Industrials

• Waste Connections demonstrated strong financial performance in the latest quarter, driven by solid waste pricing and effective cost management.
• The company’s revenue grew by over 11%, with core solid waste pricing contributing significantly to this growth.
• Despite a slight decline in volumes, the company’s strategic approach to pricing and contract renewals has maintained revenue quality, offsetting the negative impact of lower special waste volumes and other cyclical challenges.

• United Rentals recently discussed its financial performance and strategic direction, presenting a mixed but robust picture of its operational and financial health.
• The company reported a notable increase in total revenue, which rose by 6% year-over-year to $3.8 billion in the second quarter, with rental revenue climbing 8% to $3.2 billion.
• This growth was bolstered by fleet productivity, which also saw an improvement of 4.6%.

• Fortive Corporation’s recent earnings report underscores its strategic focus and financial agility in today’s economic environment.
• The firm showcased a robust display of financial discipline and strategic execution, achieving earnings and free cash flow at the high end of expectations.
• Despite facing a low growth environment, Fortive demonstrated a remarkable 90 basis points of adjusted operating margin expansion and a 9% growth in adjusted earnings, which highlights its operational efficacy and resilience.

• Republic Services has reported robust second quarter results, continuing its positive momentum with strategic execution in key areas including customer engagement, digital transformation, and sustainable practices.
• Revenue growth in the quarter stood at 9%, while adjusted EBITDA grew by 13%, reflecting strong operational performance and efficient management strategies.
• This growth was driven by a focus on high-quality customer service and organic growth, maintaining a customer retention rate above 94%.

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

• Otis Worldwide Corporation demonstrated stable performance during the second quarter of 2024, amidst a mixed economic environment.
• The company’s results reflected both their successes and the ongoing challenges in the global market.
• On the positive side, the Service segment continued to serve as a strong growth vector for Otis, with a reported mid-single-digit organic sales increase.

• Waste Connections demonstrated strong financial performance in the latest quarter, driven by solid waste pricing and effective cost management.
• The company’s revenue grew by over 11%, with core solid waste pricing contributing significantly to this growth.
• Despite a slight decline in volumes, the company’s strategic approach to pricing and contract renewals has maintained revenue quality, offsetting the negative impact of lower special waste volumes and other cyclical challenges.

• United Rentals recently discussed its financial performance and strategic direction, presenting a mixed but robust picture of its operational and financial health.
• The company reported a notable increase in total revenue, which rose by 6% year-over-year to $3.8 billion in the second quarter, with rental revenue climbing 8% to $3.2 billion.
• This growth was bolstered by fleet productivity, which also saw an improvement of 4.6%.

• Fortive Corporation’s recent earnings report underscores its strategic focus and financial agility in today’s economic environment.
• The firm showcased a robust display of financial discipline and strategic execution, achieving earnings and free cash flow at the high end of expectations.
• Despite facing a low growth environment, Fortive demonstrated a remarkable 90 basis points of adjusted operating margin expansion and a 9% growth in adjusted earnings, which highlights its operational efficacy and resilience.

• Republic Services has reported robust second quarter results, continuing its positive momentum with strategic execution in key areas including customer engagement, digital transformation, and sustainable practices.
• Revenue growth in the quarter stood at 9%, while adjusted EBITDA grew by 13%, reflecting strong operational performance and efficient management strategies.
• This growth was driven by a focus on high-quality customer service and organic growth, maintaining a customer retention rate above 94%.

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

• Otis Worldwide Corporation demonstrated stable performance during the second quarter of 2024, amidst a mixed economic environment.
• The company’s results reflected both their successes and the ongoing challenges in the global market.
• On the positive side, the Service segment continued to serve as a strong growth vector for Otis, with a reported mid-single-digit organic sales increase.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
• We expect up to five ADDs and six DELs in the KOSPI 200 index during the December 2024 index rebal event based on the latest available data.

• Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
• There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
• The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names. 

