Daily Brief Industrials: Hanjin KAL Corp, Evergreen Marine Corp, Mazda Motor, CIMC Enric Holdings, J&T Global Express , GXO Logistics, Sai Gon Cargo Service , Triumph Group, Trimas Corp, Ashtead Group and more

• KRX will launch 12 ETFs tracking the Korea Value-Up Index on November 4—9 passive and 3 active—aiming for an initial AUM exceeding 1 trillion KRW.
• KRX is pressuring ETF operators to reveal initial capital by November 4, with expectations to exceed 1 trillion KRW due to government pressure.
• Early signs of position buildup are emerging, so it’s essential to monitor stocks with significant passive impact closely moving forward.

• Using data from the close on 11 October, there could be 6 adds and 5 deletes for the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
• There will also be capping and funding flows that will lead to a one-way turnover of 15% and a one-way trade of TWD 49bn (US$1.52bn)
• Shorts have been building up in some of the forecast deletes and in a couple of the forecast adds as well.

• Below is a sample of the unloved Japanese stocks we focus on at Azabu Research, with key valuation metrics and latest news.
• The average PBR in this week’s list is 0.5x and the average P/E is 5.9x.
• Most of the stocks in this week’s round up are related to either the auto supply chain or the electric power grid.

• CIMC Enric Holdings (3899 HK) has underperformed benchmark Indices YTD, and its business segments are undervalued based on their earnings performance. 
• The clean energy segment is only valued at HK$3.4bn, or 24% of the stock’s total. However, it is the largest earnings generator in 1H24, contributing 60% of 1H24 profit.
• CLPT’s earnings contribution is 22% more than CIMC Safeway’s, but it is only valued at 27% of the latter, equivalent to an undemanding 9.8x annualised PER.

• Last week J&T Global Express reported Q324 express parcel volume by segment
• Volume growth in all segments slowed dramatically compared to Q224
• Without needed context, we believe the numbers undermine J&T growth story

• GXO Logistics, a leading global provider of supply chain solutions, has been in the news recently for exploring strategic options including a possible sale.
• The company has positioned itself well as a potential acquisition target.
• Since its spinoff from XPO Inc. in 2021, GXO has experienced steady growth, signing $270 million of new business in the second quarter and expanding its pipeline to a record $2.3 billion.

• Sai Gon Cargo Service (SCS VN) reported strong September numbers, with cargo volumes increasing 40% YoY. 
• With the tariff hikes in effect, we expect revenues/profits to rise 45% YoY/40% YoY in Q3 2024, 
• Trading at 10.7x PE FY24 and a 9% dividend yield, we cover catalysts such as the Long Thanh airport bidding and the corporate tax change to 20% in 2025. 

• Triumph Group’s first quarter fiscal year 2025 results offer a multifaceted view of the company’s current strategic and financial positioning.
• On the one hand, Triumph showcased several positive developments, such as year over-year sales growth led by strong aftermarket demand and successful debt reduction efforts.
• Additionally, the company received credit rating upgrades from major agencies, Moody’s and S&P, signaling an improved financial outlook to investors and stakeholders.

• TriMas Corporation’s second-quarter 2024 earnings report presents a mixed performance across its business segments.
• The company experienced moderate revenue growth compared to the previous year but faced significant challenges in certain areas.
• The highlights of the earnings reveal both encouraging signs of recovery and concerns around persistent operational difficulties.

• Ashtead, known as Sunbelt, is the second largest equipment rental company in the US
• Despite cyclical concerns and minor operational issues, it is seen as a strong investment opportunity due to organic growth potential
• Sunbelt has a diverse fleet of equipment and focuses on non-residential construction, industrial clients, and maintenance operations, improving efficiency for customers.

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.