In today’s briefing:
- Mainland Connect NORTHBOUND Flows (To 17 May 2024):
- ECM Weekly (20th May 2024) -Lalatech, Go Digit, Aadhar, TBO Tek, Ecopro, Nexus, Modec, Hyundai Heavy
- Hamamatsu Photonics (6965 JP): Look Cautiously to the Long Term
- nVent Electric: Progress on Electrification
- TransDigm Group: Will Their Core Business Strategy Work? – Major Drivers
Mainland Connect NORTHBOUND Flows (To 17 May 2024):
- The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
- Last week saw NORTHBOUND net BUY RMB 8.8bn of A-shares on lower gross volumes. NORTHBOUND bought Luxshare, CMB, and CATL. AH Premia now lowest in 4yrs.
- Foreign attitudes to HK stocks different than to mainland stocks. This may continue.
ECM Weekly (20th May 2024) -Lalatech, Go Digit, Aadhar, TBO Tek, Ecopro, Nexus, Modec, Hyundai Heavy
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, Indian IPOs continued to do well, we also looked at two upcoming deals in Hong Kong.
- On the placement front, last week ended up being one of the busiest ones so far this year with five deals live just on Thursday night alone.
Hamamatsu Photonics (6965 JP): Look Cautiously to the Long Term
- The company has slashed FY Sep-24 guidance after missing 1H sales and profit targets by wide margins. Dividend maintained, 2-for-1 split planned and buyback under consideration.
- Capex has been cut, reflecting lower growth expectations. R&D also. Inventory adjustments will eventually be completed, but Chinese competiton will remain a problem.
- The share price has dropped 30% in the past year and 10.5% since May 8, putting the shares on 27 times EPS guidance. Still not cheap, but getting there.
nVent Electric: Progress on Electrification
- nVent Electric performed strongly in the first quarter of 2024, delivering impressive volume growth, margin expansion and robust free cash flow.
- The company executed its growth strategy, focusing on high-growth verticals, new products, global expansion and acquisitions.
- The continued acceleration of artificial intelligence (AI) has also increased demand for the company’s Data Solutions offerings.
TransDigm Group: Will Their Core Business Strategy Work? – Major Drivers
- The TransDigm Group reported their second quarter 2024 earnings and the group highlighted that their strategy remains consistent, focusing on intrinsic shareholder value creation through the different phases of the aerospace cycle.
- Approximately 90% of net sales are from unique proprietary products, with most of their EBITDA coming from aftermarket revenues.
- This results in higher margins and relative stability during downturns.
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