• China’s state-owned shipbuilding giant, China Shipbuilding Industry Co. Ltd. (601989.SH +2.12%), is to invest more than 5 billion yuan ($690 million) in two acquisition deals to expand its shipyard capacity and meet rising demand.
• China Shipbuilding Industry, the Shanghai-listed arm of China State Shipbuilding Corp. Ltd. (CSSC), announced Saturday a 4.04 billion yuan acquisition of Tianjin Xingang Shipbuilding Heavy Industry Co. Ltd.’s assets in Lingang, northern China’s port city Tianjin.
• The purchase includes a 500,000-ton and a 300,000 ton dry dock, each equipped with two gantry cranes, as well as associated plants, outfitting quays, ship repair docks, sea outlet docks and other shoreline facilities, according to the company’s filing.

• Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
• The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
• Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies 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.

• In cumulative Q3 FY09/24, revenue was JPY13.3bn (+2.1% YoY), operating profit JPY1.1bn (-17.2% YoY), and net income JPY752mn (-16.8% YoY).
• Media Information business revenue was JPY4.5bn (+7.1% YoY), segment recurring profit JPY464mn (+39.0% YoY) in cumulative Q3 FY09/24.
• Revised full-year FY09/24 forecast: revenue JPY17.8bn (+2.3% YoY), operating profit JPY1.4bn (-9.9% YoY), net income JPY989mn (-15.0% YoY).

• Revenue rose JPY5.0bn (+9.6% YoY) due to higher revenue at Special Purpose Truck and Parking Systems businesses.
• Operating profit increased JPY1.2bn (+189.2% YoY) mainly due to higher profit at Special Purpose Truck and Parking Systems businesses.
• The company did not revise its full-year outlook for revenue and profit at the time of the Q1 earnings announcement.

• Revenue reached JPY57.3bn (+0.1% YoY), operating profit JPY3.1bn (+15.4% YoY), and recurring profit JPY3.3bn (+14.2% YoY).
• Revenue from the new housing complex market increased by 15.9% YoY, while the remodeling market declined by 9.3% YoY.
• Shipment volumes decreased across all segments, with the highest decline in the JPY14.3bn revenue segment at -9.5% YoY.

• Sales increased 9.1% YoY to JPY12.9bn, driven by semiconductors, FPDs, industrial machinery, and steel-related applications.
• Operating profit rose 18.5% YoY to JPY2.7bn, with recurring profit up 22.9% YoY to JPY2.9bn.
• Orders grew 10.7% YoY to JPY13.6bn, with the order backlog increasing 13.0% YoY to JPY10.0bn.

• The company reported Q1 sales of JPY56.2bn (+4.1% YoY), operating profit of JPY3.3bn (+33.6% YoY), and net income of JPY1.9bn (+39.9% YoY).
• Energy segment sales were JPY24.7bn (+2.9% YoY) with operating profit of JPY933mn (+1,480.0% YoY), driven by customer acquisition.
• Information and Communications segment sales were JPY14.0bn (+3.9% YoY) with operating profit of JPY829mn (-25.0% YoY) due to higher amortization expenses.

• Orders: JPY45.4bn (+5.7% YoY), Revenue: JPY43.4bn (+26.1% YoY), Operating Profit: JPY2.1bn (+203.8% YoY), Net Income: JPY1.1bn (+144.9% YoY).
• Revenue rose due to increased sales of plant equipment, lithium-ion battery manufacturing equipment, and molding machines.
• Revenue declined YoY in electronic component manufacturing equipment, automotive industry equipment, and medical device manufacturing equipment.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
• We expect up to five ADDs and six DELs in the KOSPI 200 index during the December 2024 index rebal event based on the latest available data.

• Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
• There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
• The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names. 

• China’s state-owned shipbuilding giant, China Shipbuilding Industry Co. Ltd. (601989.SH +2.12%), is to invest more than 5 billion yuan ($690 million) in two acquisition deals to expand its shipyard capacity and meet rising demand.
• China Shipbuilding Industry, the Shanghai-listed arm of China State Shipbuilding Corp. Ltd. (CSSC), announced Saturday a 4.04 billion yuan acquisition of Tianjin Xingang Shipbuilding Heavy Industry Co. Ltd.’s assets in Lingang, northern China’s port city Tianjin.
• The purchase includes a 500,000-ton and a 300,000 ton dry dock, each equipped with two gantry cranes, as well as associated plants, outfitting quays, ship repair docks, sea outlet docks and other shoreline facilities, according to the company’s filing.

• Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
• The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
• Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies 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.

• In cumulative Q3 FY09/24, revenue was JPY13.3bn (+2.1% YoY), operating profit JPY1.1bn (-17.2% YoY), and net income JPY752mn (-16.8% YoY).
• Media Information business revenue was JPY4.5bn (+7.1% YoY), segment recurring profit JPY464mn (+39.0% YoY) in cumulative Q3 FY09/24.
• Revised full-year FY09/24 forecast: revenue JPY17.8bn (+2.3% YoY), operating profit JPY1.4bn (-9.9% YoY), net income JPY989mn (-15.0% YoY).

• Revenue rose JPY5.0bn (+9.6% YoY) due to higher revenue at Special Purpose Truck and Parking Systems businesses.
• Operating profit increased JPY1.2bn (+189.2% YoY) mainly due to higher profit at Special Purpose Truck and Parking Systems businesses.
• The company did not revise its full-year outlook for revenue and profit at the time of the Q1 earnings announcement.

• Revenue reached JPY57.3bn (+0.1% YoY), operating profit JPY3.1bn (+15.4% YoY), and recurring profit JPY3.3bn (+14.2% YoY).
• Revenue from the new housing complex market increased by 15.9% YoY, while the remodeling market declined by 9.3% YoY.
• Shipment volumes decreased across all segments, with the highest decline in the JPY14.3bn revenue segment at -9.5% YoY.

• Sales increased 9.1% YoY to JPY12.9bn, driven by semiconductors, FPDs, industrial machinery, and steel-related applications.
• Operating profit rose 18.5% YoY to JPY2.7bn, with recurring profit up 22.9% YoY to JPY2.9bn.
• Orders grew 10.7% YoY to JPY13.6bn, with the order backlog increasing 13.0% YoY to JPY10.0bn.

• The company reported Q1 sales of JPY56.2bn (+4.1% YoY), operating profit of JPY3.3bn (+33.6% YoY), and net income of JPY1.9bn (+39.9% YoY).
• Energy segment sales were JPY24.7bn (+2.9% YoY) with operating profit of JPY933mn (+1,480.0% YoY), driven by customer acquisition.
• Information and Communications segment sales were JPY14.0bn (+3.9% YoY) with operating profit of JPY829mn (-25.0% YoY) due to higher amortization expenses.

• Orders: JPY45.4bn (+5.7% YoY), Revenue: JPY43.4bn (+26.1% YoY), Operating Profit: JPY2.1bn (+203.8% YoY), Net Income: JPY1.1bn (+144.9% YoY).
• Revenue rose due to increased sales of plant equipment, lithium-ion battery manufacturing equipment, and molding machines.
• Revenue declined YoY in electronic component manufacturing equipment, automotive industry equipment, and medical device manufacturing equipment.

• The review period for the Nikkei 225 (NKY INDEX) September rebalance ended yesterday. There could be three changes at the rebalance with sector balance in focus for the additions.
• Fast Retailing (9983 JP)‘s capping in the index has been confirmed and its index weight will drop by around 0.9% resulting in big selling at the close on 30 September. 
• Passive trackers will need to buy between 3.5-35x ADV (2.4%-24% of real float) on the inclusions and sell between 3.7-42.5x ADV on the deletions.

• Welcome back to the portfolio updates series!
• This month, I am a few days early with the update. The reason is that my wife and I are celebrating our wedding next weekend, followed by an extended vacation, during which I will be disconnected for a couple of weeks.
• As a result, the next stock deep dive will not be released until the last week of August.

• China Communications Construction (1800 HK)‘s overseas contracts surged sharply in 2Q24 as market share gained. Slow domestic contracts are transient as bond issues will accelerate.
• Its backlog continued to grow to 4.7x 12-month forward revenue, which is higher than the 5-year average of 4.1x. Improving margin trend in 1Q24 will sustain into 2H24.
• With a projected ROE of 8.4% for the next two years, its 0.2x P/B is inexpensive. It is also attractive based on dividend yields of 7.7% and 8.4%, respectively.

