INDUSTRIALS Archives | Page 123 of 295 | Smartkarma

• 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;

• Chilled & Frozen Logistics Holdings (9099 JP) last week announced its “Action to Implement Management That is Conscious of Cost of Capital and Stock Price”.
• Today it announced AZ-Com Maruwa Holdings (9090 JP) had announced its intention to launch a Tender Offer on C&F Logistics without having contacted C&F first. A HOSTILE deal. Yum.
• The deal is proposed at a 50% premium, with the goal of getting to a minimum of 50.00%. This will be interesting.

• AZ-Com Maruwa Holdings (9090 JP) has launched a pre-conditional hostile offer for Chilled & Frozen Logistics Holdings (9099 JP) at JPY3,000 per share, a 47.0% premium to the last close.
• The pre-conditions primarily relate to regulatory approvals. The tender is expected to start in early May. The Board responded that it will evaluate the offer.
• The hostile offer was a reaction to the Board’s lack of engagement. The Board will struggle to reject an attractive offer, which is 37.5% higher than the all-time high. 

• GXO Logistics (GXO US) offers 605p for Wincanton PLC (WIN LN), in a strategic move worth a 104% premium, 8.6x EV/25e EBITDA, 18.2 Fwd P/E (IBES), via scheme with 34% irrevocables.
• Regulators are used to monitoring this industry, gradually consolidating on a worldwide scale as a result of cost pressures. GXO has smaller scale in the UK. 
• I don’t think antitrust issues are going to prevent this transaction. Interloper risk is minimal (DHL, Deutsche Post would have regulatory issues). Spread is 1.00%/7.14% (gross/annualised). Long.

• As a comprehensive water treatment engineering company, Organo Corp (6368 JP) engages in the planning, design, procurement, construction, operational management, and maintenance of water treatment plants.
• In FY03/23, orders received were JPY173.5bn, revenue was JPY132.4bn, operating profit was JPY15.2bn, recurring profit was JPY16.0bn, and net income attributable to owners of the parent was JPY11.7bn.
• Organo Corporation announced revisions to its full-year forecast for FY03/24.

• Porvair plc is a specialist filtration, laboratory and environmental technology company.
• The Company’s operating divisions include Aerospace & Industrial, Laboratory, and Metal Melt Quality.
• The Aerospace & Industrial division designs and manufactures a broad range of specialist filtration equipment for applica- tion in aerospace and industrial applications. 

• After the close Wednesday, Steelcase reported 4QFY24 non-GAAP adjusted EPS of $0.23, ahead of our $0.22 estimate and consensus of $0.21.
• 4QFY24 global revenue was $775 million, modestly missing our estimate by ~$9 million.
• FY24 non-GAAP adjusted EPS was $0.93, up from $0.56 in FY23, and revenue was $3.16 billion, down 2.6%.

Braemar’s FY24 trading update was in line with expectations, with revenues of c £150m and underlying operating profit of c £18m. Underlying operations continue to expand and diversify and the company remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our underlying estimates for FY24 and FY25, but edge down the valuation based on the lower FY24 dividend expectations. The revised valuation offers nearly 100% upside.

• Chilled & Frozen Logistics Holdings (9099 JP) last week announced its “Action to Implement Management That is Conscious of Cost of Capital and Stock Price”.
• Today it announced AZ-Com Maruwa Holdings (9090 JP) had announced its intention to launch a Tender Offer on C&F Logistics without having contacted C&F first. A HOSTILE deal. Yum.
• The deal is proposed at a 50% premium, with the goal of getting to a minimum of 50.00%. This will be interesting.

• AZ-Com Maruwa Holdings (9090 JP) has launched a pre-conditional hostile offer for Chilled & Frozen Logistics Holdings (9099 JP) at JPY3,000 per share, a 47.0% premium to the last close.
• The pre-conditions primarily relate to regulatory approvals. The tender is expected to start in early May. The Board responded that it will evaluate the offer.
• The hostile offer was a reaction to the Board’s lack of engagement. The Board will struggle to reject an attractive offer, which is 37.5% higher than the all-time high. 

• GXO Logistics (GXO US) offers 605p for Wincanton PLC (WIN LN), in a strategic move worth a 104% premium, 8.6x EV/25e EBITDA, 18.2 Fwd P/E (IBES), via scheme with 34% irrevocables.
• Regulators are used to monitoring this industry, gradually consolidating on a worldwide scale as a result of cost pressures. GXO has smaller scale in the UK. 
• I don’t think antitrust issues are going to prevent this transaction. Interloper risk is minimal (DHL, Deutsche Post would have regulatory issues). Spread is 1.00%/7.14% (gross/annualised). Long.

