share in cash, a 11% premium to last close and a 31% premium to the 90-day VWAP. 
• MMA shareholder approval and FIRB are the key conditions. This Offer will tentatively complete mid-late July. 

• Mma Offshore (MRM AU) has entered a scheme implementation deed with Seraya Partners at A$2.60 per share, a 10.6% premium to the undisturbed price (22 March).
• While the offer is attractive compared to historical prices, it is light compared to peer and historical multiples. Some shareholders are supportive, while others are not. 
• The shares are trading at terms that suggest an expectation for a bump to get the vote up or a competing bidder. The offer has not been declared final.

• Strong uptick in price momentum in February reflects booming spot market
• February container throughput growth in key regions also firm, up 7.4% Y/Y
• We suggest Short Evergreen vs Long Maersk (or ZIM) pair trade idea

• 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 June 2024 index rebal event.
• I do not see any changes for the T50 index but there could be at least four changes for the T100 index based on current data.
• If prices fluctuate significantly between now and the base date, there could be more changes.

• Headline February numbers look pretty good — but they’re misleading
• On a combined basis, January-February data show ASPs still under pressure
• Recent results from ZTO and J&T Global have been unimpressive, in our view

Ocean Wilsons Holdings’ (OCN’s) FY23 results highlight a robust performance from the Brazilian subsidiary Wilson Sons, as well as growth from the investment portfolio. Our forecasts are under review following the announcement but, prior to this, we valued OCN at 2,564p/share, which implies it is currently trading at a 48% discount. Given the strong trading and optimistic outlook, risks appear to be to the upside.

• Marine and subsea services provider MMA Offshore (MRM AU) has entered into a Scheme with Singapore’s Cyan Renewables. 
• Cyan, wholly-owned by Seraya Partners, is offering A$2.60/share in cash, a 11% premium to last close and a 31% premium to the 90-day VWAP. 
• MMA shareholder approval and FIRB are the key conditions. This Offer will tentatively complete mid-late July. 

• Mma Offshore (MRM AU) has entered a scheme implementation deed with Seraya Partners at A$2.60 per share, a 10.6% premium to the undisturbed price (22 March).
• While the offer is attractive compared to historical prices, it is light compared to peer and historical multiples. Some shareholders are supportive, while others are not. 
• The shares are trading at terms that suggest an expectation for a bump to get the vote up or a competing bidder. The offer has not been declared final.

• Strong uptick in price momentum in February reflects booming spot market
• February container throughput growth in key regions also firm, up 7.4% Y/Y
• We suggest Short Evergreen vs Long Maersk (or ZIM) pair trade idea

• 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 June 2024 index rebal event.
• I do not see any changes for the T50 index but there could be at least four changes for the T100 index based on current data.
• If prices fluctuate significantly between now and the base date, there could be more changes.

• Headline February numbers look pretty good — but they’re misleading
• On a combined basis, January-February data show ASPs still under pressure
• Recent results from ZTO and J&T Global have been unimpressive, in our view

Ocean Wilsons Holdings’ (OCN’s) FY23 results highlight a robust performance from the Brazilian subsidiary Wilson Sons, as well as growth from the investment portfolio. Our forecasts are under review following the announcement but, prior to this, we valued OCN at 2,564p/share, which implies it is currently trading at a 48% discount. Given the strong trading and optimistic outlook, risks appear to be to the upside.

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: APM Human Services Internation (APM AU), Chilled & Frozen Logistics Holdings (9099 JP), Qantm Intellectual Property (QIP AU), Genex Power Ltd (GNX AU), Probiotec Ltd (PBP AU).
• Lowest spreads: Roland DG Corp (6789 JP), Tietto Minerals Ltd (TIE AU), CPMC Holdings (906 HK), Pact Group Holdings (PGH AU), Vinda International (3331 HK), Snow Peak Inc (7816 JP).

• Organic growth in J&T’s China operations exceeded that of peers…
• …but the implosion of New Markets and X-Border is a shock
• Lower margins from SE Asian cash cow also a surprise, in our view

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net SELL RMB 7.8bn of A-shares on decent volume after buying RMB 32.8bn the week before. This is a small sell vs 6 weeks of buying.
• The volume now is still chasing momentum. CATL the big buy, and less passive-feeling than last week.

