Industrials

• Q1 FY06/25 revenue was JPY21.7bn (-62.5% YoY), operating profit JPY1.3bn (-71.5% YoY), net loss JPY578mn.
• Revenue decline due to US import tariff expiration; company plans new production bases in Ethiopia and US.
• FY06/25 forecast: revenue JPY80.0bn (-61.7% YoY), operating profit JPY10.0bn (-57.2% YoY), dividend undecided.

• BlueLinx has seen a significant increase in equity and liquidity due to the homebuilding surge from 2020-2022
• The company has a book value per share of $76.50 and $98 per share in liquidity, indicating a strong balance sheet
• Management plans to use excess capital for M&A, entering new markets, and price-sensitive buybacks, with potential for earnings power to exceed current estimates of $12 EPS

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 decreased YoY across BPO and CRM businesses, but operating profit increased due to cost reduction efforts.
• New partnerships with seven local governments expanded client base to 177, focusing on economic stimulus projects.
• Revenue rose in food processing and manufacturing, driven by strong orders and efficient SG&A expense management.

• Q1 FY06/25 revenue declined 6.7% YoY due to subsidiary exclusion, with operating profit falling 27.9% from increased costs.
• FY06/25 forecast projects revenue of JPY21.0bn (+0.4% YoY) and operating profit of JPY2.5bn (+1.8% YoY).
• Company focuses on expressway projects, sales in building maintenance, and R&D investment to enhance technical capabilities.

• Consolidated sales declined to JPY32.5bn (-1.7% YoY), while net income attributable to owners reached JPY5.2bn (+570.2% YoY).
• HR-Tech engage segment reported sales of JPY4.4bn (+45.3% YoY) with an operating loss of JPY1.6bn.
• Human Resource Platform segment achieved JPY4.1bn in sales (+17.8% YoY) and an operating profit of JPY601mn.

• Expion360’s shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting on September 27, 2024.
• The company’s Board of Directors decided to implement a 1:100 stock reverse stock split effective October 9, 2024.
• The company also reported third quarter 2024 results which again fell short of our forecast.

• 1H FY03/25 results: Sales JPY7.9bn (+16.9% YoY), Operating profit JPY1.1bn (+131.1% YoY), Net income JPY795mn (+169.0% YoY).
• FY03/25 forecast: Sales JPY16.0bn (+10.0% YoY), Operating profit JPY1.9bn (+28.8% YoY), Net income JPY1.4bn (+18.3% YoY).
• Domestic sales forecast JPY10.0bn (+4.2% YoY), Overseas sales forecast JPY4.9bn (+20.8% YoY), New businesses JPY983mn (+24.0% YoY).

• Q1 FY06/25 revenue was JPY21.7bn (-62.5% YoY), operating profit JPY1.3bn (-71.5% YoY), net loss JPY578mn.
• Revenue decline due to US import tariff expiration; company plans new production bases in Ethiopia and US.
• FY06/25 forecast: revenue JPY80.0bn (-61.7% YoY), operating profit JPY10.0bn (-57.2% YoY), dividend undecided.

• BlueLinx has seen a significant increase in equity and liquidity due to the homebuilding surge from 2020-2022
• The company has a book value per share of $76.50 and $98 per share in liquidity, indicating a strong balance sheet
• Management plans to use excess capital for M&A, entering new markets, and price-sensitive buybacks, with potential for earnings power to exceed current estimates of $12 EPS

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 decreased YoY across BPO and CRM businesses, but operating profit increased due to cost reduction efforts.
• New partnerships with seven local governments expanded client base to 177, focusing on economic stimulus projects.
• Revenue rose in food processing and manufacturing, driven by strong orders and efficient SG&A expense management.

• Q1 FY06/25 revenue declined 6.7% YoY due to subsidiary exclusion, with operating profit falling 27.9% from increased costs.
• FY06/25 forecast projects revenue of JPY21.0bn (+0.4% YoY) and operating profit of JPY2.5bn (+1.8% YoY).
• Company focuses on expressway projects, sales in building maintenance, and R&D investment to enhance technical capabilities.

