Daily Briefs

• 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.