Tag

INDUSTRIALS Archives | Page 164 of 295 | Smartkarma

Aug 13
0

Daily Brief Industrials: Toshiba Corp, Adi Sarana Armada, HNI Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, Hongkong Land, Inpex, L’Occitane
  • Adi Sarana Armada (ASSA IJ) – A Circular Route to Success
  • HNI Corporation – Integrating KII and Updating Estimates

Last Week in Event SPACE: Toshiba, Hongkong Land, Inpex, L’Occitane

By David Blennerhassett

  • The JIP TOB for Toshiba (6502 JP) is here. Finally. It’s still too low. Since the announcement, when it was too low, peers are up a lot, and memory looks healthier.
  • Hongkong Land (HKL SP) selling Three Exchange Square sounds purely speculative. At best. But it would have a bigly impact on Hong Kong Office sentiment if true. 
  • Inpex (1605 JP) reported 1H results, a change in forecasts, and a bigly buyback. The mechanics are the same. The impact is a bit different, but it’s worth looking at.

Adi Sarana Armada (ASSA IJ) – A Circular Route to Success

By Angus Mackintosh

  • Adi Sarana Armada remains an interesting way to play the used car theme in Indonesia with its leading car leasing business fuelling used car sales.
  • The company continues developing its logistics capabilities, thrusting towards B2B and value-added cold chain logistics. Anteraja has slowed along with e-commerce but is more focused on profitability. 
  • Adi Sarana Armada continues to benefit from synergies across its vehicle ecosystem through leasing, auction and used cars. Valuations are attractive with the company trading on 11x forward PER. 

HNI Corporation – Integrating KII and Updating Estimates

By Water Tower Research

  • With this note, we are updating our estimates for FY23 and FY24 to reflect the surprisingly strong margin performance in legacy HNI Workplace Furnishings, the integration of Kimball International (KII), and promised margin improvement in Residential Building Products (Hearth).

  • One note on how we have modeled the next four quarters.

  • Through 2QFY24, we are modeling KII revenues and operating income independent of the legacy WF. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 11
0

Daily Brief Industrials: Stylam Industries, Keisei Electric Railway Co, Suzlon Energy, Huitongda, Recruit Holdings, TVS Supply Chain Solutions, ACCO Brands, iPower , Japan Elevator Service Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Stylam Industries Q1 FY24: Slow Revenue Quarter, But Healthy Margin Expansion and 32% Profit Growth
  • Keisei Electric (9009): The Chinese Are Back.
  • Suzlon Energy QIP – Well Flagged Deal and Will Allay Any near Term Debt Concerns
  • [Huitongda (9878 HK, SELL, TP HK$20.5) TP Change]: Downsizing Minority Interest Drive up Earnings
  • Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further
  • TVS Supply Chain Solutions IPO- Forensic Analysis
  • ACCO: Caution Reigns Supreme
  • IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business
  • Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)

Stylam Industries Q1 FY24: Slow Revenue Quarter, But Healthy Margin Expansion and 32% Profit Growth

By Sameer Taneja

  • Stylam Industries (SYIL IN) reported a good quarter on the profitability front, with PAT up 32.4% YoY but revenues down 4% YoY. 
  • Exports showed degrowth temporarily by 11% YoY due to a slowdown in Europe and other key markets, but the company guided an improvement in subsequent quarters. 
  • Trading at 20x/16x FY24e/25e, the stock is not a steal, but with a remarkable growth profile of 20-25% CAGR, we see tremendous potential as a multibagger for the company.

Keisei Electric (9009): The Chinese Are Back.

By Henry Soediarko

  • The moment of truth is here, the Chinese are finally coming back to Japan. 
  • Keisei Electric Railway Co (9009 JP) is one of the biggest beneficiaries of increased tourist arrivals in Japan. 
  • It is trading at 0.04 PEG, a very low valuation considering its potential for producing large growth rate. 

Suzlon Energy QIP – Well Flagged Deal and Will Allay Any near Term Debt Concerns

By Clarence Chu

  • Suzlon Energy (SUEL IN) is looking to raise INR20bn (US$240m) from its QIP, with proceeds used to pay down debt.
  • The firm has struggled with a debt issue in the past, most recently undertaking a rights issue in 2022 to raise INR12bn (US$150m). 
  • With the proceeds from this deal, the firm should enter into net cash territory.