• Consolidated sales declined to JPY32.5bn (-1.7% YoY), while net income attributable to owners reached JPY5.2bn (+570.2% YoY).
• HR-Tech engage segment reported sales of JPY4.4bn (+45.3% YoY) with an operating loss of JPY1.6bn.
• Human Resource Platform segment achieved JPY4.1bn in sales (+17.8% YoY) and an operating profit of JPY601mn.

• Expion360’s shareholders authorized the company to effect a reverse stock split with a ratio of 1:50 to 1:100 at the annual shareholders meeting on September 27, 2024.
• The company’s Board of Directors decided to implement a 1:100 stock reverse stock split effective October 9, 2024.
• The company also reported third quarter 2024 results which again fell short of our forecast.

• 1H FY03/25 results: Sales JPY7.9bn (+16.9% YoY), Operating profit JPY1.1bn (+131.1% YoY), Net income JPY795mn (+169.0% YoY).
• FY03/25 forecast: Sales JPY16.0bn (+10.0% YoY), Operating profit JPY1.9bn (+28.8% YoY), Net income JPY1.4bn (+18.3% YoY).
• Domestic sales forecast JPY10.0bn (+4.2% YoY), Overseas sales forecast JPY4.9bn (+20.8% YoY), New businesses JPY983mn (+24.0% YoY).

• Back on the 23rd October,  flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
• The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% – up from 27.71% – before options. A whitewash waiver is required.
• A expected, the Offer Doc has now been delayed. It is now expected to be dispatched on or before the 29th November. 

• S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
• SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost & Sullivan.   
• The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.

• On 14 November, Di Dong Il Corp (001530 KS) announced that it plans to cancel 3.78 million treasury shares (representing 15% of outstanding shares) on 29 November.
• The company currently has 5.84 million outstanding shares. Thus, the share cancellation of 3.78 million shares represent 65% of its treasury shares. 
• The company is facing an investigation due to suspicions that it conducted a loan transaction with its largest shareholder, the Jung-Hun Foundation, without board approval.

• CiDi Inc (CIDI HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC, China Securities and Ping An.
• It is a leading provider of autonomous driving technology for commercial vehicles in China.
• It focuses on research and development of autonomous mining and logistics trucks, V2X technologies and high-performance perception solutions.

• MNC Solution (MNC KS) MNC Solutions is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In this note, we look at the firm’s past performance.

• Trex Company, Inc. recently reported its third quarter 2024 earnings.
• The company reported net sales of $234 million, reflecting a decline of 23% from the previous year primarily due to a $70 million reduction in channel inventory.
• Despite this, Trex noted robust consumer demand for its premium products like Trex Transcend Lineage and Signature decking and railing, although sales of lower-priced products were more restrained.

• RaaS is initiating coverage of engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) with a DCF-based valuation of $0.40/share, representing potential capital upside of 196% on the current share price.
• FY24 was a turnaround year for Verbrec under new management with a clear strategy of carving out costs, improving operating and risk management disciplines, selling under-performing businesses and finalising legacy projects.
• The business is now recapitalised, profitable, cash generative and, in our opinion, poised for further growth with a favourable macro environment in both VBC’s traditional engineering projects and particularly its areas of sustainable focus, led by the energy transition that is underway in Australia.

Braemar’s H125 results were in line with expectations, with modest revenue growth and some operational gearing evident in operating profit. The underlying activities continue to expand and diversify and Braemar remains well-positioned to drive its growth strategy. The trading outlook for FY25 is promising and we expect the company to be able to leverage its strong balance sheet in pursuit of strategic growth in a fragmented market. We maintain our underlying revenue and operating profit estimates for FY25 and FY26, as well as our 535p valuation, although EPS is affected by a reassessment of the number of shares in issue. Estimated end-FY25 net cash improves to £2.5m from a more modest net cash position.

