Daily Brief Industrials: Hyundai Engineering & Construction, SharkNinja , Azoom, COPRO-HOLDINGS Co Ltd, Fastenal Co, Hydrofarm Holdings Group Inc, CBAK Energy Technology , Ichiken Co Ltd, Punch Industry, Rix Corp and more

• Although it is UNCERTAIN when the wars in Ukraine and the Middle East will end, if these wars indeed come to an end, this could POSITIVELY IMPACT Korean construction sector.
• The end of the wars in Ukraine and the Middle East is likely to NEGATIVELY IMPACT the Korean military/defense sector. 
• The major Korean construction companies have low valuation multiples. On the other hand, the major Korean military/defense companies have high valuation multiples.

• SharkNinja’s third quarter of 2024 financial performance highlighted several strengths and strategic initiatives that point to its robust market position and growth trajectory, balanced by some areas of concern that underline potential risks.
• Displaying a strong performance in adjusted net sales and adjusted EBITDA growth, SharkNinja reported substantial year-over-year increases, demonstrating resilience and strategic agility in a fluctuating economic environment.
• The global teams’ efforts mirrored in a 35% rise in adjusted net sales and 26% growth in adjusted EBITDA, showcasing strong operational execution and market responsiveness.

• Sales increased by 27.4% YoY, with the Idle Asset Utilization segment driving growth, achieving JPY10.0bn in sales.
• The company forecasts FY09/25 sales of JPY12.5bn, operating profit of JPY2.5bn, and net income of JPY1.6bn.
• Visualization segment reported full-year sales of JPY214mn, focusing on technical skill improvement and expanding the sales team.

• Revenue increased to JPY14.2bn (+27.7% YoY), with operating profit at JPY1.2bn (+67.9% YoY) and recurring profit at JPY1.3bn (+55.1% YoY).
• Net income attributable to owners of the parent reached JPY798mn, marking a 56.4% year-over-year increase.
• Technician numbers grew by 967 (+27.5% YoY) to 4,482, driven by enhanced in-house recruitment capabilities.

• Fastenal started as a small retailer in Minnesota and has evolved into a mission critical supply chain partner for industrial customers
• The company today has nearly USD8 billion in sales and a market capitalization of nearly USD50 billion
• The company’s founder Bob Kierlin has played a significant role in the company’s success

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• Hydrofarm is a non-plant touching, NASDAQ-listed leading manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA).
• The company’s products consist primarily of consumable products, such as nutrients and grow media, and durable products, such as grow lights, climate control solutions, rolling racks/benches, and various other equipment and supplies.
• Hydrofarm reported 3Q24 results, with revenue of $44.0 million, lower than our estimate of $46.5 million.

• CBAK Energy Technology’s core battery business continues to perform admirably in the face of a broader industry downturn.
• There are several positive catalysts on the horizon for CBAK which are partially offset by the current industry challenges and the continued weakness of the HiTrans raw material business.
• Both of the company’s battery facilities are now operating profitably and the company is poised to materially increase capacity in 2025.

• Ichiken’s FY03/25 forecast: Revenue JPY98.0bn, operating profit JPY4.8bn, recurring profit JPY4.7bn, net income JPY3.2bn.
• Medium-term targets FY2023-FY2025: Revenue JPY93bn, OPM 5.0%, ROE 8.0%, dividend payout ratio 30%, total investment JPY10bn.
• Long-term targets FY2030: Revenue JPY100bn, OPM 5.0%, ROE 8.0%, equity ratio 50%, total investment JPY30bn.

• Revenue increased to JPY20.0bn (+4.5% YoY), with growth in China (+15.8% YoY) and declines in Japan and Southeast Asia.
• Operating profit rose to JPY692mn (+32.8% YoY), while recurring profit decreased to JPY606mn (-25.0% YoY).
• Full-year revenue forecast revised to JPY40.8bn, with downward revisions for operating, recurring profit, and net income projections.

• In 1H FY03/25, revenue increased 9.9% YoY to JPY26.0bn, while operating profit decreased 3.5% YoY.
• FY03/25 earnings forecast: revenue JPY52.0bn (+4.5% YoY), operating profit JPY3.5bn (-2.7% YoY), dividend JPY120.0/share.
• Segment profits declined in Machine Tools, Rubber & Tire, and Electronics & Semiconductor; increased in Steel, Automotive, Environment.