Industrials

Today, Lee Seo-hyun returned as the top executive at Samsung C&T, which officially announced her as the head of its Strategic Planning Division.
Her return to Samsung C&T might not just be a simple comeback – it could be seen as a setup for some big changes within the company.
Considering Samsung C&T’s Value-up Momentum, aligning with Lee Seo-hyun’s return, we must position for potential price impact, focusing on portfolio streamlining.

FedEx Corporation: Will The Implementation Of The One FedEx Strategy Pay Off? – Major Drivers

According to the FedEx Corporation’s third quarter earnings report for the Fiscal Year 2024, profits continued to increase for the third successive quarter.
This is attributed to the FedEx team’s prompt customer service and progress with transformation initiatives.
Although revenues declined, operating income and profit margin showed growth—a dynamic the CEO attributed to FedEx’s transformation and its management prowess in controlling what is within its purview.

Intloop (9556) – Recalibrating to Aim for Long-Term Growth

By Astris Advisory Japan

Addressing selling activity by organizational change – Q1-2 FY7/24 results demonstrated double-digit sales growth of 41.5% YoY via underlying growth at the parent business and acquisitive impact from DICS Holdings.
However, the overall pace of growth was lower than expected, with INTLOOP experiencing lower-than-planned productivity from newly hired sales representatives.
The company has addressed this by implementing a new and reinforced organizational structure in H2 FY7/24 by recruiting senior management (partner and managing director class) to drive sales activities as well as customer acquisition and increasing overall market coverage.

MillerKnoll, Inc. – 3QFY24 Earnings

MillerKnoll reported 3QFY24 non-GAAP (adjusted) EPS of $0.45, beating our $0.43 estimate and consensus of $0.44.
Consolidated sales were $872 million, missing our $908 million estimate by $36 million and likewise missing consensus by ~$37 million.
Gross margin helped the Y/Y comparison, rising 455 bps versus 3QFY23.

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Mar 30

Daily Brief Industrials: Samsung C&T, FedEx Corp, Intloop , MillerKnoll and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Lee Seo-Hyun’s Unexpected Return: Implications for Samsung’s Conglomerate Dynamics
FedEx Corporation: Will The Implementation Of The One FedEx Strategy Pay Off? – Major Drivers
Intloop (9556) – Recalibrating to Aim for Long-Term Growth
MillerKnoll, Inc. – 3QFY24 Earnings

Lee Seo-Hyun’s Unexpected Return: Implications for Samsung’s Conglomerate Dynamics

Today, Lee Seo-hyun returned as the top executive at Samsung C&T, which officially announced her as the head of its Strategic Planning Division.
Her return to Samsung C&T might not just be a simple comeback – it could be seen as a setup for some big changes within the company.
Considering Samsung C&T’s Value-up Momentum, aligning with Lee Seo-hyun’s return, we must position for potential price impact, focusing on portfolio streamlining.

FedEx Corporation: Will The Implementation Of The One FedEx Strategy Pay Off? – Major Drivers

According to the FedEx Corporation’s third quarter earnings report for the Fiscal Year 2024, profits continued to increase for the third successive quarter.
This is attributed to the FedEx team’s prompt customer service and progress with transformation initiatives.
Although revenues declined, operating income and profit margin showed growth—a dynamic the CEO attributed to FedEx’s transformation and its management prowess in controlling what is within its purview.

Intloop (9556) – Recalibrating to Aim for Long-Term Growth

By Astris Advisory Japan

Addressing selling activity by organizational change – Q1-2 FY7/24 results demonstrated double-digit sales growth of 41.5% YoY via underlying growth at the parent business and acquisitive impact from DICS Holdings.
However, the overall pace of growth was lower than expected, with INTLOOP experiencing lower-than-planned productivity from newly hired sales representatives.
The company has addressed this by implementing a new and reinforced organizational structure in H2 FY7/24 by recruiting senior management (partner and managing director class) to drive sales activities as well as customer acquisition and increasing overall market coverage.

MillerKnoll, Inc. – 3QFY24 Earnings

MillerKnoll reported 3QFY24 non-GAAP (adjusted) EPS of $0.45, beating our $0.43 estimate and consensus of $0.44.
Consolidated sales were $872 million, missing our $908 million estimate by $36 million and likewise missing consensus by ~$37 million.
Gross margin helped the Y/Y comparison, rising 455 bps versus 3QFY23.