• Crane Company recently presented its third-quarter 2024 financial results, showcasing several key highlights and challenges.
• The company’s performance this quarter was marked by a solid increase in both core sales and earnings per share, despite encountering multiple operational disruptions.
• Firstly, Crane demonstrated robust financial performance by exceeding expectations, with adjusted earnings per share (EPS) rising to $1.38.

• Cumulative Q3 FY12/24 revenue rose 7.3% YoY, driven by Environmental Equipment, Household Equipment, and Renewable Energy segments.
• Operating profit increased 88.0% YoY to JPY677mn, supported by price hikes and strong segment performances.
• Overseas revenue grew due to demand in India and Sri Lanka, with large government projects boosting growth.

• Back on the 23rd October,  flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
• The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% – up from 27.71% – before options. A whitewash waiver is required.
• A expected, the Offer Doc has now been delayed. It is now expected to be dispatched on or before the 29th November. 

• S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
• SF is the largest integrated logistics service player in China and Asia and the fourth largest player globally in terms of revenue in 2023, according to Frost & Sullivan.   
• The PHIP update shows that the business is in good health, with a return to growth, rising margins, and strong cash generation. Therefore, a premium multiple to peers is justified.

• On 14 November, Di Dong Il Corp (001530 KS) announced that it plans to cancel 3.78 million treasury shares (representing 15% of outstanding shares) on 29 November.
• The company currently has 5.84 million outstanding shares. Thus, the share cancellation of 3.78 million shares represent 65% of its treasury shares. 
• The company is facing an investigation due to suspicions that it conducted a loan transaction with its largest shareholder, the Jung-Hun Foundation, without board approval.

• CiDi Inc (CIDI HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC, China Securities and Ping An.
• It is a leading provider of autonomous driving technology for commercial vehicles in China.
• It focuses on research and development of autonomous mining and logistics trucks, V2X technologies and high-performance perception solutions.

• MNC Solution (MNC KS) MNC Solutions is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In this note, we look at the firm’s past performance.

• Trex Company, Inc. recently reported its third quarter 2024 earnings.
• The company reported net sales of $234 million, reflecting a decline of 23% from the previous year primarily due to a $70 million reduction in channel inventory.
• Despite this, Trex noted robust consumer demand for its premium products like Trex Transcend Lineage and Signature decking and railing, although sales of lower-priced products were more restrained.

• RaaS is initiating coverage of engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) with a DCF-based valuation of $0.40/share, representing potential capital upside of 196% on the current share price.
• FY24 was a turnaround year for Verbrec under new management with a clear strategy of carving out costs, improving operating and risk management disciplines, selling under-performing businesses and finalising legacy projects.
• The business is now recapitalised, profitable, cash generative and, in our opinion, poised for further growth with a favourable macro environment in both VBC’s traditional engineering projects and particularly its areas of sustainable focus, led by the energy transition that is underway in Australia.

Braemar’s H125 results were in line with expectations, with modest revenue growth and some operational gearing evident in operating profit. The underlying activities continue to expand and diversify and Braemar remains well-positioned to drive its growth strategy. The trading outlook for FY25 is promising and we expect the company to be able to leverage its strong balance sheet in pursuit of strategic growth in a fragmented market. We maintain our underlying revenue and operating profit estimates for FY25 and FY26, as well as our 535p valuation, although EPS is affected by a reassessment of the number of shares in issue. Estimated end-FY25 net cash improves to £2.5m from a more modest net cash position.

• Crane Company recently presented its third-quarter 2024 financial results, showcasing several key highlights and challenges.
• The company’s performance this quarter was marked by a solid increase in both core sales and earnings per share, despite encountering multiple operational disruptions.
• Firstly, Crane demonstrated robust financial performance by exceeding expectations, with adjusted earnings per share (EPS) rising to $1.38.

• Cumulative Q3 FY12/24 revenue rose 7.3% YoY, driven by Environmental Equipment, Household Equipment, and Renewable Energy segments.
• Operating profit increased 88.0% YoY to JPY677mn, supported by price hikes and strong segment performances.
• Overseas revenue grew due to demand in India and Sri Lanka, with large government projects boosting growth.

