INDUSTRIALS Archives | Page 167 of 295 | Smartkarma

American Airlines Group managed to surpass the revenue expectations as well as the earnings expectations of analysts.
While overseas unit revenue increased, domestic unit revenue decreased.
In the first half of the year, American Airlines received 13 deliveries, and by the end of the year, it anticipates receiving 10 more planes.

CSX Corporation: Major Factors Responsible For The Good Results! – Financial Forecasts

CSX Corporation’s performance in the second quarter was largely disappointing with revenues below par and earnings in line with expectations.
The only silver lining was the successful performance of its merchandise sector.
In the second quarter, CSX moved more than 1.5 million carloads, driven by a 3% volume increase in merchandise and a 4% volume increase in coal.

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Jul 26

Daily Brief Industrials: Titagarh Wagons, Applus Services SA, Lockheed Martin, Hidrovias Do Brasil S.A., Hunt (Jb) Transprt Svcs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Titagarh Rail Systems Ltd- Forensic Analysis
Apollo/Applus: Blocking Minorities
Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts
Hidrovias – ESG Report – Lucror Analytics
J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

Titagarh Rail Systems Ltd- Forensic Analysis

By Nitin Mangal

Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.

Apollo/Applus: Blocking Minorities

The spread has been in positive territory since the announcement. Apollo only bid the minimum requested by the Board. Investors hope for a counteroffer or Apollo sweetening its offer.
Exceeding the 75% threshold is key for Apollo to be able to quickly and effectively carry out the delisting of Applus+, the objective stated in the offer announcement.
Risk arbitrageurs holding now over 25%, may give that gentle push, otherwise delisting will be in jeopardy. A sweetening/counteroffer in the range €10-10.5/share seems very likely.

Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts

Lockheed Martin Corporation delivered a positive result and managed an all-around beat in the last quarter.
Lockheed had revenues of $16.7 billion, an increase of 8% year on year, and double-digit growth in both Aeronautics and Space.
We give Lockheed Martin Corporation a ‘Hold’ rating with a revised target price.

Hidrovias – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Hidrovias’ ESG as “Adequate”, in line with its “Adequate” Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
Headquartered in Sao Paulo, Hidrovias Do Brasil SA is South America’s largest independent provider of integrated inland waterway logistics transport services. Its operations include shipping, trans-shipment, storage and port services for dry-bulk cargo (including agricultural commodities, iron ore and bauxite) in the Paraguay-Parana and Trombetas-Tapajos-Amazon river systems.

J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

J.B.
Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street.
Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis.

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Jul 26

Daily Brief Industrials: Titagarh Wagons, Applus Services SA, Lockheed Martin, Hidrovias Do Brasil S.A., Hunt (Jb) Transprt Svcs and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Titagarh Rail Systems Ltd- Forensic Analysis
Apollo/Applus: Blocking Minorities
Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts
Hidrovias – ESG Report – Lucror Analytics
J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

Titagarh Rail Systems Ltd- Forensic Analysis

By Nitin Mangal

Titagarh Wagons (TWL IN) (now ‘Titagarh Rail Systems’) has seen an extraordinary momentum in its share price in last couple of years, especially after bagging crucial contracts for Indian Railways.
The company was limping until F22 due to its Italian subsidiary (TFA). However, the recapitalization of TFA (including change in accounting) in F23 should make the balance sheet look better.
Forensic analysis revealed several takeaways, ranging from write-offs and internal audit issues to heavy contingent liabilities.

Apollo/Applus: Blocking Minorities

The spread has been in positive territory since the announcement. Apollo only bid the minimum requested by the Board. Investors hope for a counteroffer or Apollo sweetening its offer.
Exceeding the 75% threshold is key for Apollo to be able to quickly and effectively carry out the delisting of Applus+, the objective stated in the offer announcement.
Risk arbitrageurs holding now over 25%, may give that gentle push, otherwise delisting will be in jeopardy. A sweetening/counteroffer in the range €10-10.5/share seems very likely.

Lockheed Martin Corporation: 4 Reasons Behind Lockheed Martin’s Successful Quarter! – Financial Forecasts

Lockheed Martin Corporation delivered a positive result and managed an all-around beat in the last quarter.
Lockheed had revenues of $16.7 billion, an increase of 8% year on year, and double-digit growth in both Aeronautics and Space.
We give Lockheed Martin Corporation a ‘Hold’ rating with a revised target price.

Hidrovias – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Hidrovias’ ESG as “Adequate”, in line with its “Adequate” Social and Governance scores. The company has a “Strong” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
Headquartered in Sao Paulo, Hidrovias Do Brasil SA is South America’s largest independent provider of integrated inland waterway logistics transport services. Its operations include shipping, trans-shipment, storage and port services for dry-bulk cargo (including agricultural commodities, iron ore and bauxite) in the Paraguay-Parana and Trombetas-Tapajos-Amazon river systems.

