Industrials

• Uber has kicked off 2024 with positive growth, reporting a 21% year-on-year increase in rides, which equates to its gross bookings growth rate. Their user base expanded by 15%, underpinned by 7.1 million drivers and couriers operating on the platform. The firm’s record adjusted EBITDA of $1.4 billion and the generation of $4.2 billion in free cash flow over the last year reflect a significant financial upswing. However, the world of automobiles is shifting towards autonomous vehicles (AVs), posing both challenges and opportunities for Uber. The firm needs to strategize to withstand expected competition from entities like Tesla. CEO Dara Khosrowshahi maintains that breakthroughs in AV technology will eventually prove profitable for Uber, as they promise safer rides and broader accessibility. However, the transition period from human-driven to autonomous vehicles will demand a balanced approach, exploiting both to keep the business steady. 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. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Racing and Sports provides data, content, and SaaS solutions to global racing and wagering industries
• Despite challenges post-IPO, such as founders selling stakes and market volatility, RAS shows solid execution and progress towards profitability
• Considered undervalued by investors due to strong business model and impressive financial metrics, RAS remains promising in sports wagering industry

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.

• CTT, a conglomerate in Portugal, has been overlooked by investors due to declining revenue in the mail segment
• Management is returning capital to shareholders and working to address the undervaluation of the stock
• Growth potential in express and parcel, financial services, and retail sectors could unlock hidden value for shareholders in the long run

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.

• Uber has kicked off 2024 with positive growth, reporting a 21% year-on-year increase in rides, which equates to its gross bookings growth rate. Their user base expanded by 15%, underpinned by 7.1 million drivers and couriers operating on the platform. The firm’s record adjusted EBITDA of $1.4 billion and the generation of $4.2 billion in free cash flow over the last year reflect a significant financial upswing. However, the world of automobiles is shifting towards autonomous vehicles (AVs), posing both challenges and opportunities for Uber. The firm needs to strategize to withstand expected competition from entities like Tesla. CEO Dara Khosrowshahi maintains that breakthroughs in AV technology will eventually prove profitable for Uber, as they promise safer rides and broader accessibility. However, the transition period from human-driven to autonomous vehicles will demand a balanced approach, exploiting both to keep the business steady. 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. In this report, we have carried out a fundamental analysis of the historical financial statements of the company. We have added reasonable forecasts of the annualized income statement and cash flows and carried out a DCF valuation of the company using its Weighted Average Cost of Capital (WACC) to determine a forecasted share price. We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case. These additional layers of analysis serve to provide a comprehensive and robust valuation, giving investors a nuanced understanding of the inherent risks and opportunities.

• Racing and Sports provides data, content, and SaaS solutions to global racing and wagering industries
• Despite challenges post-IPO, such as founders selling stakes and market volatility, RAS shows solid execution and progress towards profitability
• Considered undervalued by investors due to strong business model and impressive financial metrics, RAS remains promising in sports wagering industry

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.

• CTT, a conglomerate in Portugal, has been overlooked by investors due to declining revenue in the mail segment
• Management is returning capital to shareholders and working to address the undervaluation of the stock
• Growth potential in express and parcel, financial services, and retail sectors could unlock hidden value for shareholders in the long run

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 has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

• Emerson Electric reported a robust operating performance for the second quarter of 2024, surpassing their expectations.
• The buoyant operating performance was driven by strong demand in process and hybrid markets, which aligns with significant macroeconomic trends like energy affordability and security, nearshoring, digital transformation, and sustainability.
• The company’s underlying sales rose by 8%, with operational leverage standing at 54%, resulting in a 140 basis point EBITDA expansion to 26%.

• Wizz Air’s FY24 contained multiple distortions; we disaggregate cash flow dynamics to show an improving picture.
• Capacity restraint has been enforced by engine issues, not zero growth in FY25 is producing high single-digit % unit revenue gains.
• We see an opportunity for Wizz Air to rise above distortion to earnings from engine issues and compensation by providing incremental cash flow clarity.

• RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

• Emerson Electric reported a robust operating performance for the second quarter of 2024, surpassing their expectations.
• The buoyant operating performance was driven by strong demand in process and hybrid markets, which aligns with significant macroeconomic trends like energy affordability and security, nearshoring, digital transformation, and sustainability.
• The company’s underlying sales rose by 8%, with operational leverage standing at 54%, resulting in a 140 basis point EBITDA expansion to 26%.

• Wizz Air’s FY24 contained multiple distortions; we disaggregate cash flow dynamics to show an improving picture.
• Capacity restraint has been enforced by engine issues, not zero growth in FY25 is producing high single-digit % unit revenue gains.
• We see an opportunity for Wizz Air to rise above distortion to earnings from engine issues and compensation by providing incremental cash flow clarity.

• In late March, AZ-Com Maruwa Holdings (9090 JP) made an unsolicited (“hostile”) bid for Chilled & Frozen Logistics Holdings (9099 JP) at a near 50% premium at ¥3,000/share.
• It traded through, then C&F ran a bid solicitation process, got four bids. Since the day AFTER that announcement, the stock is up 56%. We approach Alps Logistics multiples.
• This deal doesn’t get the split price benefit that HTS and Alps Logistics did. And it is a fundamentally different logistics business. And target management dynamics are different.

• Daifuku released FY3/24 results on 10 May. Since then the share price has declined by 15%, giving investors an attractive entry point.
• Daifuku is a key beneficiary of warehouse automation, which is forecast to grow at a CAGR of over 6%, with industry spend projected to reach $37 billion by 2030
• We expect the market to price in an order recovery in the core electronics segment and believe that the MTP is yet to be factored into the current share price.

• Making EV itself doesn’t make money, which is why independents like Nio and XPeng are thinking alternative ways to breakeven;
• Tesla envisioned to make money through scale, of which BYD bettered. Tesla also envisioned to make money from autonomous driving (ADS);
• Nio plans to sell its battery swapping service while XPeng is selling ADS to Volkswagen. Both are experiments aiming at breakeven. Both also have new models to launch.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Lippo Malls Indonesia Retail Trust

• INOD is benefiting from the movement to incorporate artificial intelligence (“A.I.”) into many applications
• INOD provides the datasets required for training A.I. and it has quickly become a leading provider of such service
• The Company is now on pace to grow at a faster pace than expected and should lead to higher earnings and free cash flow in coming quarters

• Aecon Group Inc. is a Canadian construction and infrastructure development company facing challenges from project write-downs caused by Covid-related delays and cost inflation
• Despite current challenges, Aecon’s earnings are expected to significantly increase in 2024 as impacted projects near completion, revealing the true profitability of the business
• With a de-risked balance sheet and potential for a doubling in backlog, Aecon is estimated to be worth $35.00 per share, offering 150% upside potential, with two segments providing a range of services in infrastructure development and operations.

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.

• Catching up with financial filings. Last Friday, OMEX released its delayed 10-K report for 2023, bringing it back in compliance with SEC filing requirements, and followed it up with Monday’s release of its 10-Q report for 1Q24.
• The delayed filings were necessitated by the decision to restate certain balance sheet items, such as OMEX’s litigation financing, which has been reclassified as a derivative liability under GAAP, as well as other balance sheet adjustments that had no adverse effect on its business or financial position.

• Cash balance improves and should suffice through 3Q24. OMEX finished 2023 with $4MM in cash, a $2.6MM improvement from 2022, as it strengthened its balance sheet by settling previous debt and warrant obligations and issuance of new debt with attached warrants. 

• In late March, AZ-Com Maruwa Holdings (9090 JP) made an unsolicited (“hostile”) bid for Chilled & Frozen Logistics Holdings (9099 JP) at a near 50% premium at ¥3,000/share.
• It traded through, then C&F ran a bid solicitation process, got four bids. Since the day AFTER that announcement, the stock is up 56%. We approach Alps Logistics multiples.
• This deal doesn’t get the split price benefit that HTS and Alps Logistics did. And it is a fundamentally different logistics business. And target management dynamics are different.