• Although it is UNCERTAIN when the wars in Ukraine and the Middle East will end, if these wars indeed come to an end, this could POSITIVELY IMPACT Korean construction sector.
• The end of the wars in Ukraine and the Middle East is likely to NEGATIVELY IMPACT the Korean military/defense sector. 
• The major Korean construction companies have low valuation multiples. On the other hand, the major Korean military/defense companies have high valuation multiples.

• SharkNinja’s third quarter of 2024 financial performance highlighted several strengths and strategic initiatives that point to its robust market position and growth trajectory, balanced by some areas of concern that underline potential risks.
• Displaying a strong performance in adjusted net sales and adjusted EBITDA growth, SharkNinja reported substantial year-over-year increases, demonstrating resilience and strategic agility in a fluctuating economic environment.
• The global teams’ efforts mirrored in a 35% rise in adjusted net sales and 26% growth in adjusted EBITDA, showcasing strong operational execution and market responsiveness.

• Sales increased by 27.4% YoY, with the Idle Asset Utilization segment driving growth, achieving JPY10.0bn in sales.
• The company forecasts FY09/25 sales of JPY12.5bn, operating profit of JPY2.5bn, and net income of JPY1.6bn.
• Visualization segment reported full-year sales of JPY214mn, focusing on technical skill improvement and expanding the sales team.

• Revenue increased to JPY14.2bn (+27.7% YoY), with operating profit at JPY1.2bn (+67.9% YoY) and recurring profit at JPY1.3bn (+55.1% YoY).
• Net income attributable to owners of the parent reached JPY798mn, marking a 56.4% year-over-year increase.
• Technician numbers grew by 967 (+27.5% YoY) to 4,482, driven by enhanced in-house recruitment capabilities.

• Fastenal started as a small retailer in Minnesota and has evolved into a mission critical supply chain partner for industrial customers
• The company today has nearly USD8 billion in sales and a market capitalization of nearly USD50 billion
• The company’s founder Bob Kierlin has played a significant role in the company’s success

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

• Hydrofarm is a non-plant touching, NASDAQ-listed leading manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA).
• The company’s products consist primarily of consumable products, such as nutrients and grow media, and durable products, such as grow lights, climate control solutions, rolling racks/benches, and various other equipment and supplies.
• Hydrofarm reported 3Q24 results, with revenue of $44.0 million, lower than our estimate of $46.5 million.

• CBAK Energy Technology’s core battery business continues to perform admirably in the face of a broader industry downturn.
• There are several positive catalysts on the horizon for CBAK which are partially offset by the current industry challenges and the continued weakness of the HiTrans raw material business.
• Both of the company’s battery facilities are now operating profitably and the company is poised to materially increase capacity in 2025.

• Ichiken’s FY03/25 forecast: Revenue JPY98.0bn, operating profit JPY4.8bn, recurring profit JPY4.7bn, net income JPY3.2bn.
• Medium-term targets FY2023-FY2025: Revenue JPY93bn, OPM 5.0%, ROE 8.0%, dividend payout ratio 30%, total investment JPY10bn.
• Long-term targets FY2030: Revenue JPY100bn, OPM 5.0%, ROE 8.0%, equity ratio 50%, total investment JPY30bn.

• Revenue increased to JPY20.0bn (+4.5% YoY), with growth in China (+15.8% YoY) and declines in Japan and Southeast Asia.
• Operating profit rose to JPY692mn (+32.8% YoY), while recurring profit decreased to JPY606mn (-25.0% YoY).
• Full-year revenue forecast revised to JPY40.8bn, with downward revisions for operating, recurring profit, and net income projections.

• In 1H FY03/25, revenue increased 9.9% YoY to JPY26.0bn, while operating profit decreased 3.5% YoY.
• FY03/25 earnings forecast: revenue JPY52.0bn (+4.5% YoY), operating profit JPY3.5bn (-2.7% YoY), dividend JPY120.0/share.
• Segment profits declined in Machine Tools, Rubber & Tire, and Electronics & Semiconductor; increased in Steel, Automotive, Environment.