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: APM Human Services Internation (APM AU), Chilled & Frozen Logistics Holdings (9099 JP), Qantm Intellectual Property (QIP AU), Genex Power Ltd (GNX AU), Probiotec Ltd (PBP AU).
• Lowest spreads: Roland DG Corp (6789 JP), Tietto Minerals Ltd (TIE AU), CPMC Holdings (906 HK), Pact Group Holdings (PGH AU), Vinda International (3331 HK), Snow Peak Inc (7816 JP).

• Organic growth in J&T’s China operations exceeded that of peers…
• …but the implosion of New Markets and X-Border is a shock
• Lower margins from SE Asian cash cow also a surprise, in our view

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net SELL RMB 7.8bn of A-shares on decent volume after buying RMB 32.8bn the week before. This is a small sell vs 6 weeks of buying.
• The volume now is still chasing momentum. CATL the big buy, and less passive-feeling than last week.

• Avianca reached $1,200m EBITDAR in 2023, ahead of our forecast of $1,162m, already exceeding its 2024 target.
• The company does not provide guidance on 2024 profitability but we publish our quarterly bridge analysis and map prospects versus LATAM Group guidance.
• We forecast 10% yoy EBITDAR growth in 2024 on 20% capacity growth, which compares to our forecast of 15% EBITDAR growth at LATAM, which is growing less aggressively.

• Avianca reached $1,200m EBITDAR in 2023, ahead of our forecast of $1,162m, already exceeding its 2024 target.
• The company does not provide guidance on 2024 profitability but we publish our quarterly bridge analysis and map prospects versus LATAM Group guidance.
• We forecast 10% yoy EBITDAR growth in 2024 on 20% capacity growth, which compares to our forecast of 15% EBITDAR growth at LATAM, which is growing less aggressively.

• JAL finishing FY24 strongly with another guidance upgrade – upgraded FY26 targets more logical in light of existing ANA targets
• ​Demand momentum particularly helpful as wages rise across Japan and ​cost control to remain impressive over FY25-FY26 as LCC growth set to dilute FSC inflation
• ​Detailed analysis of JAL’s widening margin gap to ANA suggests revenue solution required – momentum helpful and needs to be watched carefully

• Our estimations for FY 2023 annual revenue range at around £69.88 million and for 2024 at around £73.38 million.
• The company’s annual revenue reached £69.19 million in 2022 compared to £61.25 million in 2021, post- ing an increase by 12.96%.
• Christie Group’s operating profit for FY 2022 was £5.45 million, increased by 4.96% compared to £5.19 million for the corresponding period of 2021.

• Our estimations for FY 2024 annual revenue range at around £77.28 million and for 2025 at around £88.31 million.
• The company’s annual revenue reached £69.72 million in 2023 compared to £61.10 million in 2022, post- ing an increase by 14.12%.
• Northern Bear gross profit for FY 2023 was £13.94 million, increased by 11.87% compared to £12.46 million for the corresponding period of 2022.

• Wilh. Wilhelmsen has been a successful long-term investment in the shipping industry with an annual return of 13.3% since 2000
• The company operates in the stable roll-on roll-off (RoRo) market, leading to an average return on equity of 12.3%
• WWI is comprised of various segments including Wilhelmsen Maritime Service and investments in Wallenius Wilhelmsen and Hyundai Glovis, with a history dating back to 1861 and a recent focus on RoRo ships.

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.

• Yellow Corp. filed for Chapter 11 bankruptcy in August 2023 after a walkout by the Teamster union, leading to no workers or customers.
• The company is now pursuing Chapter 11 liquidation with potential for significant returns for investors.
• Recent progress in the case has de-risked the story, with the debtor’s financial advisor expecting a recovery to the equity with values ranging from $3.26 to $29.72.

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.

• ZTO reported C4Q23 top-line, GAAP EBIT, and non-GAAP net income (2.2%), (3.8%), and in-line vs. cons., respectively;
• There are two concurrent trends in the last-mile market: (1) improved service quality, and (2) smaller parcel sizes. Both are favorable to ZTO, in our view;
• ZTO announced new shareholder return plans, which we estimate could return US$ 1.4bn to investors in 2024 for a 7.7% yield;