Daily Brief Industrials: Alps Logistics, Doosan Bobcat Inc, Daikin Industries, FiscalNote Holdings , AZ-Com Maruwa Holdings, Dun & Bradstreet Holdings , Duskin Co Ltd, Titan International , Yamada Consulting Group Co L and more

• As global market roil, clean M&A deals come into focus.
• This insight briefly summarises those transactions in Asia/Oceania which are expected to comfortably complete, irrespective of the background noise. 
• Standout deals include APM Human Services (APM AU), Huafa Property Services Group (982 HK), Alps Logistics (9055 JP), I’Rom Group (2372 JP), and Arvida (ARV NZ).

• On 6 August, the Doosan Group announced a revised merger report. Despite some changes in the merger report, there was no change the merger ratios. 
• Many minority shareholders of Doosan Enerbility and Doosan Bobcat are likely to oppose this merger. The net result is an increasing probability that this merger gets cancelled, in our view.
• Doosan Enerbility has set aside about 600 billion won for exercise of appraisal rights and if it exceeds this amount, the merger may be cancelled. 

• Q1 Operating Profit -2% YoY; weaker than analyst consensus; Full year guidance unchanged but risk to the downside
• Key concerns around EU and China remain in Q1. Both regions seeing zero top line growth and heat pumps have cratered 
• The stock price has declined 16% since our last note, underperforming Topix by around 6%. Valuation more supportive

• FiscalNote is a legal data and analytics company with a $170 million market cap
• The company provides software and services in the public policy and geopolitical intelligence sector
• FiscalNote generates revenue through recurring subscription services and is seen as a compelling investment opportunity with potential for margin expansion.

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.

• Revenue increased by 4.5% YoY to JPY49.7bn, while operating profit decreased by 50.5% YoY to JPY1.9bn.
• Logistics segment revenue was JPY49.0bn (+4.4% YoY) with operating profit of JPY2.4bn (-36.4% YoY).
• Other segment revenue was JPY689mn (+14.1% YoY) with operating profit of JPY94mn (+32.4% YoY).

• Dun & Bradstreet’s exploration of potential sale stems from numerous strategic motivations typically involved in such decisions, including efforts to maximize shareholder value, capitalize on market opportunities, or strategic repositioning for future growth.
• In certain instances, companies may explore sales if they believe a buyer could offer more resources, technology, or market presence that could significantly amplify the existing operations or drive deeper market penetration than could be achieved independently.
• 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.

• The company revised its revenue forecast from JPY178.7bn to JPY178.6bn, with no segment adjustments disclosed.
• Consolidated Q1 revenue rose 3.6% YoY to JPY45.2bn, marking the 14th consecutive quarter of revenue rise.
• Consolidated operating profit for Q1 declined 7.5% YoY to JPY1.9bn, with OPM dipping 0.5pp YoY to 4.1%.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.8x.

• Revenue: JPY7.3bn (+34.0% YoY); Operating profit: JPY2.0bn (+228.5% YoY); Recurring profit: JPY2.0bn (+219.7% YoY); Net income: JPY1.6bn (+216.0% YoY).
• Consulting business revenue: JPY5.1bn (+41.9% YoY); Gross profit: JPY4.5bn (+42.7% YoY); Operating profit: JPY989mn (+169.0% YoY).
• Investment business revenue: JPY2.1bn; Gross profit: JPY1.1bn; Operating profit: JPY990mn, driven by the sale of investee shares.