• Although it is UNCERTAIN when the wars in Ukraine and the Middle East will end, if these wars indeed come to an end, this could POSITIVELY IMPACT Korean construction sector.
• The end of the wars in Ukraine and the Middle East is likely to NEGATIVELY IMPACT the Korean military/defense sector. 
• The major Korean construction companies have low valuation multiples. On the other hand, the major Korean military/defense companies have high valuation multiples.

• SharkNinja’s third quarter of 2024 financial performance highlighted several strengths and strategic initiatives that point to its robust market position and growth trajectory, balanced by some areas of concern that underline potential risks.
• Displaying a strong performance in adjusted net sales and adjusted EBITDA growth, SharkNinja reported substantial year-over-year increases, demonstrating resilience and strategic agility in a fluctuating economic environment.
• The global teams’ efforts mirrored in a 35% rise in adjusted net sales and 26% growth in adjusted EBITDA, showcasing strong operational execution and market responsiveness.

• Sales increased by 27.4% YoY, with the Idle Asset Utilization segment driving growth, achieving JPY10.0bn in sales.
• The company forecasts FY09/25 sales of JPY12.5bn, operating profit of JPY2.5bn, and net income of JPY1.6bn.
• Visualization segment reported full-year sales of JPY214mn, focusing on technical skill improvement and expanding the sales team.

• Revenue increased to JPY14.2bn (+27.7% YoY), with operating profit at JPY1.2bn (+67.9% YoY) and recurring profit at JPY1.3bn (+55.1% YoY).
• Net income attributable to owners of the parent reached JPY798mn, marking a 56.4% year-over-year increase.
• Technician numbers grew by 967 (+27.5% YoY) to 4,482, driven by enhanced in-house recruitment capabilities.

• Fastenal started as a small retailer in Minnesota and has evolved into a mission critical supply chain partner for industrial customers
• The company today has nearly USD8 billion in sales and a market capitalization of nearly USD50 billion
• The company’s founder Bob Kierlin has played a significant role in the company’s success

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

• Hydrofarm is a non-plant touching, NASDAQ-listed leading manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA).
• The company’s products consist primarily of consumable products, such as nutrients and grow media, and durable products, such as grow lights, climate control solutions, rolling racks/benches, and various other equipment and supplies.
• Hydrofarm reported 3Q24 results, with revenue of $44.0 million, lower than our estimate of $46.5 million.

• CBAK Energy Technology’s core battery business continues to perform admirably in the face of a broader industry downturn.
• There are several positive catalysts on the horizon for CBAK which are partially offset by the current industry challenges and the continued weakness of the HiTrans raw material business.
• Both of the company’s battery facilities are now operating profitably and the company is poised to materially increase capacity in 2025.

• Ichiken’s FY03/25 forecast: Revenue JPY98.0bn, operating profit JPY4.8bn, recurring profit JPY4.7bn, net income JPY3.2bn.
• Medium-term targets FY2023-FY2025: Revenue JPY93bn, OPM 5.0%, ROE 8.0%, dividend payout ratio 30%, total investment JPY10bn.
• Long-term targets FY2030: Revenue JPY100bn, OPM 5.0%, ROE 8.0%, equity ratio 50%, total investment JPY30bn.

• Revenue increased to JPY20.0bn (+4.5% YoY), with growth in China (+15.8% YoY) and declines in Japan and Southeast Asia.
• Operating profit rose to JPY692mn (+32.8% YoY), while recurring profit decreased to JPY606mn (-25.0% YoY).
• Full-year revenue forecast revised to JPY40.8bn, with downward revisions for operating, recurring profit, and net income projections.

• In 1H FY03/25, revenue increased 9.9% YoY to JPY26.0bn, while operating profit decreased 3.5% YoY.
• FY03/25 earnings forecast: revenue JPY52.0bn (+4.5% YoY), operating profit JPY3.5bn (-2.7% YoY), dividend JPY120.0/share.
• Segment profits declined in Machine Tools, Rubber & Tire, and Electronics & Semiconductor; increased in Steel, Automotive, Environment.

