Industrials

• Singapore Post (SPOST SP) is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.
• SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.
• Once the FMH transaction completes, the board will “review and reset the Group’s strategic plan, with a continued focus on shareholder value“.

• The author presents an analysis of TAL Education Group, highlighting its low valuation and steady growth among Chinese ADRs
• TAL has a current market cap of $4.5B, net cash of $3.8B, and generated $200m in operating cash flow in the last quarter
• The company is projected to have $4.5B in net cash by the end of 2025, with revenue expected to grow at a 30% CAGR and reach over $2.5B with a 15% operating margin by 2026

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.

• AMBI, US-listed subsidiary of Ambipar Group, is undervalued compared to its parent company AMBP3
• AMBI offers potential for investors to take advantage of mispricing in the environmental emergency response sector
• Ambipar Group is a global leader in environmental management and emergency response services, emphasizing sustainability and innovation

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.

• GiG Works reported FY10/24 revenue of JPY25.4bn, a 4.0% YoY decline, with all profit categories posting losses.
• The Sharing Economy business achieved YoY revenue and profit growth, while other segments experienced declines and operating losses.
• FY10/25 forecasts include JPY24.9bn revenue, JPY180mn operating profit, and a JPY2 per share annual dividend.

• Singapore Post (SPOST SP) is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.
• SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.
• Once the FMH transaction completes, the board will “review and reset the Group’s strategic plan, with a continued focus on shareholder value“.

• The author presents an analysis of TAL Education Group, highlighting its low valuation and steady growth among Chinese ADRs
• TAL has a current market cap of $4.5B, net cash of $3.8B, and generated $200m in operating cash flow in the last quarter
• The company is projected to have $4.5B in net cash by the end of 2025, with revenue expected to grow at a 30% CAGR and reach over $2.5B with a 15% operating margin by 2026

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.

• AMBI, US-listed subsidiary of Ambipar Group, is undervalued compared to its parent company AMBP3
• AMBI offers potential for investors to take advantage of mispricing in the environmental emergency response sector
• Ambipar Group is a global leader in environmental management and emergency response services, emphasizing sustainability and innovation

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.

• GiG Works reported FY10/24 revenue of JPY25.4bn, a 4.0% YoY decline, with all profit categories posting losses.
• The Sharing Economy business achieved YoY revenue and profit growth, while other segments experienced declines and operating losses.
• FY10/25 forecasts include JPY24.9bn revenue, JPY180mn operating profit, and a JPY2 per share annual dividend.

• Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months. 
• BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
• Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

• Cummins Inc. presented its third-quarter 2024 results, highlighting several achievements and ongoing challenges.
• The company reported a stable sales figure of $8.5 billion, reflecting a flat performance compared to the same period in 2023 due to various offsetting factors.
• The North American market experienced a slight 1% decline, with softer heavy-duty truck sales balanced by strong demand in medium-duty trucks and power generation sectors.

• Inpost is a dominant force in the Polish market, with a high market share and strong financial performance.
• The company’s expansion into other European markets, while ambitious, may face challenges in achieving similar success.
• The risk of regulatory changes and competition could impact Impost’s future growth and profitability.

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

• Waste Management, Inc. (WM) reported robust operational and financial performance in its third quarter of 2024, driven by strategic initiatives in cost optimization, disciplined pricing, and ongoing sustainability investments.
• The company’s operating EBITDA demonstrated double-digit growth, with a record margin of 30.5%, marking a year over-year increase of 90 basis points, positioning it well to meet its projected full-year target of approximately $6.5 billion in operating EBITDA.
• 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.

• TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
• On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
• This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

• ATS is a global automation solutions provider that has adopted principles from DBS, including a customer-first approach and continuous improvement.
• Under CEO Andrew Hider’s leadership, ATS saw its stock price soar from $10 to $48 before settling around $26, positioning the company for long-term growth in the automation industry.
• ATS’s implementation of a DBS-like system has led to improvements in key performance indicators, with the company serving as a leading System Integrator with a global footprint in various industries.

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.

• Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months. 
• BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
• Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

• Cummins Inc. presented its third-quarter 2024 results, highlighting several achievements and ongoing challenges.
• The company reported a stable sales figure of $8.5 billion, reflecting a flat performance compared to the same period in 2023 due to various offsetting factors.
• The North American market experienced a slight 1% decline, with softer heavy-duty truck sales balanced by strong demand in medium-duty trucks and power generation sectors.

• Inpost is a dominant force in the Polish market, with a high market share and strong financial performance.
• The company’s expansion into other European markets, while ambitious, may face challenges in achieving similar success.
• The risk of regulatory changes and competition could impact Impost’s future growth and profitability.

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

• Waste Management, Inc. (WM) reported robust operational and financial performance in its third quarter of 2024, driven by strategic initiatives in cost optimization, disciplined pricing, and ongoing sustainability investments.
• The company’s operating EBITDA demonstrated double-digit growth, with a record margin of 30.5%, marking a year over-year increase of 90 basis points, positioning it well to meet its projected full-year target of approximately $6.5 billion in operating EBITDA.
• 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.

• TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
• On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
• This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

• ATS is a global automation solutions provider that has adopted principles from DBS, including a customer-first approach and continuous improvement.
• Under CEO Andrew Hider’s leadership, ATS saw its stock price soar from $10 to $48 before settling around $26, positioning the company for long-term growth in the automation industry.
• ATS’s implementation of a DBS-like system has led to improvements in key performance indicators, with the company serving as a leading System Integrator with a global footprint in various industries.

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.

• If stocks close above the appraisal prices on the 10th, NPS will support the merger; otherwise, they’ll abstain to secure their appraisal rights.
• Due to cancellation risk hitting the ceiling, NPS will likely exercise half its position and start buybacks after the results.
• With both stocks heavily weighted in KOSPI 200, NPS is likely to opt for a tight buyback window, boosting chances for upward price action on Doosan’s shares in that period.

• In the next several days, it is likely that the Doosan Group is likely to cancel its restructuring plan involving Doosan Enerbility, Doosan Bobcat, and Doosan Robotics.
• As a result of the sharp decline in share prices of major Doosan Group companies, the cost of appraisal rights may be too much for the Doosan Group.
• Despite the negative impact of recent political events in Korea, a cancellation of  Doosan Group restructuring plan could have a near-term positive impact on all the major Doosan Group companies.

• We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
• From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
• There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.

• RaaS has published a flash comment on environmental services company Fluence Corporation (ASX:FLC) following its recent announcement it has received the notice to proceed from ONEP, The Ivory Coast National Drinking Water Organisation, in respect to the €48.4m addendum to its contract to construct the 150,000 m3/day Lagube D’Aghien Water Treatment Plant.
• This is a critical step in the progress of the previously delayed IVC project.
• The project delay was the main driver behind the recent company downgrade, so its progress is a material positive.

• If stocks close above the appraisal prices on the 10th, NPS will support the merger; otherwise, they’ll abstain to secure their appraisal rights.
• Due to cancellation risk hitting the ceiling, NPS will likely exercise half its position and start buybacks after the results.
• With both stocks heavily weighted in KOSPI 200, NPS is likely to opt for a tight buyback window, boosting chances for upward price action on Doosan’s shares in that period.

• In the next several days, it is likely that the Doosan Group is likely to cancel its restructuring plan involving Doosan Enerbility, Doosan Bobcat, and Doosan Robotics.
• As a result of the sharp decline in share prices of major Doosan Group companies, the cost of appraisal rights may be too much for the Doosan Group.
• Despite the negative impact of recent political events in Korea, a cancellation of  Doosan Group restructuring plan could have a near-term positive impact on all the major Doosan Group companies.

• We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
• From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
• There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.

• RaaS has published a flash comment on environmental services company Fluence Corporation (ASX:FLC) following its recent announcement it has received the notice to proceed from ONEP, The Ivory Coast National Drinking Water Organisation, in respect to the €48.4m addendum to its contract to construct the 150,000 m3/day Lagube D’Aghien Water Treatment Plant.
• This is a critical step in the progress of the previously delayed IVC project.
• The project delay was the main driver behind the recent company downgrade, so its progress is a material positive.

