Industrials

• Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
• We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
• The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.

• The big question is how to cash in on the dissenters’ rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.
• To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.
• With NPS unlikely to ignore the government’s nuclear push, Robotics’ spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.

• SF Holding proposes interim & special dividends for owners of A-shares
• Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
• Meeting October 29 to approve dividends, Q3 results, planned HK listing

• T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
• In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.

• Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO. 
• Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Danaher has a history of long-term growth, with a 15% increase in stock price over the past 10 years.
• Founded in the 1980s by Steven and Mitchell Rales, Danaher focused on acquiring industrial companies with a private equity strategy.
• Strategic management and operational improvements have allowed Danaher to consistently grow its free cash flow per share at a double-digit rate, making it a solid investment despite its current valuation.

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.

Ocean Wilsons announced today that it has agreed to sell its 56.47% stake in Wilson Sons to SAS Shipping Agencies Services, a wholly owned subsidiary of MSC Mediterranean Shipping Company, for R$4.4bn (equivalent to R$17.50 per share). The consideration will be converted into US dollars, which, at the current exchange rate, implies a purchase price of US$768m. The transaction is expected to trigger a Brazilian withholding tax liability of up to US$142m and to ultimately realise net cash proceeds of ‘at least US$593m’. The transaction is expected to complete in H225. A ‘meaningful’ proportion of the proceeds will be returned to shareholders and some may be reinvested in Ocean Wilsons.

• General Dynamics is a global aerospace and defense firm with a diverse portfolio of businesses and strong market presence
• The company has solid financial performance with $42.3 billion in revenue, $3.3 billion in net income, and a strong balance sheet with $8.2 billion in net debt
• The investment thesis is focused on the strength of Gulfstream business, with a healthy backlog of $21 billion, new product introductions, and a leading position in the business/private jet market, making it a promising investment opportunity.

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.

• RaaS Research Group has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its Q1 result in which it reported first commercial revenues of $1.0m, marking its first quarter of material commercial revenue from its Tennessee operation.
• The revenue includes approximately $0.6m from powder sales and $0.45m from PM HIP manufacturing.
• The powder sales made during the quarter included test material to ADDMAN Group, with which the company has a five-year preferred supplier agreement, as well as custom atomisation of C103 for a NYSE-listed materials company, custom atomisation of C103 for a US government-funded laboratory and custom atomisation of a development refractory alloy for another US government-funded laboratory.

• Tokyo Metro (9023 JP) priced its IPO at JPY1,200 per share to raise gross proceeds of US$2.3 billion. The shares will start trading on 23 October.
• We previously discussed the IPO in Tokyo Metro (9023 JP) IPO: The Bull Case, Tokyo Metro (9023 JP) IPO: The Bear Case and Tokyo Metro (9023 JP) IPO: Valuation Insights.
• The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive, particularly relating to the implied dividend yield.

• The big question is how to cash in on the dissenters’ rights spread for Robotics. The main concern is cancellation risk, but the FSS doesn’t seem too negative on approval.
• To sustain nuclear momentum, Enerbility needs heavy borrowing for facility investments, requiring a lower debt ratio. Offloading debt-heavy Bobcat is a move shareholders might support.
• With NPS unlikely to ignore the government’s nuclear push, Robotics’ spread could narrow quickly. Despite cancellation risk and no hedge, the remaining juice makes an outright position worth considering.

• SF Holding proposes interim & special dividends for owners of A-shares
• Combined cash dividend totals 1.40 CNY per share, yielding about 3.3%
• Meeting October 29 to approve dividends, Q3 results, planned HK listing

• T.S. Lines (TSL HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• T.S. Lines (TSL) is a container shipping firm primarily operating in the Asia Pacific (APAC) region.
• In a previous note, we looked at the firm’s past performance. In this note, we talk about the recent updates from its filings.

• Tokyo Metro (9023 JP)‘s shareholders raised around US$2.4bn in its Japan IPO. 
• Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Danaher has a history of long-term growth, with a 15% increase in stock price over the past 10 years.
• Founded in the 1980s by Steven and Mitchell Rales, Danaher focused on acquiring industrial companies with a private equity strategy.
• Strategic management and operational improvements have allowed Danaher to consistently grow its free cash flow per share at a double-digit rate, making it a solid investment despite its current valuation.

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.

Ocean Wilsons announced today that it has agreed to sell its 56.47% stake in Wilson Sons to SAS Shipping Agencies Services, a wholly owned subsidiary of MSC Mediterranean Shipping Company, for R$4.4bn (equivalent to R$17.50 per share). The consideration will be converted into US dollars, which, at the current exchange rate, implies a purchase price of US$768m. The transaction is expected to trigger a Brazilian withholding tax liability of up to US$142m and to ultimately realise net cash proceeds of ‘at least US$593m’. The transaction is expected to complete in H225. A ‘meaningful’ proportion of the proceeds will be returned to shareholders and some may be reinvested in Ocean Wilsons.

