Daily Brief Industrials: Beijing Capital International Airport (BCIA), Cummins Inc, Inpost, Waste Management, TAL Education, ATS and more

• Long Beijing Capital International Airport (BCIA) (694 HK), and short Air China Ltd (H) (753 HK) strategy should bring in good sector-neutral returns over the next 12 months. 
• BCIA will return to profit next year, fuelling the rebound of its share price. Air China, however, may face uncertainties related to stronger USD and higher-than-expected US interest rates.
• Higher duty-free sales for BCIA should propel earnings outlook. BCIA’s P/B is well below the 5-year average, while Air China has already returned to the historical average level.

• Cummins Inc. presented its third-quarter 2024 results, highlighting several achievements and ongoing challenges.
• The company reported a stable sales figure of $8.5 billion, reflecting a flat performance compared to the same period in 2023 due to various offsetting factors.
• The North American market experienced a slight 1% decline, with softer heavy-duty truck sales balanced by strong demand in medium-duty trucks and power generation sectors.

• Inpost is a dominant force in the Polish market, with a high market share and strong financial performance.
• The company’s expansion into other European markets, while ambitious, may face challenges in achieving similar success.
• The risk of regulatory changes and competition could impact Impost’s future growth and profitability.

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• Waste Management, Inc. (WM) reported robust operational and financial performance in its third quarter of 2024, driven by strategic initiatives in cost optimization, disciplined pricing, and ongoing sustainability investments.
• The company’s operating EBITDA demonstrated double-digit growth, with a record margin of 30.5%, marking a year over-year increase of 90 basis points, positioning it well to meet its projected full-year target of approximately $6.5 billion in operating EBITDA.
• 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.

• TAL Education Group’s second quarter fiscal year 2025 results provide an insightful look into the company’s current trajectory, presenting both promising developments and areas to watch cautiously.
• On the positive side, TAL Education’s robust year-over-year growth in net revenues stands out, with reported figures of USD 619.4 million, marking an impressive increase of over 50%.
• This growth is largely backed by the company’s strategic expansion in its learning services, particularly the enrichment learning programs like Peiyou small classes.

• ATS is a global automation solutions provider that has adopted principles from DBS, including a customer-first approach and continuous improvement.
• Under CEO Andrew Hider’s leadership, ATS saw its stock price soar from $10 to $48 before settling around $26, positioning the company for long-term growth in the automation industry.
• ATS’s implementation of a DBS-like system has led to improvements in key performance indicators, with the company serving as a leading System Integrator with a global footprint in various industries.

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.