Category

Industrials

Aug 20
0

Daily Brief Industrials: JD Logistics , Rockwell Automation, Sodick Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JD Logistics (2618 HK): There Are More Rooms
  • Rockwell Automation: Expansion of Partnership with NVIDIA & Key Developments – Major Drivers
  • Sodick (6143) – An Upbeat Result Reflecting Transformational Efforts

JD Logistics (2618 HK): There Are More Rooms

By Osbert Tang, CFA

  • Even after the 28% surge in share price since the 1H24 result, JD Logistics (2618 HK) still deserves a look as fundamentals have improved, especially with better cost control.
  • JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.
  • We like its lower reliance on JD.com (9618 HK) and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.

Rockwell Automation: Expansion of Partnership with NVIDIA & Key Developments – Major Drivers

By Baptista Research

  • Rockwell Automation’s latest quarterly earnings underscore both strengths and challenges within its business environment, indicating a mixed financial landscape that investors need to consider.
  • On the positive side, Rockwell Automation has shown adeptness in managing costs amidst lower order volumes, which has helped sustain margin performance.
  • The company has continued to push forward with its cost-cutting initiatives, anticipating $100 million in savings in the latter half of this fiscal year, alongside projections for an additional $120 million in savings next year.

Sodick (6143) – An Upbeat Result Reflecting Transformational Efforts

By Astris Advisory Japan

  • Q1-2FY12/24 results were a positive surprise in our view.
  • Quarterly Q2 FY12/24 OPM of 4% returned to positive territory after four consecutive quarters of losses, driven by a combination of price hikes, revision to the product line-up to improve sales mix, restructuring measures, and sales volume expansion with a marked jump in China demand for electronic discharge machines.
  • We believe Sodick has begun to transform to become more resilient and operationally efficient. 

💡 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 20
0

Daily Brief Industrials: JD Logistics , Rockwell Automation, Sodick Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • JD Logistics (2618 HK): There Are More Rooms
  • Rockwell Automation: Expansion of Partnership with NVIDIA & Key Developments – Major Drivers
  • Sodick (6143) – An Upbeat Result Reflecting Transformational Efforts

JD Logistics (2618 HK): There Are More Rooms

By Osbert Tang, CFA

  • Even after the 28% surge in share price since the 1H24 result, JD Logistics (2618 HK) still deserves a look as fundamentals have improved, especially with better cost control.
  • JDL is riding on scale economies with higher asset utilisation. Quarterly margins have sustained an uptrend, reaching the highest levels since 1Q21 and it will continue.
  • We like its lower reliance on JD.com (9618 HK) and net cash of HK$2.83/share (28% of the share price). There is a massive upside in consensus forecasts too.

Rockwell Automation: Expansion of Partnership with NVIDIA & Key Developments – Major Drivers

By Baptista Research

  • Rockwell Automation’s latest quarterly earnings underscore both strengths and challenges within its business environment, indicating a mixed financial landscape that investors need to consider.
  • On the positive side, Rockwell Automation has shown adeptness in managing costs amidst lower order volumes, which has helped sustain margin performance.
  • The company has continued to push forward with its cost-cutting initiatives, anticipating $100 million in savings in the latter half of this fiscal year, alongside projections for an additional $120 million in savings next year.

Sodick (6143) – An Upbeat Result Reflecting Transformational Efforts

By Astris Advisory Japan

  • Q1-2FY12/24 results were a positive surprise in our view.
  • Quarterly Q2 FY12/24 OPM of 4% returned to positive territory after four consecutive quarters of losses, driven by a combination of price hikes, revision to the product line-up to improve sales mix, restructuring measures, and sales volume expansion with a marked jump in China demand for electronic discharge machines.
  • We believe Sodick has begun to transform to become more resilient and operationally efficient. 