• Daifuku released FY3/24 results on 10 May. Since then the share price has declined by 15%, giving investors an attractive entry point.
• Daifuku is a key beneficiary of warehouse automation, which is forecast to grow at a CAGR of over 6%, with industry spend projected to reach $37 billion by 2030
• We expect the market to price in an order recovery in the core electronics segment and believe that the MTP is yet to be factored into the current share price.

• Making EV itself doesn’t make money, which is why independents like Nio and XPeng are thinking alternative ways to breakeven;
• Tesla envisioned to make money through scale, of which BYD bettered. Tesla also envisioned to make money from autonomous driving (ADS);
• Nio plans to sell its battery swapping service while XPeng is selling ADS to Volkswagen. Both are experiments aiming at breakeven. Both also have new models to launch.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Lippo Malls Indonesia Retail Trust

• INOD is benefiting from the movement to incorporate artificial intelligence (“A.I.”) into many applications
• INOD provides the datasets required for training A.I. and it has quickly become a leading provider of such service
• The Company is now on pace to grow at a faster pace than expected and should lead to higher earnings and free cash flow in coming quarters

• Aecon Group Inc. is a Canadian construction and infrastructure development company facing challenges from project write-downs caused by Covid-related delays and cost inflation
• Despite current challenges, Aecon’s earnings are expected to significantly increase in 2024 as impacted projects near completion, revealing the true profitability of the business
• With a de-risked balance sheet and potential for a doubling in backlog, Aecon is estimated to be worth $35.00 per share, offering 150% upside potential, with two segments providing a range of services in infrastructure development and operations.

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.

• Catching up with financial filings. Last Friday, OMEX released its delayed 10-K report for 2023, bringing it back in compliance with SEC filing requirements, and followed it up with Monday’s release of its 10-Q report for 1Q24.
• The delayed filings were necessitated by the decision to restate certain balance sheet items, such as OMEX’s litigation financing, which has been reclassified as a derivative liability under GAAP, as well as other balance sheet adjustments that had no adverse effect on its business or financial position.

• Cash balance improves and should suffice through 3Q24. OMEX finished 2023 with $4MM in cash, a $2.6MM improvement from 2022, as it strengthened its balance sheet by settling previous debt and warrant obligations and issuance of new debt with attached warrants. 

• Noted Japanese activist MURAKAMI Yoshiaki and his entities and relations went from 4.98% to 19.88% of Mitsui Matsushima (1518 JP) at an average ¥3,500/share from 2 May through 10 May.
• Then they bought an additional 5.44% on 13 May, just before earnings, in the midst of a huge run-up, paying 40% more for that 5% than the first 5%. 
• I thought that might be the end, but in two days, they have bought an additional 9+%. There is something else going on. It is worthy of your attention. 

• The review period for the September rebalance of the KOSPI Size Indices will run from 1 June to 31 August.
• We see 6 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 6 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
• Stocks migrating upward have outperformed stocks migrating lower. But there are still stocks trading at a Price to Book of less than 1.

• After Monday’s market close, HNI announced an intended plant consolidation in which it will close its Hickory, NC furniture manufacturing plant (HBF is part of its Workplace Furnishings [WF] segment) during 1H25 and transfer production to other North American facilities.
• Management avows that the initiative will improve productivity and strengthen operations but, importantly, will not sacrifice capacity or create disruption to customers who will benefit ultimately from better delivery and logistics coordination.
• During the balance of 2024 and 2025, HNI will book ~$10.3MM in restructuring, accelerated depreciation, and other charges ($1.5MM non-cash). 

• ITT Corporation delivered strong results in the first quarter of 2024, surpassing revenue, margin, and EPS expectations.
• The company continued its robust performance, building on the momentum it achieved in 2023.
• The company achieved organic order growth of around 7% or 13% in total, which led them to nearly $1 billion in order bookings.

