Industrials

• Exhibiting a robust growth profile – Solid topline growth and a marked improvement in profitability YoY were the key highlights of Q1 FY7/24 results, demonstrating that INTLOOP’s growth strategy encompassing M&A and business investment is beginning to yield positive outcomes.
• Sales growth of 63.3% YoY was driven primarily by the acquisitive impact of DICS Holdings, and margin enhancement YoY was said to be driven by obtaining high-margin projects, which we believe also stems from raised pricing and improving consultant productivity.
• Management continues to invest in the business primarily via recruitment and building business alliances that should strengthen its network and selling activities.

Carr’s Group plan to dispose of the Engineering businesses remains on track and will leave the company as a focused agricultural supplies business. Restructuring (both the cost base and exiting loss-making activities) along with actions from the new management and potential from a market upturn should provide positive forward momentum and support the future growth strategy.

• AST Spacemobile (ASTS) is overvalued at $9.4 billion as a pre-revenue company with uncertain prospects
• The company has launched 5 satellites but would need at least 60 more for a meaningful commercial offering
• Stock price has surged on hype, but challenges in business model and high costs of satellite deployment remain significant obstacles for ASTS

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.

• Exhibiting a robust growth profile – Solid topline growth and a marked improvement in profitability YoY were the key highlights of Q1 FY7/24 results, demonstrating that INTLOOP’s growth strategy encompassing M&A and business investment is beginning to yield positive outcomes.
• Sales growth of 63.3% YoY was driven primarily by the acquisitive impact of DICS Holdings, and margin enhancement YoY was said to be driven by obtaining high-margin projects, which we believe also stems from raised pricing and improving consultant productivity.
• Management continues to invest in the business primarily via recruitment and building business alliances that should strengthen its network and selling activities.

Carr’s Group plan to dispose of the Engineering businesses remains on track and will leave the company as a focused agricultural supplies business. Restructuring (both the cost base and exiting loss-making activities) along with actions from the new management and potential from a market upturn should provide positive forward momentum and support the future growth strategy.

• AST Spacemobile (ASTS) is overvalued at $9.4 billion as a pre-revenue company with uncertain prospects
• The company has launched 5 satellites but would need at least 60 more for a meaningful commercial offering
• Stock price has surged on hype, but challenges in business model and high costs of satellite deployment remain significant obstacles for ASTS

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.
• Key takeaways: expanding directors’ fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.
• The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.

• The MV Global Defense Industry Index represents the performance of companies in national defense industries.
• Amentum Holdings (AMTM US) is an ADD and Chemring Group PLC (CHG LN) is a DEL for the MV Global Defense Index in December 2024. 
• We expect a one-way flow of US$138mm for December 2024, which translates to a turnover of 8.6%.

• Shipping the first water-based cooling systems for servers equipped with Nvidia’s new Blackwell GPUs and building two new motor factories in India.
• Moving beyond excessive dependence on China while restructuring operations to reduce costs. Sales short of 1H guidnce, but operating profit up. 
• Share price down 30% since May and close to its 52-week low. Selling at 17.5x this fiscal year’s EPS guidance, the lowest P/E multiple in a decade. 

• The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.
• Key takeaways: expanding directors’ fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.
• The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.

• The MV Global Defense Industry Index represents the performance of companies in national defense industries.
• Amentum Holdings (AMTM US) is an ADD and Chemring Group PLC (CHG LN) is a DEL for the MV Global Defense Index in December 2024. 
• We expect a one-way flow of US$138mm for December 2024, which translates to a turnover of 8.6%.

• Shipping the first water-based cooling systems for servers equipped with Nvidia’s new Blackwell GPUs and building two new motor factories in India.
• Moving beyond excessive dependence on China while restructuring operations to reduce costs. Sales short of 1H guidnce, but operating profit up. 
• Share price down 30% since May and close to its 52-week low. Selling at 17.5x this fiscal year’s EPS guidance, the lowest P/E multiple in a decade. 

• SOUTHBOUND gross trading activity rebounded about 33% this week vs the previous week. Net buying was a little lower but still strong. Market volumes overall in HK rebounded.
• Alibaba Group Holding (9988 HK) was again the top buy and Tencent (700 HK) and Meituan (3690 HK) the top two sells. Tech is having a mixed outing now.
• Gross SOUTHBOUND volumes back up this week to levels seen just off the autumn peak. An interesting week as stocks popped Monday, opened high Tuesday, then fell all week.

• SF’s revenue base is far larger, and in Q324 SF’s revenue also grew faster than JD Logistics
• SF and JD Log reported similar EBITDA margins in Q324, & both enjoyed Y/Y improvement
• JD Log appears far cheaper on EV/Revenue, perhaps due to its reliance on parent JD.com

• SOUTHBOUND gross trading activity rebounded about 33% this week vs the previous week. Net buying was a little lower but still strong. Market volumes overall in HK rebounded.
• Alibaba Group Holding (9988 HK) was again the top buy and Tencent (700 HK) and Meituan (3690 HK) the top two sells. Tech is having a mixed outing now.
• Gross SOUTHBOUND volumes back up this week to levels seen just off the autumn peak. An interesting week as stocks popped Monday, opened high Tuesday, then fell all week.