💡 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 19
0

Daily Brief Industrials: J&T Global Express , Trex Company, Sunrun Inc, Emerson Electric Co, nVent Electric and more

By | Daily Briefs, Industrials

In today’s briefing:

  • HSCEI Sep24 Rebal – Two ADDs, Two DELETEs, Two Surprises, Middling Flows
  • Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers
  • Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers
  • Emerson Electric Co.: A Story Of Deepening Market Penetration in Test & Measurement! – Major Drivers
  • nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers

HSCEI Sep24 Rebal – Two ADDs, Two DELETEs, Two Surprises, Middling Flows

By Travis Lundy

Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers

By Baptista Research

  • Trex Company Inc., a leading manufacturer of wood-alternative decking and railing, reported mixed results for its second quarter of 2024.
  • The financial performance showcased both strengths and challenges primarily influenced by changing consumer behavior and varying demand across product lines.
  • On the positive side, Trex experienced robust demand for its high-end products, with double-digit growth in the sell-through of premium offerings like Trex Transcend Lineage decking and Trex Signature lines.

Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers

By Baptista Research

  • Sunrun Inc.’s second quarter 2024 earnings displayed a strategic dedication to a storage-first approach, reflective of broader transitions and consumer preferences within the solar power industry.
  • The company achieved significant progress toward their goal of becoming the trusted provider of renewable energy solutions across America.
  • This focus has led to record storage installation rates and a robust increase in customer growth, specifically in adding battery systems to existing setups.

Emerson Electric Co.: A Story Of Deepening Market Penetration in Test & Measurement! – Major Drivers

By Baptista Research

  • Emerson Electric Co. has presented its third quarter 2024 earnings, demonstrating a strong operational and financial performance amidst a challenging global economic environment.
  • The company reported solid results with underlying sales growth of 3%, driven by robust project activity in process and hybrid businesses.
  • Life sciences, energy, and power sectors particularly showed significant project wins, emphasizing Emerson’s traction in North America and Europe.

nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers

By Baptista Research

  • NVT’s Q2 2024 earnings reveal a company in the midst of significant operational and strategic transitions.
  • Their decision to divest the Thermal Management business and the recent acquisition of Trachte aligns with their goal of focusing on high-growth areas like electrical connection and protection, which plays into broader industry trends of electrification and digitalization.
  • This strategic repositioning appears geared towards capitalizing on sectoral shifts and enhancing long-term growth prospects.

💡 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 19
0

Daily Brief Industrials: J&T Global Express , Trex Company, Sunrun Inc, Emerson Electric Co, nVent Electric and more

By | Daily Briefs, Industrials

In today’s briefing:

  • HSCEI Sep24 Rebal – Two ADDs, Two DELETEs, Two Surprises, Middling Flows
  • Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers
  • Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers
  • Emerson Electric Co.: A Story Of Deepening Market Penetration in Test & Measurement! – Major Drivers
  • nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers

HSCEI Sep24 Rebal – Two ADDs, Two DELETEs, Two Surprises, Middling Flows

By Travis Lundy

Trex Company: How Are They Executing Market Expansion and Penetration? – Major Drivers

By Baptista Research

  • Trex Company Inc., a leading manufacturer of wood-alternative decking and railing, reported mixed results for its second quarter of 2024.
  • The financial performance showcased both strengths and challenges primarily influenced by changing consumer behavior and varying demand across product lines.
  • On the positive side, Trex experienced robust demand for its high-end products, with double-digit growth in the sell-through of premium offerings like Trex Transcend Lineage decking and Trex Signature lines.

Sunrun Inc.: Adopting A Strategic Approach to Market Expansion and Customer Acquisition! – Major Drivers

By Baptista Research

  • Sunrun Inc.’s second quarter 2024 earnings displayed a strategic dedication to a storage-first approach, reflective of broader transitions and consumer preferences within the solar power industry.
  • The company achieved significant progress toward their goal of becoming the trusted provider of renewable energy solutions across America.
  • This focus has led to record storage installation rates and a robust increase in customer growth, specifically in adding battery systems to existing setups.

