Industrials

• Orders decreased 8.4% YoY to JPY46.6bn, while order backlog declined 6.2% YoY to JPY41.9bn.
• Powder Processing Equipment segment sales rose 11.1% YoY to JPY49.4bn, with segment profit up 5.5% YoY to JPY5.9bn.
• Blown Film segment orders increased 46.1% YoY to JPY17.0bn, with segment profit up 141.4% YoY to JPY1.1bn.

• GXO’s spin-off from XPO Logistics is seen as a bold and potentially beneficial move
• The company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trends
• With a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investors

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.

• IDEX Corporation (IEX) presented its financial and operational performance for the second quarter of 2024, reflecting a mixture of achievements and challenges amid a complex macroeconomic environment.
• The company reported achieving slightly higher than anticipated results in terms of adjusted EBITDA margin and adjusted EPS, attributed to strong execution across its global teams.
• From a revenue and orders perspective, IDEX faced a nuanced landscape.

• Q1 FY03/25 results: Sales JPY213.6bn (+15.7% YoY), Operating profit JPY6.8bn (+34.6% YoY), Net income JPY6.4bn (-17.5% YoY).
• Segment performance: FPD-related products strong, solar cell-related products decreased, automotive applications robust, inkjet printer sales increased.
• Full-year targets: Progress 25.7% for sales, 30.3% for operating profit, 33.7% for recurring profit, 37.5% for net income.

• INOD hired more people in the second quarter to keep up with demand as revenue grew by approximately 66 percent from the year ago period. 
• INOD has expanded its relationship with technology companies and announced an additional customer win. INOD has seven large technology companies as customers
• The pace of wins over the course of this year puts INOD on the path to exceed our original estimates. INOD’s updated guidance for 2024  

• Revenue grew 9.2% YoY to JPY22.4bn, with increases across all segments, but operating profit declined 21.5% YoY.
• Q1 FY03/25 revenue was 49.9% of the 1H forecast, with strong net income progress due to a JPY3.4bn extraordinary gain.
• Belts (Outside Japan) segment revenue increased 10.2% YoY, but operating profit fell 29.4% YoY due to weak repair parts sales.

• Revenue increased by 5.6% YoY to JPY11.5bn, driven by healthcare demand recovery and price revisions in the Tape business.
• Operating profit rose 48.6% YoY to JPY514mn, with a gross profit margin increase of 0.7pp YoY to 30.4%.
• Net income attributable to owners of the parent grew 18.5% YoY to JPY333mn, despite JPY53mn impairment losses.

• Orders increased to JPY45.3bn (+20.4% YoY), revenue to JPY34.6bn (+19.5% YoY), and operating profit to JPY340mn (+131.7% YoY).
• Orders for Disaster Prevention and Infrastructure: JPY15.1bn (+12.5% YoY), revenue: JPY12.0bn (+9.0% YoY), operating profit: JPY170mn.
• Orders for Environment and Energy: JPY21.9bn (+50.2% YoY), revenue: JPY1.7bn (+20.0% YoY), operating profit: JPY1.8bn (+55.7% YoY).

• Revenue was JPY9.7bn (+2.3% YoY) with operating profit at JPY303mn (+209.2% YoY) and recurring profit at JPY358mn (+5.9% YoY).
• Gross profit increased 4.8% YoY to JPY2.5bn with a gross profit margin of 26.2% (+0.6pp YoY).
• Revenue by region: Japan JPY2.9bn (-11.3% YoY), China JPY5.4bn (+13.4% YoY), Southeast Asia JPY445mn (-6.1% YoY), Europe/US/other JPY890mn (-2.6% YoY).

• C.H. Robinson Worldwide, Inc. provided a comprehensive review of its second quarter 2024 performance during their recent earnings call.
• The company discussed various strategic adjustments and improvements to address the challenges posed by an ongoing freight recession and a fluctuating global market.
• During the quarter, C.H. Robinson focused on refining its operating strategies, aiming for operational excellence through the introduction of a new operating model based on lean principles.

• Orders decreased 8.4% YoY to JPY46.6bn, while order backlog declined 6.2% YoY to JPY41.9bn.
• Powder Processing Equipment segment sales rose 11.1% YoY to JPY49.4bn, with segment profit up 5.5% YoY to JPY5.9bn.
• Blown Film segment orders increased 46.1% YoY to JPY17.0bn, with segment profit up 141.4% YoY to JPY1.1bn.

• GXO’s spin-off from XPO Logistics is seen as a bold and potentially beneficial move
• The company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trends
• With a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investors

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.

• IDEX Corporation (IEX) presented its financial and operational performance for the second quarter of 2024, reflecting a mixture of achievements and challenges amid a complex macroeconomic environment.
• The company reported achieving slightly higher than anticipated results in terms of adjusted EBITDA margin and adjusted EPS, attributed to strong execution across its global teams.
• From a revenue and orders perspective, IDEX faced a nuanced landscape.