[Huitongda (9878 HK, SELL, TP HK$20.5) TP Change]: Downsizing Minority Interest Drive up Earnings

By Shawn Yang

  • We expect Huitongda (HTD) 1H23 revenue in-line with consensus, and non-IFRS NI 15.6% lower than consensus. 
  • The lower bottom-line is due to 1) product mix change result in lower gross margin; 2) higher impairment loss from account receivables due to its SME focused model.
  • We maintain the stock as SELL. We raise TP by HK$2.5 to HK$20.5 to factor in the upward revision of NI from downsizing of minority interest.

Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further

By Shifara Samsudeen, ACMA, CGMA

  • Recruit Holdings (6098 JP) reported 1QFY03/2024 results yesterday. Revenue and OP increased 0.9% and 1.9% YoY to ¥850.8bn (vs consensus ¥818.7bn) and ¥121.6bn (vs consensus ¥109.9bn) respectively.
  • 1QFY03/24 revenues of ¥850.8bn and adjusted EBITDA of ¥165.9bn were higher than the company guided revenues and adj. EBITDA of ¥800-830bn and ¥140-160bn respectively.
  • HR Tech segment’s revenues declined 9.1% and Recruit has shifted to a new pricing model for HR Tech which we think would further impact the segment’s earnings.

TVS Supply Chain Solutions IPO- Forensic Analysis

By Nitin Mangal

  • TVS Supply Chain Solutions (1915741D IN)  is one of the leading Indian supply chain solution companies in India with an approximate market share of 7%.  
  • Around 70% of the operations come from outside India, however the foreign subsidiaries are not doing pretty well. Moreover, the profits that were only posted in F23 look unsustainable.
  • Other concerns which are not to be overlooked, relate to impairment of assets, levered balance sheet, pricey acquisitions, disposal of fixed assets, high remuneration to promoter, etc.

ACCO: Caution Reigns Supreme

By Hamed Khorsand

  • ACCO reported second quarter results with a greater pull-in of back-to-school related sales, but management took a cautious stance on outlook for the rest of the year
  • The second quarter is seasonally one of the stronger periods of the year due to the timing of retailers taking inventory for the back-to-school season
  • Without a stable back to school shopping season ACCO would be dependent on the holiday season in fourth quarter to achieve its free cash flow guidance for the year

IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business

By Water Tower Research

  • iPower has built a growing, efficient e-commerce platform to market a wide range of home and commercial goods, including hydroponics supplies, fans, shelving systems, pet supplies, and furniture.

  • The company has multiple product expansion opportunities, setting the business up for continued strong long- term top-line growth.

  • iPower leverages extensive data analytics at every step of the value chain to optimize its processes, from product conception and design, to sourcing, logistics, and marketing. 

Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)

By Astris Advisory Japan

  • Accelerating growth profile – Japan Elevator Service (JES) made a strong start in Q1 FY3/2024, reporting high double-digit growth for both sales (+21.4% YoY) and operating profit (+35.7% YoY).
  • It continues to gain market share in Maintenance & Repair with its quality and cost-efficient offering and is experiencing accelerating demand in its Modernization business with its structural tailwinds.
  • While this may dilute the sales mix, the combination of cost management and rising engineer productivity is driving operational leverage.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 11
0

Daily Brief Industrials: Stylam Industries, Keisei Electric Railway Co, Suzlon Energy, Huitongda, Recruit Holdings, TVS Supply Chain Solutions, ACCO Brands, iPower , Japan Elevator Service Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Stylam Industries Q1 FY24: Slow Revenue Quarter, But Healthy Margin Expansion and 32% Profit Growth
  • Keisei Electric (9009): The Chinese Are Back.
  • Suzlon Energy QIP – Well Flagged Deal and Will Allay Any near Term Debt Concerns
  • [Huitongda (9878 HK, SELL, TP HK$20.5) TP Change]: Downsizing Minority Interest Drive up Earnings
  • Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further
  • TVS Supply Chain Solutions IPO- Forensic Analysis
  • ACCO: Caution Reigns Supreme
  • IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business
  • Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)

