Industrials

• Significant increase in the lithium market, with double digit percentage increases in the sector
• The information about the market came from China and was transparent, leading to positive market reactions
• Potential impact on downstream battery facilities and operating costs for CATL ‘s lepidolite mine

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• An announcement by Contemporary Amperex Technology Co. Ltd. (CATL) that is to halt production at its giant lithium concentrator in Yichun, Jiangxi province, triggered a sharp rise in domestic lithium mining companies’ stocks.
• Ganfeng Lithium Group Co. Ltd. and Tianqi Lithium Corp. hit their daily price limits Wednesday, while other lithium firms saw significant gains.
• CATL’s decision to stop production comes after steep falls in lithium prices, which have dropped 60% from previous highs.

• Revenue declined YoY to JPY19.3bn, with an operating loss of JPY199mn and a net loss of JPY329mn.
• On-demand Economy, Digital Marketing, and System Solutions segments saw revenue and profit declines; Sharing Economy turned an operating profit.
• Investments in Web3 and SNPIT app reduced On-demand Economy profits; premium membership grew despite customer acquisition costs.

• Significant increase in the lithium market, with double digit percentage increases in the sector
• The information about the market came from China and was transparent, leading to positive market reactions
• Potential impact on downstream battery facilities and operating costs for CATL ‘s lepidolite mine

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• An announcement by Contemporary Amperex Technology Co. Ltd. (CATL) that is to halt production at its giant lithium concentrator in Yichun, Jiangxi province, triggered a sharp rise in domestic lithium mining companies’ stocks.
• Ganfeng Lithium Group Co. Ltd. and Tianqi Lithium Corp. hit their daily price limits Wednesday, while other lithium firms saw significant gains.
• CATL’s decision to stop production comes after steep falls in lithium prices, which have dropped 60% from previous highs.

• Revenue declined YoY to JPY19.3bn, with an operating loss of JPY199mn and a net loss of JPY329mn.
• On-demand Economy, Digital Marketing, and System Solutions segments saw revenue and profit declines; Sharing Economy turned an operating profit.
• Investments in Web3 and SNPIT app reduced On-demand Economy profits; premium membership grew despite customer acquisition costs.

• After the market close on 12 September, Hankyung Business Daily reported that MBK Partners plans to conduct a tender offer of 43.43% stake in Young Poong Precision.
• The tender offer price is 20,000 won per share (113% higher than the closing price on 12 September). 
• Choi family currently controls Young Poong Precision. MBK plans to secure a controlling stake and obtain voting rights for the 1.85% stake in Korea Zinc held by Young Poong Precision.

• With the November reshuffle, single stock futures rise from 222 to 258 (+36) and single stock options increase from 52 to 58 (+6) across KOSPI 200 and KOSDAQ Global.
• The main takeaway from this reshuffle is the price impact from a short-term volume spike as market makers jump into newly listed single-stock futures.
• The volume surge in spot markets for newly listed assets consistently drives positive price impact, most notably right after listing, rather than waiting until contract expiry.

• Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise about US$150m in its upcoming Hong Kong IPO. The deal will be run by CICC, CCBI and Huatai.
• Shuangdeng Group Co Ltd is engaged in energy storage business for big-data and telecommunication industries with a focus on design, R&D, manufacturing and sales of energy storage batteries and systems.
• It was ranked first among global telecom base station and data-center energy storage battery providers in terms of shipment volume, achieving a 10.4% market share in 2023, according to F&S.

• In assessing the financial performance and business dynamics of Copart, Inc. for its fourth quarter and fiscal year 2024, certain key elements stand out which prospective investors should consider.
• The company reported a successful year, underscoring robust growth and strategic expansion across various segments of its operations.
• However, also noted were certain industry-wide challenges and specific business costs that affected overall financial outcomes.

• Core & Main, a prominent distributor in water, wastewater, storm drainage, and fire protection products, recently announced its fiscal 2024 second-quarter results, revealing a mix of operational strengths and market-related challenges.
• Core & Main maintains a strong position in the water infrastructure distribution sector, catering to over 60,000 customers with no single customer accounting for more than 1% of annual revenue.
• Its extensive network of over 350 branches across 49 states underscores its vast reach, enabling it to serve a wide geographic area.

• After the market close on 12 September, Hankyung Business Daily reported that MBK Partners plans to conduct a tender offer of 43.43% stake in Young Poong Precision.
• The tender offer price is 20,000 won per share (113% higher than the closing price on 12 September). 
• Choi family currently controls Young Poong Precision. MBK plans to secure a controlling stake and obtain voting rights for the 1.85% stake in Korea Zinc held by Young Poong Precision.

• With the November reshuffle, single stock futures rise from 222 to 258 (+36) and single stock options increase from 52 to 58 (+6) across KOSPI 200 and KOSDAQ Global.
• The main takeaway from this reshuffle is the price impact from a short-term volume spike as market makers jump into newly listed single-stock futures.
• The volume surge in spot markets for newly listed assets consistently drives positive price impact, most notably right after listing, rather than waiting until contract expiry.

• Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise about US$150m in its upcoming Hong Kong IPO. The deal will be run by CICC, CCBI and Huatai.
• Shuangdeng Group Co Ltd is engaged in energy storage business for big-data and telecommunication industries with a focus on design, R&D, manufacturing and sales of energy storage batteries and systems.
• It was ranked first among global telecom base station and data-center energy storage battery providers in terms of shipment volume, achieving a 10.4% market share in 2023, according to F&S.

• In assessing the financial performance and business dynamics of Copart, Inc. for its fourth quarter and fiscal year 2024, certain key elements stand out which prospective investors should consider.
• The company reported a successful year, underscoring robust growth and strategic expansion across various segments of its operations.
• However, also noted were certain industry-wide challenges and specific business costs that affected overall financial outcomes.

• Core & Main, a prominent distributor in water, wastewater, storm drainage, and fire protection products, recently announced its fiscal 2024 second-quarter results, revealing a mix of operational strengths and market-related challenges.
• Core & Main maintains a strong position in the water infrastructure distribution sector, catering to over 60,000 customers with no single customer accounting for more than 1% of annual revenue.
• Its extensive network of over 350 branches across 49 states underscores its vast reach, enabling it to serve a wide geographic area.

• Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
• Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
• In this note, we talk about the not-so-positive aspects of the deal.

• This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
• Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
• Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN) 

• 10 Questions for https://investors.sgx.com/_security-types/stocks/M14 What are some of the latest updates from InnoTek with reference to its financial performance? Net profit for 1H24 remained steady at S million, unchanged from the previous year, which includes a S million provision for inventory obsolescence.
• In the past two years, InnoTek has diversified its customer base into technologically advanced sectors such as GPU servers, gaming machines, medical equipment, and ATMs.

• Sai Gon Cargo Service (SCS VN) reported yet another strong month of data, with cargo volumes for August 2024 up 40% YoY. YTD volumes are up 43%. 
• At this run rate, the company will comfortably beat its volume guidance of 248,000 tons for  FY24 (>30% YoY). Q3FY24 will benefit from the full effect of the tariff hikes.
• With the recent correction, the stock trades at 11.9x FY24e and has an 8% dividend yield. The company’s next catalyst would be its Q3 FY24 result in November. 

• Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
• Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
• In this note, we talk about the not-so-positive aspects of the deal.

• This Insight focuses on Industrials, particularly those that derive a significant portion of their revenue from Air Conditioners (ACs).
• Companies in focus are Voltas Ltd (VOLT IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN),
• Blue Star Ltd (BLSTR IN) and Havells India (HAVL IN) 

• 10 Questions for https://investors.sgx.com/_security-types/stocks/M14 What are some of the latest updates from InnoTek with reference to its financial performance? Net profit for 1H24 remained steady at S million, unchanged from the previous year, which includes a S million provision for inventory obsolescence.
• In the past two years, InnoTek has diversified its customer base into technologically advanced sectors such as GPU servers, gaming machines, medical equipment, and ATMs.

• Sai Gon Cargo Service (SCS VN) reported yet another strong month of data, with cargo volumes for August 2024 up 40% YoY. YTD volumes are up 43%. 
• At this run rate, the company will comfortably beat its volume guidance of 248,000 tons for  FY24 (>30% YoY). Q3FY24 will benefit from the full effect of the tariff hikes.
• With the recent correction, the stock trades at 11.9x FY24e and has an 8% dividend yield. The company’s next catalyst would be its Q3 FY24 result in November. 

• Physical rubber prices gained strength during the Asian trade day as a typhoon in Vietnam disrupted the supply chain, limiting supply in the market. 
• In addition, increased inquiries from the Chinese tire makers for the prompt cargoes resulted in further support for the prices. 
• Chinese state buying up to 100kt of rubber, prices to be announced on 13 Sep 2024. This would provide some short term support on the SHFE 

• National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
• National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
• Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

• Speculative liquidation of crude oil positions opens up an opportunity
• A seasonally strong period for crude tanker rates coming up
• Company option scheme for senior management approved. Strike above current price

• Physical rubber prices gained strength during the Asian trade day as a typhoon in Vietnam disrupted the supply chain, limiting supply in the market. 
• In addition, increased inquiries from the Chinese tire makers for the prompt cargoes resulted in further support for the prices. 
• Chinese state buying up to 100kt of rubber, prices to be announced on 13 Sep 2024. This would provide some short term support on the SHFE 

• National Infrastructure Trust (NIT IN) is looking to raise about US$190m in its upcoming India IPO. The deal will be run by SBI Caps and HDFC Bank.
• National Infrastructure Trust is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
• Its initial asset portfolio will consist of nine road assets, in the states of Haryana, Rajasthan, Bihar, Uttarakhand, Himachal Pradesh, Madhya Pradesh and Karnataka with an aggregate length of ~683.875km.

• Speculative liquidation of crude oil positions opens up an opportunity
• A seasonally strong period for crude tanker rates coming up
• Company option scheme for senior management approved. Strike above current price

• Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%. 
• Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
• The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

• Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
• Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
• Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

• RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
• Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
• Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

• Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO. 
• Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
• In this note, we talk about the positive aspects of the deal.

• Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%. 
• Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
• The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

• Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
• Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
• Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

• RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
• Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
• Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

• Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO. 
• Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
• In this note, we talk about the positive aspects of the deal.