• General Dynamics is a global aerospace and defense firm with a diverse portfolio of businesses and strong market presence
• The company has solid financial performance with $42.3 billion in revenue, $3.3 billion in net income, and a strong balance sheet with $8.2 billion in net debt
• The investment thesis is focused on the strength of Gulfstream business, with a healthy backlog of $21 billion, new product introductions, and a leading position in the business/private jet market, making it a promising investment opportunity.

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.

• RaaS Research Group has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its Q1 result in which it reported first commercial revenues of $1.0m, marking its first quarter of material commercial revenue from its Tennessee operation.
• The revenue includes approximately $0.6m from powder sales and $0.45m from PM HIP manufacturing.
• The powder sales made during the quarter included test material to ADDMAN Group, with which the company has a five-year preferred supplier agreement, as well as custom atomisation of C103 for a NYSE-listed materials company, custom atomisation of C103 for a US government-funded laboratory and custom atomisation of a development refractory alloy for another US government-funded laboratory.

• Fujikura Ltd (5803 JP) could be added to a global index at the end of November and there will be a lot of buying in the stock.
• Following the rally in the stock, Fujikura Ltd (5803 JP) trades expensive to the average and median of its peers on most valuation metrics.
• The increase in cumulative excess volume in Fujikura Ltd (5803 JP) over the last 3 months far outpaces the increase in its peers.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the live IPOs front,  the coming week will see a whole lot of listings across the region.
• On the placements front, there were mainly deals in Australia this week.

• Sanwa Holdings revised its first-half (1H) forecasts, increasing sales estimates from ¥293 billion to ¥313 billion, and operating profit (OP) from ¥25.6 billion to ¥32 billion
• Essilor’s growing investment in Nikon, with the optical giant increasing its stake from 5.1% to 7.38% in just a few weeks, underscores our bullish view on the name.
• Nihon Kohden recently revised its first-half (1H24) guidance, raising sales expectations by ¥700 million to ¥102.7 billion and operating profit by ¥2 billion to ¥5 billion. 

• With its share price returning to HK$0.68 level, the investment value of Singamas Container Holdings (716 HK) has re-emerged.
• Its competitor, CIMC, has just issued a positive profit alert, indicating an impressive 888.7% and 317.3% growth in reported and recurring earnings, which is positive for Singamas.
• An 11% growth in the global containership fleet in FY24 is also beneficial to the company. Its net cash of HK$1.65bn equals 1.02x its market capitalisation.

• Fujikura Ltd (5803 JP) could be added to a global index at the end of November and there will be a lot of buying in the stock.
• Following the rally in the stock, Fujikura Ltd (5803 JP) trades expensive to the average and median of its peers on most valuation metrics.
• The increase in cumulative excess volume in Fujikura Ltd (5803 JP) over the last 3 months far outpaces the increase in its peers.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the live IPOs front,  the coming week will see a whole lot of listings across the region.
• On the placements front, there were mainly deals in Australia this week.

• Sanwa Holdings revised its first-half (1H) forecasts, increasing sales estimates from ¥293 billion to ¥313 billion, and operating profit (OP) from ¥25.6 billion to ¥32 billion
• Essilor’s growing investment in Nikon, with the optical giant increasing its stake from 5.1% to 7.38% in just a few weeks, underscores our bullish view on the name.
• Nihon Kohden recently revised its first-half (1H24) guidance, raising sales expectations by ¥700 million to ¥102.7 billion and operating profit by ¥2 billion to ¥5 billion. 

• With its share price returning to HK$0.68 level, the investment value of Singamas Container Holdings (716 HK) has re-emerged.
• Its competitor, CIMC, has just issued a positive profit alert, indicating an impressive 888.7% and 317.3% growth in reported and recurring earnings, which is positive for Singamas.
• An 11% growth in the global containership fleet in FY24 is also beneficial to the company. Its net cash of HK$1.65bn equals 1.02x its market capitalisation.

• In the September data are clear signs of slowing momentum & price moderation
• Seasonality, NAM de-stocking, anniversary of Red Sea re-routes all contributing
• Without catalysts, we would AVOID holding shares of global container names

• Sensata Technologies repoted its Q2 2024 earnings with positive insights alongside challenges reflected in their financial outcomes.
• During Q2 2024, Sensata reported revenue of approximately $1.036 billion compared to $1.062 billion in the same period in 2023.
• Despite the decline, the company executed product elimination strategies targeting underperforming products, which, adjusted for, would depict a stable revenue curve slightly ahead of guidance.

• In the September data are clear signs of slowing momentum & price moderation
• Seasonality, NAM de-stocking, anniversary of Red Sea re-routes all contributing
• Without catalysts, we would AVOID holding shares of global container names

• Sensata Technologies repoted its Q2 2024 earnings with positive insights alongside challenges reflected in their financial outcomes.
• During Q2 2024, Sensata reported revenue of approximately $1.036 billion compared to $1.062 billion in the same period in 2023.
• Despite the decline, the company executed product elimination strategies targeting underperforming products, which, adjusted for, would depict a stable revenue curve slightly ahead of guidance.