Stylam Industries Q1 FY24: Slow Revenue Quarter, But Healthy Margin Expansion and 32% Profit Growth

By Sameer Taneja

  • Stylam Industries (SYIL IN) reported a good quarter on the profitability front, with PAT up 32.4% YoY but revenues down 4% YoY. 
  • Exports showed degrowth temporarily by 11% YoY due to a slowdown in Europe and other key markets, but the company guided an improvement in subsequent quarters. 
  • Trading at 20x/16x FY24e/25e, the stock is not a steal, but with a remarkable growth profile of 20-25% CAGR, we see tremendous potential as a multibagger for the company.

Keisei Electric (9009): The Chinese Are Back.

By Henry Soediarko

  • The moment of truth is here, the Chinese are finally coming back to Japan. 
  • Keisei Electric Railway Co (9009 JP) is one of the biggest beneficiaries of increased tourist arrivals in Japan. 
  • It is trading at 0.04 PEG, a very low valuation considering its potential for producing large growth rate. 

Suzlon Energy QIP – Well Flagged Deal and Will Allay Any near Term Debt Concerns

By Clarence Chu

  • Suzlon Energy (SUEL IN) is looking to raise INR20bn (US$240m) from its QIP, with proceeds used to pay down debt.
  • The firm has struggled with a debt issue in the past, most recently undertaking a rights issue in 2022 to raise INR12bn (US$150m). 
  • With the proceeds from this deal, the firm should enter into net cash territory.

[Huitongda (9878 HK, SELL, TP HK$20.5) TP Change]: Downsizing Minority Interest Drive up Earnings

By Shawn Yang

  • We expect Huitongda (HTD) 1H23 revenue in-line with consensus, and non-IFRS NI 15.6% lower than consensus. 
  • The lower bottom-line is due to 1) product mix change result in lower gross margin; 2) higher impairment loss from account receivables due to its SME focused model.
  • We maintain the stock as SELL. We raise TP by HK$2.5 to HK$20.5 to factor in the upward revision of NI from downsizing of minority interest.

Recruit 1Q: Earnings Further Slow Down; New Pricing Model Seems to Impact HR Tech Further

By Shifara Samsudeen, ACMA, CGMA

  • Recruit Holdings (6098 JP) reported 1QFY03/2024 results yesterday. Revenue and OP increased 0.9% and 1.9% YoY to ¥850.8bn (vs consensus ¥818.7bn) and ¥121.6bn (vs consensus ¥109.9bn) respectively.
  • 1QFY03/24 revenues of ¥850.8bn and adjusted EBITDA of ¥165.9bn were higher than the company guided revenues and adj. EBITDA of ¥800-830bn and ¥140-160bn respectively.
  • HR Tech segment’s revenues declined 9.1% and Recruit has shifted to a new pricing model for HR Tech which we think would further impact the segment’s earnings.

TVS Supply Chain Solutions IPO- Forensic Analysis

By Nitin Mangal

  • TVS Supply Chain Solutions (1915741D IN)  is one of the leading Indian supply chain solution companies in India with an approximate market share of 7%.  
  • Around 70% of the operations come from outside India, however the foreign subsidiaries are not doing pretty well. Moreover, the profits that were only posted in F23 look unsustainable.
  • Other concerns which are not to be overlooked, relate to impairment of assets, levered balance sheet, pricey acquisitions, disposal of fixed assets, high remuneration to promoter, etc.

ACCO: Caution Reigns Supreme

By Hamed Khorsand

  • ACCO reported second quarter results with a greater pull-in of back-to-school related sales, but management took a cautious stance on outlook for the rest of the year
  • The second quarter is seasonally one of the stronger periods of the year due to the timing of retailers taking inventory for the back-to-school season
  • Without a stable back to school shopping season ACCO would be dependent on the holiday season in fourth quarter to achieve its free cash flow guidance for the year

IPower, Inc. -Building a Dynamic E-Commerce Home and Commercial Goods Business

By Water Tower Research

  • iPower has built a growing, efficient e-commerce platform to market a wide range of home and commercial goods, including hydroponics supplies, fans, shelving systems, pet supplies, and furniture.

