Daily Brief Industrials: Jardine Matheson Holdings, Marlowe , HEICO Corp, Duskin Co Ltd, Ayvens , Athens International Airport, Uchi Technologies and more

• There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue
• Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments
• Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year

• Marlowe plc divested certain compliance software and service assets on 22 February 2024 to focus on its TIC and OH businesses
• The company’s total EBITDA pre-divestment was GBP 49m, with HQ expenses of GBP 6m
• The market cap is currently GBP 477m, with divestment proceeds leading to a large net cash balance and an EV of GBP 294m, signaling potential for further divestments or a sale in the future

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.

• HEICO Corporation had a highly positive second quarter financial update call for 2024, where leaders expressed their satisfaction with the record-breaking results generated.
• Operating income and net sales were up by 33% and 39% respectively, from the second quarter of the previous fiscal year.
• Strong organic net sales growth in the Flight Support aftermarket replacement parts area and the impact of successful acquisitions in fiscal 2023 and 2024 were key elements of this success.

• Food Group driving earnings – Q1-4 FY3/24 results were ahead of revised guidance for earnings, driven by solid growth at the Food Group with ‘Mister Donut’ chain restaurant experiencing increasing footfall and price hikes YoY.
• Profits were also boosted by lower- than-planned investment costs at the Direct Selling Group (due in part to delays), although this highlights the challenges of raising sales volume in this mature business.
• With the RFID investment project mostly complete, the company is in a position to benefit from cost savings YoY. 

• Ald SA, soon to be rebranded as Ayvens, has seen a 40% decrease in share price but is believed to have significant upside potential
• The company’s stable car leasing business is identified as a key factor in its value, with good recovery rates due to the liquidity and transferability of leased assets
• The low regulatory risk associated with car leasing compared to other financial sectors could make Ayvens a promising long-term investment opportunity

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.

• Greek government recently IPO’d 20% of Athens International Airport (AIA) as part of privatization
• AIA has seen solid performance in past twelve months due to European tourism boom
• With monopoly on travel into Greece and Greek islands, AIA has potential for growth and operational efficiencies under private ownership

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.

• We compile our gleanings from the last 23 years of Uchi Technologies (UCHI MK) annual reports. The company has never had a lower than 40% operating margin. 
• ROCE has averaged 35% over the last twenty years and 40% for the last ten years. There has never been a year with less than 20% ROCE.
• Trading at 13x FY23 PE with a 7.3% dividend yield, this is an outstanding stock to explore in the small-cap space.