Emerson Electric Co.: A Story Of Deepening Market Penetration in Test & Measurement! – Major Drivers

By Baptista Research

  • Emerson Electric Co. has presented its third quarter 2024 earnings, demonstrating a strong operational and financial performance amidst a challenging global economic environment.
  • The company reported solid results with underlying sales growth of 3%, driven by robust project activity in process and hybrid businesses.
  • Life sciences, energy, and power sectors particularly showed significant project wins, emphasizing Emerson’s traction in North America and Europe.

nVent Electric plc: Expanded Electrification Capabilities With The Acquisition Of Trachte! – Major Drivers

By Baptista Research

  • NVT’s Q2 2024 earnings reveal a company in the midst of significant operational and strategic transitions.
  • Their decision to divest the Thermal Management business and the recent acquisition of Trachte aligns with their goal of focusing on high-growth areas like electrical connection and protection, which plays into broader industry trends of electrification and digitalization.
  • This strategic repositioning appears geared towards capitalizing on sectoral shifts and enhancing long-term growth prospects.

💡 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 18
0

Daily Brief Industrials: J&T Global Express , Doosan Bobcat Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • HSCEI Index Rebalance: Three In-Line Changes, Two Big Surprises
  • Thoughts on Capturing the 7% Doosan Swap Spread

HSCEI Index Rebalance: Three In-Line Changes, Two Big Surprises

By Brian Freitas

Thoughts on Capturing the 7% Doosan Swap Spread

By Sanghyun Park

  • Consider a two-phase strategy: go long on Bobcat spot and short futures until November 1. If Robotics’ price drops significantly, close the setup.
  • If things go well, close the Bobcat futures short before November 1 and hold an unhedged Bobcat long until the listing date on November 25.
  • Hold an unhedged long position during this trading suspension period because cancellation risk will be gone and Robotics may get stable inflows from MSCI inclusion.

💡 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 18
0

Daily Brief Industrials: J&T Global Express , Doosan Bobcat Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • HSCEI Index Rebalance: Three In-Line Changes, Two Big Surprises
  • Thoughts on Capturing the 7% Doosan Swap Spread

HSCEI Index Rebalance: Three In-Line Changes, Two Big Surprises

By Brian Freitas

Thoughts on Capturing the 7% Doosan Swap Spread

By Sanghyun Park

  • Consider a two-phase strategy: go long on Bobcat spot and short futures until November 1. If Robotics’ price drops significantly, close the setup.
  • If things go well, close the Bobcat futures short before November 1 and hold an unhedged Bobcat long until the listing date on November 25.
  • Hold an unhedged long position during this trading suspension period because cancellation risk will be gone and Robotics may get stable inflows from MSCI inclusion.

💡 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 17
0

Daily Brief Industrials: SCREEN Holdings, Caterpillar Inc, Csx Corp, Transdigm Group, Uber Technologies , Jacobs Solutions , AST SpaceMobile Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Screen Holdings (7735 JP): Still a Buy for the Bounce
  • Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts
  • CSX Corporation: How Are They Capitalizing on Industrial Development Projects? – Major Drivers
  • TransDigm Group Incorporated: Will The Acquisition of CPI’s Electron Device Business Be A Game Changer? – Major Drivers
  • Uber Technologies Inc.: What Are Their Advancements in Autonomous Vehicle (AV) Technology? – Major Drivers
  • Jacobs Solutions: Challenges & Strategies In The Engineering & Construction Sector! – Major Drivers
  • AST SpaceMobile: How We Had Foreseen This Rally & What Lies Ahead!

Screen Holdings (7735 JP): Still a Buy for the Bounce

By Scott Foster

  • Screen has rebounded from its recent low, but strong 1H results, the recent weakening of the Yen and reasonable valuation point to further short-term upside. 
  • However, management is guiding for slightly lower operating profit in 2H, and Intel’s capex cuts also support a cautious outlook. 
  • Screen expects slower growth in 2025 wafer fab equipment demand than SEMI, and neither appear to have factored in concern over insufficient return on investment in AI. 

Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts

By Baptista Research

  • Caterpillar Inc.’s Second Quarter of 2024 earnings showcased a mixed set of results reflective of both the robust execution of the company’s strategic initiatives and some market-induced challenges.
  • Jim Umpleby, Chairman and CEO, emphasized resilience through the diversified market presence and the sound execution of long-term growth strategies.
  • Despite facing a slight decline in sales and revenues, which fell by 4% from the previous year, Caterpillar recorded an increase in its adjusted operating profit and a noteworthy improvement in operating profit margins.

CSX Corporation: How Are They Capitalizing on Industrial Development Projects? – Major Drivers

By Baptista Research

  • CSX Corporation’s Q2 2024 earnings revealed a complex yet fundamentally strong operational and financial performance, tempered by challenges from external factors such as Hurricane Debbie and infrastructure issues at the Port of Baltimore.
  • The leadership team led by Joseph Hinrichs, focused on several critical areas including safety, operational efficiency, cost management, and customer partnership strategies to drive overall growth amidst volatile market conditions.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

TransDigm Group Incorporated: Will The Acquisition of CPI’s Electron Device Business Be A Game Changer? – Major Drivers

By Baptista Research

  • TransDigm Group Inc.’s fiscal 2024 third-quarter earnings outlined the company’s performance and plans amidst ongoing challenges and opportunities within the aerospace sector.
  • With a focus on aftermarket services and mergers and acquisitions (M&A) strategies, TransDigm continues to assert its robust market position, though not without facing industry-wide and operational challenges.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Uber Technologies Inc.: What Are Their Advancements in Autonomous Vehicle (AV) Technology? – Major Drivers

By Baptista Research

  • Uber Technologies Inc. demonstrated a solid performance in the second quarter of 2024, indicating a robust growth trajectory despite potential global economic uncertainties.
  • The company reported a significant 21% growth in gross bookings on a constant currency basis, which was consistently aligned with trip growth.
  • This growth was supported by an increase in both the user base, which expanded by 14%, and frequency of use, which grew by 6%.

Jacobs Solutions: Challenges & Strategies In The Engineering & Construction Sector! – Major Drivers

By Baptista Research

  • In analyzing Jacobs Solutions’ Third Quarter 2024 financial performance, it is important to recognize both the achievements and potential areas of concern that influence the company’s overall business operations and financial health.
  • Jacobs Solutions delivered a solid financial performance, reporting a consolidated adjusted EBITDA of $392 million, reflecting an approximate 11% year-over-year increase.
  • This growth underscores effective margin management and robust operational efficiency, with the adjusted EBITDA margin standing at a commendable 11.5%.

AST SpaceMobile: How We Had Foreseen This Rally & What Lies Ahead!

By Baptista Research

  • Our previous report on AST SpaceMobile, a pioneer in space-based cellular broadband, spoke about the company’s IMMENSE growth potential.
  • As we had predicted, the company has seen a dramatic rise in its stock price, reflecting growing investor confidence in its groundbreaking technology and strategic partnerships.
  • The company’s market capitalization has surged, making it one of the highest-valued space businesses globally.

💡 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 17
0

Daily Brief Industrials: SCREEN Holdings, Caterpillar Inc, Csx Corp, Transdigm Group, Uber Technologies , Jacobs Solutions , AST SpaceMobile Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Screen Holdings (7735 JP): Still a Buy for the Bounce
  • Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts
  • CSX Corporation: How Are They Capitalizing on Industrial Development Projects? – Major Drivers
  • TransDigm Group Incorporated: Will The Acquisition of CPI’s Electron Device Business Be A Game Changer? – Major Drivers
  • Uber Technologies Inc.: What Are Their Advancements in Autonomous Vehicle (AV) Technology? – Major Drivers
  • Jacobs Solutions: Challenges & Strategies In The Engineering & Construction Sector! – Major Drivers
  • AST SpaceMobile: How We Had Foreseen This Rally & What Lies Ahead!

