INDUSTRIALS Archives | Page 124 of 295 | Smartkarma

• 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.

• In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
• The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links. On Feb 1, the TSE put out a presentation and set of case studies.
• We created a tool to name everyone, show their reports, provide links, and now a new tool. Put in a name, see the difference between the Old/New Reports.

• 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 BUY RMB 32.8bn of A-shares on decent volume after one RMB-3bn week following 5 weeks straight of net buying total RMB +63bn. Foreigners are in.
• The volume now is back to chasing momentum, but given so much net buying, much of it appears to be passive plus a CATL kicker.

• In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
• The list shows which companies have disclosed a policy/consideration. But no data/links. We have the links. On Feb 1, the TSE put out a presentation and set of case studies.
• We created a tool to name everyone, show their reports, provide links, and now a new tool. Put in a name, see the difference between the Old/New Reports.

• 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 BUY RMB 32.8bn of A-shares on decent volume after one RMB-3bn week following 5 weeks straight of net buying total RMB +63bn. Foreigners are in.
• The volume now is back to chasing momentum, but given so much net buying, much of it appears to be passive plus a CATL kicker.

• VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
• Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
• Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

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.

• During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.
• The airline’s 2023 performance was framed as a clear demonstration of its United Next plan’s effectiveness, buoied by diversified revenue streams and robust operational metrics.
• United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

• WILL GROUP announced cumulative 3Q FY24/3 consolidated financial results on February 7, and held a results briefing on February 19 hosted by President Yuichi Sumi.
• This reports examines the details and progress of 3Q results relative to initial plan.
• Then on February 22, WILL GROUP announced that it has decided to sell all shares in specified subsidiary for Startups, Inc. (7089 TSE Growth, specialized in HR services for venture growth businesses and startup companies), in which it holds the majority stake of 54.1% (1,925,400 shares) as of September 30, 2023.

• Norfolk Southern Corporation reported mixed results for its Fourth Quarter 2023 Earnings.
• The company experienced inconsistencies due to network disruptions and a persistently weak freight market, impacted further by a major train derailment in Eastern Ohio at the start of the year.
• Despite these challenges, the company persevered, demonstrating resilience and commitment to both safety and service.

• VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
• Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
• Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

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.

• During the latest fourth quarter and full-year 2023 earnings for United Airlines Holdings, the management team expressed positive sentiments regarding operational trends and financial performance, despite multiple headwinds at the global level.
• The airline’s 2023 performance was framed as a clear demonstration of its United Next plan’s effectiveness, buoied by diversified revenue streams and robust operational metrics.
• United Airlines posted full-year EPS (earnings per share) above $10, meeting its initial United target range.

• WILL GROUP announced cumulative 3Q FY24/3 consolidated financial results on February 7, and held a results briefing on February 19 hosted by President Yuichi Sumi.
• This reports examines the details and progress of 3Q results relative to initial plan.
• Then on February 22, WILL GROUP announced that it has decided to sell all shares in specified subsidiary for Startups, Inc. (7089 TSE Growth, specialized in HR services for venture growth businesses and startup companies), in which it holds the majority stake of 54.1% (1,925,400 shares) as of September 30, 2023.

• Norfolk Southern Corporation reported mixed results for its Fourth Quarter 2023 Earnings.
• The company experienced inconsistencies due to network disruptions and a persistently weak freight market, impacted further by a major train derailment in Eastern Ohio at the start of the year.
• Despite these challenges, the company persevered, demonstrating resilience and commitment to both safety and service.

• Outsourcing Inc (2427 JP) has been an “interesting” risk arb situation. It was launched as a Cheeky, Opportunistic, Low-Priced MBO. Some bumps after launch turned out to be BAU.
• The stock has not traded above terms since early on in the trade. I expect people are happy to get out. But there is ANOTHER ARB to do here.
• The OTHER ARB is something quite particular to high float, low activism risk arb trades. In some ways better than the traditional arb, but it has some risks.

• On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.
• It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.
• One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.

• Mitsubishi Kakoki Kaisha (6331 JP) provides engineering (design, procurement, and construction) services for the buildings of industrial, city gas, and sewage treatment plants.
• In FY03/23, the company booked orders of JPY53.2bn, revenue of JPY44.6bn, operating profit of JPY2.5bn, OPM of 5.7%, and net income attributable to owners of the parent of JPY3.0bn.
• Mitsubishi Kakoki Kaisha, Ltd. announced a revision to its full-year FY03/24 earnings forecast.

