Daily Brief Industrials: Adani Enterprises, SK Square , LG Corp, Exponent Inc, Old Dominion Freight Line, Dun & Bradstreet Holdings , Teledyne Technologies and more

• Adani Group’s handling of U.S. FCPA investigation disclosures highlights significant lapses in transparency, including delayed and contradictory statements.
• Inconsistent disclosures and wrong disclosure about US investigations raising red flags for regulatory compliance and governance.
• Search warrants for Sagar Adani, Nephew of Gautam Adani issued in Mar-23, which is not disclosed in fundraising documents as well as Annual Report. 

• SK Square (402340 KS) announced a solid corporate value up plan pushing up its share price by 8.8% to 87,500 won on 22 November.
• Major highlights of the corporate value up plan included cancellation of 200 billion won of treasury shares, higher ROE target, and achieve 1x PBR ratio (nearly double the current ratio).
• Our NAV analysis of SK Square suggests NAV of 15.2 trillion won or 112,822 won per share, representing 29% higher than current share price.

• In this insight, we provide the major highlights of the solid Corporate Value Up plan announced by LG Corp on 22 November. 
• The key highlights include about 500 billion won worth of share cancellation by 2026, improved dividend policy, and higher ROE target.
• Our base case NAV valuation analysis of LG Corp suggests implied NAV of 16.1 trillion won or NAV per share of 102,426 won, which is 33.4% higher than current price.

• Exponent Inc.’s third quarter 2024 financial results demonstrate both resilience and constraints in the context of evolving market dynamics.
• The company reported a 6% growth in net income and an expansion in EBITDA margin, indicating effective cost management and resource utilization.
• The overall revenue, however, remained flat compared to the previous year, reflecting a mixed performance across different sectors of operation.

• Old Dominion Freight Line’s recent third-quarter earnings call for 2024 revealed several key aspects of the company’s performance amidst a challenging economic environment.
• The company reported a decrease in revenue, which totaled $1.47 billion, down 3.0% from the prior year.
• The decline in LTL (less-than-truckload) tons per day, which fell by 4.8%, was slightly mitigated by a 1.5% increase in LTL revenue per hundredweight.

• DNB is a speculative merger arbitrage opportunity with limited downside risk and significant upside potential
• Recent news of the company exploring options for a potential sale has increased investor interest
• Strong business performance and the possibility of a bid at 12x EBITDA or higher make DNB a valuable acquisition target with attractive multiples and a solid floor

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.

• Teledyne Technologies Incorporated reported an impressive performance for the third quarter of 2024, achieving all-time record sales with growth in each business segment.
• This growth was fueled by robust demand in their longer-cycle defense, space, and energy sectors, though sales in most short-cycle commercial businesses have either stabilized or begun to recover sequentially.
• The company continued aggressive capital management strategies during the quarter, including repurchasing approximately $354 million of its stock, completing two acquisitions valued at $125 million, and repaying $450 million in gross debt.