Daily Brief Industrials: LG Corp, Samsung C&T, Larsen & Toubro, Lindbergh SpA, IMCD Group NV, easyJet PLC, Resideo Technologies Inc and more

• Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
• For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
• LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution. 

• From July, Korea’s listed firms will disclose value enhancement plans. Korea’s NPS may exclude non-compliant firms, pending official response, though internal review suggests likely implementation.
• It’s crucial to know portfolio stocks for proactive positioning. A setup targeting potential exclusion from NPS’s ESG funds due to post-July compliance must be designed.
• Managers often use KRX ESG Leaders 150, aligning portfolios with it. Thus, it’s crucial to use this list for post-July compliance monitoring and to adapt setups for NPS’s flow impacts.

• In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
• Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
• Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

• Lindbergh Spa operates a sophisticated digital platform model for logistics and engineering services within the Italian and French MRO (Maintenance, Repair, and Operations) market.

• This approach not only supports strong operating margins but also provides value-added services in an industry typically marked by commoditization.

• Distinguishing itself as the sole competitor with such a differentiated business model, Lindbergh faces formidable barriers to entry.

• IMCD is a global specialty chemicals distributor headquartered in the Netherlands with a strong presence in the Americas, EMEA, and Asia-Pacific regions.
• The company is currently led by CEO Piet van der Slikke and CFO Hans Kooijmans, who are transitioning leadership to Valerie Diele-Braun.
• IMCD has a diversified geographic footprint and operates in multiple countries, positioning it for continued success in the specialty chemicals industry.

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.

• Summer pricing data suggests growth yoy for European short haul carriers.
• This prompts us to raise our easyJet PBT forecast 11% to £676m for FY24.
• We continue to see underperforming Wizz Air as the carrier with greatest opportunity to improve perception towards it by executing well in summer 2024.

• This is our first report on renowned manufacturer of comfort, residential thermal, and security solutions, Resideo Technologies, Inc.
• The company concluded 2023 with solid Q4 revenue and profitability, beating the midpoint of its comprehension, underpinned by a vigorous cash generation with a full-year operating cash flow of $440 million.
• The company gained traction throughout the year in order activity within Products and Solutions and made substantial strides in key strategic operational initiatives and significantly curbing structural costs.