Daily Brief Industrials: Samsung C&T, Qantas Airways, Boeing Co, Hyundai Rotem Company, Waste Management, HNI Corp, Howmet Aerospace and more

• Samsung Asset Management announced today that it will be launching the first Corporate Value Up ETF on 27 February. It will focus on low PBR and positive cash flow generators.
• This ETF which will be called KoAct Dividend Growth Active ETF. There are about 45 stocks that are expected to be included in this ETF. 
• Among the 92 companies in KOSPI 200 that are trading at less than 1x PBR, those that generate positive free cash flow are outperforming significantly. 

• With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
• We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
• While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.

• Boeing shares are down 20% since the start of the year, despite a booming global market for aviation
• Boeing’s focus on financial performance and stock price over safety and engineering has been a concern
• The current CEO David Calhoun dissolved the company’s strategy department, raising questions about Boeing’s future direction and decision-making strategies

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly. 
• As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won. 
• The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem, Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries.

• Waste Management, Inc.
• has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by nearly $25 million, affirming the company’s original expectations at the start of the year.
• However, despite this impressive performance, there are still risks ahead given uncertain economic conditions.

• Before the open, HNI reported 4Q23 results, beating on adjusted EPS and roughly in line on the consolidated revenue line.
• Adjusted EPS was $0.98, well ahead of our estimate of $0.84 and consensus of $0.83.
• The adjusted number excluded ~$0.50 of restructuring asset impairment and acquisition-related costs.

• Howmet Aerospace positively reported strong fourth quarter 2023 results, achieving or surpassing the upper end of guidance across various parameters, including revenue, EBITDA, EBITDA margin, and earnings per share.
• It was reported that the company continued to grow faster than its respective markets.
• The full-year figures for 2023 also revealed strong performances with a 17% increase in revenue and 18% increase in EBITDA. The earnings per share showed significant annual improvements, setting a record at $1.84 per share, marking a 31% year-over-year increase.