• SF’s revenue base is far larger, and in Q324 SF’s revenue also grew faster than JD Logistics
• SF and JD Log reported similar EBITDA margins in Q324, & both enjoyed Y/Y improvement
• JD Log appears far cheaper on EV/Revenue, perhaps due to its reliance on parent JD.com

• Macquarie Asset Management’s final bid for Renewi is £8.7/share, with a current spread of 9% and a downside risk of 25%.
• Three shareholders holding 15.1% of Renewi have signed irrevocable support agreements; confirmatory due diligence is ongoing.
• Macquarie’s offer values Renewi at 6.7x TTM adj. EBITDA, aligning with European peers’ valuations, considering the control premium.

• In this edition: • IMCD | acquires Daoqin in China • NX Filtration | revises FY24 revenue outlook strongly downwards

• The risk to INOD experiencing a sequential decline in spending activity in the near-term could have been alleviated from the continued spending in artificial intelligence (“A.I.”).   
• AMZN and GOOGL have their internally developed processors ready for high performance deep learning. The new chips suggest A.I. training is not going anywhere and could expand in 2025.   
• INOD’s revenue growth has been predominantly from one customer. This should begin to change in 2025. 

• Macquarie Asset Management’s final bid for Renewi is £8.7/share, with a current spread of 9% and a downside risk of 25%.
• Three shareholders holding 15.1% of Renewi have signed irrevocable support agreements; confirmatory due diligence is ongoing.
• Macquarie’s offer values Renewi at 6.7x TTM adj. EBITDA, aligning with European peers’ valuations, considering the control premium.

• In this edition: • IMCD | acquires Daoqin in China • NX Filtration | revises FY24 revenue outlook strongly downwards

• The risk to INOD experiencing a sequential decline in spending activity in the near-term could have been alleviated from the continued spending in artificial intelligence (“A.I.”).   
• AMZN and GOOGL have their internally developed processors ready for high performance deep learning. The new chips suggest A.I. training is not going anywhere and could expand in 2025.   
• INOD’s revenue growth has been predominantly from one customer. This should begin to change in 2025. 

• International Gemmological Institute (India) Limited (IGII) is looking to raise about US$500m in its upcoming India IPO.
• IGI India is part of the International Gemmological Institute (IGI) group. As of 22nd August 2024, IGI India handled operations of the IGI business in India and Türkiye.
• In this note, we will look at the company’s past performance and talk about the IPO valuations.

• Emerson Electric Co. presented its financial results for the fiscal year 2024, along with strategic announcements that aim to reshape its future.
• The key takeaways involve a continued commitment to portfolio transformation, with notable acquisition, divestment, and capital return actions.
• Emerson, already holding a 57% stake in Aspen Technology, proposed to acquire the remaining shares at $240 per share in cash.

• Star Agriwarehousing and Collateral Management Ltd (0207140D IN) (SACM) is planning to raise about US$100m through its upcoming India IPO. The lead bookrunners for the deal are JMFin, Ambit, Equirius.
• SACM is a technology-led integrated agricultural value-chain services platform that provides services such as procurement, trade facilitation, warehousing, collateral management, financing solutions, a digital marketplace, and data services.
• According to the F&S report, the company was the largest by revenue and the most profitable technology-led integrated value chain services platform during the FY22 to FY24. 

• Leading manufacturer of precision bearings, gearings, and components for industrial and aerospace/defense industries
• Focus on high-end markets, premium pricing, engineering capabilities, and reputation for quality and on-time delivery
• Majority of revenues from the United States, with a market capitalization of $9.1BN and annual revenues of $1.6BN

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.

• International Gemmological Institute (India) Limited (IGII) is looking to raise about US$500m in its upcoming India IPO.
• IGI India is part of the International Gemmological Institute (IGI) group. As of 22nd August 2024, IGI India handled operations of the IGI business in India and Türkiye.
• In this note, we will look at the company’s past performance and talk about the IPO valuations.

• Emerson Electric Co. presented its financial results for the fiscal year 2024, along with strategic announcements that aim to reshape its future.
• The key takeaways involve a continued commitment to portfolio transformation, with notable acquisition, divestment, and capital return actions.
• Emerson, already holding a 57% stake in Aspen Technology, proposed to acquire the remaining shares at $240 per share in cash.

• Star Agriwarehousing and Collateral Management Ltd (0207140D IN) (SACM) is planning to raise about US$100m through its upcoming India IPO. The lead bookrunners for the deal are JMFin, Ambit, Equirius.
• SACM is a technology-led integrated agricultural value-chain services platform that provides services such as procurement, trade facilitation, warehousing, collateral management, financing solutions, a digital marketplace, and data services.
• According to the F&S report, the company was the largest by revenue and the most profitable technology-led integrated value chain services platform during the FY22 to FY24. 

• Leading manufacturer of precision bearings, gearings, and components for industrial and aerospace/defense industries
• Focus on high-end markets, premium pricing, engineering capabilities, and reputation for quality and on-time delivery
• Majority of revenues from the United States, with a market capitalization of $9.1BN and annual revenues of $1.6BN

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.