• As a comprehensive water treatment engineering company, Organo Corp (6368 JP) engages in the planning, design, procurement, construction, operational management, and maintenance of water treatment plants.
• In FY03/23, orders received were JPY173.5bn, revenue was JPY132.4bn, operating profit was JPY15.2bn, recurring profit was JPY16.0bn, and net income attributable to owners of the parent was JPY11.7bn.
• Organo Corporation announced revisions to its full-year forecast for FY03/24.

• Porvair plc is a specialist filtration, laboratory and environmental technology company.
• The Company’s operating divisions include Aerospace & Industrial, Laboratory, and Metal Melt Quality.
• The Aerospace & Industrial division designs and manufactures a broad range of specialist filtration equipment for applica- tion in aerospace and industrial applications. 

• After the close Wednesday, Steelcase reported 4QFY24 non-GAAP adjusted EPS of $0.23, ahead of our $0.22 estimate and consensus of $0.21.
• 4QFY24 global revenue was $775 million, modestly missing our estimate by ~$9 million.
• FY24 non-GAAP adjusted EPS was $0.93, up from $0.56 in FY23, and revenue was $3.16 billion, down 2.6%.

Braemar’s FY24 trading update was in line with expectations, with revenues of c £150m and underlying operating profit of c £18m. Underlying operations continue to expand and diversify and the company remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our underlying estimates for FY24 and FY25, but edge down the valuation based on the lower FY24 dividend expectations. The revised valuation offers nearly 100% upside.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
• There could be up to five changes in the KOSPI 200 index during the June 2024 index rebal event.

• Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 35% higher than the high end of the IPO price range.
• We estimate the Jeil M&S to generate sales of 279 billion won (up 94.9% YoY) and operating profit of 18.1 billion won (up 928% YoY).
• Jeil M&S’s main products include mixing equipment for the rechargeable battery sector. Its major customers include Samsung SDI, LG Energy Solution, and Northvolt. 

• In Q423, ZTO’s parcel volumes grew by +32% Y/Y, faster than market growth
• But weak pricing resulted in EPS growth of just +2% Y/Y in the period
• In FY24, management expects parcel growth to roughly halve – AVOID

• Aeromexico reported record profitability in 2023 and we expect another record in 2024.
• Our deep dive on the competitive landscape suggests a benign outlook as Aeromexico does not face competitor capacity growth in 2024.
• The US DOT’s tentative ruling that Delta and Aeromexico must terminate their JV is a meaningful negative from 4Q24 unless their appeal is successful.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
• There could be up to five changes in the KOSPI 200 index during the June 2024 index rebal event.

• Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 35% higher than the high end of the IPO price range.
• We estimate the Jeil M&S to generate sales of 279 billion won (up 94.9% YoY) and operating profit of 18.1 billion won (up 928% YoY).
• Jeil M&S’s main products include mixing equipment for the rechargeable battery sector. Its major customers include Samsung SDI, LG Energy Solution, and Northvolt. 

• In Q423, ZTO’s parcel volumes grew by +32% Y/Y, faster than market growth
• But weak pricing resulted in EPS growth of just +2% Y/Y in the period
• In FY24, management expects parcel growth to roughly halve – AVOID

• Aeromexico reported record profitability in 2023 and we expect another record in 2024.
• Our deep dive on the competitive landscape suggests a benign outlook as Aeromexico does not face competitor capacity growth in 2024.
• The US DOT’s tentative ruling that Delta and Aeromexico must terminate their JV is a meaningful negative from 4Q24 unless their appeal is successful.

• Jeil Machine & Solution is getting ready for an IPO in April in the Korean stock market. The IPO price range is 15,000 won to 18,000 won. 
• The total offering amount ranges from 36 billion won to 43.2 billion won. The book building for the institutional investors will last from 5 to 12 April. 
• According to the bankers’ assessment, the implied market cap of the company ranges from 309 billion won to 371 billion won. 

• The voluntary partial (15% of share capital) takeover bid launched by Gubel for Prosegur (PSG SM) has been accepted by 13.23%, thus 88.23% acceptance, and no proration. Gubel increases its grip to 73.14%.
• The free float has been reduced to 17.5% on a market cap of just €994 million. A delisting offer could well happen in the future and would make sense financially.
• Prosegur has 81.45% of Prosegur Cash, which could also become target of a delisting offer. Its shares have low liquidity, hence are overlooked and cheap (6.9x Fwd P/E vs. 9.7x Securitas).

