Industrials

• KANTSU Co., Ltd. (hereafter, “Kantsu”) is a warehouse logistics specialist providing comprehensive logistics services, including warehousing, inventory management, and delivery of products sold by e-commerce (EC) and catalog businesses, handling approximately 12 million shipments per year.
• The Company has also created a highly profitable business by selling its in-house developed IT systems that streamline operations to external customers.
• In terms of sales and profits, the Company’s two main drivers are its Logistics Services Business and IT Automation Business.

• KANTSU Co., Ltd. (hereafter, “Kantsu”) is a warehouse logistics specialist providing comprehensive logistics services, including warehousing, inventory management, and delivery of products sold by e-commerce (EC) and catalog businesses, handling approximately 12 million shipments per year.
• The Company has also created a highly profitable business by selling its in-house developed IT systems that streamline operations to external customers.
• In terms of sales and profits, the Company’s two main drivers are its Logistics Services Business and IT Automation Business.

• There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue
• Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments
• Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year

• Marlowe plc divested certain compliance software and service assets on 22 February 2024 to focus on its TIC and OH businesses
• The company’s total EBITDA pre-divestment was GBP 49m, with HQ expenses of GBP 6m
• The market cap is currently GBP 477m, with divestment proceeds leading to a large net cash balance and an EV of GBP 294m, signaling potential for further divestments or a sale in the future

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.

• HEICO Corporation had a highly positive second quarter financial update call for 2024, where leaders expressed their satisfaction with the record-breaking results generated.
• Operating income and net sales were up by 33% and 39% respectively, from the second quarter of the previous fiscal year.
• Strong organic net sales growth in the Flight Support aftermarket replacement parts area and the impact of successful acquisitions in fiscal 2023 and 2024 were key elements of this success.

• Food Group driving earnings – Q1-4 FY3/24 results were ahead of revised guidance for earnings, driven by solid growth at the Food Group with ‘Mister Donut’ chain restaurant experiencing increasing footfall and price hikes YoY.
• Profits were also boosted by lower- than-planned investment costs at the Direct Selling Group (due in part to delays), although this highlights the challenges of raising sales volume in this mature business.
• With the RFID investment project mostly complete, the company is in a position to benefit from cost savings YoY. 

• Ald SA, soon to be rebranded as Ayvens, has seen a 40% decrease in share price but is believed to have significant upside potential
• The company’s stable car leasing business is identified as a key factor in its value, with good recovery rates due to the liquidity and transferability of leased assets
• The low regulatory risk associated with car leasing compared to other financial sectors could make Ayvens a promising long-term investment opportunity

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.

• Greek government recently IPO’d 20% of Athens International Airport (AIA) as part of privatization
• AIA has seen solid performance in past twelve months due to European tourism boom
• With monopoly on travel into Greece and Greek islands, AIA has potential for growth and operational efficiencies under private ownership

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.

• We compile our gleanings from the last 23 years of Uchi Technologies (UCHI MK) annual reports. The company has never had a lower than 40% operating margin. 
• ROCE has averaged 35% over the last twenty years and 40% for the last ten years. There has never been a year with less than 20% ROCE.
• Trading at 13x FY23 PE with a 7.3% dividend yield, this is an outstanding stock to explore in the small-cap space.

• There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue
• Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments
• Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year

• Marlowe plc divested certain compliance software and service assets on 22 February 2024 to focus on its TIC and OH businesses
• The company’s total EBITDA pre-divestment was GBP 49m, with HQ expenses of GBP 6m
• The market cap is currently GBP 477m, with divestment proceeds leading to a large net cash balance and an EV of GBP 294m, signaling potential for further divestments or a sale in the future

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.

• HEICO Corporation had a highly positive second quarter financial update call for 2024, where leaders expressed their satisfaction with the record-breaking results generated.
• Operating income and net sales were up by 33% and 39% respectively, from the second quarter of the previous fiscal year.
• Strong organic net sales growth in the Flight Support aftermarket replacement parts area and the impact of successful acquisitions in fiscal 2023 and 2024 were key elements of this success.