• World Holdings (2429 JP), established in 1993, primarily provides technical staffing and subcontracting services.
• In FY12/23, revenue was JPY213.7bn, operating profit was JPY10.4bn, recurring profit was JPY10.3bn, and net income attributable to owners of the parent was JPY6.2bn.
• The company’s forecast for FY12/24 calls for revenue of JPY252.1bn, operating profit of JPY9.0bn, recurring profit of JPY8.6bn, and net income attributable to owners of the parent of JPY4.7bn.

• AZ-Com Maruwa Holdings (9090 JP) is a logistics company specializing in services for retailers.
• In FY03/23, revenue was JPY177.8bn, operating profit was JPY11.4bn, recurring profit was JPY11.9bn, and net income attributable to owners of the parent was JPY7.8bn.
• AZ-COM MARUWA Holdings Inc. announced that it has determined the number of shares to be issued  through a third-party allocation.

• Qunabox Group Limited (QUNA HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunner on the deal is Haitong.
• Qunabox Group Limited (Qunabox) is a marketing service provider in China, focusing on outdoor marketing for fast-moving consumer goods (FMCG).
• As per CIC, the firm was the fifth largest FMCG outdoor marketing service provider in China in terms of 2022 sales, with a market share of 0.9%.

• Outsourcing Inc (2427 JP) has been an “interesting” risk arb situation. It was launched as a Cheeky, Opportunistic, Low-Priced MBO. Some bumps after launch turned out to be BAU.
• The stock has not traded above terms since early on in the trade. I expect people are happy to get out. But there is ANOTHER ARB to do here.
• The OTHER ARB is something quite particular to high float, low activism risk arb trades. In some ways better than the traditional arb, but it has some risks.

• On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.
• It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.
• One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.

• Mitsubishi Kakoki Kaisha (6331 JP) provides engineering (design, procurement, and construction) services for the buildings of industrial, city gas, and sewage treatment plants.
• In FY03/23, the company booked orders of JPY53.2bn, revenue of JPY44.6bn, operating profit of JPY2.5bn, OPM of 5.7%, and net income attributable to owners of the parent of JPY3.0bn.
• Mitsubishi Kakoki Kaisha, Ltd. announced a revision to its full-year FY03/24 earnings forecast.

• World Holdings (2429 JP), established in 1993, primarily provides technical staffing and subcontracting services.
• In FY12/23, revenue was JPY213.7bn, operating profit was JPY10.4bn, recurring profit was JPY10.3bn, and net income attributable to owners of the parent was JPY6.2bn.
• The company’s forecast for FY12/24 calls for revenue of JPY252.1bn, operating profit of JPY9.0bn, recurring profit of JPY8.6bn, and net income attributable to owners of the parent of JPY4.7bn.

• AZ-Com Maruwa Holdings (9090 JP) is a logistics company specializing in services for retailers.
• In FY03/23, revenue was JPY177.8bn, operating profit was JPY11.4bn, recurring profit was JPY11.9bn, and net income attributable to owners of the parent was JPY7.8bn.
• AZ-COM MARUWA Holdings Inc. announced that it has determined the number of shares to be issued  through a third-party allocation.

• Qunabox Group Limited (QUNA HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunner on the deal is Haitong.
• Qunabox Group Limited (Qunabox) is a marketing service provider in China, focusing on outdoor marketing for fast-moving consumer goods (FMCG).
• As per CIC, the firm was the fifth largest FMCG outdoor marketing service provider in China in terms of 2022 sales, with a market share of 0.9%.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential ADDs and DELs for the STAR 50 index during the June 2024 index rebal event.
• I currently expect three changes for the STAR 50 index in June 2024 but there are some questions marks over the names leading the race to become ADDs.

• 2023 results came in broadly in line with expectations but included a concerning step up in ex-fuel unit cost inflation.
• We cut our 2024 EBITDAR by 10% to HK$22.2bn, which drives net income down 21% to HK$6.6bn, leaving us well below consensus.
• We revisit Cathay’s margin generation problems from the last cycle, illustrating structural problems which require structural solutions.

• FY23 net profit of HKD9.1b, easily beating the consensus forecast of HKD8.5b, and announced a surprise dividend, the first since 2019, signally pandemic effects are over 
• Perfect execution from the team, leveraging on a strong market 
• Cathay Pacific is a value BUY, our target price of HK$9.90 (+10% UPSIDE) implies 10x FY2024 PE. We will update more after tuning in the 2 pm analyst briefing 

• BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.
• The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.
• BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. 

• On the 27th Feb, Qantm Intellectual Property (QIP AU) announced a NBIO from UK-based Rouse International; but opted not to disclose price, DD, or even if this was a cash/scrip Offer.
• Then on the 12th March, Qantm announced a NBIO from Adamantem Capital, by way of a Scheme, of $1.817/share in cash or with a scrip election of up to 50%
• Qantm secured a trading halt yesterday morning, presumably to flesh out the best Offer for shareholders. Will IPH Ltd (IPH AU) throw its hat into the ring, again?