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
• The company is developing an 800+-tonne a year critical metals alloy powder manufacturing facility in Tennessee, USA, with the initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry, strategic metals and satellites.
• The company is moving apace with its planned commercialisation, recently announcing it had secured A$7.5m in corporate financing and that it had executed a binding purchase order for its second gas atomiser, the next generation Electrode Induction Melting Inert Gas Atomiser (or EIGA premium).

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
• The company is developing a 1,000+-tonne-a-year critical metals alloy powder manufacturing facility in Tennessee, USA with its initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry.
• On December 19, the company provided an update to investors on its progress to date this month with several milestones tracking ahead of schedule.

• Human services company Millennium Services Group Ltd (ASX:MIL) has entered a Scheme of Arrangement with an entity associated with Softbank Robotics Singapore for the acquisition of 100% of shares at $1.15/share cash.
• Shareholders also have the option to accept a mix of cash and scrip in the new unlisted entity, with certain management committing not less than a total of 30% for this option.
• The bid price represents an 89% premium to the last RaaS update note (October 23) and 360% premium from July 1, 2023.

• Jeil Machine & Solution is getting ready for an IPO in April in the Korean stock market. The IPO price range is 15,000 won to 18,000 won. 
• The total offering amount ranges from 36 billion won to 43.2 billion won. The book building for the institutional investors will last from 5 to 12 April. 
• According to the bankers’ assessment, the implied market cap of the company ranges from 309 billion won to 371 billion won. 

• The voluntary partial (15% of share capital) takeover bid launched by Gubel for Prosegur (PSG SM) has been accepted by 13.23%, thus 88.23% acceptance, and no proration. Gubel increases its grip to 73.14%.
• The free float has been reduced to 17.5% on a market cap of just €994 million. A delisting offer could well happen in the future and would make sense financially.
• Prosegur has 81.45% of Prosegur Cash, which could also become target of a delisting offer. Its shares have low liquidity, hence are overlooked and cheap (6.9x Fwd P/E vs. 9.7x Securitas).

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
• The company is developing an 800+-tonne a year critical metals alloy powder manufacturing facility in Tennessee, USA, with the initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry, strategic metals and satellites.
• The company is moving apace with its planned commercialisation, recently announcing it had secured A$7.5m in corporate financing and that it had executed a binding purchase order for its second gas atomiser, the next generation Electrode Induction Melting Inert Gas Atomiser (or EIGA premium).

• Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
• The company is developing a 1,000+-tonne-a-year critical metals alloy powder manufacturing facility in Tennessee, USA with its initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry.
• On December 19, the company provided an update to investors on its progress to date this month with several milestones tracking ahead of schedule.

• Human services company Millennium Services Group Ltd (ASX:MIL) has entered a Scheme of Arrangement with an entity associated with Softbank Robotics Singapore for the acquisition of 100% of shares at $1.15/share cash.
• Shareholders also have the option to accept a mix of cash and scrip in the new unlisted entity, with certain management committing not less than a total of 30% for this option.
• The bid price represents an 89% premium to the last RaaS update note (October 23) and 360% premium from July 1, 2023.

• Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
• For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
• LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution. 

• From July, Korea’s listed firms will disclose value enhancement plans. Korea’s NPS may exclude non-compliant firms, pending official response, though internal review suggests likely implementation.
• It’s crucial to know portfolio stocks for proactive positioning. A setup targeting potential exclusion from NPS’s ESG funds due to post-July compliance must be designed.
• Managers often use KRX ESG Leaders 150, aligning portfolios with it. Thus, it’s crucial to use this list for post-July compliance monitoring and to adapt setups for NPS’s flow impacts.

• In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
• Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
• Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

• Lindbergh Spa operates a sophisticated digital platform model for logistics and engineering services within the Italian and French MRO (Maintenance, Repair, and Operations) market.

• This approach not only supports strong operating margins but also provides value-added services in an industry typically marked by commoditization.

• Distinguishing itself as the sole competitor with such a differentiated business model, Lindbergh faces formidable barriers to entry.

• IMCD is a global specialty chemicals distributor headquartered in the Netherlands with a strong presence in the Americas, EMEA, and Asia-Pacific regions.
• The company is currently led by CEO Piet van der Slikke and CFO Hans Kooijmans, who are transitioning leadership to Valerie Diele-Braun.
• IMCD has a diversified geographic footprint and operates in multiple countries, positioning it for continued success in the specialty chemicals industry.