• Tokyo Metro (9023 JP) had a blockbuster listing yesterday, finishing the day 45% higher. That took the estimated div yield down from 3.33% (at the IPO price) to 2.3%.
• One expected index inclusion will not take place due to insufficient information on IPO allocations and that leads to a much lower free float than expected.
• That inclusion will now be deferred to June; BUT there could be two other (bigger) index inclusions on the cards prior to that.

• Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
• Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
• In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.

• In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
• Separately, we see multiple M&A-related intra-review changes in the next few months.
• There could also be more regular changes during the December 2024 rebalanced event

• Nidec’s Q2 operating income beat my estimates, driven by strong small motors and appliance segments, though automotive profits underperformed
• The automotive division is shifting focus from e-axles to broader auto parts, while improving operational efficiency through partnerships and streamlined logistics
• Despite macro risks, Nidec remains well-positioned for long-term growth in digitalization, decarbonization, and automation, with a price target of ¥4,350

• Together with the just-announced HK$0.40 special DPS, SITC International (1308 HK) has already handed back HK$1.12/share to shareholders YTD, realising a dividend yield of 6.5%.
• Its 3Q24 performance is impressive, with revenue surging 56.6% YoY. Both volume (+13.4%) and average freight rates (+44.1%) have exhibited solid momentum. 
• While the consensus forecasts have been upgraded by 7-11% since the 1H24 result, there appears more room to go. FY24 ROE is now expected to be 32.2%.

• Operating Revenues of P$6.8bn were driven by solid aeronautical growth.
• Total operating sales growth of 14% YoY was driven by a solid 19% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+22% YoY), which offset the 2% drop in total PAX.
• On the other hand, non-aeronautical revenues (34% of the total) gained 5% YoY, supported by an implicit gain of 7% YoY in the non-aeronautical revenue per PAX.

• Operating revenues of US$813 m decreased by 4% YoY.
• Top-line results were negatively impacted by a 14% YoY contraction in the ASMs (due to mandatory engine inspections, which resulted in the landing on average of 34 airplanes) and a 13% YoY drop in RPMs. Yields in the quarter ended at US$53.0, implying a 9% YoY gain and 7% above our estimate.
• The load factor in 3Q24 was 87.4%, with a +1.0 pp YoY expansion.

• Tokyo Metro (9023 JP) had a blockbuster listing yesterday, finishing the day 45% higher. That took the estimated div yield down from 3.33% (at the IPO price) to 2.3%.
• One expected index inclusion will not take place due to insufficient information on IPO allocations and that leads to a much lower free float than expected.
• That inclusion will now be deferred to June; BUT there could be two other (bigger) index inclusions on the cards prior to that.

• Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
• Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
• In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.

• In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
• Separately, we see multiple M&A-related intra-review changes in the next few months.
• There could also be more regular changes during the December 2024 rebalanced event

• Nidec’s Q2 operating income beat my estimates, driven by strong small motors and appliance segments, though automotive profits underperformed
• The automotive division is shifting focus from e-axles to broader auto parts, while improving operational efficiency through partnerships and streamlined logistics
• Despite macro risks, Nidec remains well-positioned for long-term growth in digitalization, decarbonization, and automation, with a price target of ¥4,350

• Together with the just-announced HK$0.40 special DPS, SITC International (1308 HK) has already handed back HK$1.12/share to shareholders YTD, realising a dividend yield of 6.5%.
• Its 3Q24 performance is impressive, with revenue surging 56.6% YoY. Both volume (+13.4%) and average freight rates (+44.1%) have exhibited solid momentum. 
• While the consensus forecasts have been upgraded by 7-11% since the 1H24 result, there appears more room to go. FY24 ROE is now expected to be 32.2%.

