Daily Brief Industrials: Japan Airlines, Ushio Inc, Hyundai Hyms , Bizlink Holding, Posco International Corporation, Carr’s Group PLC, J&T Global Express and more

• Japan Airline’s Flight JL516 operated by a two-year-old Airbus A350-900 burst into flames upon landing at Haneda Airport, apparently hitting a small Japanese Coast Guard aircraft  
• 379 passengers and crew were safely evacuated, but five of six crew on a Japanese coast guard aircraft were unaccounted for
• Haneda Airport runaways are all closed, aircraft heading to Haneda are diverted to other airports or flights aborted altogether   

• Ushio has tied up with Applied Materials (AMAT) to develop lithography systems for package substrates using AMAT’s Digital Lithography Technology.
• This should keep the focus on Ushio’s more advanced technologies (which also include EUV mask inspection light sources) and its potential to rebound with the semiconductor cycle.
• The shares have dropped back 10% since mid-December, providing an entry point. 3Q results are scheduled to be announced on February 9.

• Hyundai Hyms is getting ready to complete its IPO in KOSDAQ in January. The total IPO offering amount is 43.5 billion to 54.9 billion won. 
• The company is offering 8.7 million shares in this IPO, of which 40% are old shares and 60% are new shares. 
• Hyundai Hyms specializes in shipbuilding equipment. Hyundai Hyms’s main business includes shipbuilding equipment and related services. 

• In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the March 2024 Index Rebalance.
• As things stand, I see one change for the T50 index and one more change for the T100 index.
• TDIV member Bizlink Holding (3665 TT) is very close to getting deleted from the T100 index and that could have significant TDIV flow implications too.

• We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in January 2024, among which 4 are in KOSPI and 37 are in KOSDAQ.
• These 41 stocks on average could be subject to further selling pressures in January and could underperform relative to the market.
• Among these 41 stocks, top five market cap stocks include Posco International, Doosan Robotics, Rainbow Robotics, Qualitas Semiconductor, and PhilEnergy.

Cyclical weakness in Carr’s Group’s Speciality Agriculture business has affected the company’s fortunes of late. However, the new management team, a strong net cash balance sheet and a record order book in the Engineering division offer optimism. Operational progress, particularly a reversal of fortunes in Speciality Agriculture, should rebuild confidence and a reduction in the current discount to our view of the underlying value.

• In this insight we preview J&T’s maiden earnings report as a listed company
• We focus on revenue growth & margin trends in the China & SE Asia businesses
• We fear slowing organic growth & margin deterioration could spook investors