• Q1 FY03/25 results: Sales JPY213.6bn (+15.7% YoY), Operating profit JPY6.8bn (+34.6% YoY), Net income JPY6.4bn (-17.5% YoY).
• Segment performance: FPD-related products strong, solar cell-related products decreased, automotive applications robust, inkjet printer sales increased.
• Full-year targets: Progress 25.7% for sales, 30.3% for operating profit, 33.7% for recurring profit, 37.5% for net income.

• INOD hired more people in the second quarter to keep up with demand as revenue grew by approximately 66 percent from the year ago period. 
• INOD has expanded its relationship with technology companies and announced an additional customer win. INOD has seven large technology companies as customers
• The pace of wins over the course of this year puts INOD on the path to exceed our original estimates. INOD’s updated guidance for 2024  

• Revenue grew 9.2% YoY to JPY22.4bn, with increases across all segments, but operating profit declined 21.5% YoY.
• Q1 FY03/25 revenue was 49.9% of the 1H forecast, with strong net income progress due to a JPY3.4bn extraordinary gain.
• Belts (Outside Japan) segment revenue increased 10.2% YoY, but operating profit fell 29.4% YoY due to weak repair parts sales.

• Revenue increased by 5.6% YoY to JPY11.5bn, driven by healthcare demand recovery and price revisions in the Tape business.
• Operating profit rose 48.6% YoY to JPY514mn, with a gross profit margin increase of 0.7pp YoY to 30.4%.
• Net income attributable to owners of the parent grew 18.5% YoY to JPY333mn, despite JPY53mn impairment losses.

• Orders increased to JPY45.3bn (+20.4% YoY), revenue to JPY34.6bn (+19.5% YoY), and operating profit to JPY340mn (+131.7% YoY).
• Orders for Disaster Prevention and Infrastructure: JPY15.1bn (+12.5% YoY), revenue: JPY12.0bn (+9.0% YoY), operating profit: JPY170mn.
• Orders for Environment and Energy: JPY21.9bn (+50.2% YoY), revenue: JPY1.7bn (+20.0% YoY), operating profit: JPY1.8bn (+55.7% YoY).

• Revenue was JPY9.7bn (+2.3% YoY) with operating profit at JPY303mn (+209.2% YoY) and recurring profit at JPY358mn (+5.9% YoY).
• Gross profit increased 4.8% YoY to JPY2.5bn with a gross profit margin of 26.2% (+0.6pp YoY).
• Revenue by region: Japan JPY2.9bn (-11.3% YoY), China JPY5.4bn (+13.4% YoY), Southeast Asia JPY445mn (-6.1% YoY), Europe/US/other JPY890mn (-2.6% YoY).

• C.H. Robinson Worldwide, Inc. provided a comprehensive review of its second quarter 2024 performance during their recent earnings call.
• The company discussed various strategic adjustments and improvements to address the challenges posed by an ongoing freight recession and a fluctuating global market.
• During the quarter, C.H. Robinson focused on refining its operating strategies, aiming for operational excellence through the introduction of a new operating model based on lean principles.

• Sales decreased 1.5% YoY to JPY16.2bn, while operating profit increased 124.2% YoY to JPY1.7bn.
• Cost of sales decreased 9.2% YoY to JPY3.2bn, and SG&A expenses declined 7.1% YoY to JPY11.3bn.
• Overseas segment sales declined due to external factors, with a 43.8% YoY drop in operating profit to JPY135mn.

• Revenue for 1H FY12/24 was JPY2.8bn (+16.2% YoY), with operating profit at JPY173mn (+216.5% YoY).
• Renewable Energy Service business revenue was JPY688mn (+27.2% YoY), with a recurring loss of JPY25mn.
• Design Service business revenue was JPY1.1bn (+14.7% YoY), with recurring profit at JPY174mn (+33.3% YoY).

• Xylem’s performance in the second quarter of 2024 has exceeded expectations across several key metrics.
• The company has demonstrated strong financial and operational results, driven by strategic initiatives and market expansion efforts, particularly with the integration of Evoqua.
• This synergy has not only strengthened their market position but also brought about cost efficiencies.

• Analyzing the financial results of Illinois Tool Works (ITW) for the second quarter of 2024 reveals a nuanced picture, highlighting both challenges and efficiencies within the company’s operations.
• In the second quarter, ITW reported revenues that slightly underperformed expectations due to continued moderation in short-cycle demand across their product portfolio.
• Specifically, a 1% or approximately $50 million shortfall was noted compared to the projected revenues, should the demand have remained stable from the first quarter levels.

