Industrials

AMETEK, Inc. delivered a mixed result in the recent quarter, with revenues below market expectations but it managed to surpass the analyst consensus in terms of earnings.
The operating income soared to a significant $438 million, demonstrating a 14% rise, and operating margins reached an all-time high of 27%.
Despite challenges such as normalizing inventory levels, the Electromechanical Group delivered solid results, with third-quarter sales of $487 million and operating margins at a commendable 26.2%.

Caterpillar Inc.: Pioneering Sustainable Mining Technologies and Operations! – Major Drivers

Caterpillar managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
Sales and revenues surged by 12%, surpassing the previous year’s figures.
Construction Industries in North America experienced a 6% increase in sales to users, driven by robust demand in non-residential and residential construction.

C.H. Robinson Worldwide Inc.: A Bold Strategy to Transform Global Freight! – Major Drivers

C.H.
Robinson Worldwide, Inc. delivered mixed results for the previous quarter, with revenues below the analyst consensus.
The managed service business exhibited a route guide depth of 1.15 in Q3, indicating primary freight providers accepting the majority of contractual freight, diminishing spot market opportunities.

Howmet Aerospace Inc.: What Is Its Biggest Competitive Advantage? – Major Drivers

Howmet Aerospace Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, showcasing a 16% year-over-year revenue increase and a 1% sequential growth across all markets.
Commercial aerospace, marking its tenth consecutive quarter of growth, led the surge with a 23% year-over-year increase, constituting 49% of total revenue.
Besides, Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels reported significant year-over-year revenue growth, with EBITDA margins showing improvement.

Ingersoll Rand Inc.: Recent Acquisitions Of Oxywise

Ingersoll Rand Inc. delivered a solid result and managed an all-around beat in the last quarter, characterized by double-digit growth in revenue, adjusted EBITDA, adjusted EPS, and free cash flow.
Despite the dynamic macroeconomic environment, the company demonstrated resilience and agility, delivering robust financial performance and surpassing expectations.
Notably, Ingersoll Rand raised its 2023 full-year guidance based on continued robust performance year-to-date.

Parker-Hannifin Corporation: Energy-Agnostic Innovations Fueling Future Success! – Major Drivers

Parker-Hannifin Corporation delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
Prioritizing safety, the company achieved a notable 16% reduction in significant incidents, reinforcing its unwavering commitment to a secure work environment.
The quarter yielded sales of $4.8 billion, marking a substantial 15% increase over the previous year, driven by an impressive 2.3% organic growth.

Quanta Services Inc.: Power Grid Expansion & Renewable Energy Projects Providing A Strategic Edge? – Major Drivers

Quanta Services delivered an all-around beat in the previous quarter, marked by strong double-digit revenue growth and significant financial metrics.
The segments of the Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions spearheaded the revenue and profit surge, underlining the sustained capital infusion into grid modernization and resilience efforts.
The Renewable Infrastructure Solutions segment experienced a significant revenue upswing, propelled by increased construction activities in solar, wind, and battery storage projects.

Rockwell Automation Inc.: A Boost In Cybersecurity Prowess From The Verve Industrial Protection Acquisition – Key Drivers

Rockwell Automation, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, witnessing sales and adjusted earnings surge by over 20% compared to the previous year.
The Intelligent Devices Business segment experienced an 18% organic sales boost, particularly in independent car technology, concluding the fiscal year with over 50% growth in sales.
Information Solutions and Connected Services also achieved a 10% sales increase from the previous year, securing significant information solutions wins with Prometeon Tyre.

Stanley Black & Decker Inc.: Navigating a Declining Revenue with Strategic Wins – What’s Next? – Major Drivers

In the third quarter, Stanley Black & Decker managed a decent result including an earnings beat.
The company enhanced adjusted gross margin, earnings per share, and free cash flow compared to the previous year, demonstrating focused execution and strategic advancements.
Looking ahead to 2024, Stanley Black & Decker’s team anticipates additional gross margin gains and continues to focus on improving margins in uncertain market conditions.

Textron Inc.: Launch Of CITATION CJ3 Gen2 & Other Major Developments

Textron Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.
Bell, Textron’s aerospace division, witnessed stable revenues with improved margins, with military revenues increasing.
Textron Systems reported higher revenues and margins, receiving a critical design review contract for the Army’s Future Tactical Unmanned Aircraft System and expanding its uncrewed aerial systems operations with the US.