Screen Holdings (7735 JP): Still a Buy for the Bounce

By Scott Foster

  • Screen has rebounded from its recent low, but strong 1H results, the recent weakening of the Yen and reasonable valuation point to further short-term upside. 
  • However, management is guiding for slightly lower operating profit in 2H, and Intel’s capex cuts also support a cautious outlook. 
  • Screen expects slower growth in 2025 wafer fab equipment demand than SEMI, and neither appear to have factored in concern over insufficient return on investment in AI. 

Caterpillar Inc.: These Are The 7 Pivotal Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts

By Baptista Research

  • Caterpillar Inc.’s Second Quarter of 2024 earnings showcased a mixed set of results reflective of both the robust execution of the company’s strategic initiatives and some market-induced challenges.
  • Jim Umpleby, Chairman and CEO, emphasized resilience through the diversified market presence and the sound execution of long-term growth strategies.
  • Despite facing a slight decline in sales and revenues, which fell by 4% from the previous year, Caterpillar recorded an increase in its adjusted operating profit and a noteworthy improvement in operating profit margins.

CSX Corporation: How Are They Capitalizing on Industrial Development Projects? – Major Drivers

By Baptista Research

  • CSX Corporation’s Q2 2024 earnings revealed a complex yet fundamentally strong operational and financial performance, tempered by challenges from external factors such as Hurricane Debbie and infrastructure issues at the Port of Baltimore.
  • The leadership team led by Joseph Hinrichs, focused on several critical areas including safety, operational efficiency, cost management, and customer partnership strategies to drive overall growth amidst volatile market conditions.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

TransDigm Group Incorporated: Will The Acquisition of CPI’s Electron Device Business Be A Game Changer? – Major Drivers

By Baptista Research

  • TransDigm Group Inc.’s fiscal 2024 third-quarter earnings outlined the company’s performance and plans amidst ongoing challenges and opportunities within the aerospace sector.
  • With a focus on aftermarket services and mergers and acquisitions (M&A) strategies, TransDigm continues to assert its robust market position, though not without facing industry-wide and operational challenges.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Uber Technologies Inc.: What Are Their Advancements in Autonomous Vehicle (AV) Technology? – Major Drivers

By Baptista Research

  • Uber Technologies Inc. demonstrated a solid performance in the second quarter of 2024, indicating a robust growth trajectory despite potential global economic uncertainties.
  • The company reported a significant 21% growth in gross bookings on a constant currency basis, which was consistently aligned with trip growth.
  • This growth was supported by an increase in both the user base, which expanded by 14%, and frequency of use, which grew by 6%.

Jacobs Solutions: Challenges & Strategies In The Engineering & Construction Sector! – Major Drivers

By Baptista Research

  • In analyzing Jacobs Solutions’ Third Quarter 2024 financial performance, it is important to recognize both the achievements and potential areas of concern that influence the company’s overall business operations and financial health.
  • Jacobs Solutions delivered a solid financial performance, reporting a consolidated adjusted EBITDA of $392 million, reflecting an approximate 11% year-over-year increase.
  • This growth underscores effective margin management and robust operational efficiency, with the adjusted EBITDA margin standing at a commendable 11.5%.

AST SpaceMobile: How We Had Foreseen This Rally & What Lies Ahead!

By Baptista Research

  • Our previous report on AST SpaceMobile, a pioneer in space-based cellular broadband, spoke about the company’s IMMENSE growth potential.
  • As we had predicted, the company has seen a dramatic rise in its stock price, reflecting growing investor confidence in its groundbreaking technology and strategic partnerships.
  • The company’s market capitalization has surged, making it one of the highest-valued space businesses globally.