• In the overheated Indian markets where selling spree by promoters is going at record pace.
• We identified certain interesting companies where promoters are buying giving confidence in their business
• We further delve into the thesis and key triggers for these companies

• On 18 October, a local activist fund Align Partners Asset Management started its “corporate activism” on Doosan Bobcat Inc (241560 KS).
• Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets. 
• We believe that Align Partners’ corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat’s share price.

• In 1H FY03/25, revenue increased 5.4% YoY to JPY30.8bn, while operating profit declined 3.9% YoY to JPY1.3bn.
• Segment profit for scaffolding equipment rentals grew 0.4% YoY to JPY1.3bn, with revenue up 15.1% YoY to JPY12.5bn.
• Electronic Equipment segment revenue fell 10.0% YoY to JPY2.4bn, resulting in a segment loss of JPY326mn.

• FuelCell Energy, in its third quarter of fiscal year 2024, demonstrated a mixed financial performance amid evolving market conditions and significant strategic initiatives aimed at boosting its long-term growth trajectory.
• The company reported quarterly revenues of $23.7 million, a slight decrease from the $25.5 million recorded in the corresponding quarter of the previous year.
• This decline primarily resulted from a lack of module replacements in the current period, which had buoyed revenue in the prior year.

• KBR’s Second Quarter Fiscal 2024 Earnings detailed the company’s financial and operational milestones for the period, along with future projections and strategic plans.
• One of the notable positives highlighted includes the increase in revenue, up by 6% year-on-year, which reflects a solid operational performance across all the business units.
• The adjusted EBITDA also saw an impressive rise by 13%, illustrating effectiveness in managing profitability.

• In the overheated Indian markets where selling spree by promoters is going at record pace.
• We identified certain interesting companies where promoters are buying giving confidence in their business
• We further delve into the thesis and key triggers for these companies

• On 18 October, a local activist fund Align Partners Asset Management started its “corporate activism” on Doosan Bobcat Inc (241560 KS).
• Align Partners sent a shareholder proposal letter requesting a significant increase in the shareholder return rate, including dividends and selling off non-core assets. 
• We believe that Align Partners’ corporate activism on Doosan Bobcat is likely to have a positive impact on Doosan Bobcat’s share price.

• In 1H FY03/25, revenue increased 5.4% YoY to JPY30.8bn, while operating profit declined 3.9% YoY to JPY1.3bn.
• Segment profit for scaffolding equipment rentals grew 0.4% YoY to JPY1.3bn, with revenue up 15.1% YoY to JPY12.5bn.
• Electronic Equipment segment revenue fell 10.0% YoY to JPY2.4bn, resulting in a segment loss of JPY326mn.

• FuelCell Energy, in its third quarter of fiscal year 2024, demonstrated a mixed financial performance amid evolving market conditions and significant strategic initiatives aimed at boosting its long-term growth trajectory.
• The company reported quarterly revenues of $23.7 million, a slight decrease from the $25.5 million recorded in the corresponding quarter of the previous year.
• This decline primarily resulted from a lack of module replacements in the current period, which had buoyed revenue in the prior year.

• KBR’s Second Quarter Fiscal 2024 Earnings detailed the company’s financial and operational milestones for the period, along with future projections and strategic plans.
• One of the notable positives highlighted includes the increase in revenue, up by 6% year-on-year, which reflects a solid operational performance across all the business units.
• The adjusted EBITDA also saw an impressive rise by 13%, illustrating effectiveness in managing profitability.

• During the last decades, the airport industry has proven to be resilient, having a traffic recovery from previous local or global crises such as September 11, in the EE.UU., SARS, and the financial crisis.
• The COVID-19 pandemic was not the exception, and now the traffic recovery is within its traffic recovery corridor worldwide, reaching the pre-pandemic levels.
• Although we expect 3Q24 quarterly results to be negatively impacted by total traffic contraction, overall total EBITDA will rise 15% YoY, mainly explained by a positive performance on VOLAR, ASUR, and GAP’s results.

• Tigus provides a clear view of industries and companies for research
• Kyle Mowry discusses Driven Brands as a complex but interesting investment
• Driven Brands offers a combination of private equity control and public market liquidity, leading to potential mispricing and alpha opportunity

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

• Waaree Energies is looking to raise up to US$514m in its India IPO.
• Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
• We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.

• During the last decades, the airport industry has proven to be resilient, having a traffic recovery from previous local or global crises such as September 11, in the EE.UU., SARS, and the financial crisis.
• The COVID-19 pandemic was not the exception, and now the traffic recovery is within its traffic recovery corridor worldwide, reaching the pre-pandemic levels.
• Although we expect 3Q24 quarterly results to be negatively impacted by total traffic contraction, overall total EBITDA will rise 15% YoY, mainly explained by a positive performance on VOLAR, ASUR, and GAP’s results.

• Tigus provides a clear view of industries and companies for research
• Kyle Mowry discusses Driven Brands as a complex but interesting investment
• Driven Brands offers a combination of private equity control and public market liquidity, leading to potential mispricing and alpha opportunity

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

• Waaree Energies is looking to raise up to US$514m in its India IPO.
• Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
• We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.