J.B. Hunt Transport Services Inc.: 4 Factors Why The Company Is Thriving in an Uncertain Environment! – Financial Forecasts

J.B.
Hunt Transport Services delivered a disappointing set of results as the company was unable to meet the revenue as well as the earnings expectations of Wall Street.
Revenue for the quarter decreased 18% from the prior year on a consolidated GAAP basis.

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Jul 25

Daily Brief Industrials: SCREEN Holdings, Lianlian DigiTech and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Screen Holdings (7735 JP): Export Restrictions Add to Uncertainty
LianLian DigiTech Pre-IPO Tearsheet

Screen Holdings (7735 JP): Export Restrictions Add to Uncertainty

Japan’s new restrictions on exports of semiconductor production equipment to China are a potential threat to Screen.
TSMC’s announcement that 2023 capex is likely to be at the low end of the forecast range is another negative.
Share price consolidation should continue until guidance is lowered or verified.

LianLian DigiTech Pre-IPO Tearsheet

By Sumeet Singh

Lianlian DigiTech is looking to raise at least US$500m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
LianLian DigiTech is a digital technology company that provides a range of digital payment services and value-added services to customers in China and around the world.
The firm ranked first among all independent digital payment solution providers in China in terms of TPV in 2022, with a market share of 9.1%, according to Frost & Sullivan.

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Jul 25

Daily Brief Industrials: SCREEN Holdings, Lianlian DigiTech and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Screen Holdings (7735 JP): Export Restrictions Add to Uncertainty
LianLian DigiTech Pre-IPO Tearsheet

Screen Holdings (7735 JP): Export Restrictions Add to Uncertainty

Japan’s new restrictions on exports of semiconductor production equipment to China are a potential threat to Screen.
TSMC’s announcement that 2023 capex is likely to be at the low end of the forecast range is another negative.
Share price consolidation should continue until guidance is lowered or verified.

LianLian DigiTech Pre-IPO Tearsheet

By Sumeet Singh

Lianlian DigiTech is looking to raise at least US$500m in its upcoming HK IPO. The deal will be run by CICC and JP Morgan.
LianLian DigiTech is a digital technology company that provides a range of digital payment services and value-added services to customers in China and around the world.
The firm ranked first among all independent digital payment solution providers in China in terms of TPV in 2022, with a market share of 9.1%, according to Frost & Sullivan.

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Jul 24

Daily Brief Industrials: Hainan Meilan International Airport, DWF Group, AP Moeller – Maersk A/S, Lavoro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Meilan Airport (357 HK): Mixed Takeaways from Conversations with the Company
Inflexion/DWF: Deal Announcement
Monthly Container Shipping Tracker | Rates Depressed, Stable | Worst of ‘Storm’ Passed (July 2023)
Harvesting Gains

Meilan Airport (357 HK): Mixed Takeaways from Conversations with the Company

By Eric Chen

We had a chance talking to the company about key topics about outlook of passenger traffic, recovery of duty-free sales and details about the arbitration.
The takeaway is mixed as we see both positives and negatives relative to our expectations.
We cut our forecast of 2023 net profit from RMB400 million to RMB300 million and expect the earnings to be back-end loaded.

Inflexion/DWF: Deal Announcement

There were no surprises and Inflexion launched the offer for DWF Group (DWF LN) well ahead of the 7 August PUSU deadline. DWF shares increased by c. 15%.
The final proposal maintains what was announced: 97p in cash plus a 3p dividend,8.0x EV/Fwd NTM EBIT and 8.2x Fwd P/E, and an 18% discount to the IPO price.
The closing share price pre-first announcement was 56.5p, taking it as break, the market is pricing a 94% chance to complete the deal. Spread is 2.6%/6.2% (gross/annualised). Long.

Monthly Container Shipping Tracker | Rates Depressed, Stable | Worst of ‘Storm’ Passed (July 2023)

By Daniel Hellberg

Rates remain depressed but stable, and easier Y/Y comps will arrive in late Summer
Fuel costs should be a tailwind in Q2 results; Danish giant Maersk reports on August 4th
We expect Q2/H1 results to support our view that the worst of the storm has passed

Harvesting Gains

By subSPAC

In the past several years, the agricultural market has been subject to escalating uncertainty, catalyzed by a triad of disruptive forces, including a global pandemic, the geopolitical uncertainty exemplified by the ongoing war in Ukraine, and unpredictable climatic events leading to droughts and diminished yields.
These factors have injected volatility into the market, causing prices to move unpredictably due to periods of shortages and excess supply.
Despite the volatility, however, prices remain on a long-term upward trajectory.

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Jul 24

Daily Brief Industrials: Hainan Meilan International Airport, DWF Group, AP Moeller – Maersk A/S, Lavoro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Meilan Airport (357 HK): Mixed Takeaways from Conversations with the Company
Inflexion/DWF: Deal Announcement
Monthly Container Shipping Tracker | Rates Depressed, Stable | Worst of ‘Storm’ Passed (July 2023)
Harvesting Gains

Meilan Airport (357 HK): Mixed Takeaways from Conversations with the Company

By Eric Chen

We had a chance talking to the company about key topics about outlook of passenger traffic, recovery of duty-free sales and details about the arbitration.
The takeaway is mixed as we see both positives and negatives relative to our expectations.
We cut our forecast of 2023 net profit from RMB400 million to RMB300 million and expect the earnings to be back-end loaded.