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.

• Summer pricing data suggests growth yoy for European short haul carriers.
• This prompts us to raise our easyJet PBT forecast 11% to £676m for FY24.
• We continue to see underperforming Wizz Air as the carrier with greatest opportunity to improve perception towards it by executing well in summer 2024.

• This is our first report on renowned manufacturer of comfort, residential thermal, and security solutions, Resideo Technologies, Inc.
• The company concluded 2023 with solid Q4 revenue and profitability, beating the midpoint of its comprehension, underpinned by a vigorous cash generation with a full-year operating cash flow of $440 million.
• The company gained traction throughout the year in order activity within Products and Solutions and made substantial strides in key strategic operational initiatives and significantly curbing structural costs.

• Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
• For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
• LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution. 

• From July, Korea’s listed firms will disclose value enhancement plans. Korea’s NPS may exclude non-compliant firms, pending official response, though internal review suggests likely implementation.
• It’s crucial to know portfolio stocks for proactive positioning. A setup targeting potential exclusion from NPS’s ESG funds due to post-July compliance must be designed.
• Managers often use KRX ESG Leaders 150, aligning portfolios with it. Thus, it’s crucial to use this list for post-July compliance monitoring and to adapt setups for NPS’s flow impacts.

• In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
• Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
• Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

• Lindbergh Spa operates a sophisticated digital platform model for logistics and engineering services within the Italian and French MRO (Maintenance, Repair, and Operations) market.

• This approach not only supports strong operating margins but also provides value-added services in an industry typically marked by commoditization.

• Distinguishing itself as the sole competitor with such a differentiated business model, Lindbergh faces formidable barriers to entry.

• IMCD is a global specialty chemicals distributor headquartered in the Netherlands with a strong presence in the Americas, EMEA, and Asia-Pacific regions.
• The company is currently led by CEO Piet van der Slikke and CFO Hans Kooijmans, who are transitioning leadership to Valerie Diele-Braun.
• IMCD has a diversified geographic footprint and operates in multiple countries, positioning it for continued success in the specialty chemicals industry.

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.

• Summer pricing data suggests growth yoy for European short haul carriers.
• This prompts us to raise our easyJet PBT forecast 11% to £676m for FY24.
• We continue to see underperforming Wizz Air as the carrier with greatest opportunity to improve perception towards it by executing well in summer 2024.

• This is our first report on renowned manufacturer of comfort, residential thermal, and security solutions, Resideo Technologies, Inc.
• The company concluded 2023 with solid Q4 revenue and profitability, beating the midpoint of its comprehension, underpinned by a vigorous cash generation with a full-year operating cash flow of $440 million.
• The company gained traction throughout the year in order activity within Products and Solutions and made substantial strides in key strategic operational initiatives and significantly curbing structural costs.

• Late last week, machine tool and press maker Aida Engineering (6118 JP) made an announcement of a share buyback. Up to 2.3mm shs (3.59%) spending up to ¥2bn.
• The company has filed a policy for “Action to Implement Management That is Conscious of Cost of Capital and Stock Price” in its most recent CorpGov report available (J/E) here. 
• It will be a little smaller than that, but it is worth taking a closer look at the details, etc.

• Since October, Evergreen shares have performed well on rising spot rates
• Over the same period, Maersk and ZIM shares fell on longer-term concerns
• Pair trade idea: SHORT Evergreen vs LONG Maersk / ZIM position

• Ceigall India (1605242D IN) is looking to raise at least US$100m in its upcoming India IPO. The deal will be run by IIFL Securities, JM Financial and ICICI Securities.
• Ceigall India is an infrastructure construction company with experience in undertaking specialized structural work such as elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways and runways. 
• Its principal business operations are broadly divided into EPC and hybrid annuity model (HAM) projects, which are spread across ten states in India.

• AviChina Industry & Technology H (2357 HK)‘s FY23 earnings growth of 5.5% is affected by dilution and restatement. Its A-share subsidiaries achieved a 24% aggregate earnings growth. 
• Gross margin expanded and outlook remains decent. Projected growth for these A-shares reached 36.6% in FY24F and 23.8% in FY25F. Net cash equals 40% of the share price.
• The stock’s 8.5x and 7.3x PERs for FY24F and FY25F are cheap relative to its peers. It also trades at 57% discount to its A-share holdings.