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Mar 29

Daily Brief Industrials: HD Hyundai Marine Solution , Urban-Gro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Local Color on HD Hyundai Marine Solution’s Excessive IPO Valuation
HD Hyundai Marine Solution IPO – Strong Profitability Growth but Lacking in Disclosures
UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

Local Color on HD Hyundai Marine Solution’s Excessive IPO Valuation

By Small Cap Consumer Research

Valuation controversy arises from comparing HD Hyundai Marine Solution, a ship AS specialist, with diverse global companies, leading to a target market cap of ₩5T.
HD KSOE’s inclusion worsens the valuation controversy. Applying HD KSOE’s last year PER without adjusting for a significant one-off profit seems to inflate HD Hyundai Marine Solution’s PER.
Currently, major local IPO funds see HD Hyundai Marine’s valuation nearing ₩4T as excessive, despite the industry’s revival and potential growth in eco-friendly ship conversions, impacting the upcoming bookbuilding process.

HD Hyundai Marine Solution IPO – Strong Profitability Growth but Lacking in Disclosures

By Ethan Aw

HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
In this note, we talk about the company’s historical performance.

UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December) results, as the company had three material commercial contracts shift from late 4Q into 2024, obscuring what would have been a strong end to the year.
While the contracts are expected to be materially completed in 2024, management has decided to be highly conservative in their guidance and rebuild credibility going forward.
Given the current valuation, we believe investors are discounting the urban-gro business model and the potential for the company to register positive EBITDA. While we understand investor skepticism, we believe CEO Brad Nattrass and his team have aggressively cut costs and positioned urban-gro to surprise low Street expectations.

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Mar 29

Daily Brief Industrials: HD Hyundai Marine Solution , Urban-Gro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Local Color on HD Hyundai Marine Solution’s Excessive IPO Valuation
HD Hyundai Marine Solution IPO – Strong Profitability Growth but Lacking in Disclosures
UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

Local Color on HD Hyundai Marine Solution’s Excessive IPO Valuation

By Small Cap Consumer Research

Valuation controversy arises from comparing HD Hyundai Marine Solution, a ship AS specialist, with diverse global companies, leading to a target market cap of ₩5T.
HD KSOE’s inclusion worsens the valuation controversy. Applying HD KSOE’s last year PER without adjusting for a significant one-off profit seems to inflate HD Hyundai Marine Solution’s PER.
Currently, major local IPO funds see HD Hyundai Marine’s valuation nearing ₩4T as excessive, despite the industry’s revival and potential growth in eco-friendly ship conversions, impacting the upcoming bookbuilding process.

HD Hyundai Marine Solution IPO – Strong Profitability Growth but Lacking in Disclosures

By Ethan Aw

HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship’s life cycle after the delivery of a new ship.
In this note, we talk about the company’s historical performance.

UGRO: 4Q Review: Stuff Happens; Reiterate Buy & PT after Tough 4Q

We are reiterating our Buy rating and $8 price target, but lowering our 2024 projections after urban-gro reported disappointing 4Q23 (December) results, as the company had three material commercial contracts shift from late 4Q into 2024, obscuring what would have been a strong end to the year.
While the contracts are expected to be materially completed in 2024, management has decided to be highly conservative in their guidance and rebuild credibility going forward.
Given the current valuation, we believe investors are discounting the urban-gro business model and the potential for the company to register positive EBITDA. While we understand investor skepticism, we believe CEO Brad Nattrass and his team have aggressively cut costs and positioned urban-gro to surprise low Street expectations.