  • The company has multiple product expansion opportunities, setting the business up for continued strong long- term top-line growth.

  • iPower leverages extensive data analytics at every step of the value chain to optimize its processes, from product conception and design, to sourcing, logistics, and marketing. 

Q1 FY3/2024 Results Update – Japan Elevator Service Holdings (6544)

By Astris Advisory Japan

  • Accelerating growth profile – Japan Elevator Service (JES) made a strong start in Q1 FY3/2024, reporting high double-digit growth for both sales (+21.4% YoY) and operating profit (+35.7% YoY).
  • It continues to gain market share in Maintenance & Repair with its quality and cost-efficient offering and is experiencing accelerating demand in its Modernization business with its structural tailwinds.
  • While this may dilute the sales mix, the combination of cost management and rising engineer productivity is driving operational leverage.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 10
0

Daily Brief Industrials: YTO Express, TVS Supply Chain Solutions, RELX and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Primer for STAR 50 Index Rebalance Events
  • TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation
  • Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

Quiddity Primer for STAR 50 Index Rebalance Events

By Janaghan Jeyakumar, CFA

  • STAR 50 Index represents the performance of the top 50 securities by market capitalization and liquidity listed on the Science and Technology Innovation (STAR) Board of the Shanghai Stock Exchange.
  • This is one of the most significant indices in Mainland China when considering the average passive AUM per stock as a percentage of float.
  • In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of STAR 50 index rebalance baskets.

TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • TVS Supply Chain Solutions (1915741D IN) is looking to raise up to US$110m in its India IPO, after downsizing from an earlier float of up to US$500m.
  • TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
  • In our previous note, we looked at the company’s past performance. In this note, we talk about RHP updates, undertake a peer comparison and provide our thoughts on valuation.

Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

By Baptista Research

  • Relx had a decent financial performance in the recent quarter and is being driven by a continued shift in the business mix toward higher-growth analytics and decision tools that provide increased value to their clients across market categories.
  • The underlying adjusted operating profit increased by 16%.
  • All four business segments expanded well, with underlying adjusted operating profit growth matching or exceeding underlying sales growth.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 10
0

Daily Brief Industrials: YTO Express, TVS Supply Chain Solutions, RELX and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Primer for STAR 50 Index Rebalance Events
  • TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation
  • Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

Quiddity Primer for STAR 50 Index Rebalance Events

By Janaghan Jeyakumar, CFA

  • STAR 50 Index represents the performance of the top 50 securities by market capitalization and liquidity listed on the Science and Technology Innovation (STAR) Board of the Shanghai Stock Exchange.
  • This is one of the most significant indices in Mainland China when considering the average passive AUM per stock as a percentage of float.
  • In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of STAR 50 index rebalance baskets.

TVS Supply Chain Solutions IPO – RHP Updates, Peer Comparison & Thoughts on Valuation

By Ethan Aw

  • TVS Supply Chain Solutions (1915741D IN) is looking to raise up to US$110m in its India IPO, after downsizing from an earlier float of up to US$500m.
  • TVS SCS is an Indian supply chain logistics solution provider which also has global capabilities and network across the value chain with cross deployment abilities, according to RedSeer. 
  • In our previous note, we looked at the company’s past performance. In this note, we talk about RHP updates, undertake a peer comparison and provide our thoughts on valuation.