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Dec 01

Daily Brief Industrials: Ametek Inc, Caterpillar Inc, C.H. Robinson Worldwide, Howmet Aerospace , Ingersoll Rand , Parker Hannifin, Quanta Services, Rockwell Automation, Stanley Black & Decker, Textron Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

AMETEK Inc.: How Will The Acquisition Of Paragon Transform Their Tech Game? – Major Drivers
Caterpillar Inc.: Pioneering Sustainable Mining Technologies and Operations! – Major Drivers
C.H. Robinson Worldwide Inc.: A Bold Strategy to Transform Global Freight! – Major Drivers
Howmet Aerospace Inc.: What Is Its Biggest Competitive Advantage? – Major Drivers
Ingersoll Rand Inc.: Recent Acquisitions Of Oxywise
Parker-Hannifin Corporation: Energy-Agnostic Innovations Fueling Future Success! – Major Drivers
Quanta Services Inc.: Power Grid Expansion & Renewable Energy Projects Providing A Strategic Edge? – Major Drivers
Rockwell Automation Inc.: A Boost In Cybersecurity Prowess From The Verve Industrial Protection Acquisition – Key Drivers
Stanley Black & Decker Inc.: Navigating a Declining Revenue with Strategic Wins – What’s Next? – Major Drivers
Textron Inc.: Launch Of CITATION CJ3 Gen2 & Other Major Developments

AMETEK Inc.: How Will The Acquisition Of Paragon Transform Their Tech Game? – Major Drivers

AMETEK, Inc. delivered a mixed result in the recent quarter, with revenues below market expectations but it managed to surpass the analyst consensus in terms of earnings.
The operating income soared to a significant $438 million, demonstrating a 14% rise, and operating margins reached an all-time high of 27%.
Despite challenges such as normalizing inventory levels, the Electromechanical Group delivered solid results, with third-quarter sales of $487 million and operating margins at a commendable 26.2%.

Caterpillar Inc.: Pioneering Sustainable Mining Technologies and Operations! – Major Drivers

Caterpillar managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
Sales and revenues surged by 12%, surpassing the previous year’s figures.
Construction Industries in North America experienced a 6% increase in sales to users, driven by robust demand in non-residential and residential construction.

C.H. Robinson Worldwide Inc.: A Bold Strategy to Transform Global Freight! – Major Drivers

C.H.
Robinson Worldwide, Inc. delivered mixed results for the previous quarter, with revenues below the analyst consensus.
The managed service business exhibited a route guide depth of 1.15 in Q3, indicating primary freight providers accepting the majority of contractual freight, diminishing spot market opportunities.

Howmet Aerospace Inc.: What Is Its Biggest Competitive Advantage? – Major Drivers

Howmet Aerospace Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, showcasing a 16% year-over-year revenue increase and a 1% sequential growth across all markets.
Commercial aerospace, marking its tenth consecutive quarter of growth, led the surge with a 23% year-over-year increase, constituting 49% of total revenue.
Besides, Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels reported significant year-over-year revenue growth, with EBITDA margins showing improvement.

Ingersoll Rand Inc.: Recent Acquisitions Of Oxywise

Ingersoll Rand Inc. delivered a solid result and managed an all-around beat in the last quarter, characterized by double-digit growth in revenue, adjusted EBITDA, adjusted EPS, and free cash flow.
Despite the dynamic macroeconomic environment, the company demonstrated resilience and agility, delivering robust financial performance and surpassing expectations.
Notably, Ingersoll Rand raised its 2023 full-year guidance based on continued robust performance year-to-date.

Parker-Hannifin Corporation: Energy-Agnostic Innovations Fueling Future Success! – Major Drivers

Parker-Hannifin Corporation delivered a mixed result in the recent quarter, with revenues below market expectations, but it managed to surpass the analyst consensus in terms of earnings.
Prioritizing safety, the company achieved a notable 16% reduction in significant incidents, reinforcing its unwavering commitment to a secure work environment.
The quarter yielded sales of $4.8 billion, marking a substantial 15% increase over the previous year, driven by an impressive 2.3% organic growth.

