In today’s briefing:
- Advantest (6857 JP): High Valuation, Low Visibility
- Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
- Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
- Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up
Advantest (6857 JP): High Valuation, Low Visibility
- Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%.
- Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
- The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.
Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
- Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.
- Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
- Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.
Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
- RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
- Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
- Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.
Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up
- Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO.
- Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
- In this note, we talk about the positive aspects of the deal.
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