• Information provided is for informational purposes only, not investment advice
• Author may hold a long position in securities mentioned
• Investors advised to seek professional advice before making investment decisions based on this material

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.

• EMCOR Group’s third-quarter 2024 results reflect significant revenue growth, robust operating income, and a strong backlog of projects, underscoring its strategic expansion into resilient market sectors.
• The company reported record revenues of $3.7 billion, showing a 15.3% increase year-over-year, and operating income surged by 54.7% to $363.5 million.
• Diluted earnings per share also rose considerably from $3.57 in the third quarter of 2023 to $5.80 this quarter.

• Ingersoll Rand reported its Q3 2024 financial results, showcasing a mix of strong performance and growth challenges, against a backdrop of macroeconomic uncertainty.
• The company recorded significant results, achieving record orders and revenue increases, with adjusted EBITDA margins expanding by over 200 basis points and free cash flow margins reaching 20%.
• Despite these achievements, Ingersoll Rand acknowledged that the challenging macro environment has impacted customer order timing and site readiness, leading to adjustments in revenue expectations for the full year.

• Services focus on greenhouse gas emission reduction, energy maintenance, insulation, and hot tapping
• Management team has a successful track record and is focused on market share
• Strong balance sheet post-sale positions Team for future growth and success

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.

• KEPPEL INFRASTRUCTURE TRUST (KIT) is an infrastructure trust listed in Singapore. KIT is managed by Keppel Infrastructure Fund Management Pte Ltd (KIFM) and is sponsored by Keppel, a global asset manager and operator. KIFM is a wholly-owned subsidiary of Keppel.
• The Trustee-Manager, KIFM, has dual responsibility of safeguarding the interests of KIT Unitholders, and managing the business conducted by KIT.
• The Trustee-Manager has general powers of management over the business and the assets of KIT and its main responsibility is to manage KIT’s assets and liabilities for the benefit of Unitholders as a whole.

• RaaS has published an update on engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) following its recent AGM at which the company released an updated sales pipeline for the remainder of FY25, stating strong expected win rates of at least equal to last year’s 36%.
• We retain our existing forecasts with FY25 revenue growth of 11% to $103.2m and EBITDA growth of 19% to $10.5m.
• However, the AGM commentary gives us additional comfort and confidence that VBC is well placed to deliver those forecasts.

• Information provided is for informational purposes only, not investment advice
• Author may hold a long position in securities mentioned
• Investors advised to seek professional advice before making investment decisions based on this material

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.

• EMCOR Group’s third-quarter 2024 results reflect significant revenue growth, robust operating income, and a strong backlog of projects, underscoring its strategic expansion into resilient market sectors.
• The company reported record revenues of $3.7 billion, showing a 15.3% increase year-over-year, and operating income surged by 54.7% to $363.5 million.
• Diluted earnings per share also rose considerably from $3.57 in the third quarter of 2023 to $5.80 this quarter.

• Ingersoll Rand reported its Q3 2024 financial results, showcasing a mix of strong performance and growth challenges, against a backdrop of macroeconomic uncertainty.
• The company recorded significant results, achieving record orders and revenue increases, with adjusted EBITDA margins expanding by over 200 basis points and free cash flow margins reaching 20%.
• Despite these achievements, Ingersoll Rand acknowledged that the challenging macro environment has impacted customer order timing and site readiness, leading to adjustments in revenue expectations for the full year.

• Services focus on greenhouse gas emission reduction, energy maintenance, insulation, and hot tapping
• Management team has a successful track record and is focused on market share
• Strong balance sheet post-sale positions Team for future growth and success

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.

• KEPPEL INFRASTRUCTURE TRUST (KIT) is an infrastructure trust listed in Singapore. KIT is managed by Keppel Infrastructure Fund Management Pte Ltd (KIFM) and is sponsored by Keppel, a global asset manager and operator. KIFM is a wholly-owned subsidiary of Keppel.
• The Trustee-Manager, KIFM, has dual responsibility of safeguarding the interests of KIT Unitholders, and managing the business conducted by KIT.
• The Trustee-Manager has general powers of management over the business and the assets of KIT and its main responsibility is to manage KIT’s assets and liabilities for the benefit of Unitholders as a whole.