• Boeing has long been a dominant player in the aerospace industry, but recent developments suggest that the company may be facing turbulent times ahead.
• Despite its strong market position and a robust backlog of orders, Boeing is grappling with significant technical and safety challenges that are raising red flags for investors.
• The company’s ongoing issues with manufacturing defects, regulatory scrutiny, and delays in key programs are casting a shadow over its future prospects.

• Revenue grew JPY4.2bn (+6.9% YoY), driven by higher revenue in Europe, Asia, and the Americas segments.
• Operating profit decreased JPY2.1bn (-17.7% YoY) due to growth investments and higher advertising expenses, despite a 4.3% YoY increase in total segment profit.
• Revised FY12/24 forecast: revenue JPY126.0bn (+6.2% YoY), operating profit JPY18.0bn (-5.3% YoY), net income JPY14.0bn (+2.5% YoY).

• Sales decreased JPY927mn (-0.4%) YoY, primarily due to declines in the Logistics and Property Management businesses.
• Operating profit fell JPY3.3bn (-23.1%) YoY, with significant declines in the Logistics and Property Management segments.
• The company achieved 49.3% of its sales target and 52.2% of its operating profit target for the full year.

• Q1 FY03/25 revenue increased 7.5% YoY to JPY20.5bn, with operating profit up 39.6% YoY to JPY1.3bn.
• Energy business revenue grew 3.7% YoY to JPY7.2bn, profit increased 104.4% YoY to JPY603mn.
• Revised forecast: FY03/25 revenue JPY92.0bn, operating profit JPY5.2bn, recurring profit JPY6.6bn, net income JPY6.5bn.

• Stanley Black & Decker’s Q2 2024 financial results reveal a mixed landscape, characterized by both forward momentum in operational strategies and ongoing market challenges.
• The company reported a revenue of $4 billion for the quarter, reflecting a 3% decline year-over-year.
• However, a 1% organic growth was driven by strong performances from brands like DEWALT and segments such as Outdoor and Engineered Fastening.

• Revenue for 1H FY12/24 was JPY26.3bn, up 10.8% YoY, driven by growth in special graphite and compound materials.
• Operating profit for 1H FY12/24 increased 26.0% YoY to JPY5.8bn, with an OPM improvement to 22.1%.
• Recurring profit rose 31.0% YoY to JPY7.0bn, and net income attributable to owners of the parent grew 24.9% YoY.

• Sales decreased 1.5% YoY to JPY16.2bn, while operating profit increased 124.2% YoY to JPY1.7bn.
• Cost of sales decreased 9.2% YoY to JPY3.2bn, and SG&A expenses declined 7.1% YoY to JPY11.3bn.
• Overseas segment sales declined due to external factors, with a 43.8% YoY drop in operating profit to JPY135mn.

• Revenue for 1H FY12/24 was JPY2.8bn (+16.2% YoY), with operating profit at JPY173mn (+216.5% YoY).
• Renewable Energy Service business revenue was JPY688mn (+27.2% YoY), with a recurring loss of JPY25mn.
• Design Service business revenue was JPY1.1bn (+14.7% YoY), with recurring profit at JPY174mn (+33.3% YoY).

• Xylem’s performance in the second quarter of 2024 has exceeded expectations across several key metrics.
• The company has demonstrated strong financial and operational results, driven by strategic initiatives and market expansion efforts, particularly with the integration of Evoqua.
• This synergy has not only strengthened their market position but also brought about cost efficiencies.

• Analyzing the financial results of Illinois Tool Works (ITW) for the second quarter of 2024 reveals a nuanced picture, highlighting both challenges and efficiencies within the company’s operations.
• In the second quarter, ITW reported revenues that slightly underperformed expectations due to continued moderation in short-cycle demand across their product portfolio.
• Specifically, a 1% or approximately $50 million shortfall was noted compared to the projected revenues, should the demand have remained stable from the first quarter levels.

• Boeing has long been a dominant player in the aerospace industry, but recent developments suggest that the company may be facing turbulent times ahead.
• Despite its strong market position and a robust backlog of orders, Boeing is grappling with significant technical and safety challenges that are raising red flags for investors.
• The company’s ongoing issues with manufacturing defects, regulatory scrutiny, and delays in key programs are casting a shadow over its future prospects.

• Revenue grew JPY4.2bn (+6.9% YoY), driven by higher revenue in Europe, Asia, and the Americas segments.
• Operating profit decreased JPY2.1bn (-17.7% YoY) due to growth investments and higher advertising expenses, despite a 4.3% YoY increase in total segment profit.
• Revised FY12/24 forecast: revenue JPY126.0bn (+6.2% YoY), operating profit JPY18.0bn (-5.3% YoY), net income JPY14.0bn (+2.5% YoY).

