Daily Brief Industrials: Barnes Group, Rolls-Royce Holdings, J&T Global Express , Nakamoto Packs and more

• Barnes Group, a diversified global manufacturer and service provider, presented its financial results and strategic developments during the first quarter of 2024.
• The company reported a robust start to the year, underlined by a significant growth in revenue and adjusted EBITDA, alongside progress in strategic pillars aimed at enhancing shareholder value.
• This performance is particularly noteworthy as Barnes Group is currently evaluating strategic options, including a potential sale, which could influence the market’s perception and future performance of the company.

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

Notably, RR in 2023 successfully retained its No. 2 position in the Dow Jones Sustainability Index for the aerospace & defence industry.

• Q224 parcel volume growth slowed dramatically in all markets versus Q124 pace
• Share price has fallen by more than half compared to Q124 peak levels
• HK$7.8 is our target, but slower growth, sub-par margins & disclosure = AVOID

• Q1 FY02/25 results: Revenue JPY11.6bn (+5.2% YoY), Gross profit JPY1.9bn (+12.7% YoY), Operating profit JPY550mn (+6.9% YoY).
• Food Packaging and Containers: 65.7% of revenue, gross profit rose 17.4% YoY, revenue increased 5.0% YoY.
• Net income attributable to owners of the parent: JPY532mn (+95.3% YoY) due to decreased income taxes.