• Jacobs Solutions has shared positive financial results in Q2 2024 earnings which saw revenues grow by 5% and an adjusted net revenue climb 3% organically.
• However, gross revenue for the second quarter fell short of expectations resulting in a reach of $281 million for the quarter, including $53 million of amortization from acquired intangibles and $58 million of transaction costs.
• Second quarter consolidated revenue was driven by a 5% growth with backlog up 2% year-over year and gross margin increased approximately 50 basis points year-over-year.

• Trane Technologies Plc emerged from the latest earnings with solid results in the first quarter of 2024, reflecting the success of its underlying business strategies and operational excellence.
• The company offers compelling investment prospects given the ongoing tailwinds in its market segments, continued innovation, and higher revenue and earnings outlook for the year.
• Strong corresponding results of previous efforts in megaprojects and building services, as well as a robust backlog of $7.7 billion, a 10% increase from the previous year, lend credence to the positive growth trajectory and further validates this investment.

• Noted Japanese activist MURAKAMI Yoshiaki and his entities and relations went from 4.98% to 19.88% of Mitsui Matsushima (1518 JP) at an average ¥3,500/share from 2 May through 10 May.
• Then they bought an additional 5.44% on 13 May, just before earnings, in the midst of a huge run-up, paying 40% more for that 5% than the first 5%. 
• I thought that might be the end, but in two days, they have bought an additional 9+%. There is something else going on. It is worthy of your attention. 

• The review period for the September rebalance of the KOSPI Size Indices will run from 1 June to 31 August.
• We see 6 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 6 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
• Stocks migrating upward have outperformed stocks migrating lower. But there are still stocks trading at a Price to Book of less than 1.

• After Monday’s market close, HNI announced an intended plant consolidation in which it will close its Hickory, NC furniture manufacturing plant (HBF is part of its Workplace Furnishings [WF] segment) during 1H25 and transfer production to other North American facilities.
• Management avows that the initiative will improve productivity and strengthen operations but, importantly, will not sacrifice capacity or create disruption to customers who will benefit ultimately from better delivery and logistics coordination.
• During the balance of 2024 and 2025, HNI will book ~$10.3MM in restructuring, accelerated depreciation, and other charges ($1.5MM non-cash). 

• ITT Corporation delivered strong results in the first quarter of 2024, surpassing revenue, margin, and EPS expectations.
• The company continued its robust performance, building on the momentum it achieved in 2023.
• The company achieved organic order growth of around 7% or 13% in total, which led them to nearly $1 billion in order bookings.

• Jacobs Solutions has shared positive financial results in Q2 2024 earnings which saw revenues grow by 5% and an adjusted net revenue climb 3% organically.
• However, gross revenue for the second quarter fell short of expectations resulting in a reach of $281 million for the quarter, including $53 million of amortization from acquired intangibles and $58 million of transaction costs.
• Second quarter consolidated revenue was driven by a 5% growth with backlog up 2% year-over year and gross margin increased approximately 50 basis points year-over-year.

• Trane Technologies Plc emerged from the latest earnings with solid results in the first quarter of 2024, reflecting the success of its underlying business strategies and operational excellence.
• The company offers compelling investment prospects given the ongoing tailwinds in its market segments, continued innovation, and higher revenue and earnings outlook for the year.
• Strong corresponding results of previous efforts in megaprojects and building services, as well as a robust backlog of $7.7 billion, a 10% increase from the previous year, lend credence to the positive growth trajectory and further validates this investment.

• Mitsui Matsushima (1518 JP) was a coal company starting over 100yrs ago. A bunch of years ago it started a solar energy business and then started M&A to diversify.
• Coal closed last year and since, MMH has become an investment holdco for “basic businesses” (drinking straws, conveyor system chains, document shredders, weighing machines, crystal measuring devices, mask blanks, etc).
• Murakami Group accumulated 4.98% in five weeks, then the next 14.9% in five days. Pump & Dump like Pacific Metals? Activism like JAFCO? Or something else more interesting?

• Using data from the close on 17 May, there could be 5 changes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in June.
• There will also be capping and funding flows that will lead to a one-way turnover of 12.6% and a one-way trade of US$1.13bn.
• Shorts have increased on the potential adds and potential deletes and covering will lead to rally in some stocks while providing support in others at rebalance implementation.