• Sales decreased JPY927mn (-0.4%) YoY, primarily due to declines in the Logistics and Property Management businesses.
• Operating profit fell JPY3.3bn (-23.1%) YoY, with significant declines in the Logistics and Property Management segments.
• The company achieved 49.3% of its sales target and 52.2% of its operating profit target for the full year.

• Q1 FY03/25 revenue increased 7.5% YoY to JPY20.5bn, with operating profit up 39.6% YoY to JPY1.3bn.
• Energy business revenue grew 3.7% YoY to JPY7.2bn, profit increased 104.4% YoY to JPY603mn.
• Revised forecast: FY03/25 revenue JPY92.0bn, operating profit JPY5.2bn, recurring profit JPY6.6bn, net income JPY6.5bn.

• Stanley Black & Decker’s Q2 2024 financial results reveal a mixed landscape, characterized by both forward momentum in operational strategies and ongoing market challenges.
• The company reported a revenue of $4 billion for the quarter, reflecting a 3% decline year-over-year.
• However, a 1% organic growth was driven by strong performances from brands like DEWALT and segments such as Outdoor and Engineered Fastening.

• Revenue for 1H FY12/24 was JPY26.3bn, up 10.8% YoY, driven by growth in special graphite and compound materials.
• Operating profit for 1H FY12/24 increased 26.0% YoY to JPY5.8bn, with an OPM improvement to 22.1%.
• Recurring profit rose 31.0% YoY to JPY7.0bn, and net income attributable to owners of the parent grew 24.9% YoY.

• 1HFY24 net profit declined -15% YoY to HK$3.4 billion, in-line with consensus 
• Interim dividend of HK$0.20/share, at 38% payout ratio. Typically, Cathay pays 50% payout ratio, and we can expect final dividend to be much larger
• Maintain BUY with target price of HK$9.90 (+26% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP). 

• 2Q24 results were decent, with 13% YoY growth in net income to CNY12.4 billion, but share price continues to drift down as market fears western nations resistance to Chinese EVs 
• Operationally, things are just fine , CATL will add 153GWh capacity in 2H24 across China, Europe, and the U.S.A. – and they are finding solution around the 2026 new tariffs  
• Our fair value of CNY253 (+43% UPSIDE) is derived by 23x 2024 PE ratio, which is 1SD below its historical mean. CATL is currently trading at exceptionally low valuations

• Innoscience (1992276D CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
• Innoscience is a Chinese-based manufacturer of Gallium Nitride (GaN) semiconductor products. It offers various types of GaN products, including GaN wafers, GaN discrete chips, GaN ICs and GaN modules. 
• It tailors its solutions to customers in various industries such as consumer electronics, renewable energy and industrial applications, automotive electronics and data centers.

• Sales fell JPY29.3bn (-10.9%) YoY; consolidation of Hitachi Kokusai Electric increased Wireless and Communications sales, TMD Group transfer decreased sales.
• Operating profit declined JPY5.3bn (-44.0%) YoY; increased in Wireless and Communications, declined in Micro Devices and Real Estate.
• Q1 FY12/24: sales JPY130.8bn (-9.2% YoY), operating profit JPY8.1bn (-36.1% YoY); Q2: sales JPY109.3bn (-12.8% YoY), operating loss JPY1.4bn.

• Consolidated sales for cumulative Q3 FY09/24 increased 6.4% YoY to JPY95.9bn, marking a record high.
• Consolidated operating profit for cumulative Q3 FY09/24 rose 13.1% YoY to JPY5.9bn, with OPM improving by 0.3pp YoY.
• Recurring profit increased 30.2% YoY, driven by higher operating profit and growth in foreign exchange gains.

• Q1 FY03/25 revenue was JPY55.3bn (-12.1% YoY) with an operating loss of JPY953mn and recurring loss of JPY482mn.
• Non-consolidated revenue was JPY51.3bn (-12.8% YoY) with gross profit at JPY3.5bn (-10.3% YoY) and gross profit margin at 5.7%.
• Non-consolidated orders totaled JPY40.6bn (+16.5% YoY) with Building Construction orders at JPY19.8bn (-9.2% YoY) and Civil Engineering orders at JPY20.8bn (-59.3% YoY).

• Revenue increased to JPY110.8bn (+22.5% YoY), operating profit decreased to JPY2.4bn (-36.0% YoY), and net income fell to JPY737mn (-63.4% YoY).
• Products HR business revenue was JPY53.1bn (+10.8% YoY), segment profit was JPY1.2bn (-28.8% YoY), and exceeded initial targets.
• Real Estate business revenue was JPY13.6bn (-6.1% YoY), segment profit was JPY308mn (-75.6% YoY), with strategic acquisitions boosting rental income.