💡 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 16
0

Daily Brief Industrials: Namoi Cotton Co Operative, Hankook Tire & Technology, Japan Airport Terminal Co, Comfortdelgro Corp, Amaero International Ltd, Jiangsu Zenergy Battery Technologies, Evergreen Marine Corp, Careerlink, Expion360 , Japan Elevator Service Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Namoi Cotton (NAM AU): Louis Dreyfus Has This Stitched Up
  • Hankook Tire & Technology: M&A of Hanon System Falling Apart?
  • Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY
  • Comfortdelgro (CD): 1H Decent Result
  • Amaero International Ltd – Capex programme extended, guidance for FY26 break even
  • Jiangsu Zenergy Battery Technologies Pre-IPO Tearsheet
  • More Q224 Container Carrier Results: Evergreen, Hapag-Lloyd Show Sharply Diverging Results
  • Careerlink (6070 JP): Q1 FY03/25 flash update
  • XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.
  • Japan Elevator Service Holdings (6544) – Q1 FY3/25 Results Update

Namoi Cotton (NAM AU): Louis Dreyfus Has This Stitched Up

By David Blennerhassett

  • Since Louis Dreyfus Company (LDC) first announced a A$0.51/share Offer, by way of a Scheme, on the 28 November 2023, and Olam Agri countered, there have been significant developments. 
  • Both suitors have now tabled off-market Offers (A$0.67/share from LDC, and A$0.70/share from Olam Agri). Both Offers are open for tendering. Both have extended their closing dates numerous times.
  • And both suitors have also faced ACCC scrutiny. As of today, only LDC, currently holding a 20.2% stake in Namoi, is in the clear.

Hankook Tire & Technology: M&A of Hanon System Falling Apart?

By Douglas Kim

  • There are increasing signs that Hankook Tire & Technology’s M&A of Hanon Systems could be falling apart. 
  • The deadline for signing the main M&A contract to purchase a 25% stake in Hanon Systems has been postponed indefinitely.
  • New contingent liabilities at Hanon Systems have been uncovered during the 10 week due diligence process of Hanon Systems by Hankook T&T.

Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY

By Mohshin Aziz

  • Japan Airport Terminal Co (9706 JP) (JAT) share price was deeply affected by Japan Black Monday rout, and is starting to stage a recovery. 
  • JAT is now looking cheap against other global airports and also against its own history based on P/E, EV/EBITDA, and P/BV.
  • Our fair value is JPY6,050 derived from global airport peers average 2025 EV/EBITDA of 11.6x, this implies an UPSIDE of 21%. Despite the share price run-up, still good upside opportunity.   

Comfortdelgro (CD): 1H Decent Result

By Henry Soediarko

  • 1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. 
  • Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. 
  • Comfortdelgro Corp (CD SP) is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. 

Amaero International Ltd – Capex programme extended, guidance for FY26 break even

By Research as a Service (RaaS)

  • RaaS Research has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its market update in which it guided to FY26 break-even and provided more granularity on its FY24 to FY26 capital expenditure progrramme.
  • Amaero has provided an update to shareholders including changed guidance on when it expects to reach EBITDA break-even (six months later), a revised capex schedule and the milestones it expects to pass over the next six-to-12 months (same in quantum but timing changes).
  • The company emphasised that the completion of C103 qualification by Amaero’s offtake counterparty (whom we believe is US defence giant Castheon) is the single most significant milestone in the company’s history.

Jiangsu Zenergy Battery Technologies Pre-IPO Tearsheet

By Ethan Aw

  • Jiangsu Zenergy Battery Technologies (JSZENERGY CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
  • Jiangsu Zenergy Battery Technologies (Zenergy from hereon) is an EV and energy storage system (ESS) battery manufacturer in China. 
  • It provides integrated battery solutions, encompassing battery cells, modules, packs, racks, and battery management systems dedicated to large-scale applications of electrochemical products to interconnect omni-scenarios of land, sea and air.

