Daily Brief Industrials: Alps Logistics, Ecom Express Limited, ZTO Express Cayman , Shanghai International Airport, Singapore Post, SharkNinja , Parker Hannifin and more

• The Logisteed/KKR entity received its approvals between the last week of July and this past week, and told Alps Logistics (9055 JP) it wanted to launch its tender 22 August.
• It will do so. Approvals were reasonably quick (as expected) and the Special Committee and Board decided nothing material had changed. No reason to change their opinion.
• This is still a HUGE price. And everyone will be out by mid-October if they want. This is an easy deal. And a GIGANTIC win for minorities.

• Ecom Express Limited (1062300D IN) is looking to raise about US$310m in its upcoming India IPO. The deal will be run by Axis, IIFL Securities, Kotak and UBS.
• Ecom Express operates a pan-India express logistics network covering first-mile pick-up, mid-mile transportation and last-mile delivery as well as reverse logistics (returns) and fulfilment services (warehousing).
• According to Redseer, the company had the widest pan-India coverage and in Tier 2+ regions compared to its peers, covering over 27,000 PIN codes, as of March 31, 2024.

• Headline numbers for ZTO in Q224 were +10% Revenue, +12% EBITDA
• But gross margin in core express segment fell, as did Operating Cash Flow
• ZTO left guidance unchanged for FY24; we recommend investors AVOID it

• Chinese airports are enjoying a steady passenger traffic growth of 5% YTD; Shenzhen and Shanghai airports are growing much faster.  
• Shanghai International Airport (600009 CH)is our top pick given its size, liquidity, strong balance sheet, and its strong earnings growth potential.  
• Our target price for Shanghai International Airport (600009 CH) is CNY44, pegged to global airport peer average FY25 EV/EBITDA of 12x.   

The Q125 results shine a light on the latest initiatives to underpin the inherent value within Singapore Post, which include a review of the Australian operations and ongoing discussions with the Singapore government on postal services. SingPost’s transformation from a post and parcel delivery company into a global logistics operator appears to have slipped under the radar of investors and now offers an opportunity for investors to reassess its potential. Our forecasts and valuation are unchanged and we believe there is now c 60% upside in the share price.

• SharkNinja reported its second quarter 2024 earnings with a remarkably robust performance, significantly accelerating its financial growth and expanding its market presence.
• The company achieved a 38% increase in adjusted net sales and a substantial 48% rise in adjusted EBITDA, indicating strong organic growth.
• Adjusted earnings per share also soared by 51%, reflecting a successful operational strategy focused on innovation and market expansion.

• Parker-Hannifin Corporation delivered a robust performance in fiscal 2024, continually strengthening through strategic portfolio transformation and a particularly standout year for the Aerospace Systems segment.
• Although the company saw low single-digit sales growth overall, it succeeded in expanding margins significantly by 200 basis points in its Aerospace sector.
• This was highlighted by an 18% increase in earnings per share, a notable achievement following a 15% earnings growth in the previous fiscal year, and generating a record free cash flow of $3 billion.