Relx Plc: Diving Deep into Their Growth Strategies! – Key Drivers

By Baptista Research

  • Relx had a decent financial performance in the recent quarter and is being driven by a continued shift in the business mix toward higher-growth analytics and decision tools that provide increased value to their clients across market categories.
  • The underlying adjusted operating profit increased by 16%.
  • All four business segments expanded well, with underlying adjusted operating profit growth matching or exceeding underlying sales growth.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 09
0

Daily Brief Industrials: Toshiba Corp, OHB SE, Asiana Airlines, S.F. Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Toshiba (6502) Tender Offer – Kioxia Optionality
  • KKR/OHB: Agreed Take-Private Offer
  • What Is KDB’s Plan B for Asiana Airlines?
  • A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself

Toshiba (6502) Tender Offer – Kioxia Optionality

By Travis Lundy

  • Yesterday, JIP finally announced its Tender Offer for Toshiba Corp (6502 JP) as discussed in JIP Tender Offer for Toshiba (6502) Finally Here 
  • I got a few questions this morning on the earnings call comments from Chairman Watanabe regarding what might happen if a Kioxia Transaction were announced mid-JIP Tender.
  • My assumption before, during, and after, is that the Board wants this deal done. And doesn’t really want to take any responsibility for pushing any more.

KKR/OHB: Agreed Take-Private Offer

By Jesus Rodriguez Aguilar

  • KKR’s launching a cash offer for space tech firm OHB SE (OHB GR) at €44/share, 37% premium, 8.1x EV/Fwd NTM EBITDA, 16.1x Fwd P/E for an implied equity value of c.€769 million.
  • The Fuchs family will retain its majority shareholding. OHB’s strong balance sheet might be leveraged to further consolidate the industry. The offer price seems slightly cheap but not outrageous.
  • I believe a price hike is unlikely. Gross spread is 3.75%. Considering a break of €32.2, the market is pricing an 86% probability of success. I’d be long the shares.

What Is KDB’s Plan B for Asiana Airlines?

By Douglas Kim

  • There have been increasing local news flows about KDB’s potential “Plan B” for Asiana Airlines in case the merger between Asiana Airlines and Korean Air Lines is finally cancelled.
  • The final decisions by the European and US regulators on whether to pass/block this merger are likely to take place in 4Q 2023. 
  • The higher probability scenarios are for one or both of these regulators to block this deal. As such, KDB will need to come up with Plan B.

A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself

By Daniel Hellberg

  • SF Holding differs from its Chinese peers in several important ways, including business scale, its lack of a formal relationship with Alibaba, and its many non-express lines of business
  • SF also differs from the pre-Covid version of itself: it’s far larger than it was in 2019, but core margins have declined, and internatonal exposure has risen dramatically
  • In this insight we also take a look at current EV/Revenue valuations vs peers and list important milestones to watch for ahead of the company’s planned HK IPO

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 09
0

Daily Brief Industrials: Toshiba Corp, OHB SE, Asiana Airlines, S.F. Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Toshiba (6502) Tender Offer – Kioxia Optionality
  • KKR/OHB: Agreed Take-Private Offer
  • What Is KDB’s Plan B for Asiana Airlines?
  • A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself

Toshiba (6502) Tender Offer – Kioxia Optionality

By Travis Lundy

  • Yesterday, JIP finally announced its Tender Offer for Toshiba Corp (6502 JP) as discussed in JIP Tender Offer for Toshiba (6502) Finally Here 
  • I got a few questions this morning on the earnings call comments from Chairman Watanabe regarding what might happen if a Kioxia Transaction were announced mid-JIP Tender.
  • My assumption before, during, and after, is that the Board wants this deal done. And doesn’t really want to take any responsibility for pushing any more.

KKR/OHB: Agreed Take-Private Offer

By Jesus Rodriguez Aguilar

  • KKR’s launching a cash offer for space tech firm OHB SE (OHB GR) at €44/share, 37% premium, 8.1x EV/Fwd NTM EBITDA, 16.1x Fwd P/E for an implied equity value of c.€769 million.
  • The Fuchs family will retain its majority shareholding. OHB’s strong balance sheet might be leveraged to further consolidate the industry. The offer price seems slightly cheap but not outrageous.
  • I believe a price hike is unlikely. Gross spread is 3.75%. Considering a break of €32.2, the market is pricing an 86% probability of success. I’d be long the shares.

What Is KDB’s Plan B for Asiana Airlines?

By Douglas Kim

  • There have been increasing local news flows about KDB’s potential “Plan B” for Asiana Airlines in case the merger between Asiana Airlines and Korean Air Lines is finally cancelled.
  • The final decisions by the European and US regulators on whether to pass/block this merger are likely to take place in 4Q 2023. 
  • The higher probability scenarios are for one or both of these regulators to block this deal. As such, KDB will need to come up with Plan B.