• CMS Info Systems Ltd (CMSINFO IN) is the market leader in the Indian cash management and managed services industry. 
• The company has shown good growth in recent years, and this has mostly come from the managed services and card market.
• Among major forensic takeaways, the company has been taking continuous hit on its debtors which undermines the growth quality. Cautious must also be given to payables, depreciation rate and ESOPs.

• Sales increased 26.3% YoY to JPY7.6bn, with operating profit up 36.9% YoY to JPY1.3bn.
• Idle Asset Utilization segment Q3 sales were JPY7.4bn (+27.4% YoY), with an operating profit of JPY1.3bn (+39.1% YoY).
• Visualization segment Q3 sales were JPY149mn (-6.0% YoY), with an operating loss of JPY9mn (profit of JPY5mn in Q3 FY09/23).

• TRS experienced a continuation of sales growing within its packaging and aerospace segments. TRS’s specialty products segment remains a laggard to the rest of the business with demand eroding. 
• The recovery within the packaging business should have been the main highlight of TRS’s Q2. However, the weakness within specialty products resulted in TRS missing our estimates for the quarter.
• We are updating our full year estimates after TRS lowered its adjusted EPS and sales guidance. 

• Revenue increased by 6.2% YoY to JPY39.7bn, with significant contributions from Automotive & Battery Materials, Second, and Third Business segments.
• Operating profit rose 15.4% YoY to JPY780mn, while recurring profit surged 95.1% YoY to JPY1.1bn, driven by improved earnings at equity-method affiliates.
• Net income attributable to owners of the parent grew 181.0% YoY to JPY756mn, with a notable increase in equity in earnings of affiliates.

• For Q1 FY03/25, the company reported revenue of JPY11.9bn (+29.2% YoY), operating profit of JPY1.1bn (+228.1% YoY).
• The company maintained its 1H and full-year forecasts and resolved to dispose of 7,000 treasury shares.
• The medium-term management plan targets FY03/25 revenue of JPY55.0bn, OPM of 5.0% or more, and ROE of 7.0% or more.

• Q1 FY03/25 results: Sales JPY2.3bn (+3.3% YoY), Operating profit JPY338mn (+3.5% YoY), Operating profit margin 14.9% (+0.1pp).
• Automotive sector: No significant improvement in tool demand despite anticipated recovery from domestic car production resurgence.
• Overseas sales increased YoY, particularly in Greater China and parts of Asia, offsetting low sales in primary markets.

• The review period for the Nikkei 225 (NKY INDEX) September rebalance ended yesterday. There could be three changes at the rebalance with sector balance in focus for the additions.
• Fast Retailing (9983 JP)‘s capping in the index has been confirmed and its index weight will drop by around 0.9% resulting in big selling at the close on 30 September. 
• Passive trackers will need to buy between 3.5-35x ADV (2.4%-24% of real float) on the inclusions and sell between 3.7-42.5x ADV on the deletions.

• Welcome back to the portfolio updates series!
• This month, I am a few days early with the update. The reason is that my wife and I are celebrating our wedding next weekend, followed by an extended vacation, during which I will be disconnected for a couple of weeks.
• As a result, the next stock deep dive will not be released until the last week of August.

• China Communications Construction (1800 HK)‘s overseas contracts surged sharply in 2Q24 as market share gained. Slow domestic contracts are transient as bond issues will accelerate.
• Its backlog continued to grow to 4.7x 12-month forward revenue, which is higher than the 5-year average of 4.1x. Improving margin trend in 1Q24 will sustain into 2H24.
• With a projected ROE of 8.4% for the next two years, its 0.2x P/B is inexpensive. It is also attractive based on dividend yields of 7.7% and 8.4%, respectively.

• CMS Info Systems Ltd (CMSINFO IN) is the market leader in the Indian cash management and managed services industry. 
• The company has shown good growth in recent years, and this has mostly come from the managed services and card market.
• Among major forensic takeaways, the company has been taking continuous hit on its debtors which undermines the growth quality. Cautious must also be given to payables, depreciation rate and ESOPs.

