Daily Briefs

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
• We expect up to four changes in the KOSPI 200 index during the June 2024 index rebal event (down from 5 expected last month)  based on the latest available data.

• The prospect of this IPO mirroring the post-listing rallies seen with Ecopro Materials is what keeps local institutions fixated on this IPO despite valuation issues.
• The key factors are speculative trading frenzy among local retail investors and subsequent passive inflows through early entry into KOSPI 200/MSCI Standard.
• Considering two factors is vital. Hyundai Marine Solution’s IPO size is twice Ecopro Materials’, potentially limiting speculative buying. Sector-wide rallies, crucial for Ecopro Materials, haven’t been as prominent in shipbuilding.

Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.

• Kondotec Inc (7438 JP) is a wholesaler of construction materials in the same league as companies such as Okabe Co., Ltd. (TSE PRM: 5959).
• In FY03/23, sales amounted to JPY75.4bn (+14.1% YoY), operating profit came to JPY4.4bn (+21.2% YoY), recurring profit was JPY4.6bn, and net income attributable to owners of the parent was JPY2.4bn.
• Kondotec Inc. announced changes to its lineup of representative directors (a change of president).

• ASGN Incorporated recently held its fourth quarter and full year 2023 earnings call.
• The company reported solid results for the fourth quarter with revenues, gross margin and adjusted EBITDA margin all landing at the upper end or above their respective guidance ranges.
• The annual revenue for 2023 amounted to approximately $4.5 billion, $2.4 billion of which was attributed to commercial and government IT consulting work.

• Sensata Technologies fourth quarter and full year 2023 earnings revealed several key points investors may consider.
• With growth in electrification revenue by approximately 50% year-over-year to $700 million in 2023, this trend is considered a major driver for future performance.
• The company has also reduced gross and net leverage, via an updated capital allocation strategy, which places higher emphasis on organic growth and lower focus on M&A. 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.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
• We expect up to four changes in the KOSPI 200 index during the June 2024 index rebal event (down from 5 expected last month)  based on the latest available data.

• The prospect of this IPO mirroring the post-listing rallies seen with Ecopro Materials is what keeps local institutions fixated on this IPO despite valuation issues.
• The key factors are speculative trading frenzy among local retail investors and subsequent passive inflows through early entry into KOSPI 200/MSCI Standard.
• Considering two factors is vital. Hyundai Marine Solution’s IPO size is twice Ecopro Materials’, potentially limiting speculative buying. Sector-wide rallies, crucial for Ecopro Materials, haven’t been as prominent in shipbuilding.

Carr’s Group has announced an updated strategy that offers the potential for value realisation and creation from a number of avenues. These include: value realisation of the Engineering Division; the ability to significantly reduce central costs; and longer-term value creation in the Agriculture Division as a focused business with recovery potential and a strategy to leverage its strong market positions for growth.

• Kondotec Inc (7438 JP) is a wholesaler of construction materials in the same league as companies such as Okabe Co., Ltd. (TSE PRM: 5959).
• In FY03/23, sales amounted to JPY75.4bn (+14.1% YoY), operating profit came to JPY4.4bn (+21.2% YoY), recurring profit was JPY4.6bn, and net income attributable to owners of the parent was JPY2.4bn.
• Kondotec Inc. announced changes to its lineup of representative directors (a change of president).

• ASGN Incorporated recently held its fourth quarter and full year 2023 earnings call.
• The company reported solid results for the fourth quarter with revenues, gross margin and adjusted EBITDA margin all landing at the upper end or above their respective guidance ranges.
• The annual revenue for 2023 amounted to approximately $4.5 billion, $2.4 billion of which was attributed to commercial and government IT consulting work.

• Sensata Technologies fourth quarter and full year 2023 earnings revealed several key points investors may consider.
• With growth in electrification revenue by approximately 50% year-over-year to $700 million in 2023, this trend is considered a major driver for future performance.
• The company has also reduced gross and net leverage, via an updated capital allocation strategy, which places higher emphasis on organic growth and lower focus on M&A. 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.