• Q1 FY03/24 sales declined 13.4% YoY to JPY13.0bn, with an operating loss of JPY238mn and net loss of JPY283mn.
• Orders increased 38.6% YoY to JPY7.4bn, driven by industrial robots and semiconductor production equipment, particularly in the Chinese market.
• The company targets FY03/27 sales of JPY90.0bn and operating profit of JPY15.0bn, with significant capital investment and R&D expenditure planned.

• Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
• Both businesses have been affected by the rapid decline in the economy and IT hiring as customers pull back.
• The company trades well below its peers and we expect stock price appreciation when it returns to growth aided by stock buybacks.

• 1HFY24 net profit declined -15% YoY to HK$3.4 billion, in-line with consensus 
• Interim dividend of HK$0.20/share, at 38% payout ratio. Typically, Cathay pays 50% payout ratio, and we can expect final dividend to be much larger
• Maintain BUY with target price of HK$9.90 (+26% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP). 

• 2Q24 results were decent, with 13% YoY growth in net income to CNY12.4 billion, but share price continues to drift down as market fears western nations resistance to Chinese EVs 
• Operationally, things are just fine , CATL will add 153GWh capacity in 2H24 across China, Europe, and the U.S.A. – and they are finding solution around the 2026 new tariffs  
• Our fair value of CNY253 (+43% UPSIDE) is derived by 23x 2024 PE ratio, which is 1SD below its historical mean. CATL is currently trading at exceptionally low valuations

• Innoscience (1992276D CH) is looking to raise up to US$300m in its upcoming HK IPO. The deal will be run by CICC, and CMB International.
• Innoscience is a Chinese-based manufacturer of Gallium Nitride (GaN) semiconductor products. It offers various types of GaN products, including GaN wafers, GaN discrete chips, GaN ICs and GaN modules. 
• It tailors its solutions to customers in various industries such as consumer electronics, renewable energy and industrial applications, automotive electronics and data centers.

• Sales fell JPY29.3bn (-10.9%) YoY; consolidation of Hitachi Kokusai Electric increased Wireless and Communications sales, TMD Group transfer decreased sales.
• Operating profit declined JPY5.3bn (-44.0%) YoY; increased in Wireless and Communications, declined in Micro Devices and Real Estate.
• Q1 FY12/24: sales JPY130.8bn (-9.2% YoY), operating profit JPY8.1bn (-36.1% YoY); Q2: sales JPY109.3bn (-12.8% YoY), operating loss JPY1.4bn.

• Consolidated sales for cumulative Q3 FY09/24 increased 6.4% YoY to JPY95.9bn, marking a record high.
• Consolidated operating profit for cumulative Q3 FY09/24 rose 13.1% YoY to JPY5.9bn, with OPM improving by 0.3pp YoY.
• Recurring profit increased 30.2% YoY, driven by higher operating profit and growth in foreign exchange gains.

• Q1 FY03/25 revenue was JPY55.3bn (-12.1% YoY) with an operating loss of JPY953mn and recurring loss of JPY482mn.
• Non-consolidated revenue was JPY51.3bn (-12.8% YoY) with gross profit at JPY3.5bn (-10.3% YoY) and gross profit margin at 5.7%.
• Non-consolidated orders totaled JPY40.6bn (+16.5% YoY) with Building Construction orders at JPY19.8bn (-9.2% YoY) and Civil Engineering orders at JPY20.8bn (-59.3% YoY).

• Revenue increased to JPY110.8bn (+22.5% YoY), operating profit decreased to JPY2.4bn (-36.0% YoY), and net income fell to JPY737mn (-63.4% YoY).
• Products HR business revenue was JPY53.1bn (+10.8% YoY), segment profit was JPY1.2bn (-28.8% YoY), and exceeded initial targets.
• Real Estate business revenue was JPY13.6bn (-6.1% YoY), segment profit was JPY308mn (-75.6% YoY), with strategic acquisitions boosting rental income.

• Q1 FY03/24 sales declined 13.4% YoY to JPY13.0bn, with an operating loss of JPY238mn and net loss of JPY283mn.
• Orders increased 38.6% YoY to JPY7.4bn, driven by industrial robots and semiconductor production equipment, particularly in the Chinese market.
• The company targets FY03/27 sales of JPY90.0bn and operating profit of JPY15.0bn, with significant capital investment and R&D expenditure planned.

• Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
• Both businesses have been affected by the rapid decline in the economy and IT hiring as customers pull back.
• The company trades well below its peers and we expect stock price appreciation when it returns to growth aided by stock buybacks.

• As global market roil, clean M&A deals come into focus.
• This insight briefly summarises those transactions in Asia/Oceania which are expected to comfortably complete, irrespective of the background noise. 
• Standout deals include APM Human Services (APM AU), Huafa Property Services Group (982 HK), Alps Logistics (9055 JP), I’Rom Group (2372 JP), and Arvida (ARV NZ).