• Sales increased 26.3% YoY to JPY7.6bn, with operating profit up 36.9% YoY to JPY1.3bn.
• Idle Asset Utilization segment Q3 sales were JPY7.4bn (+27.4% YoY), with an operating profit of JPY1.3bn (+39.1% YoY).
• Visualization segment Q3 sales were JPY149mn (-6.0% YoY), with an operating loss of JPY9mn (profit of JPY5mn in Q3 FY09/23).

• TRS experienced a continuation of sales growing within its packaging and aerospace segments. TRS’s specialty products segment remains a laggard to the rest of the business with demand eroding. 
• The recovery within the packaging business should have been the main highlight of TRS’s Q2. However, the weakness within specialty products resulted in TRS missing our estimates for the quarter.
• We are updating our full year estimates after TRS lowered its adjusted EPS and sales guidance. 

• Revenue increased by 6.2% YoY to JPY39.7bn, with significant contributions from Automotive & Battery Materials, Second, and Third Business segments.
• Operating profit rose 15.4% YoY to JPY780mn, while recurring profit surged 95.1% YoY to JPY1.1bn, driven by improved earnings at equity-method affiliates.
• Net income attributable to owners of the parent grew 181.0% YoY to JPY756mn, with a notable increase in equity in earnings of affiliates.

• For Q1 FY03/25, the company reported revenue of JPY11.9bn (+29.2% YoY), operating profit of JPY1.1bn (+228.1% YoY).
• The company maintained its 1H and full-year forecasts and resolved to dispose of 7,000 treasury shares.
• The medium-term management plan targets FY03/25 revenue of JPY55.0bn, OPM of 5.0% or more, and ROE of 7.0% or more.

• Q1 FY03/25 results: Sales JPY2.3bn (+3.3% YoY), Operating profit JPY338mn (+3.5% YoY), Operating profit margin 14.9% (+0.1pp).
• Automotive sector: No significant improvement in tool demand despite anticipated recovery from domestic car production resurgence.
• Overseas sales increased YoY, particularly in Greater China and parts of Asia, offsetting low sales in primary markets.

• SYM had an increase in system costs. SYM’s management highlighted delays in construction of systems in the quarter resulting in the Company to taking back EPC work.   
• SYM suggests bringing the EPC work in-house would be more efficient. We do not agree. This creates additional headwinds as to timing and could create a new risk for SYM.  
• During the earnings call, SYM’s management referred to delays in permits and product delivery resulting in people not having anything to do. This is a characterization of a construction/contracting company.

• Ador Welding (AWL IN) is a renowned player in the business of manufacturing and trading of welding and related products.  
• The company sells welding consumables, equipments and also does preoject-engineering. While the company has seen recent growth in topline, there are few forensic checks that one must be cautious about.
• This relates to accounting policy relating to Flares segment, lack of conservatism relating to ECL provisioning and depreciation, troubles in generating cash, etc.

• Parcel volume growth remained strong in June, but ASPs weakened (again)
• YTO Express seems to be managing price / volume tradeoff competently
• Year-To-Date, only YTO shares up > 10%; three companies down -10% or more 

• Sales rose to JPY17.2bn (+6.1% YoY), driven by strong overseas subsidiaries and a weaker yen.
• Operating profit decreased to JPY1.9bn (-15.3% YoY) due to increased SG&A expenses and reduced high GPM LCL export cargo.
• Overseas segment sales grew to JPY6.0bn (+30.2% YoY), with solid warehouse operations in India and South Korea.

• SYM had an increase in system costs. SYM’s management highlighted delays in construction of systems in the quarter resulting in the Company to taking back EPC work.   
• SYM suggests bringing the EPC work in-house would be more efficient. We do not agree. This creates additional headwinds as to timing and could create a new risk for SYM.  
• During the earnings call, SYM’s management referred to delays in permits and product delivery resulting in people not having anything to do. This is a characterization of a construction/contracting company.