• Food Group driving earnings – Q1-4 FY3/24 results were ahead of revised guidance for earnings, driven by solid growth at the Food Group with ‘Mister Donut’ chain restaurant experiencing increasing footfall and price hikes YoY.
• Profits were also boosted by lower- than-planned investment costs at the Direct Selling Group (due in part to delays), although this highlights the challenges of raising sales volume in this mature business.
• With the RFID investment project mostly complete, the company is in a position to benefit from cost savings YoY. 

• Ald SA, soon to be rebranded as Ayvens, has seen a 40% decrease in share price but is believed to have significant upside potential
• The company’s stable car leasing business is identified as a key factor in its value, with good recovery rates due to the liquidity and transferability of leased assets
• The low regulatory risk associated with car leasing compared to other financial sectors could make Ayvens a promising long-term investment opportunity

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.

• Greek government recently IPO’d 20% of Athens International Airport (AIA) as part of privatization
• AIA has seen solid performance in past twelve months due to European tourism boom
• With monopoly on travel into Greece and Greek islands, AIA has potential for growth and operational efficiencies under private ownership

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.

• We compile our gleanings from the last 23 years of Uchi Technologies (UCHI MK) annual reports. The company has never had a lower than 40% operating margin. 
• ROCE has averaged 35% over the last twenty years and 40% for the last ten years. There has never been a year with less than 20% ROCE.
• Trading at 13x FY23 PE with a 7.3% dividend yield, this is an outstanding stock to explore in the small-cap space.

• PPSI is a micro-cap electrical-power management company with profitable growth potential
• Stock is currently undervalued, trading at an estimated 5x 2024 P/E compared to a potential 15x multiple
• Analyst believes company could triple in value within the next year as market catches up to its true potential

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.

• PPSI is a micro-cap electrical-power management company with profitable growth potential
• Stock is currently undervalued, trading at an estimated 5x 2024 P/E compared to a potential 15x multiple
• Analyst believes company could triple in value within the next year as market catches up to its true potential

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.

• The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.
• There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.
• In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.

• Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
• The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
• However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive. 

• RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
• The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
• Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

The crystallisation of the employee plan highlights the value created through the GKN acquisition, benefiting from the strong performance from the restructuring programme and current positive trends in the aerospace sector. The impact of the scheme on our forecasts will be limited, having already assumed the full value the scheme would accrue. There are no changes to our valuation of 654p per share as set out in our previous note.

• The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.
• There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.
• In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.

• Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
• The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
• However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive. 

• RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
• The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
• Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

The crystallisation of the employee plan highlights the value created through the GKN acquisition, benefiting from the strong performance from the restructuring programme and current positive trends in the aerospace sector. The impact of the scheme on our forecasts will be limited, having already assumed the full value the scheme would accrue. There are no changes to our valuation of 654p per share as set out in our previous note.

• We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. 
• Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court’s ruling is still pending. 
• It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.

• APM Human Services (APM AU) has entered a SID with Madison Dearborn Partners (MDP) at A$1.45 per share, a 27.5% discount on CVC’s aborted non-binding proposal of A$2.00 per share.
• FIRB approval should be forthcoming as MDP is the largest shareholder, representing 45.56% of outstanding shares.
• The offer is disappointing but a weak trading update, deal fatigue and a concentrated shareholder register facilitate it. At the last close, the gross spread was 5.3%.  

• We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. 
• Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court’s ruling is still pending. 
• It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.

• APM Human Services (APM AU) has entered a SID with Madison Dearborn Partners (MDP) at A$1.45 per share, a 27.5% discount on CVC’s aborted non-binding proposal of A$2.00 per share.
• FIRB approval should be forthcoming as MDP is the largest shareholder, representing 45.56% of outstanding shares.
• The offer is disappointing but a weak trading update, deal fatigue and a concentrated shareholder register facilitate it. At the last close, the gross spread was 5.3%.