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Mar 28

Daily Brief Industrials: Mitsubishi Heavy Industries, Shipping Corp of India Land And Assets, Symbotic, China Everbright Environment, SharkNinja , Steelcase Inc Cl A, Acuity Brands and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up
Shipping Corporation of India Land & Assets Ltd.: Demerger and a Value Bet
Symbotic Inc. (SYM): Fast Growing AI-Powered Warehouse Automation Supplier
China Everbright Environment (257 HK): Being Penalised Too Much
SharkNinja Inc.: Initiation of Coverage – A Story Of Expansion Into New Markets & Categories! – Major Drivers
Steelcase, Inc. – Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow
Acuity Brands: Initiation of Coverage – 4 Critical Factors Responsible For Its Future Performance! – Financial Forecasts

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up

By Scott Foster

MHI’s share price has risen more than 60% year-to-date and nearly tripled over the past 12 months on the improving outlook for Japanese defense contractors.
A huge increase in new orders, prospects for a doubling of sales and a rapidly rising operating margin on Aircraft, Defense & Space have been factored into the price.
The shares do not look expensive compared with international comparables, but neither are they particularly cheap. Potential problems, from Japanese defense budget constraints to production glitches, have been ignored.

Shipping Corporation of India Land & Assets Ltd.: Demerger and a Value Bet

By Sudarshan Bhandari

Discover SCILAL’s debut in the stock market after demerger form Shipping Corp Of India (SCI IN), its strategic disinvestment, and the hidden value within its diverse asset portfolio.
Real Estate Assets in company and future outlook by management of SCILAL over the years going forward.
The market value of assets is twice more than the book value. Value bet but can take longer time to monetize the same.

Symbotic Inc. (SYM): Fast Growing AI-Powered Warehouse Automation Supplier

By GSBR Research Pvt Ltd

Symbotic is a warehouse automation technology leader and offers end-to-end AI-powered robotic and software platform for supply chains.
SYM’s hi-tech platform forms its deep competitive moat underpinned by significant R&D spend of $800 million and 575 issued or pending patents.
Our positive outlook for SYM is underpinned by its hi-tech platform , a large TAM, robust order backlog ($23.2B) and its JV deal with Softbank that opens a large market.

China Everbright Environment (257 HK): Being Penalised Too Much

Despite a 3.8% decline in FY23 net profit, China Everbright Environment (257 HK)‘s profitability has still outperformed its peers by significant magnitudes.
Positive notes in the result are an increase in operation service revenue proportion, expansion in EBITDA margin, improvement in financial position, and addition of new projects.
It is easy for CEE to achieve the market expectation of a 9.8% growth in FY24. Yet, it just trade on 3.6x PER, 8.5% yield, and 0.34x P/B.

SharkNinja Inc.: Initiation of Coverage – A Story Of Expansion Into New Markets & Categories! – Major Drivers

This is our our first report on household appliances distributor, SharkNinja.
The company’s Q4 2023 Earnings revealed that it had a robust fourth quarter, with nearly 20% growth in adjusted net sales and more than 70% growth in adjusted EBITDA. The CEO, Mark Barrocas, attributed this to the company’s growth strategy, innovation and the support from both consumers and retail partners.
The company’s full year sales grew by over 15% nearing to $4.2 billion and with an adjusted EBITDA increase by nearly 39% reaching $720 million.

Steelcase, Inc. – Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow

We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings.
Adjusted EPS of $0.23 beat our estimate as well as consensus. Revenue of $775.2 million modestly missed estimates.
1QFY25: We tweaked our non-GAAP (adjusted) EPS estimate to $0.11 ($0.10 previously).

Acuity Brands: Initiation of Coverage – 4 Critical Factors Responsible For Its Future Performance! – Financial Forecasts

This is our first report on building management solutions provider, Acuity Brands.
The company reported fiscal first quarter earnings, indicating positive performance for the period.
The company demonstrated strong overall execution as it increased its adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share.

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Mar 28

Daily Brief Industrials: Mitsubishi Heavy Industries, Shipping Corp of India Land And Assets, Symbotic, China Everbright Environment, SharkNinja , Steelcase Inc Cl A, Acuity Brands and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up
Shipping Corporation of India Land & Assets Ltd.: Demerger and a Value Bet
Symbotic Inc. (SYM): Fast Growing AI-Powered Warehouse Automation Supplier
China Everbright Environment (257 HK): Being Penalised Too Much
SharkNinja Inc.: Initiation of Coverage – A Story Of Expansion Into New Markets & Categories! – Major Drivers
Steelcase, Inc. – Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow
Acuity Brands: Initiation of Coverage – 4 Critical Factors Responsible For Its Future Performance! – Financial Forecasts

Mitsubishi Heavy Industries (7011 JP): Take Profits and Wait for Reality to Catch Up

By Scott Foster

MHI’s share price has risen more than 60% year-to-date and nearly tripled over the past 12 months on the improving outlook for Japanese defense contractors.
A huge increase in new orders, prospects for a doubling of sales and a rapidly rising operating margin on Aircraft, Defense & Space have been factored into the price.
The shares do not look expensive compared with international comparables, but neither are they particularly cheap. Potential problems, from Japanese defense budget constraints to production glitches, have been ignored.