• Ador Welding (AWL IN) is a renowned player in the business of manufacturing and trading of welding and related products.  
• The company sells welding consumables, equipments and also does preoject-engineering. While the company has seen recent growth in topline, there are few forensic checks that one must be cautious about.
• This relates to accounting policy relating to Flares segment, lack of conservatism relating to ECL provisioning and depreciation, troubles in generating cash, etc.

• Parcel volume growth remained strong in June, but ASPs weakened (again)
• YTO Express seems to be managing price / volume tradeoff competently
• Year-To-Date, only YTO shares up > 10%; three companies down -10% or more 

• Sales rose to JPY17.2bn (+6.1% YoY), driven by strong overseas subsidiaries and a weaker yen.
• Operating profit decreased to JPY1.9bn (-15.3% YoY) due to increased SG&A expenses and reduced high GPM LCL export cargo.
• Overseas segment sales grew to JPY6.0bn (+30.2% YoY), with solid warehouse operations in India and South Korea.

• The review period for the September rebalance ends 31 July. We expect the changes to be announced 30 August with the implementation taking place after the close on 13 September.
• We forecast 6 changes for the index, including migrations between the STAR100 Index and the STAR50 INDEX. There is uncertainty for a few adds given profitability (or lack of it). 
• The outright potential adds have outperformed the outright potential deletes since the start of the calendar year with 12% outperformance in just the last 3 weeks.

• Fanuc reported slightly better-than-expected Q1 sales and OP forecasts, mainly due to a recovery in sales of FA equipment
• Fanuc’s results are consistent with a bottoming out of Japan’s machine tool orders in the first half of the year
• We turn bullish on the stock given the cyclical bottoming out of orders and margins. However, the stock is still not “cheap” and the company faces a number of challenges

• According to daily Expansion, Ganz MaVag plans to reserve part of Talgo SA (TLGO SM)‘s share capital for one or more Spanish partners chosen by the Spanish Government. 
• Uncertainty over the approval process has lowered the price to €4.31, given the low likelihood of counteroffers and the uncertainty of a potentially prolonged process.
• Gross spread is 13.8%, indicating uncertainty regarding timeline and development. The market is pricing a 39% probability of deal completion. Recommendation is sell on strength.

• Enphase Energy reported solid financial outcomes for the second quarter of 2024, driven by robust demand for its products and effective inventory management.
• The company achieved a revenue of $303.5 million, reflecting shipments of approximately 1.4 million microinverters and 120 megawatt-hours of batteries.
• This performance was supported by an overall end market demand valued at around $396 million for the quarter.

• Overall, June container throughput growth and average container rates strong
• But spot rates have begun to wobble recently, and 2025 uncertainty grows
• We have decided to close our suggested container shipping pair trade 

• WM presented its financial outcomes for the second quarter of 2024, underscoring a period of significant operational strength and strategic alignment towards its long-term growth objectives.
• WM reported a historical high with a 30% operating EBITDA margin, driven by efficiencies from technological investments and a robust pricing strategy.
• The company’s commitment to leveraging its expertise across various platforms was evident, particularly with its planned acquisition of Stericycle, which is expected to complement and expand its service offerings in the medical waste industry.

Metlen Energy & Metals achieved a record H1 EBITDA of €474m in 2024 (vs €437m in H123), while also increasing its operating margin by 169bp to 19.1% (17.4% at H123). Revenue declined marginally (-1% to €2,482m) but Metlen’s diversified and synergistic business model across the energy and metals sectors is helping to grow its margins and diversity of earnings (towards RES/Utility/Metals and away from volatile natural gas supply). Both net profit after minorities and earnings per share increased by c 5% y-o-y to €282m and €2.04, respectively. Net debt/EBITDA is a comfortable 1.76x and Metlen looks well placed for a potential upgrade to investment grade status by the rating agencies later this year, achieving its goal.

• Revenue increased by JPY5.1bn (+2.9% YoY), driven by growth in the Furniture and Stationery Businesses.
• Operating profit declined by JPY97mn (-0.6% YoY) due to lower profit in the Interior Retail business and increased adjustments.
• Gross profit margin rose to 39.9%, while the SG&A expense ratio increased to 31.1% due to strategic spending.