• On 6 August, the Doosan Group announced a revised merger report. Despite some changes in the merger report, there was no change the merger ratios. 
• Many minority shareholders of Doosan Enerbility and Doosan Bobcat are likely to oppose this merger. The net result is an increasing probability that this merger gets cancelled, in our view.
• Doosan Enerbility has set aside about 600 billion won for exercise of appraisal rights and if it exceeds this amount, the merger may be cancelled. 

• Q1 Operating Profit -2% YoY; weaker than analyst consensus; Full year guidance unchanged but risk to the downside
• Key concerns around EU and China remain in Q1. Both regions seeing zero top line growth and heat pumps have cratered 
• The stock price has declined 16% since our last note, underperforming Topix by around 6%. Valuation more supportive

• FiscalNote is a legal data and analytics company with a $170 million market cap
• The company provides software and services in the public policy and geopolitical intelligence sector
• FiscalNote generates revenue through recurring subscription services and is seen as a compelling investment opportunity with potential for margin expansion.

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.

• Revenue increased by 4.5% YoY to JPY49.7bn, while operating profit decreased by 50.5% YoY to JPY1.9bn.
• Logistics segment revenue was JPY49.0bn (+4.4% YoY) with operating profit of JPY2.4bn (-36.4% YoY).
• Other segment revenue was JPY689mn (+14.1% YoY) with operating profit of JPY94mn (+32.4% YoY).

• Dun & Bradstreet’s exploration of potential sale stems from numerous strategic motivations typically involved in such decisions, including efforts to maximize shareholder value, capitalize on market opportunities, or strategic repositioning for future growth.
• In certain instances, companies may explore sales if they believe a buyer could offer more resources, technology, or market presence that could significantly amplify the existing operations or drive deeper market penetration than could be achieved independently.
• 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.

• The company revised its revenue forecast from JPY178.7bn to JPY178.6bn, with no segment adjustments disclosed.
• Consolidated Q1 revenue rose 3.6% YoY to JPY45.2bn, marking the 14th consecutive quarter of revenue rise.
• Consolidated operating profit for Q1 declined 7.5% YoY to JPY1.9bn, with OPM dipping 0.5pp YoY to 4.1%.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.8x.

• Revenue: JPY7.3bn (+34.0% YoY); Operating profit: JPY2.0bn (+228.5% YoY); Recurring profit: JPY2.0bn (+219.7% YoY); Net income: JPY1.6bn (+216.0% YoY).
• Consulting business revenue: JPY5.1bn (+41.9% YoY); Gross profit: JPY4.5bn (+42.7% YoY); Operating profit: JPY989mn (+169.0% YoY).
• Investment business revenue: JPY2.1bn; Gross profit: JPY1.1bn; Operating profit: JPY990mn, driven by the sale of investee shares.

• As global market roil, clean M&A deals come into focus.
• This insight briefly summarises those transactions in Asia/Oceania which are expected to comfortably complete, irrespective of the background noise. 
• Standout deals include APM Human Services (APM AU), Huafa Property Services Group (982 HK), Alps Logistics (9055 JP), I’Rom Group (2372 JP), and Arvida (ARV NZ).

• On 6 August, the Doosan Group announced a revised merger report. Despite some changes in the merger report, there was no change the merger ratios. 
• Many minority shareholders of Doosan Enerbility and Doosan Bobcat are likely to oppose this merger. The net result is an increasing probability that this merger gets cancelled, in our view.
• Doosan Enerbility has set aside about 600 billion won for exercise of appraisal rights and if it exceeds this amount, the merger may be cancelled. 

• Q1 Operating Profit -2% YoY; weaker than analyst consensus; Full year guidance unchanged but risk to the downside
• Key concerns around EU and China remain in Q1. Both regions seeing zero top line growth and heat pumps have cratered 
• The stock price has declined 16% since our last note, underperforming Topix by around 6%. Valuation more supportive

• FiscalNote is a legal data and analytics company with a $170 million market cap
• The company provides software and services in the public policy and geopolitical intelligence sector
• FiscalNote generates revenue through recurring subscription services and is seen as a compelling investment opportunity with potential for margin expansion.

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.

• Revenue increased by 4.5% YoY to JPY49.7bn, while operating profit decreased by 50.5% YoY to JPY1.9bn.
• Logistics segment revenue was JPY49.0bn (+4.4% YoY) with operating profit of JPY2.4bn (-36.4% YoY).
• Other segment revenue was JPY689mn (+14.1% YoY) with operating profit of JPY94mn (+32.4% YoY).

