Daily Brief Industrials: Auckland Intl Airport, Samsung C&T, Dongfang Electric, Sinotrans, On Assignment, Boels, Teledyne Technologies, Verisure Holding AB and more

• Almost exactly a year ago, Auckland City Council (ACC) raised around US$320m via selling around 7% of its stake in Auckland Intl Airport (AIA NZ).
• ACC still has an 11% stake left, which it now plans to transfer to a future fund, which will be free to sell the shares
• In this note, we will talk about the possible placement and other deal dynamics.

• We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. 
• Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.
• Our NAV analysis of Samsung C&T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.

• Dongfang Electric (1072 HK) is now closer to the bottom after underperformance due to a weaker-than-expected 1H24 result dragged by low-margin coal-fired products.
• New contract momentum, however, stayed resilient with a 14.8% YoY increase to Rmb56.1bn in 1H24. Forward backlog coverage is now at 1.8x FY24F revenue.
• There is a significant Rmb6.3bn positive operating cash flow swing in 1H24. This helps to raise net cash (excluding contract liabilities) to 76.4% of the share price.

• Volume and revenue grow as the company works with China’s new trading partners
• Margins and cashflow under pressure due to a weak domestic economy and higher freight rates
• Cross-Border e-commerce growing fast from a small base relative to other divisions

• ASGN Incorporated has released its earnings for the second quarter of 2024, revealing a mixture of steady performance amid challenging macroeconomic conditions.
• The company reported revenues of $1.035 billion, aligned with the management’s guidance and demonstrating a cautious but steady demand environment similar to the previous quarter.
• The adjusted EBITDA was $117.1 million, translating to a margin of 11.3%, which is at the higher end of expectations.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Boels’ ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

• Investors evaluating Teledyne Technologies Incorporated should consider both the achievements and challenges reported in their latest financial updates.
• Notably, the company achieved record free cash flow, allowing for significant allocations towards debt repayment, acquisitions, and stock buybacks.
• This demonstrates adept financial management and the capability to maintain operational flexibility.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Verisure’s ESG as “Strong”, in line with its Social score, while the Environmental and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.