• Duskin Co Ltd (4665 JP) operates a Dust Control business where it rents mops and mats to residential and commercial customers through franchisees.
• In FY03/23, Duskin posted revenue of JPY170.5bn, operating profit of JPY8.6bn, recurring profit of JPY11.4bn, and net income attributable to owners of the parent of JPY7.2bn.
• Duskin Co., Ltd. announced the cancellation of a portion of its treasury stock.

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• In this insight, we take a look at our expectations for potential ADDs and DELs for the STAR 50 index during the June 2024 index rebal event.
• I currently expect three changes for the STAR 50 index in June 2024 but there are some questions marks over the names leading the race to become ADDs.

• 2023 results came in broadly in line with expectations but included a concerning step up in ex-fuel unit cost inflation.
• We cut our 2024 EBITDAR by 10% to HK$22.2bn, which drives net income down 21% to HK$6.6bn, leaving us well below consensus.
• We revisit Cathay’s margin generation problems from the last cycle, illustrating structural problems which require structural solutions.

• FY23 net profit of HKD9.1b, easily beating the consensus forecast of HKD8.5b, and announced a surprise dividend, the first since 2019, signally pandemic effects are over 
• Perfect execution from the team, leveraging on a strong market 
• Cathay Pacific is a value BUY, our target price of HK$9.90 (+10% UPSIDE) implies 10x FY2024 PE. We will update more after tuning in the 2 pm analyst briefing 

• BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.
• The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.
• BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. 

• On the 27th Feb, Qantm Intellectual Property (QIP AU) announced a NBIO from UK-based Rouse International; but opted not to disclose price, DD, or even if this was a cash/scrip Offer.
• Then on the 12th March, Qantm announced a NBIO from Adamantem Capital, by way of a Scheme, of $1.817/share in cash or with a scrip election of up to 50%
• Qantm secured a trading halt yesterday morning, presumably to flesh out the best Offer for shareholders. Will IPH Ltd (IPH AU) throw its hat into the ring, again?

• Duskin Co Ltd (4665 JP) operates a Dust Control business where it rents mops and mats to residential and commercial customers through franchisees.
• In FY03/23, Duskin posted revenue of JPY170.5bn, operating profit of JPY8.6bn, recurring profit of JPY11.4bn, and net income attributable to owners of the parent of JPY7.2bn.
• Duskin Co., Ltd. announced the cancellation of a portion of its treasury stock.

• In late February, Keisei Electric Railway Co (9009 JP) announced a 5.0mm share (2.96%) ¥33bn buyback, to be executed in the following 3 months. That meant likely ToSTNeT-3.
• I thought that mildly bullish. Shares rose 0.05% the next day. Then we got an OLC offering announcement. I thought that bearish. The stock popped early but fell hard.
• Today the announcement. It IS a ToSTNeT-3. tomorrow. At ¥6,320/share. But it is an Accelerated Share Repurchase. Which changes things. Or it doesn’t. But it bears watching closely, maybe acting.

• There is an increasing probability that KCC Corp is closer to separating the ownership structures of the three Chung brothers regarding the various KCC Group related companies.
• KCC’s 9.17% stake in Samsung C&T is worth 2.8 trillion won. KCC’s stake in Samsung C&T is worth 117% of KCC’s own market cap. 
• According to our valuation analysis, it suggests NAV of 355,925 won per share, representing a 30% upside from current levels.

• Keisei Electric Railway Co (9009 JP)‘s previously announced buyback is now confirmed to be a ToSTNeT-3 buyback. But also an accelerated share repurchase.
• Preceding my comments on Keisei Electric are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• In Q423 JD Logistics booked 10% top-line growth & solid margin improvement
• We analyze the impacts of JD.com & Deppon Logistics on JD Logistics’ Q423
• Given still-low profitability, JD Logistics does not appear cheap, in our view

• 1Q24 upgrade from JetBlue increases our confidence that consensus is too low for 2024.
• Investor Day on 30 May will provide the next leg of revenue self-help initiatives.
• We model a minor net profit of $22m in 2025, versus consensus expectations for further losses, and the next 3 months are crucial for the carrier’s long-term prospects.

• Nagase & Co Ltd (8012 JP) is a trading company that specializes in chemicals.
• FY03/23 results: Nagase reported full-year consolidated sales of JPY912.9bn, gross profit of JPY155.4bn, operating profit of JPY33.4bn, recurring profit of JPY32.5bn.
• Nagase’s medium-term business plan, ACE 2.0, announced in May 2021, set key goal indicators for FY03/26 of consolidated operating profit of JPY35.0bn or above and ROE of 8.0% or above.