• Dun & Bradstreet’s exploration of potential sale stems from numerous strategic motivations typically involved in such decisions, including efforts to maximize shareholder value, capitalize on market opportunities, or strategic repositioning for future growth.
• In certain instances, companies may explore sales if they believe a buyer could offer more resources, technology, or market presence that could significantly amplify the existing operations or drive deeper market penetration than could be achieved independently.
• 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.

• The company revised its revenue forecast from JPY178.7bn to JPY178.6bn, with no segment adjustments disclosed.
• Consolidated Q1 revenue rose 3.6% YoY to JPY45.2bn, marking the 14th consecutive quarter of revenue rise.
• Consolidated operating profit for Q1 declined 7.5% YoY to JPY1.9bn, with OPM dipping 0.5pp YoY to 4.1%.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.8x.

• Revenue: JPY7.3bn (+34.0% YoY); Operating profit: JPY2.0bn (+228.5% YoY); Recurring profit: JPY2.0bn (+219.7% YoY); Net income: JPY1.6bn (+216.0% YoY).
• Consulting business revenue: JPY5.1bn (+41.9% YoY); Gross profit: JPY4.5bn (+42.7% YoY); Operating profit: JPY989mn (+169.0% YoY).
• Investment business revenue: JPY2.1bn; Gross profit: JPY1.1bn; Operating profit: JPY990mn, driven by the sale of investee shares.

• JITF Infralogistics (JITFIN IN) sells its railway wagon business to Texmaco Rail And Engineering for Rs 465 crore.
• The sale marks a strategic shift towards focusing on water and urban infrastructure segments, leveraging growing market demands and government initiatives.
• JITF’s strategic sale and focus on infrastructure position it for substantial growth, driven by its robust order book and government support.

• Market’s muted response to the airport’s worse-than-expected 1H24 losses suggest investors are looking beyond.
• While non-aviation businesses will remain under pressure in the near-term, potential for earnings growth from fare hike could be significant and is not at all reflected at current valuation.
• Free cash flow turning positive in 2024 also open to door for restoring dividend payments, which will be another catalyst for stock re-rating. Risk reward payoff gets increasingly positive.   

• Carrier’s latest earnings for Q2 2024 indicates a quarter of continued strength and advancement towards the company’s strategic goals.
• Under the leadership of CEO David Gitlin and CFO Patrick Goris, the company has reaffirmed its commitment to becoming a global leader in intelligent climate and energy solutions, marked by notable order increases and strong margin expansions.
• Positive aspects from the quarter include a 12% increase in reported sales, significantly buoyed by the inclusion of Viessmann Climate Solutions.

• In the second quarter of 2024, 3M Company reported a robust financial performance, characterized by a 40% increase in non-GAAP earnings per share to $1.93 and modest organic revenue growth of 1%.
• The adjusted free cash flow for the period was $1.2 billion, showcasing a conversion rate of 109%.
• These results reflect the company’s ongoing efforts to navigate significant structural changes and market challenges, leveraging operational efficiencies, and recent strategic adjustments, including the spin-off of its Health Care business and the organizational shift to a global business unit structure.

• Honeywell International Inc. delivered a mixed performance in its second quarter 2024 earnings, highlighting strengths in certain strategic areas while facing challenges in others.
• The company’s earnings per share (EPS) and adjusted EPS exceeded guidance, and it achieved the upper range of its organic sales guidance, reflecting a robust operational execution across its diversified portfolio.
• From a financial perspective, Honeywell saw strong organic growth, particularly in its aerospace sector, which remains a key driver of its overall performance.

• L3Harris Technologies recently disclosed their second quarter 2024 financial results, demonstrating progress in various areas, though mixed signals in certain segments warrant a nuanced understanding of their financial health and strategic position.
• On a positive note, L3Harris Technologies reported a robust second quarter, with segment operating margins increasing by 80 basis points year-over-year to 15.6%, and non-GAAP earnings per share (EPS) growing by 9% to $3.24.
• These results are indicative of the company’s strong ability to manage costs and enhance operational efficiency.

• Masco Corporation, a prominent player in the home improvement and building products sector, reported its financial outcomes for the second quarter of 2024, reflecting a mixed scenario of achievements and challenges.
• The company demonstrated resilience amidst a tough macroeconomic environment by delivering a strong operational performance, although confronting a slight decline in sales.
• 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.

• Sales for Q1 FY03/25 increased 6.8% YoY to JPY239.2bn, with gross profit rising 18.3% YoY to JPY45.8bn.
• Operating profit for Q1 FY03/25 grew 54.3% YoY to JPY10.7bn, and net income rose 69.8% YoY to JPY7.4bn.
• Segment results showed significant YoY growth in sales, gross profit, and operating profit across various business segments.

