In today’s briefing:
- Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats
- Malaysia Airports (MAHB MK): Pre-Conditional Voluntary Offer at RM11.00
- S Line (9078 JP) TOB/MBO at 0.57x Book – Wrong Price by Far but Only AGGRESSIVE Activism Blocks It
- Recruit: As We Said… Weakening Earnings
- C.H. Robinson Worldwide: Will Its Push Towards Innovative
- XPON: The core battery business still faces a difficult
- CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
- Parker-Hannifin Corporation: Evolution of Win Strategy 3.0 and Margin Expansion! – Major Drivers
Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats
- Today, Japan Post Holdings (6178 JP) announced results (and Mar25 guidance) as did its subsidiaries Japan Post Insurance (7181 JP) and Japan Post Bank (7182 JP).
- There are a number of interesting things in all the announcements/presentations but the most interesting one for JPH holders is a big buyback. Another one.
- The company has announced a ¥350bn buyback. It is larger than last year’s (¥300bn) buyback and has another important difference.
Malaysia Airports (MAHB MK): Pre-Conditional Voluntary Offer at RM11.00
- Malaysia Airports Holdings (MAHB MK)’s pre-conditional voluntary conditional offer from a four-member consortium is RM11.00, a 5.8% premium to the last close.
- Despite the offer representing an all-time high, the 90% minimum acceptance condition could be challenging due to the low takeover premium and discount to historical and peer multiples.
- The consortium can overcome issues satisfying the minimum acceptance condition by bumping the offer or lowering the acceptance condition.
S Line (9078 JP) TOB/MBO at 0.57x Book – Wrong Price by Far but Only AGGRESSIVE Activism Blocks It
- Today, S Line Co Ltd (9078 JP) announced its CEO would conduct a Tender Offer MBO to buy out the ¥50bn-target revenue logistics company, at 0.6x book.
- The company announced results with revenues up. But withdrew its existing MTMP which said revenues would be up 10% from here to March 2025 and ROE would be higher.
- This is the wrong price. It should engender some upset, but active investors own almost nothing it seems.
Recruit: As We Said… Weakening Earnings
- Recruit Holdings (6098 JP) reported 4Q and full-year FY03/2024 results today. Earnings beat own guidance as well as consensus estimates.
- Weakening labour markets have negatively impacted all business segments and new pricing model for Indeed has not really been successful.
- Recruit expects a recovery in 2HFY03/2025, but at the rate at which job openings are going down, we remain cautious.
C.H. Robinson Worldwide: Will Its Push Towards Innovative
- In the first quarter of 2024, C.H. Robinson implemented a new operating model based on lean methodology, aiming to improve execution, decision-making, and accountability across the business.
- This shift resulted in better pricing and capacity procurement efforts, thus improving optimization of volume and adjusted gross profit per truckload.
- The company saw improved operational discipline and decision-making based on data, fostering a healthier work culture with a focus on continuous improvement.
XPON: The core battery business still faces a difficult
- Expion360 continues to expand its product lineup beyond the core RV and marine battery markets as it has officially entered the home energy storage market and expanded its offerings for the small RV market.
- New RV shipments have shown signs of life in the first quarter but we will have to the mix of RV shipments appears to have shifted to lower end towable units.
- The company released first-quarter results which were roughly in line with our lowered expectations.
CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
- Management has indicated that the pipeline for new leases, renewals is robust as ICE & multiple government entities seek capacity.
- Company is engaged in multiple discussions.
- In addition, the recent debt issuance extended maturities & CXW was able to maintain the cost of capital despite the uncertain rate, economic outlook.
Parker-Hannifin Corporation: Evolution of Win Strategy 3.0 and Margin Expansion! – Major Drivers
- The Parker-Hannifin Corporation had a strong third-quarter performance in its Fiscal Year 2024, recording record sales of $5.1 billion and a 150 basis point improvement in its margins on the prior year.
- The CFO, Todd Leombruno, attributed the record levels of sales, segment operating income, net income, and earnings per share to the impressive operating performance of the company.
- Highlights of the quarter included the aerospace segment which drove significant growth and a record operating margin of 26.7%.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