A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself

By Daniel Hellberg

  • SF Holding differs from its Chinese peers in several important ways, including business scale, its lack of a formal relationship with Alibaba, and its many non-express lines of business
  • SF also differs from the pre-Covid version of itself: it’s far larger than it was in 2019, but core margins have declined, and internatonal exposure has risen dramatically
  • In this insight we also take a look at current EV/Revenue valuations vs peers and list important milestones to watch for ahead of the company’s planned HK IPO

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 08
0

Daily Brief Industrials: Toshiba Corp, TRYT , Nexteel, Keyence Corp, Symbotic, Southwest Airlines Co, Enphase Energy and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JIP Tender Offer for Toshiba (6502) Finally Here
  • Toshiba – The Tender Arrives
  • Toshiba (6502 JP): Tender Offer Launches, 1Q Results Increase Deal Risks
  • TRYT IPO: Down 25% and Upside Is Limited
  • Nexteel IPO Book Building Results Analysis
  • Keyence (6861 JP): Higher S,G&A Takes Down Operating Margin
  • Bots In The Backroom
  • Southwest Airlines Company: 4 Key Factors Driving Their Future Growth – Financial Forecasts
  • Enphase Energy Inc.: Expanded Distribution In Germany & Other Drivers

JIP Tender Offer for Toshiba (6502) Finally Here

By Travis Lundy

  • The JIP TOB for Toshiba is here. Finally. It is still too low. Since the announcement, when it was too low, peers are up a lot, and memory looks healthier.
  • But it is not clear that activists who pushed this for years want to push any more. There appears to be Toshiba Fatigue, as I warned in March.
  • That makes this deal look “safe” but there are technical aspects which make it less “comfortable” than normal large and long-awaited deals. 

Toshiba – The Tender Arrives

By Mio Kato

  • At long last the end to the Toshiba saga appears at hand with JIP’s belated tender offer being formally announced today at the previously quoted price of ¥4,620. 
  • With a minimum target of 66.7% this does not seem guaranteed to pass but we nevertheless believe that odds are good. 
  • The question is whether there is any room for a small hike in the price as alluded to by the Chairman.

Toshiba (6502 JP): Tender Offer Launches, 1Q Results Increase Deal Risks

By Arun George

  • Japan Industrial Partners (JIP) will launch the Toshiba Corp (6502 JP) tender offer of JPY4,620 per share from 8 August to 20 September.
  • The Board has reaffirmed its recommendation to accept the offer. JIP’s inability to raise its bid is used as an excuse to ignore the material peer rerating and unattractive terms.
  • The 1Q results undermine the Board’s view of an overstated DCF and show its unwillingness to entertain a potential Kioxia merger as a superior alternative, increasing deal risks. 

TRYT IPO: Down 25% and Upside Is Limited

By Shifara Samsudeen, ACMA, CGMA

  • TRYT’s shares started trading on TSE on 24th July. The IPO was priced at ¥1,200 per share and closed at ¥876 per share at the end of first day trading.
  • The company’s shares are currently trading at around ¥900 per share, at a 25% discount to TRYT (9164 JP) ‘s IPO price.
  • We recommended staying on the sidelines as the company’s IPO was overvalued and our DCF valuation suggests that shares are fairly valued at the current price.

Nexteel IPO Book Building Results Analysis

By Douglas Kim

  • Nexteel reported disappointing IPO book building results from institutional investors. The IPO price has been confirmed at 11,500 won which is at the low end of the IPO valuation range.
  • A total of 700 institutions participated, with a demand ratio of 236 to 1. It is scheduled to be listed on the KOSPI exchange on 21 August. 
  • Despite the weak IPO book building results, we maintain our positive view of the Nexteel IPO. Our base case valuation of Nexteel is implied market cap of 485.8 billion won.