• Norfolk Southern Corporation presented its second quarter 2024 financial results, revealing mixed outcomes that reflect both ongoing challenges and notable advances in operational efficiencies.
• The call was led by President and CEO Alan Shaw, alongside executives responsible for various key functions within the organization.
• One of the significant highlights from the results was the improvement in operating ratio (OR), which stood at 65.1% for the quarter, showcasing a substantial margin enhancement of 480 basis points sequentially.

• Northrop Grumman’s latest earnings for the second quarter of 2024 showcase robust financial and operational performance.
• The company reported substantial increases in sales, operating income, and earnings per share (EPS), which surged by 7%, 13%, and 19% respectively compared to the same quarter the previous year.
• The solid program execution and disciplined cost management have evidently played a key part in driving these results.

• JITF Infralogistics (JITFIN IN) sells its railway wagon business to Texmaco Rail And Engineering for Rs 465 crore.
• The sale marks a strategic shift towards focusing on water and urban infrastructure segments, leveraging growing market demands and government initiatives.
• JITF’s strategic sale and focus on infrastructure position it for substantial growth, driven by its robust order book and government support.

• Market’s muted response to the airport’s worse-than-expected 1H24 losses suggest investors are looking beyond.
• While non-aviation businesses will remain under pressure in the near-term, potential for earnings growth from fare hike could be significant and is not at all reflected at current valuation.
• Free cash flow turning positive in 2024 also open to door for restoring dividend payments, which will be another catalyst for stock re-rating. Risk reward payoff gets increasingly positive.   

• Carrier’s latest earnings for Q2 2024 indicates a quarter of continued strength and advancement towards the company’s strategic goals.
• Under the leadership of CEO David Gitlin and CFO Patrick Goris, the company has reaffirmed its commitment to becoming a global leader in intelligent climate and energy solutions, marked by notable order increases and strong margin expansions.
• Positive aspects from the quarter include a 12% increase in reported sales, significantly buoyed by the inclusion of Viessmann Climate Solutions.

• In the second quarter of 2024, 3M Company reported a robust financial performance, characterized by a 40% increase in non-GAAP earnings per share to $1.93 and modest organic revenue growth of 1%.
• The adjusted free cash flow for the period was $1.2 billion, showcasing a conversion rate of 109%.
• These results reflect the company’s ongoing efforts to navigate significant structural changes and market challenges, leveraging operational efficiencies, and recent strategic adjustments, including the spin-off of its Health Care business and the organizational shift to a global business unit structure.

• Honeywell International Inc. delivered a mixed performance in its second quarter 2024 earnings, highlighting strengths in certain strategic areas while facing challenges in others.
• The company’s earnings per share (EPS) and adjusted EPS exceeded guidance, and it achieved the upper range of its organic sales guidance, reflecting a robust operational execution across its diversified portfolio.
• From a financial perspective, Honeywell saw strong organic growth, particularly in its aerospace sector, which remains a key driver of its overall performance.

• L3Harris Technologies recently disclosed their second quarter 2024 financial results, demonstrating progress in various areas, though mixed signals in certain segments warrant a nuanced understanding of their financial health and strategic position.
• On a positive note, L3Harris Technologies reported a robust second quarter, with segment operating margins increasing by 80 basis points year-over-year to 15.6%, and non-GAAP earnings per share (EPS) growing by 9% to $3.24.
• These results are indicative of the company’s strong ability to manage costs and enhance operational efficiency.

• Masco Corporation, a prominent player in the home improvement and building products sector, reported its financial outcomes for the second quarter of 2024, reflecting a mixed scenario of achievements and challenges.
• The company demonstrated resilience amidst a tough macroeconomic environment by delivering a strong operational performance, although confronting a slight decline in sales.
• 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.

• Sales for Q1 FY03/25 increased 6.8% YoY to JPY239.2bn, with gross profit rising 18.3% YoY to JPY45.8bn.
• Operating profit for Q1 FY03/25 grew 54.3% YoY to JPY10.7bn, and net income rose 69.8% YoY to JPY7.4bn.
• Segment results showed significant YoY growth in sales, gross profit, and operating profit across various business segments.

• Norfolk Southern Corporation presented its second quarter 2024 financial results, revealing mixed outcomes that reflect both ongoing challenges and notable advances in operational efficiencies.
• The call was led by President and CEO Alan Shaw, alongside executives responsible for various key functions within the organization.
• One of the significant highlights from the results was the improvement in operating ratio (OR), which stood at 65.1% for the quarter, showcasing a substantial margin enhancement of 480 basis points sequentially.

• Northrop Grumman’s latest earnings for the second quarter of 2024 showcase robust financial and operational performance.
• The company reported substantial increases in sales, operating income, and earnings per share (EPS), which surged by 7%, 13%, and 19% respectively compared to the same quarter the previous year.
• The solid program execution and disciplined cost management have evidently played a key part in driving these results.