Shipping Corporation of India Land & Assets Ltd.: Demerger and a Value Bet

By Sudarshan Bhandari

Discover SCILAL’s debut in the stock market after demerger form Shipping Corp Of India (SCI IN), its strategic disinvestment, and the hidden value within its diverse asset portfolio.
Real Estate Assets in company and future outlook by management of SCILAL over the years going forward.
The market value of assets is twice more than the book value. Value bet but can take longer time to monetize the same.

Symbotic Inc. (SYM): Fast Growing AI-Powered Warehouse Automation Supplier

By GSBR Research Pvt Ltd

Symbotic is a warehouse automation technology leader and offers end-to-end AI-powered robotic and software platform for supply chains.
SYM’s hi-tech platform forms its deep competitive moat underpinned by significant R&D spend of $800 million and 575 issued or pending patents.
Our positive outlook for SYM is underpinned by its hi-tech platform , a large TAM, robust order backlog ($23.2B) and its JV deal with Softbank that opens a large market.

China Everbright Environment (257 HK): Being Penalised Too Much

Despite a 3.8% decline in FY23 net profit, China Everbright Environment (257 HK)‘s profitability has still outperformed its peers by significant magnitudes.
Positive notes in the result are an increase in operation service revenue proportion, expansion in EBITDA margin, improvement in financial position, and addition of new projects.
It is easy for CEE to achieve the market expectation of a 9.8% growth in FY24. Yet, it just trade on 3.6x PER, 8.5% yield, and 0.34x P/B.

SharkNinja Inc.: Initiation of Coverage – A Story Of Expansion Into New Markets & Categories! – Major Drivers

This is our our first report on household appliances distributor, SharkNinja.
The company’s Q4 2023 Earnings revealed that it had a robust fourth quarter, with nearly 20% growth in adjusted net sales and more than 70% growth in adjusted EBITDA. The CEO, Mark Barrocas, attributed this to the company’s growth strategy, innovation and the support from both consumers and retail partners.
The company’s full year sales grew by over 15% nearing to $4.2 billion and with an adjusted EBITDA increase by nearly 39% reaching $720 million.

Steelcase, Inc. – Tweaking FY25 Estimates; Encouraged by Orders and Cash Flow

We are publishing new estimates for our Steelcase economic model after its solid 4QFY24 earnings.
Adjusted EPS of $0.23 beat our estimate as well as consensus. Revenue of $775.2 million modestly missed estimates.
1QFY25: We tweaked our non-GAAP (adjusted) EPS estimate to $0.11 ($0.10 previously).

Acuity Brands: Initiation of Coverage – 4 Critical Factors Responsible For Its Future Performance! – Financial Forecasts

This is our first report on building management solutions provider, Acuity Brands.
The company reported fiscal first quarter earnings, indicating positive performance for the period.
The company demonstrated strong overall execution as it increased its adjusted operating profit, adjusted operating profit margin, and adjusted diluted earnings per share.

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✓ Events & Webinars

Mar 27

Daily Brief Industrials: CIMC Vehicle Group Co Ltd, Sinotrans, Ocean Wilsons Holdings, CIMC Enric Holdings, US Treasury (10 Yr Generic), Isoteam Ltd, AZEK /, Simpson Manufacturing Co, Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CIMC Vehicles (1839 HK): Vote on 18 April as Uncertainty Lingers on the 90% Acceptance Threshold
Sinotrans (598. HK) Continues to Deliver
Quiddity Leaderboard F100/250 Jun 24: LONG OCN – SHORT FSJ Could Be Interesting
CIMC Enric (3899 HK): Positive Takeaways from Post-Result Call
CIMC (1839 HK): 18th April Shareholder Vote
Downgrading Real Estate to Underweight; Bullish Outlook Intact; Broadening Participation
kopi-C with ISOTeam’s CEO: “Why I’m investing in both drones and professional development”
The AZEK Company: Initiation of Coverage – Is The Robust Demand in Residential Markets Likely To Last? – Major Drivers
Simpson Manufacturing Co.: Initiation Of Coverage – 4 Pivotal Factors Shaping Its Growth Trajectory! – Financial Forecasts