Keyence (6861 JP): Higher S,G&A Takes Down Operating Margin

By Scott Foster

  • 1Q sales growth was strong, but the operating margin was squeezed by the cost of overseas expansion.
  • The company’s finances remains very strong, but balance sheet ratios reflect the loss of earnings momentum and the dividend payout remains low.
  • Shares sold off on margin contraction, but valuations still  high. A quick rebound cannot be taken for granted.

Bots In The Backroom

By subSPAC

  • In the aftermath of a stellar third-quarter earnings release, Symbotic, a warehouse automation company, exceeded the expectations of even the most bullish earnings forecasts.
  • Propelled by the encouraging financial performance, the company’s stock value skyrocketed to over $62 per share, catapulting the company’s market cap to over $35 billion.
  • There are several reasons to be optimistic, given that the company is riding multiple tailwinds. 

Southwest Airlines Company: 4 Key Factors Driving Their Future Growth – Financial Forecasts

By Baptista Research

  • Southwest Airlines managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The demand environment, particularly for leisure travel, is resilient as it sees solid bookings all over this busy summer travel season.
  • We give Southwest Airlines a ‘Hold’ rating with a revised target price.

Enphase Energy Inc.: Expanded Distribution In Germany & Other Drivers

By Baptista Research

  • Enphase delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus in earnings.
  • Enphase shipped 50,000 microinverters in the quarter from two of its contract manufacturers, Foxconn in Wisconsin and Flex in South Carolina.
  • This was a solid quarter for the company’s international revenue mainly due to the growth in Australia and Europe.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 08
0

Daily Brief Industrials: Toshiba Corp, TRYT , Nexteel, Keyence Corp, Symbotic, Southwest Airlines Co, Enphase Energy and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JIP Tender Offer for Toshiba (6502) Finally Here
  • Toshiba – The Tender Arrives
  • Toshiba (6502 JP): Tender Offer Launches, 1Q Results Increase Deal Risks
  • TRYT IPO: Down 25% and Upside Is Limited
  • Nexteel IPO Book Building Results Analysis
  • Keyence (6861 JP): Higher S,G&A Takes Down Operating Margin
  • Bots In The Backroom
  • Southwest Airlines Company: 4 Key Factors Driving Their Future Growth – Financial Forecasts
  • Enphase Energy Inc.: Expanded Distribution In Germany & Other Drivers

JIP Tender Offer for Toshiba (6502) Finally Here

By Travis Lundy

  • The JIP TOB for Toshiba is here. Finally. It is still too low. Since the announcement, when it was too low, peers are up a lot, and memory looks healthier.
  • But it is not clear that activists who pushed this for years want to push any more. There appears to be Toshiba Fatigue, as I warned in March.
  • That makes this deal look “safe” but there are technical aspects which make it less “comfortable” than normal large and long-awaited deals. 

Toshiba – The Tender Arrives

By Mio Kato

  • At long last the end to the Toshiba saga appears at hand with JIP’s belated tender offer being formally announced today at the previously quoted price of ¥4,620. 
  • With a minimum target of 66.7% this does not seem guaranteed to pass but we nevertheless believe that odds are good. 
  • The question is whether there is any room for a small hike in the price as alluded to by the Chairman.

Toshiba (6502 JP): Tender Offer Launches, 1Q Results Increase Deal Risks

By Arun George

  • Japan Industrial Partners (JIP) will launch the Toshiba Corp (6502 JP) tender offer of JPY4,620 per share from 8 August to 20 September.
  • The Board has reaffirmed its recommendation to accept the offer. JIP’s inability to raise its bid is used as an excuse to ignore the material peer rerating and unattractive terms.
  • The 1Q results undermine the Board’s view of an overstated DCF and show its unwillingness to entertain a potential Kioxia merger as a superior alternative, increasing deal risks. 

TRYT IPO: Down 25% and Upside Is Limited

By Shifara Samsudeen, ACMA, CGMA

  • TRYT’s shares started trading on TSE on 24th July. The IPO was priced at ¥1,200 per share and closed at ¥876 per share at the end of first day trading.
  • The company’s shares are currently trading at around ¥900 per share, at a 25% discount to TRYT (9164 JP) ‘s IPO price.
  • We recommended staying on the sidelines as the company’s IPO was overvalued and our DCF valuation suggests that shares are fairly valued at the current price.