• RaaS has published an update on engineering, asset management, and infrastructure and training services group Verbrec (ASX:VBC) following its recent AGM at which the company released an updated sales pipeline for the remainder of FY25, stating strong expected win rates of at least equal to last year’s 36%.
• We retain our existing forecasts with FY25 revenue growth of 11% to $103.2m and EBITDA growth of 19% to $10.5m.
• However, the AGM commentary gives us additional comfort and confidence that VBC is well placed to deliver those forecasts.

• Yang Ming Marine Transport (2609 TT) will replace Airtac International (1590 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 20 December.
• Yang Ming Marine Transport (2609 TT) will also be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be increased flow and impact from the passive buying.
• There has been an increase in cumulative excess volume in Yang Ming Marine Transport (2609 TT) but there is a similar trend in other stocks from the sector.

• Mitsubishi Logisnext Co., Ltd. (7105 JP) shares rose 26% after the Nikkei reported that Mitsubishi Heavy Industries (7011 JP) is contemplating selling its 64.5% stake. 
• Logisnext confirmed the sale process. In a fair process, minorities should receive the tender offer price plus the proportionate share of Mitsubishi Heavy Industries’ TOB tax benefits. 
• Despite the rise in share price, Logisnext trades at a discount to peer multiples. At an offer of JPY2,000, Logisnext would trade in line with median peer multiples.

• Company is marginally profitable and owns a portfolio of securities (mostly public stocks) and rental real estate worth ~3x its market cap (~¥18,000 /share vs ¥6,000 stock price).

• These figures assign zero value to the operating business and its fixed assets.

• Activist investor is the #1 shareholder with a 17.4%. #2 shareholder owns 11% and will likely align with activist. Insiders don’t own enough to easily block future activism.

• Core & Main, a leader in the water infrastructure sector, reported strong fiscal 2024 third-quarter results, demonstrating both growth and resilience amidst challenging conditions.
• The company achieved record quarterly sales exceeding $2 billion and adjusted EBITDA of $277 million, driven by a combination of organic growth and strategic acquisitions.
• Sales grew by nearly 12%, reflecting both the company’s expansion efforts and robust demand across its core markets.

• Yang Ming Marine Transport (2609 TT) will replace Airtac International (1590 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the close of trading on 20 December.
• Yang Ming Marine Transport (2609 TT) will also be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be increased flow and impact from the passive buying.
• There has been an increase in cumulative excess volume in Yang Ming Marine Transport (2609 TT) but there is a similar trend in other stocks from the sector.

• Mitsubishi Logisnext Co., Ltd. (7105 JP) shares rose 26% after the Nikkei reported that Mitsubishi Heavy Industries (7011 JP) is contemplating selling its 64.5% stake. 
• Logisnext confirmed the sale process. In a fair process, minorities should receive the tender offer price plus the proportionate share of Mitsubishi Heavy Industries’ TOB tax benefits. 
• Despite the rise in share price, Logisnext trades at a discount to peer multiples. At an offer of JPY2,000, Logisnext would trade in line with median peer multiples.

• Company is marginally profitable and owns a portfolio of securities (mostly public stocks) and rental real estate worth ~3x its market cap (~¥18,000 /share vs ¥6,000 stock price).

• These figures assign zero value to the operating business and its fixed assets.

• Activist investor is the #1 shareholder with a 17.4%. #2 shareholder owns 11% and will likely align with activist. Insiders don’t own enough to easily block future activism.

• Core & Main, a leader in the water infrastructure sector, reported strong fiscal 2024 third-quarter results, demonstrating both growth and resilience amidst challenging conditions.
• The company achieved record quarterly sales exceeding $2 billion and adjusted EBITDA of $277 million, driven by a combination of organic growth and strategic acquisitions.
• Sales grew by nearly 12%, reflecting both the company’s expansion efforts and robust demand across its core markets.