More Q224 Container Carrier Results: Evergreen, Hapag-Lloyd Show Sharply Diverging Results

By Daniel Hellberg

  • Evergreen reported strong Q2 results, with revenue and margins both up sharply
  • Meanwhile, Hapag-Lloyd reported stagnant revenue and lower core profit margins
  • Divergent carrier performance reinforces our view that management skill matters

Careerlink (6070 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue: JPY10.2bn (-10.6% YoY), Operating profit: JPY827mn (nearly flat YoY), Net income: JPY565mn (+6.7% YoY).
  • Business Process Outsourcing section: Revenue: JPY6.2bn (-16.2% YoY), Customer Relationship Management section: Revenue: JPY766mn (-34.7% YoY).
  • Office Services section: Revenue: JPY1.4bn (+11.0% YoY), Food Processing category: Revenue: JPY1.7bn (+17.6% YoY), Operating profit: JPY59mn (+64.6% YoY).

XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.

By Zacks Small Cap Research

  • Expion360 released full results for the second quarter which had been prereleased in the registration statement related to the recent $10 million financing and were just slightly below our expectations.
  • The company provided no formal guidance for 2024 and 2025 but the new home energy storage business will have to be wildly successful to avoid further (potentially significant) dilution to existing shareholders.
  • As we have seen in the past Expion360’s shares frequently trade independent of the fundamentals of the business.

Japan Elevator Service Holdings (6544) – Q1 FY3/25 Results Update

By Astris Advisory Japan

  • Q1 FY3/25 results demonstrated a strong start to the FY, with high double-digit growth for both sales (+20.9% YoY) and OP (+39.1% YoY).
  • Profitability improved YoY driven by 1) high demand for Repair work improving the sales mix, and 2) continued sales volume expansion driving operating leverage.
  • The company continues to gain maintenance market share from OEMs by remaining price- competitive, continues to expand its nationwide network, and has sufficient headcount to cater to growing demand. 

💡 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 16
0

Daily Brief Industrials: Namoi Cotton Co Operative, Hankook Tire & Technology, Japan Airport Terminal Co, Comfortdelgro Corp, Amaero International Ltd, Jiangsu Zenergy Battery Technologies, Evergreen Marine Corp, Careerlink, Expion360 , Japan Elevator Service Holding and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Namoi Cotton (NAM AU): Louis Dreyfus Has This Stitched Up
  • Hankook Tire & Technology: M&A of Hanon System Falling Apart?
  • Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY
  • Comfortdelgro (CD): 1H Decent Result
  • Amaero International Ltd – Capex programme extended, guidance for FY26 break even
  • Jiangsu Zenergy Battery Technologies Pre-IPO Tearsheet
  • More Q224 Container Carrier Results: Evergreen, Hapag-Lloyd Show Sharply Diverging Results
  • Careerlink (6070 JP): Q1 FY03/25 flash update
  • XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.
  • Japan Elevator Service Holdings (6544) – Q1 FY3/25 Results Update

Namoi Cotton (NAM AU): Louis Dreyfus Has This Stitched Up

By David Blennerhassett

  • Since Louis Dreyfus Company (LDC) first announced a A$0.51/share Offer, by way of a Scheme, on the 28 November 2023, and Olam Agri countered, there have been significant developments. 
  • Both suitors have now tabled off-market Offers (A$0.67/share from LDC, and A$0.70/share from Olam Agri). Both Offers are open for tendering. Both have extended their closing dates numerous times.
  • And both suitors have also faced ACCC scrutiny. As of today, only LDC, currently holding a 20.2% stake in Namoi, is in the clear.

Hankook Tire & Technology: M&A of Hanon System Falling Apart?

By Douglas Kim

  • There are increasing signs that Hankook Tire & Technology’s M&A of Hanon Systems could be falling apart. 
  • The deadline for signing the main M&A contract to purchase a 25% stake in Hanon Systems has been postponed indefinitely.
  • New contingent liabilities at Hanon Systems have been uncovered during the 10 week due diligence process of Hanon Systems by Hankook T&T.