• Operating Revenues of P$6.8bn were driven by solid aeronautical growth.
• Total operating sales growth of 14% YoY was driven by a solid 19% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+22% YoY), which offset the 2% drop in total PAX.
• On the other hand, non-aeronautical revenues (34% of the total) gained 5% YoY, supported by an implicit gain of 7% YoY in the non-aeronautical revenue per PAX.

• Operating revenues of US$813 m decreased by 4% YoY.
• Top-line results were negatively impacted by a 14% YoY contraction in the ASMs (due to mandatory engine inspections, which resulted in the landing on average of 34 airplanes) and a 13% YoY drop in RPMs. Yields in the quarter ended at US$53.0, implying a 9% YoY gain and 7% above our estimate.
• The load factor in 3Q24 was 87.4%, with a +1.0 pp YoY expansion.

• Tokyo Metro (9023 JP) priced its IPO at the top end (JPY 1200/share), raised JPY 348.6bn (US$2.3bn) and the company is valued at JPY 697bn (US$4.62bn).
• The stock starts to trade today, and the grey market is indicating an open 20% higher. Not surprising considering that the IPO was heavily oversubscribed.
• Even at a price of JPY 1440/share, the estimated dividend yield is 2.78% and that should keep the stock supported. Index inclusions will result in more buying next week.

• The Tokyo Metro (9023 JP) IPO is one of the largest IPOs of recent years, well-flagged, and it is hot hot hot!  A super stable, well-known, well-respected, service provider.
• There are numerous attractions but I expect people have not thought too deeply about the demand and supply dynamics of different holder types. It’s worth thinking about. 
• This was priced “cheap” but everyone knows that so there may be flippers. This is probably more Japan Post Bank than Japan Post Insurance.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• In this insight, we take a look at the potential ADDs and DELs for the December 2024 index rebal event.
• Currently, we see one change for T50 and two changes for T100 but there are four more weeks to the base date and our expectations can change until then.

• In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
• I currently see 5 ADDs and 4 DELs but some of these names are different from what we had last time (link).
• The current estimate for one-way flow in December 2024 is US$1.54bn.

• There could be 16 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 30 December.
• If all changes are on expected lines, one-way turnover is estimated at 55.6% and that will result in a one-way trade of INR 62bn (US$736m).
• Since June, the potential adds to the index have outperformed the index and the potential deletes by a big margin. Momentum could keep the outperformance going till implementation date.

• Our overall assessment of the new reorganization plan by the Doosan Group continues to be Negative, because Doosan has not given up trying to eventually merge Bobcat and Robotics.
• Doosan Group’s new reorganization plan is the opposite of KISS strategy, involving several moving parts and complicated deal structure.
• We have also provided three main recommendations on how to raise the valuation of Doosan Bobcat without rushing to merge Bobcat and Robotics.

• Neil Chenoweth wrote a detailed investigative piece on Min Res founder Chris Allison and former top executives, alleging a tax evasion scheme using shareholder funds.
• The scheme involved buying machinery with inflated prices from a company named Far East Equipment Holdings in the British Virgin Islands.
• Min Res stock dropped 13% in response to the article, with implications on leadership and governance of the company.

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

• Nextracker’s first-quarter earnings for the fiscal year 2025 have offered a mixed yet promising insight into the company’s financial and operational trajectory.
• The company reported a significant 50% year-on-year growth in revenue and recorded its highest-ever adjusted EBITDA.
• These figures underscore Nextracker’s strong performance, particularly in a financial landscape characterized by a keen focus on renewable energy solutions.

• China Conch Venture Holdings (586 HK) is sitting on a steep discount of 59% to its NAV. Its holding in Anhui Conch Cement (600585 CH) is already valued at HK$13.3/share.
• Its waste-to-energy business has a value of Rmb4.4bn by assuming 5x PER, but this business has a net book value of Rmb10bn. Pipeline capacity equals 21.7% of operational capacity.
• The new energy segment, including lithium battery recycling and the manufacture of positive and negative electrode materials, has solid prospects but is overlooked by the market.