CIMC Vehicles (1839 HK): Vote on 18 April as Uncertainty Lingers on the 90% Acceptance Threshold

By Arun George

CIMC Vehicle Group Co Ltd (1839 HK) has despatched the offer document, and the H Share HK$7.50 offer is open. The H Shareholders class vote is on 18 April.
The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.
The de-rating of peers and ongoing US investigation favours meeting the 90% threshold. However, the dire minority AGM/EGM participation rates suggest that retail apathy may derail the offer.

Sinotrans (598. HK) Continues to Deliver

By Rikki Malik

Cost and business optimisations lead to increased profits as revenues drop due to freight rate declines
Successfully pivoting by geography as the global trading environment changes
The company increases its dividend payout in a sign of confidence for the future

Quiddity Leaderboard F100/250 Jun 24: LONG OCN – SHORT FSJ Could Be Interesting

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2024 index rebal event.
There could be up to three intra-review changes for the F250 index during the next two months.
Separately, there could be one change for F100 and two changes for F250 during the regular rebalance in June 2024.

CIMC Enric (3899 HK): Positive Takeaways from Post-Result Call

Despite weaker 2H23 results, CIMC Enric Holdings (3899 HK) guided for solid recovery in FY24. Order backlogs reached Rmb22.9bn, which almost equals the full-year revenue.
Clean energy segment will be supported by vessel demand, hydrogen orders, and Angang Steel project contribution. Chemical and environmental segment should rebound in 2H24.
Liquid food spin-off is in process and it has won several domestic whiskey projects. As net cash equals 13% of share price, payout will be maintained at 50% (FY22: 40%).

CIMC (1839 HK): 18th April Shareholder Vote

By David Blennerhassett

On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final.
CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.

Downgrading Real Estate to Underweight; Bullish Outlook Intact; Broadening Participation

By Joe Jasper

Our bullish outlook initiated on November 7, 2023 remains intact; this intermediate-to-long-term outlook is likely to stay in place as long as 4800 support holds on the SPX (7-10% downside).
To be clear, we aren’t calling for a pullback to 4800; we view it as a worst-case scenario for the S&P 500, and we want to be prepared for anything.
Shorter-Term, we remain bullish on the S&P 500 and Nasdaq 100 (QQQ) as they both refuse to close below their 20-day MAs for more than 2-3 consecutive days.

kopi-C with ISOTeam’s CEO: “Why I’m investing in both drones and professional development”

By Geoff Howie

kopi-C with ISOTeam’s CEO: “I’m investing in both drones and professional development” For people who live in Housing Development Board (HDB) flats in Singapore, drones may soon become a common sight.
ISOTeam, which specialises in maintaining and upgrading buildings, has been using drones for façade inspections since 2021.

The AZEK Company: Initiation of Coverage – Is The Robust Demand in Residential Markets Likely To Last? – Major Drivers

This is our first report on the AZEK Company, leading manufacturer of eco-friendly building products.
The company reported an 11% net sales increase year-over-year in Q1 2024.
Excluding the recently divested Vycom business, net sales increased 22% year-over-year, driven by the strong performance of its residential sector.

Simpson Manufacturing Co.: Initiation Of Coverage – 4 Pivotal Factors Shaping Its Growth Trajectory! – Financial Forecasts

This is our first report on building construction product manufacturer, Simpson Manufacturing Company.
The company showcased strong execution in 2023 amid a challenging year, outperforming the housing market via robust customer demand and expansion of production lines.
With annual net sales of $2.2 billion, a 21.5% operating income margin, and a record $8.26 of earnings per diluted share, the company emerged resilient.