Japan Airport Terminal (9706 JT): Share Price Correction Overdone, Now a Value BUY

By Mohshin Aziz

  • Japan Airport Terminal Co (9706 JP) (JAT) share price was deeply affected by Japan Black Monday rout, and is starting to stage a recovery. 
  • JAT is now looking cheap against other global airports and also against its own history based on P/E, EV/EBITDA, and P/BV.
  • Our fair value is JPY6,050 derived from global airport peers average 2025 EV/EBITDA of 11.6x, this implies an UPSIDE of 21%. Despite the share price run-up, still good upside opportunity.   

Comfortdelgro (CD): 1H Decent Result

By Henry Soediarko

  • 1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. 
  • Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. 
  • Comfortdelgro Corp (CD SP) is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. 

Amaero International Ltd – Capex programme extended, guidance for FY26 break even

By Research as a Service (RaaS)

  • RaaS Research has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its market update in which it guided to FY26 break-even and provided more granularity on its FY24 to FY26 capital expenditure progrramme.
  • Amaero has provided an update to shareholders including changed guidance on when it expects to reach EBITDA break-even (six months later), a revised capex schedule and the milestones it expects to pass over the next six-to-12 months (same in quantum but timing changes).
  • The company emphasised that the completion of C103 qualification by Amaero’s offtake counterparty (whom we believe is US defence giant Castheon) is the single most significant milestone in the company’s history.

Jiangsu Zenergy Battery Technologies Pre-IPO Tearsheet

By Ethan Aw

  • Jiangsu Zenergy Battery Technologies (JSZENERGY CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
  • Jiangsu Zenergy Battery Technologies (Zenergy from hereon) is an EV and energy storage system (ESS) battery manufacturer in China. 
  • It provides integrated battery solutions, encompassing battery cells, modules, packs, racks, and battery management systems dedicated to large-scale applications of electrochemical products to interconnect omni-scenarios of land, sea and air.

More Q224 Container Carrier Results: Evergreen, Hapag-Lloyd Show Sharply Diverging Results

By Daniel Hellberg

  • Evergreen reported strong Q2 results, with revenue and margins both up sharply
  • Meanwhile, Hapag-Lloyd reported stagnant revenue and lower core profit margins
  • Divergent carrier performance reinforces our view that management skill matters

Careerlink (6070 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue: JPY10.2bn (-10.6% YoY), Operating profit: JPY827mn (nearly flat YoY), Net income: JPY565mn (+6.7% YoY).
  • Business Process Outsourcing section: Revenue: JPY6.2bn (-16.2% YoY), Customer Relationship Management section: Revenue: JPY766mn (-34.7% YoY).
  • Office Services section: Revenue: JPY1.4bn (+11.0% YoY), Food Processing category: Revenue: JPY1.7bn (+17.6% YoY), Operating profit: JPY59mn (+64.6% YoY).

XPON: Updating our estimates to reflect the higher share count post-offering and second-quarter results. Adjusting target to 0.25/share to reflect lower energy storage market valuations.

By Zacks Small Cap Research

  • Expion360 released full results for the second quarter which had been prereleased in the registration statement related to the recent $10 million financing and were just slightly below our expectations.
  • The company provided no formal guidance for 2024 and 2025 but the new home energy storage business will have to be wildly successful to avoid further (potentially significant) dilution to existing shareholders.
  • As we have seen in the past Expion360’s shares frequently trade independent of the fundamentals of the business.

Japan Elevator Service Holdings (6544) – Q1 FY3/25 Results Update

By Astris Advisory Japan

  • Q1 FY3/25 results demonstrated a strong start to the FY, with high double-digit growth for both sales (+20.9% YoY) and OP (+39.1% YoY).
  • Profitability improved YoY driven by 1) high demand for Repair work improving the sales mix, and 2) continued sales volume expansion driving operating leverage.
  • The company continues to gain maintenance market share from OEMs by remaining price- competitive, continues to expand its nationwide network, and has sufficient headcount to cater to growing demand. 

💡 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