• Ajax Engineering Limited (0896529D IN) is looking to raise about US$100m through its upcoming IPO in India. The lead bookrunners for the deal are ICICI , CITI, JM, Nuvama, SBI 
• Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain. 
• It is one of the top three global SLCM manufacturers, holding about 75% market share in India. In FY24, SLCMs contributed to 12% of India’s concrete production.

• Tokyo Metro (9023 JP) priced its IPO at the top end (JPY 1200/share), raised JPY 348.6bn (US$2.3bn) and the company is valued at JPY 697bn (US$4.62bn).
• The stock starts to trade today, and the grey market is indicating an open 20% higher. Not surprising considering that the IPO was heavily oversubscribed.
• Even at a price of JPY 1440/share, the estimated dividend yield is 2.78% and that should keep the stock supported. Index inclusions will result in more buying next week.

• The Tokyo Metro (9023 JP) IPO is one of the largest IPOs of recent years, well-flagged, and it is hot hot hot!  A super stable, well-known, well-respected, service provider.
• There are numerous attractions but I expect people have not thought too deeply about the demand and supply dynamics of different holder types. It’s worth thinking about. 
• This was priced “cheap” but everyone knows that so there may be flippers. This is probably more Japan Post Bank than Japan Post Insurance.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• In this insight, we take a look at the potential ADDs and DELs for the December 2024 index rebal event.
• Currently, we see one change for T50 and two changes for T100 but there are four more weeks to the base date and our expectations can change until then.

• In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
• I currently see 5 ADDs and 4 DELs but some of these names are different from what we had last time (link).
• The current estimate for one-way flow in December 2024 is US$1.54bn.

• There could be 16 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 30 December.
• If all changes are on expected lines, one-way turnover is estimated at 55.6% and that will result in a one-way trade of INR 62bn (US$736m).
• Since June, the potential adds to the index have outperformed the index and the potential deletes by a big margin. Momentum could keep the outperformance going till implementation date.

• Our overall assessment of the new reorganization plan by the Doosan Group continues to be Negative, because Doosan has not given up trying to eventually merge Bobcat and Robotics.
• Doosan Group’s new reorganization plan is the opposite of KISS strategy, involving several moving parts and complicated deal structure.
• We have also provided three main recommendations on how to raise the valuation of Doosan Bobcat without rushing to merge Bobcat and Robotics.

• Neil Chenoweth wrote a detailed investigative piece on Min Res founder Chris Allison and former top executives, alleging a tax evasion scheme using shareholder funds.
• The scheme involved buying machinery with inflated prices from a company named Far East Equipment Holdings in the British Virgin Islands.
• Min Res stock dropped 13% in response to the article, with implications on leadership and governance of the company.

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

• Nextracker’s first-quarter earnings for the fiscal year 2025 have offered a mixed yet promising insight into the company’s financial and operational trajectory.
• The company reported a significant 50% year-on-year growth in revenue and recorded its highest-ever adjusted EBITDA.
• These figures underscore Nextracker’s strong performance, particularly in a financial landscape characterized by a keen focus on renewable energy solutions.

• China Conch Venture Holdings (586 HK) is sitting on a steep discount of 59% to its NAV. Its holding in Anhui Conch Cement (600585 CH) is already valued at HK$13.3/share.
• Its waste-to-energy business has a value of Rmb4.4bn by assuming 5x PER, but this business has a net book value of Rmb10bn. Pipeline capacity equals 21.7% of operational capacity.
• The new energy segment, including lithium battery recycling and the manufacture of positive and negative electrode materials, has solid prospects but is overlooked by the market.

• Ajax Engineering Limited (0896529D IN) is looking to raise about US$100m through its upcoming IPO in India. The lead bookrunners for the deal are ICICI , CITI, JM, Nuvama, SBI 
• Ajax Engineering Limited (AEL) is one of the leading concrete equipment manufacturers with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain. 
• It is one of the top three global SLCM manufacturers, holding about 75% market share in India. In FY24, SLCMs contributed to 12% of India’s concrete production.