In today’s briefing:
- JAPAN ACTIVISM: Murakami Now 29% of Mitsui Matsushima. Activism? Or Effort to Make Murakami Listco
- KOSPI Size Indices: Potential Migrations in September Are Moving
- HNI Corporation – Announces $10.3MM HBF Restructuring
- ITT Inc.: Initiation of Coverage – Will Its Outstanding performance In The China Market Last? – Major Drivers
- Jacobs Solutions: Will The Solid Momentum in the Critical Infrastructure Market Last? – Major Drivers
- Trane Technologies: Enhanced Capabilities in the Data Center Sector & Other Major Drivers
JAPAN ACTIVISM: Murakami Now 29% of Mitsui Matsushima. Activism? Or Effort to Make Murakami Listco
- Noted Japanese activist MURAKAMI Yoshiaki and his entities and relations went from 4.98% to 19.88% of Mitsui Matsushima (1518 JP) at an average ¥3,500/share from 2 May through 10 May.
- Then they bought an additional 5.44% on 13 May, just before earnings, in the midst of a huge run-up, paying 40% more for that 5% than the first 5%.
- I thought that might be the end, but in two days, they have bought an additional 9+%. There is something else going on. It is worthy of your attention.
KOSPI Size Indices: Potential Migrations in September Are Moving
- The review period for the September rebalance of the KOSPI Size Indices will run from 1 June to 31 August.
- We see 6 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 6 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
- Stocks migrating upward have outperformed stocks migrating lower. But there are still stocks trading at a Price to Book of less than 1.
HNI Corporation – Announces $10.3MM HBF Restructuring
- After Monday’s market close, HNI announced an intended plant consolidation in which it will close its Hickory, NC furniture manufacturing plant (HBF is part of its Workplace Furnishings [WF] segment) during 1H25 and transfer production to other North American facilities.
- Management avows that the initiative will improve productivity and strengthen operations but, importantly, will not sacrifice capacity or create disruption to customers who will benefit ultimately from better delivery and logistics coordination.
- During the balance of 2024 and 2025, HNI will book ~$10.3MM in restructuring, accelerated depreciation, and other charges ($1.5MM non-cash).
ITT Inc.: Initiation of Coverage – Will Its Outstanding performance In The China Market Last? – Major Drivers
- ITT Corporation delivered strong results in the first quarter of 2024, surpassing revenue, margin, and EPS expectations.
- The company continued its robust performance, building on the momentum it achieved in 2023.
- The company achieved organic order growth of around 7% or 13% in total, which led them to nearly $1 billion in order bookings.
Jacobs Solutions: Will The Solid Momentum in the Critical Infrastructure Market Last? – Major Drivers
- Jacobs Solutions has shared positive financial results in Q2 2024 earnings which saw revenues grow by 5% and an adjusted net revenue climb 3% organically.
- However, gross revenue for the second quarter fell short of expectations resulting in a reach of $281 million for the quarter, including $53 million of amortization from acquired intangibles and $58 million of transaction costs.
- Second quarter consolidated revenue was driven by a 5% growth with backlog up 2% year-over year and gross margin increased approximately 50 basis points year-over-year.
Trane Technologies: Enhanced Capabilities in the Data Center Sector & Other Major Drivers
- Trane Technologies Plc emerged from the latest earnings with solid results in the first quarter of 2024, reflecting the success of its underlying business strategies and operational excellence.
- The company offers compelling investment prospects given the ongoing tailwinds in its market segments, continued innovation, and higher revenue and earnings outlook for the year.
- Strong corresponding results of previous efforts in megaprojects and building services, as well as a robust backlog of $7.7 billion, a 10% increase from the previous year, lend credence to the positive growth trajectory and further validates this investment.
💡 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