• After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.
• The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.
• We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.

• The UK Chancellor stated that any bid for International Distributions Services (IDS LN)  (Royal Mail owner) would be thoroughly evaluated for national security considerations to prevent any risks to essential infrastructure.
• The Board is “minded to accept” the improved 370p takeover proposal (4.8x EV/Fwd NTM EBITDA) from Czech billionaire Daniel Kretinsky’s EP Group, should a formal bid is made.
• The improved proposal seems fair. GLS is profitable, while Royal Mail aims break-even by March2025e. Concerns about potential developments post-offer pose a potential political issue. Gross spread is 13.5%.

• We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.
• We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic
• This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.

• Rockwell Automation closed the second quarter of fiscal 2024 on a rather unsteady footing as a result of high inventory levels held by machine builders and slower ramp ups that are impacting shipments for the second half.
• The company has also had to reduce its guidance for the full fiscal year which is proving to be larger than initially expected.
• However, despite what looks like a rocky start to the fiscal year, Rockwell Automation has already set in motion a comprehensive program aimed at expanding margins as the company accelerates actions to align costs with the updated outlook on current year orders.

The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. We believe expansion into the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce and review of postal services in constructive engagement with the regulator. Implementing the March 2024 strategic review recommendations could help unlock value. We believe there is c 50% upside in the share price.

• Mitsui Matsushima (1518 JP) was a coal company starting over 100yrs ago. A bunch of years ago it started a solar energy business and then started M&A to diversify.
• Coal closed last year and since, MMH has become an investment holdco for “basic businesses” (drinking straws, conveyor system chains, document shredders, weighing machines, crystal measuring devices, mask blanks, etc).
• Murakami Group accumulated 4.98% in five weeks, then the next 14.9% in five days. Pump & Dump like Pacific Metals? Activism like JAFCO? Or something else more interesting?

• Using data from the close on 17 May, there could be 5 changes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in June.
• There will also be capping and funding flows that will lead to a one-way turnover of 12.6% and a one-way trade of US$1.13bn.
• Shorts have increased on the potential adds and potential deletes and covering will lead to rally in some stocks while providing support in others at rebalance implementation.

• After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.
• The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.
• We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.

• The UK Chancellor stated that any bid for International Distributions Services (IDS LN)  (Royal Mail owner) would be thoroughly evaluated for national security considerations to prevent any risks to essential infrastructure.
• The Board is “minded to accept” the improved 370p takeover proposal (4.8x EV/Fwd NTM EBITDA) from Czech billionaire Daniel Kretinsky’s EP Group, should a formal bid is made.
• The improved proposal seems fair. GLS is profitable, while Royal Mail aims break-even by March2025e. Concerns about potential developments post-offer pose a potential political issue. Gross spread is 13.5%.

• We update forecasts for the European airline sector, highlighting it will be difficult for most carriers to grow earnings in 2023.
• We publish detailed earnings bridges highlighting the damage to full year earnings from structural damage to 1Q results due to inflationary pressure and the loss of corporate traffic
• This also suggests opportunities for the sector to address winter woes to supplement strong summer performances.

• Rockwell Automation closed the second quarter of fiscal 2024 on a rather unsteady footing as a result of high inventory levels held by machine builders and slower ramp ups that are impacting shipments for the second half.
• The company has also had to reduce its guidance for the full fiscal year which is proving to be larger than initially expected.
• However, despite what looks like a rocky start to the fiscal year, Rockwell Automation has already set in motion a comprehensive program aimed at expanding margins as the company accelerates actions to align costs with the updated outlook on current year orders.

The ongoing transformation of Singapore Post (SingPost) from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. We believe expansion into the Australian logistics market offers long-term growth and that historical issues surrounding structural weakness in postal volumes may be resolved by growth in replacement volumes from e-commerce and review of postal services in constructive engagement with the regulator. Implementing the March 2024 strategic review recommendations could help unlock value. We believe there is c 50% upside in the share price.