In today’s briefing:
- MHI (7011) | Rockets and Renewables
- CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds
- Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%
- ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem
- ACCO: Sales Retraction Creates Headwinds
- HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction
MHI (7011) | Rockets and Renewables
- MHI reports impressive YoY growth in order intake, revenues, and profits across Energy Systems and Defense Equipment segments in Q2 2023.
- Despite a 62% YTD stock price increase, strong order backlog and underlying drivers suggest resilience in a challenging economic climate.
- The company benefits from global trends in decarbonization and increased national security spending, positioning itself as a leader in gas turbines and defense technology.
CaiNiao Smart Logistics Pre-IPO Part 4 | Acquiring BABA’s Express Stakes Could Soak Up IPO Proceeds
- Acquiring parent Alibaba’s express investments could soak up much of CaiNiao’s IPO proceeds
- Such transfers would help Alibaba, but the potential benefit to CaiNiao is less clear
- The transfers of these stakes could become an important aspect of CaiNiao’s IPO process
Maersk Q3: Estimates Met, Guidance Kept | But Downbeat Assessment of Market Sends Shares Down -17%
- Container shipping giant Maersk met Q3 expectations and maintained earlier FY23 guidance
- However, downbeat commentary combined with capex and job cuts sent shares -17% lower
- Maersk does not expect any recovery in ’24, but we believe this pessimism already in prices
ASEAN EV Ecosystem Update: Progressing Towards a Robust EV Ecosystem
- EV Adoption in ASEAN is low compared to developed markets, however, development of a robust EV ecosystem remains a primary goal for the respective nations.
- Governments in the region continues to introduce new policy measures and offer incentives to promote the sector, while companies continue to attract large investment to develop the EV market.
- The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.
ACCO: Sales Retraction Creates Headwinds
- ACCO reported third quarter results without the expected back to school benefit. Instead, ACCO focused on profitable sales helping to lift gross margin and report higher earnings results
- Retailers continue to tightly manage their inventory levels and the trend is expected to remain in the fourth quarter.
- ACCO remains a free cash flow investment story. We are not expecting growth in 2024 putting greater pressure on how much free cash flow ACCO can generate
HNI Corporation – Raising Estimates Following Strong 3Q Earnings Report – Correction
- This note corrects the version that was published on November 2. Due to errors in our model, the full-year estimate for 2024 was not calculated properly.
- The correct full-year 2024 EPS estimate is $2.65.
- We are raising our non-GAAP (adjusted) EPS estimates for 4Q23 and 2024 following HNI’s strong 3Q23 earnings report on Tuesday, October 31, 2023.
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