Nexteel IPO Book Building Results Analysis

By Douglas Kim

  • Nexteel reported disappointing IPO book building results from institutional investors. The IPO price has been confirmed at 11,500 won which is at the low end of the IPO valuation range.
  • A total of 700 institutions participated, with a demand ratio of 236 to 1. It is scheduled to be listed on the KOSPI exchange on 21 August. 
  • Despite the weak IPO book building results, we maintain our positive view of the Nexteel IPO. Our base case valuation of Nexteel is implied market cap of 485.8 billion won.

Keyence (6861 JP): Higher S,G&A Takes Down Operating Margin

By Scott Foster

  • 1Q sales growth was strong, but the operating margin was squeezed by the cost of overseas expansion.
  • The company’s finances remains very strong, but balance sheet ratios reflect the loss of earnings momentum and the dividend payout remains low.
  • Shares sold off on margin contraction, but valuations still  high. A quick rebound cannot be taken for granted.

Bots In The Backroom

By subSPAC

  • In the aftermath of a stellar third-quarter earnings release, Symbotic, a warehouse automation company, exceeded the expectations of even the most bullish earnings forecasts.
  • Propelled by the encouraging financial performance, the company’s stock value skyrocketed to over $62 per share, catapulting the company’s market cap to over $35 billion.
  • There are several reasons to be optimistic, given that the company is riding multiple tailwinds. 

Southwest Airlines Company: 4 Key Factors Driving Their Future Growth – Financial Forecasts

By Baptista Research

  • Southwest Airlines managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The demand environment, particularly for leisure travel, is resilient as it sees solid bookings all over this busy summer travel season.
  • We give Southwest Airlines a ‘Hold’ rating with a revised target price.

Enphase Energy Inc.: Expanded Distribution In Germany & Other Drivers

By Baptista Research

  • Enphase delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus in earnings.
  • Enphase shipped 50,000 microinverters in the quarter from two of its contract manufacturers, Foxconn in Wisconsin and Flex in South Carolina.
  • This was a solid quarter for the company’s international revenue mainly due to the growth in Australia and Europe.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Aug 07
0

Daily Brief Industrials: NGK Insulators, Toshiba Corp, Yamato Holdings, AP Moeller – Maersk A/S and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Japan – Increase in Shorts on Some Interesting Stocks
  • Weekly Deals Digest (06 Aug) – Toshiba, E-Guardian, ITOCHU, Allkem, Symbio, Pacific Current, MPI
  • Trucker Call for End to Free Shipping Will Help Relieve Pressure on Yamato
  • Maersk Q2: Raised FY23 Guidance | Beat on Earnings, Too | Takeaway: Conditions Not Disastrous

Japan – Increase in Shorts on Some Interesting Stocks

By Brian Freitas

Weekly Deals Digest (06 Aug) – Toshiba, E-Guardian, ITOCHU, Allkem, Symbio, Pacific Current, MPI

By Arun George

Trucker Call for End to Free Shipping Will Help Relieve Pressure on Yamato

By Michael Causton

  • Transport industry officials want to ban ‘free shipping’, forcing customers to pay for all deliveries and even redeliveries.
  • The aim is to reduce demand in time for new rules on driver overtime due to come into force next year and should relieve pressure on Yamato and others.
  • There is also more collaboration to reduce costs and labour: Yamato has scrapped its small packet business entirely, passing customers on to Japan Post. 

Maersk Q2: Raised FY23 Guidance | Beat on Earnings, Too | Takeaway: Conditions Not Disastrous

By Daniel Hellberg

  • On Friday container giant AP Moeller – Maersk A/S (MAERSKB DC) raised FY23 guidance, lifting the bottom of its EBITDA range & increasing target FCF from US$2bn+ to US$3bn+
  • Despite beating Q2 expectations and raising FY guidance, management warned that the “normalization” of container shipping conditions is taking longer than anticipated
  • Maersk’s shares traded down on the news, but the company’s statements confirm our thesis: market conditions in 2023 are not nearly as bad as expected (Maersk’s TTM ROIC 34%!)

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free