💡 Before it’s here, it’s on Smartkarma

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✓ Company Data and News
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Mar 27

Daily Brief Industrials: CIMC Vehicle Group Co Ltd, Sinotrans, Ocean Wilsons Holdings, CIMC Enric Holdings, US Treasury (10 Yr Generic), Isoteam Ltd, AZEK /, Simpson Manufacturing Co, Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CIMC Vehicles (1839 HK): Vote on 18 April as Uncertainty Lingers on the 90% Acceptance Threshold
Sinotrans (598. HK) Continues to Deliver
Quiddity Leaderboard F100/250 Jun 24: LONG OCN – SHORT FSJ Could Be Interesting
CIMC Enric (3899 HK): Positive Takeaways from Post-Result Call
CIMC (1839 HK): 18th April Shareholder Vote
Downgrading Real Estate to Underweight; Bullish Outlook Intact; Broadening Participation
kopi-C with ISOTeam’s CEO: “Why I’m investing in both drones and professional development”
The AZEK Company: Initiation of Coverage – Is The Robust Demand in Residential Markets Likely To Last? – Major Drivers
Simpson Manufacturing Co.: Initiation Of Coverage – 4 Pivotal Factors Shaping Its Growth Trajectory! – Financial Forecasts

CIMC Vehicles (1839 HK): Vote on 18 April as Uncertainty Lingers on the 90% Acceptance Threshold

By Arun George

CIMC Vehicle Group Co Ltd (1839 HK) has despatched the offer document, and the H Share HK$7.50 offer is open. The H Shareholders class vote is on 18 April.
The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection) along with a 90% minimum acceptance condition.
The de-rating of peers and ongoing US investigation favours meeting the 90% threshold. However, the dire minority AGM/EGM participation rates suggest that retail apathy may derail the offer.

Sinotrans (598. HK) Continues to Deliver

By Rikki Malik

Cost and business optimisations lead to increased profits as revenues drop due to freight rate declines
Successfully pivoting by geography as the global trading environment changes
The company increases its dividend payout in a sign of confidence for the future

Quiddity Leaderboard F100/250 Jun 24: LONG OCN – SHORT FSJ Could Be Interesting

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the June 2024 index rebal event.
There could be up to three intra-review changes for the F250 index during the next two months.
Separately, there could be one change for F100 and two changes for F250 during the regular rebalance in June 2024.

CIMC Enric (3899 HK): Positive Takeaways from Post-Result Call

Despite weaker 2H23 results, CIMC Enric Holdings (3899 HK) guided for solid recovery in FY24. Order backlogs reached Rmb22.9bn, which almost equals the full-year revenue.
Clean energy segment will be supported by vessel demand, hydrogen orders, and Angang Steel project contribution. Chemical and environmental segment should rebound in 2H24.
Liquid food spin-off is in process and it has won several domestic whiskey projects. As net cash equals 13% of share price, payout will be maintained at 50% (FY22: 40%).

CIMC (1839 HK): 18th April Shareholder Vote

By David Blennerhassett

On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final.
CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.

Downgrading Real Estate to Underweight; Bullish Outlook Intact; Broadening Participation

By Joe Jasper

Our bullish outlook initiated on November 7, 2023 remains intact; this intermediate-to-long-term outlook is likely to stay in place as long as 4800 support holds on the SPX (7-10% downside).
To be clear, we aren’t calling for a pullback to 4800; we view it as a worst-case scenario for the S&P 500, and we want to be prepared for anything.
Shorter-Term, we remain bullish on the S&P 500 and Nasdaq 100 (QQQ) as they both refuse to close below their 20-day MAs for more than 2-3 consecutive days.

kopi-C with ISOTeam’s CEO: “Why I’m investing in both drones and professional development”

By Geoff Howie

kopi-C with ISOTeam’s CEO: “I’m investing in both drones and professional development” For people who live in Housing Development Board (HDB) flats in Singapore, drones may soon become a common sight.
ISOTeam, which specialises in maintaining and upgrading buildings, has been using drones for façade inspections since 2021.

The AZEK Company: Initiation of Coverage – Is The Robust Demand in Residential Markets Likely To Last? – Major Drivers

This is our first report on the AZEK Company, leading manufacturer of eco-friendly building products.
The company reported an 11% net sales increase year-over-year in Q1 2024.
Excluding the recently divested Vycom business, net sales increased 22% year-over-year, driven by the strong performance of its residential sector.

Simpson Manufacturing Co.: Initiation Of Coverage – 4 Pivotal Factors Shaping Its Growth Trajectory! – Financial Forecasts