Daily Brief Industrials: Berli Jucker, Countplus Ltd, Begbies Traynor, Huntington Ingalls Industries, Toro Co, Armstrong World Industries, U-Haul Holding , ATS and more

• There will be 4 changes for the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at the close on 28 June.
• All changes are in line with our forecasts, but one stock could be a surprise inclusion for some.
• Passive trackers will need to buy 3.9% of float in I-TAIL, 3.7% of float in Berli Jucker, 1.5% of float in Ngern TidLor and 1% of float in Bangchak Corporation.

• Count (ASX:CUP) is an accounting and wealth business in Australia which is both the 18th largest Accounting firm whilst simultaneously being the 3rd largest AFSL holder in the country after its consolidation of Diverger (ASX:DVR) due to be implemented on the 1st of March 2024.

• As some may gather, our shares in Count have come from the implementation of Diverger transaction, and as a result I will be focusing on the specifics of the combined business and its prospects.

• First, Count’s Accounting division generates the lion’s share of its revenue and earnings, but the same can be said of its invested capital with all the related contract assets and receivables of some $20m at YE FY2023 whereas the net revenue due to advisers is more than what is due to from the client by an estimated $2.4m in the wealth division (negative net working capital).

• Begbies Traynor is one the UK’s largest outfits of insolvency practitioners which are also in the process of growing its non-insolvency service lines such as corporate finance, financial advisory, asset valuations, PP&E transactions, and property consultancy.
• Whilst these service lines differ there is much collusion between them allowing for revenue synergies where appropriate.
• For reference I suggest that readers refer to my older write up which goes into detail about the business.

• HII, known for its expertise in shipbuilding and defense technologies, reported a mixed first quarter for 2024.
• The first quarter was marked by a record revenue of $2.8 billion, illustrating robust demand for HII’s offerings in shipbuilding and a significant growth in their Mission Technologies segment.
• The revenue increase manifested a 4.9% rise compared to the previous year, driven largely by advancements in the aforementioned sectors.

• Toro specializes in the manufacturing and sale of removal products for industries such as golf courses, sports fields, public parks, and agricultural operations
• The company also offers maintenance and repair services to drive recurring revenue from its customer base
• Toro’s products are known for their durability, efficiency, and innovation, helping them maintain a strong market position and grow their customer base, ultimately driving steady profits and shareholder value.

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.

• Armstrong World Industries commenced 2024 with robust first-quarter results, demonstrating sustained growth momentum from the previous year.
• The report indicates a notable increase in key financial metrics, including a 5% rise in net sales and a significant 16% growth in adjusted EBITDA.
• Additionally, an impressive 23% increase in adjusted diluted earnings per share and a 46% surge in adjusted free cash flow highlights efficient financial management.

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• U-Haul benefited in a leveraged manner from the increase in demand for self-moving services during the pandemic.

• ATS Corporation has demonstrated resilience and strategic execution in its latest quarterly and annual financial results, delivering robust performance across its diverse business segments.
• The year witnessed the highest revenues and earnings in the company’s history, underpinned by significant order bookings, particularly in the fourth quarter.
• This growth was further bolstered by strategic acquisitions and a focus on innovation, which has expanded ATS’s proprietary technology and patent portfolio.