• General Dynamics recently presented their second quarter 2024 financial results, reflecting notable growth across their business segments with some operational challenges specifically in their Aerospace division.
• This analysis delves into both the positive outcomes and areas of concern from their performance to provide a balanced investment perspective.
• Starting with their strengths, General Dynamics displayed robust revenue increases across all their four business segments, highlighting an 18% overall growth.

• The review period for the September rebalance ends 31 July. We expect the changes to be announced 30 August with the implementation taking place after the close on 13 September.
• We forecast 6 changes for the index, including migrations between the STAR100 Index and the STAR50 INDEX. There is uncertainty for a few adds given profitability (or lack of it). 
• The outright potential adds have outperformed the outright potential deletes since the start of the calendar year with 12% outperformance in just the last 3 weeks.

• Fanuc reported slightly better-than-expected Q1 sales and OP forecasts, mainly due to a recovery in sales of FA equipment
• Fanuc’s results are consistent with a bottoming out of Japan’s machine tool orders in the first half of the year
• We turn bullish on the stock given the cyclical bottoming out of orders and margins. However, the stock is still not “cheap” and the company faces a number of challenges

• According to daily Expansion, Ganz MaVag plans to reserve part of Talgo SA (TLGO SM)‘s share capital for one or more Spanish partners chosen by the Spanish Government. 
• Uncertainty over the approval process has lowered the price to €4.31, given the low likelihood of counteroffers and the uncertainty of a potentially prolonged process.
• Gross spread is 13.8%, indicating uncertainty regarding timeline and development. The market is pricing a 39% probability of deal completion. Recommendation is sell on strength.

• Enphase Energy reported solid financial outcomes for the second quarter of 2024, driven by robust demand for its products and effective inventory management.
• The company achieved a revenue of $303.5 million, reflecting shipments of approximately 1.4 million microinverters and 120 megawatt-hours of batteries.
• This performance was supported by an overall end market demand valued at around $396 million for the quarter.

• Overall, June container throughput growth and average container rates strong
• But spot rates have begun to wobble recently, and 2025 uncertainty grows
• We have decided to close our suggested container shipping pair trade 

• WM presented its financial outcomes for the second quarter of 2024, underscoring a period of significant operational strength and strategic alignment towards its long-term growth objectives.
• WM reported a historical high with a 30% operating EBITDA margin, driven by efficiencies from technological investments and a robust pricing strategy.
• The company’s commitment to leveraging its expertise across various platforms was evident, particularly with its planned acquisition of Stericycle, which is expected to complement and expand its service offerings in the medical waste industry.

Metlen Energy & Metals achieved a record H1 EBITDA of €474m in 2024 (vs €437m in H123), while also increasing its operating margin by 169bp to 19.1% (17.4% at H123). Revenue declined marginally (-1% to €2,482m) but Metlen’s diversified and synergistic business model across the energy and metals sectors is helping to grow its margins and diversity of earnings (towards RES/Utility/Metals and away from volatile natural gas supply). Both net profit after minorities and earnings per share increased by c 5% y-o-y to €282m and €2.04, respectively. Net debt/EBITDA is a comfortable 1.76x and Metlen looks well placed for a potential upgrade to investment grade status by the rating agencies later this year, achieving its goal.

• Revenue increased by JPY5.1bn (+2.9% YoY), driven by growth in the Furniture and Stationery Businesses.
• Operating profit declined by JPY97mn (-0.6% YoY) due to lower profit in the Interior Retail business and increased adjustments.
• Gross profit margin rose to 39.9%, while the SG&A expense ratio increased to 31.1% due to strategic spending.

• General Dynamics recently presented their second quarter 2024 financial results, reflecting notable growth across their business segments with some operational challenges specifically in their Aerospace division.
• This analysis delves into both the positive outcomes and areas of concern from their performance to provide a balanced investment perspective.
• Starting with their strengths, General Dynamics displayed robust revenue increases across all their four business segments, highlighting an 18% overall growth.