Inflexion/DWF: Deal Announcement

There were no surprises and Inflexion launched the offer for DWF Group (DWF LN) well ahead of the 7 August PUSU deadline. DWF shares increased by c. 15%.
The final proposal maintains what was announced: 97p in cash plus a 3p dividend,8.0x EV/Fwd NTM EBIT and 8.2x Fwd P/E, and an 18% discount to the IPO price.
The closing share price pre-first announcement was 56.5p, taking it as break, the market is pricing a 94% chance to complete the deal. Spread is 2.6%/6.2% (gross/annualised). Long.

Monthly Container Shipping Tracker | Rates Depressed, Stable | Worst of ‘Storm’ Passed (July 2023)

By Daniel Hellberg

Rates remain depressed but stable, and easier Y/Y comps will arrive in late Summer
Fuel costs should be a tailwind in Q2 results; Danish giant Maersk reports on August 4th
We expect Q2/H1 results to support our view that the worst of the storm has passed

Harvesting Gains

By subSPAC

In the past several years, the agricultural market has been subject to escalating uncertainty, catalyzed by a triad of disruptive forces, including a global pandemic, the geopolitical uncertainty exemplified by the ongoing war in Ukraine, and unpredictable climatic events leading to droughts and diminished yields.
These factors have injected volatility into the market, causing prices to move unpredictably due to periods of shortages and excess supply.
Despite the volatility, however, prices remain on a long-term upward trajectory.

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✓ Personalised Alerts
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✓ Company Data and News
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Jul 23

Daily Brief Industrials: Tryt Inc, ROHM Co Ltd, Keisei Electric Railway Co, Polycab India and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TRYT IPO: Trading Debut
Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans
Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM
2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

TRYT IPO: Trading Debut

By Arun George

Tryt Inc (9164 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$339 million. The shares will start trading on 24 July.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case, TRYT IPO: Valuation Insights and TRYT IPO: Revised IPO Price Range Remains Unattractive.
The market sentiment on the sector has broadly remained unchanged since the release of the prospectus. Our analysis suggests that Tryt is, at best, fully priced at the IPO price.

Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans

As expected, Rohm has decided to invest ¥300 billion in the JIP-led buyout of Toshiba: ¥100 billion in voting equity shares and ¥200 billion in non-voting preferred shares.
This would make Toshiba an equity-method affiliate of Rohm, facilitating synergetic cooperation in power semiconductors. The investment is large, but Rohm would still have a sound balance sheet.
Rohm also plans to buy Solar Frontier’s Kunitomi factory to meet SiC power device capacity requirements through 2030. Investors can now focus on profit growth, which should resume next year.

Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM

By David Blennerhassett

Keisei Electric (9009 JP)‘s valuation has deviated from Oriental Land (4661 JP)‘s since the proposed expansion of Tokyo Disney Sea, Fantasy Springs. That bifurcation should now reverse.
Don’t expect a serious fight in Nidec (6594 JP)‘s hostile for Takisawa Machine Tool (6121 JP). Fanuc could counter. It is possible others could step up but we wouldn’t know.
On the back of the news to spin off and list some logistics ops, Shenzhen International (152 HK) is probably a buy on weakness vs Stub Ops Peers.

2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

By Ankit Agrawal, CFA

We published on Polycab as our 2023 high conviction idea on Dec 25 2022. Since then, the stock has been up 75%+, exceeding our 65%+ upside FY26 target.
The steep rise was probably driven by strong earnings growth on the back of upbeat demand environment led by healthy domestic capex, rising exports and robust housing demand.
At the current valuation, Polycab is richly valued and we assign a “SELL” rating. Polycab’s current market cap at INR 68700cr+ is well above our FY26 projection of INR 63500cr+.

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Jul 23

Daily Brief Industrials: Tryt Inc, ROHM Co Ltd, Keisei Electric Railway Co, Polycab India and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TRYT IPO: Trading Debut
Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans
Last Week in Event SPACE: Takisawa Machine Tools, Kesei Electric/Oriental, Shenzhen Int’l/Way, HMM
2023 High Conviction Update | Polycab: Played Out As Anticipated, Now Time to Exit

TRYT IPO: Trading Debut

By Arun George

Tryt Inc (9164 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$339 million. The shares will start trading on 24 July.
We previously discussed the IPO in TRYT IPO: The Bull Case, TRYT IPO: The Bear Case, TRYT IPO: Valuation Insights and TRYT IPO: Revised IPO Price Range Remains Unattractive.
The market sentiment on the sector has broadly remained unchanged since the release of the prospectus. Our analysis suggests that Tryt is, at best, fully priced at the IPO price.

Rohm (6963): Investment in Toshiba Rounds Out Long-Term Plans