Quanta Services Inc.: Power Grid Expansion & Renewable Energy Projects Providing A Strategic Edge? – Major Drivers

Quanta Services delivered an all-around beat in the previous quarter, marked by strong double-digit revenue growth and significant financial metrics.
The segments of the Electric Power Infrastructure Solutions and Renewable Energy Infrastructure Solutions spearheaded the revenue and profit surge, underlining the sustained capital infusion into grid modernization and resilience efforts.
The Renewable Infrastructure Solutions segment experienced a significant revenue upswing, propelled by increased construction activities in solar, wind, and battery storage projects.

Rockwell Automation Inc.: A Boost In Cybersecurity Prowess From The Verve Industrial Protection Acquisition – Key Drivers

Rockwell Automation, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings, witnessing sales and adjusted earnings surge by over 20% compared to the previous year.
The Intelligent Devices Business segment experienced an 18% organic sales boost, particularly in independent car technology, concluding the fiscal year with over 50% growth in sales.
Information Solutions and Connected Services also achieved a 10% sales increase from the previous year, securing significant information solutions wins with Prometeon Tyre.

Stanley Black & Decker Inc.: Navigating a Declining Revenue with Strategic Wins – What’s Next? – Major Drivers

In the third quarter, Stanley Black & Decker managed a decent result including an earnings beat.
The company enhanced adjusted gross margin, earnings per share, and free cash flow compared to the previous year, demonstrating focused execution and strategic advancements.
Looking ahead to 2024, Stanley Black & Decker’s team anticipates additional gross margin gains and continues to focus on improving margins in uncertain market conditions.

Textron Inc.: Launch Of CITATION CJ3 Gen2 & Other Major Developments

Textron Inc. delivered a mixed result in the recent quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.
Bell, Textron’s aerospace division, witnessed stable revenues with improved margins, with military revenues increasing.
Textron Systems reported higher revenues and margins, receiving a critical design review contract for the Army’s Future Tactical Unmanned Aircraft System and expanding its uncrewed aerial systems operations with the US.

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✓ Company Data and News
✓ Events & Webinars

Nov 30

Daily Brief Industrials: Kurita Water Industries, Korean Air Lines, Polycab India , Ferrovial Sa, Sino-Synergy Hydrogen Energy Technology and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Japan – A Last Look at Shorts on Some Interesting Stocks & Positioning
Korean Air (003490 KS): Cheap, but a Value Trap
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Taking off from Heathrow
Sino-Synergy Hydrogen IPO – High Potential but Comes with Ample Issues

Japan – A Last Look at Shorts on Some Interesting Stocks & Positioning

By Brian Freitas

There should be liquidity events on Persol Holdings, Hakuhodo Dy Holdings, Welcia Holdings, GMO Payment Gateway, CyberAgent, Kobayashi Pharmaceutical, NGK Insulators, Lixil Group, Kurita Water Industries and Keio Corp tomorrow.
On average, the stocks have underperformed the Nikkei 225 Index over the last 2-3 months but there has been near-term outperformance.
There has been a big increase in shorts on the stocks over the last couple of months and positioning varies across stocks.

Korean Air (003490 KS): Cheap, but a Value Trap

By Mohshin Aziz

Korean Air Lines (003490 KS) is cheap, against peers and its own history. The impending merger with Asiana Airline is a major overhang
Business is good, with steady passenger loads and yields, and cargo showing decent signs of recovery. Lower fuel prices could surprise on the upside
Target Price KRW23,868 based on FY24 P/BV of 0.81x (1SD below mean). Too little upside for the level of uncertainty. PASS

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN) , Siemens Ltd (SIEM IN) , Polycab India (POLYCAB IN) and Havells India (HAVL IN).
Most companies have performed in line with our expectations, we expect sectorial dynamics to remain in play.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL).

Taking off from Heathrow

By Jesus Rodriguez Aguilar

Ferrovial Sa (FER SM) announces the sale of its 25% stake in Heathrow Airport Holdings for £2,368 million (valued at zero in its books), far exceeding my valuation of €1,617 million.
With the operation, Ferrovial will be able to invest in more lucrative new infrastructure projects than Heathrow (a mature asset). Ferrovial is focused on growth in North American greenfield projects.
The divestment should have a positive impact of 4.7% on Ferrovial’s consensus target price, which increases to €34.55/share vs. €33/share previously, which implies a revaluation potential of 9.5%.

