Daily Brief Industrials: Nidec Corp, Adani Ports & Special Economic Zone, Applus Services SA, AP Moeller – Maersk A/S, DX Group PLC, Greenland Technologies Holdi and more

• Consolidated net sales increased by +4.4% YoY to ¥594,026 million
• Operating profit increased by 90% YoY to ¥53,562 million, but were down 3.7% QoQ.
• Full-Year guidance for OP was revised down by 20% to ¥180,000 million. We remain bullish on long-term structural electrification thesis

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone

• Apollo has acquired 21.85% of Applus Services SA (APPS SM) from risk arb funds and raised the offer price by 12% to €10.65/share, 9% above I Squared/TDR’s offer.
• The competing consortium should counterbid to stay in the game. My fair value estimate is €10.92. The shares are trading at €10.88 in the hope of a counteroffer.
• If you have not been holding the shares since the outset (I have been positive about the shares since May), I would probably weight the risk/reward before getting involved.

• December was best reading from our momentum tracker since November 2022
• Improvement driven by rising spot rates, new fees, and stronger volume growth
• Even before Red Sea / Suez capacity squeeze, conditions were bottoming

• On 9 January, the Scheme was approved at the Court Meeting, and the resolution to implement it was approved at the GM. Court sanction will take place on 25 January.
• Settlement should take place by 12 February. Several risk arbs have been jumping on this deal, in spite of the low liquidity. 
• A done deal. Gross spread is 0.42%, while the annualised return is 8.81%. Reiterate BUY.

• HEVI announced the addition of Amerit Fleet Solutions as an Authorized Service Provider to support the company’s electric powered heavy industrial equipment.
• Amerit Fleet Solutions, which has more than 800 locations nationwide, joins Mid-Atlantic-focused Quality Truck Center as the second multi- location service company that has partnered with HEVI to support customers with its equipment.
• The addition of another service provider should help boost the growth of HEVI’s products. In addition to expanding awareness of the brand, this should help alleviate any concerns that potential customers might have about supporting and servicing their equipment.