Sino-Synergy Hydrogen IPO – High Potential but Comes with Ample Issues

By Sumeet Singh

Sino-Synergy Hydrogen Energy Technology (9663 HK) (SHET) is looking to raise around US$200m in its Hong Kong IPO.
SHET is a hydrogen fuel cell company in the PRC focusing on research, development, production and sales of hydrogen fuel cell stacks and hydrogen fuel cell systems.
In this note, we will look at the company’s background and talk about valuations.

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Nov 30

Daily Brief Industrials: Kurita Water Industries, Korean Air Lines, Polycab India , Ferrovial Sa, Sino-Synergy Hydrogen Energy Technology and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Japan – A Last Look at Shorts on Some Interesting Stocks & Positioning
Korean Air (003490 KS): Cheap, but a Value Trap
India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells
Taking off from Heathrow
Sino-Synergy Hydrogen IPO – High Potential but Comes with Ample Issues

Japan – A Last Look at Shorts on Some Interesting Stocks & Positioning

By Brian Freitas

There should be liquidity events on Persol Holdings, Hakuhodo Dy Holdings, Welcia Holdings, GMO Payment Gateway, CyberAgent, Kobayashi Pharmaceutical, NGK Insulators, Lixil Group, Kurita Water Industries and Keio Corp tomorrow.
On average, the stocks have underperformed the Nikkei 225 Index over the last 2-3 months but there has been near-term outperformance.
There has been a big increase in shorts on the stocks over the last couple of months and positioning varies across stocks.

Korean Air (003490 KS): Cheap, but a Value Trap

By Mohshin Aziz

Korean Air Lines (003490 KS) is cheap, against peers and its own history. The impending merger with Asiana Airline is a major overhang
Business is good, with steady passenger loads and yields, and cargo showing decent signs of recovery. Lower fuel prices could surprise on the upside
Target Price KRW23,868 based on FY24 P/BV of 0.81x (1SD below mean). Too little upside for the level of uncertainty. PASS

India Industrials | Quarterly Update – ABB India, Siemens, Polycab and Havells

By Pranav Bhavsar

In this Insight, we review the recent performance of ABB India Ltd (ABB IN) , Siemens Ltd (SIEM IN) , Polycab India (POLYCAB IN) and Havells India (HAVL IN).
Most companies have performed in line with our expectations, we expect sectorial dynamics to remain in play.
We continue to favour ABB over Siemens (ABB/SIEM), Polycab over Havells (POLYCAB/HAVL).

Taking off from Heathrow

By Jesus Rodriguez Aguilar

Ferrovial Sa (FER SM) announces the sale of its 25% stake in Heathrow Airport Holdings for £2,368 million (valued at zero in its books), far exceeding my valuation of €1,617 million.
With the operation, Ferrovial will be able to invest in more lucrative new infrastructure projects than Heathrow (a mature asset). Ferrovial is focused on growth in North American greenfield projects.
The divestment should have a positive impact of 4.7% on Ferrovial’s consensus target price, which increases to €34.55/share vs. €33/share previously, which implies a revaluation potential of 9.5%.

Sino-Synergy Hydrogen IPO – High Potential but Comes with Ample Issues

By Sumeet Singh

Sino-Synergy Hydrogen Energy Technology (9663 HK) (SHET) is looking to raise around US$200m in its Hong Kong IPO.
SHET is a hydrogen fuel cell company in the PRC focusing on research, development, production and sales of hydrogen fuel cell stacks and hydrogen fuel cell systems.
In this note, we will look at the company’s background and talk about valuations.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Company Data and News
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Nov 29

Daily Brief Industrials: CIMC Vehicle Group Co Ltd, BeeX and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer
CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!
CIMC Vehicles (1839 HK): Parent Privatisation?
Underwater robotics startup BeeX bags $2m

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer

By Arun George

CIMC Vehicle Group Co Ltd (1839 HK) possible H Share buyback offer, excluding China International Marine Cntnrs Gp (2039 HK)’s shares, is HK$7.00, an 8.7% premium to the undisturbed price.
The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition.
The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “same or better terms”, suggesting a potential bump.

CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!

After CIMC Vehicle Group Co Ltd (1839 HK) was suspended yesterday pursuant to Hong Kong’s Takeover Code, the expectation was an H-share Offer from its parent, SOE-backed CIMC Group.
CIMC subsequently announced an indicative Offer yesterday evening, from its parent, at a $7.00/share for each H-share, a pitiful 8.6% premium to last close. There is no concurrent A-share Offer.
CIMC traded around $7.00 late September, and comfortably traded through the indicative terms for most of July.

CIMC Vehicles (1839 HK): Parent Privatisation?

CIMC Vehicles (1839 HK) is currently suspended pursuant to Hong Kong’s Code on Takeovers and Mergers.
SOE-Backed CIMC Group controls ~74% of CMIC Vehicle’s H-shares. Presumably, if any Offer was to unfold, it would be from the parent.
And what price for the H-shares? Around HK$9/share, a life-time high, would be in keeping with premiums seen in precedent PRC-incorporated privatisations.

Underwater robotics startup BeeX bags $2m

By Tech in Asia

BeeX, a Singapore-based maker of autonomous underwater robots, has raised US$2 million in a round co-led by Earth Venture Capital and ShipsFocus Ventures.
The startup will use the funds to speed up its go-to-market efforts for autonomous offshore wind farm inspections in Europe.
BeeX was established in 2018 by Grace Chia and Goh Eng Wei, researchers at the National University of Singapore.

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Nov 29

Daily Brief Industrials: CIMC Vehicle Group Co Ltd, BeeX and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer
CIMC Vehicles (1839 HK): Parent Privatisation?
CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!
Underwater robotics startup BeeX bags $2m

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer

By Arun George

CIMC Vehicle Group Co Ltd (1839 HK) possible H Share buyback offer, excluding China International Marine Cntnrs Gp (2039 HK)’s shares, is HK$7.00, an 8.7% premium to the undisturbed price.
The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition.
The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “same or better terms”, suggesting a potential bump.

CIMC Vehicles (1839 HK): Parent Privatisation?

CIMC Vehicles (1839 HK) is currently suspended pursuant to Hong Kong’s Code on Takeovers and Mergers.
SOE-Backed CIMC Group controls ~74% of CMIC Vehicle’s H-shares. Presumably, if any Offer was to unfold, it would be from the parent.
And what price for the H-shares? Around HK$9/share, a life-time high, would be in keeping with premiums seen in precedent PRC-incorporated privatisations.

CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!

After CIMC Vehicle Group Co Ltd (1839 HK) was suspended yesterday pursuant to Hong Kong’s Takeover Code, the expectation was an H-share Offer from its parent, SOE-backed CIMC Group.
CIMC subsequently announced an indicative Offer yesterday evening, from its parent, at a $7.00/share for each H-share, a pitiful 8.6% premium to last close. There is no concurrent A-share Offer.
CIMC traded around $7.00 late September, and comfortably traded through the indicative terms for most of July.

Underwater robotics startup BeeX bags $2m

By Tech in Asia

BeeX, a Singapore-based maker of autonomous underwater robots, has raised US$2 million in a round co-led by Earth Venture Capital and ShipsFocus Ventures.
The startup will use the funds to speed up its go-to-market efforts for autonomous offshore wind farm inspections in Europe.
BeeX was established in 2018 by Grace Chia and Goh Eng Wei, researchers at the National University of Singapore.

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✓ Company Data and News
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Nov 28

Daily Brief Industrials: Recruit Holdings, Wuxi Lead Intelligent Equipmen, Full Truck Alliance , Forgital Group, S.F. Holding, Qantm Intellectual Property, La Financiere Atalian SASU and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Recruit Holdings (6098) | 2024 High Conviction
Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal
2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER
Forgital – ESG Report – Lucror Analytics
Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)
QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year
Atalian – ESG Report – Lucror Analytics

Recruit Holdings (6098) | 2024 High Conviction

By Mark Chadwick

We are bullish on Recruit at the current share price and believe that the stock has around 40% upside potential to our fair value estimate of Y7,700.
We believe that investors have been overly concerned with the cyclical slowdown in the job market as it normalizes from the post-Covid recovery
Indeed.com remains a disruptor in the HR recruiting market and the potential monetization of this asset is significantly under-appreciated by the market.

Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal

By Clarence Chu

Wuxi Lead Intelligent Equipmen (300450 CH) is looking to raise around US$300m in its upcoming Switzerland GDR listing.
As per media reports, Wuxi Lead was said to be looking to raise US$495m via a Swiss GDR issuance, having secured approval to sell up to 78.3m shares.
Given the decline in its share price over the year, the eventual deal size could come to around US$300m as of its current last close.

2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER

Full Truck Alliance reported strong growth in Q3, from the right sources
Improved sales mix & progress on expense control lifted core margins
With 22% upside to US$9.5 based on 21x PER, our high conviction pick

Forgital – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Forgital’s ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Weak” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
Forgital is a vertically integrated company that focuses on manufacturing forged components for the aerospace and industrial markets.

Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)

By Research as a Service (RaaS)

October’s industry numbers hide pricing turmoil seen at company level
STO Express appears to be using price to gain share from Yunda, others
We believe price competition continues to hurt ‘ground’ express margins

QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year

QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys, and Sortify.tm.
It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market, and has a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
The company has provided a trading update at its annual general meeting (AGM) noting that revenue and earnings (EBITDA) to the end of October were well ahead of last year and ahead of budget.

Atalian – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Atalian’s ESG as “Adequate”, in line with its Social score. The company has “Weak” scores for the Environmental and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.
French building-services management company Atalian offers a range of facility management and cleaning services.

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Nov 28

Daily Brief Industrials: Recruit Holdings, Wuxi Lead Intelligent Equipmen, Full Truck Alliance , Forgital Group, S.F. Holding, Qantm Intellectual Property, La Financiere Atalian SASU and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Recruit Holdings (6098) | 2024 High Conviction
Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal
2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER
Forgital – ESG Report – Lucror Analytics
Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)
QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year
Atalian – ESG Report – Lucror Analytics

Recruit Holdings (6098) | 2024 High Conviction

By Mark Chadwick

We are bullish on Recruit at the current share price and believe that the stock has around 40% upside potential to our fair value estimate of Y7,700.
We believe that investors have been overly concerned with the cyclical slowdown in the job market as it normalizes from the post-Covid recovery
Indeed.com remains a disruptor in the HR recruiting market and the potential monetization of this asset is significantly under-appreciated by the market.

Wuxi Lead GDR Listing – Early Look – Another One in the Pipeline, Will Be Net Cash Post-Deal

By Clarence Chu

Wuxi Lead Intelligent Equipmen (300450 CH) is looking to raise around US$300m in its upcoming Switzerland GDR listing.
As per media reports, Wuxi Lead was said to be looking to raise US$495m via a Swiss GDR issuance, having secured approval to sell up to 78.3m shares.
Given the decline in its share price over the year, the eventual deal size could come to around US$300m as of its current last close.

2024 High Conviction: Full Truck Alliance | Strong Top Line, Margins in Q3 | Worth US$9.5 on 21x PER

Full Truck Alliance reported strong growth in Q3, from the right sources
Improved sales mix & progress on expense control lifted core margins
With 22% upside to US$9.5 based on 21x PER, our high conviction pick

Forgital – ESG Report – Lucror Analytics

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Forgital’s ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Weak” score for the Environmental pillar. Controversies are “Immaterial” and Disclosure is “Adequate”.
Forgital is a vertically integrated company that focuses on manufacturing forged components for the aerospace and industrial markets.

Monthly Chinese Express Tracker | Q3 Margins Battered By Price | More to Come in Q4 (November 2023)

By Research as a Service (RaaS)

October’s industry numbers hide pricing turmoil seen at company level
STO Express appears to be using price to gain share from Yunda, others
We believe price competition continues to hurt ‘ground’ express margins

QANTM Intellectual Property Ltd -FY24-To-Date Trading Well Ahead of Last Year

QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys, and Sortify.tm.
It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market, and has a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
The company has provided a trading update at its annual general meeting (AGM) noting that revenue and earnings (EBITDA) to the end of October were well ahead of last year and ahead of budget.

Atalian – ESG Report – Lucror Analytics