In today’s briefing:
- SYM: Now a General Contractor?
- Ador Weldings Ltd- Forensic Analysis
- Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)
- Naigai Trans Line (9384 JP): 1H FY12/24 flash update
SYM: Now a General Contractor?
- SYM had an increase in system costs. SYM’s management highlighted delays in construction of systems in the quarter resulting in the Company to taking back EPC work.
- SYM suggests bringing the EPC work in-house would be more efficient. We do not agree. This creates additional headwinds as to timing and could create a new risk for SYM.
- During the earnings call, SYM’s management referred to delays in permits and product delivery resulting in people not having anything to do. This is a characterization of a construction/contracting company.
Ador Weldings Ltd- Forensic Analysis
- Ador Welding (AWL IN) is a renowned player in the business of manufacturing and trading of welding and related products.
- The company sells welding consumables, equipments and also does preoject-engineering. While the company has seen recent growth in topline, there are few forensic checks that one must be cautious about.
- This relates to accounting policy relating to Flares segment, lack of conservatism relating to ECL provisioning and depreciation, troubles in generating cash, etc.
Monthly Chinese Express Tracker | Strong June Volume | Weak Pricing and Intl | (July 2024)
- Parcel volume growth remained strong in June, but ASPs weakened (again)
- YTO Express seems to be managing price / volume tradeoff competently
- Year-To-Date, only YTO shares up > 10%; three companies down -10% or more
Naigai Trans Line (9384 JP): 1H FY12/24 flash update
- Sales rose to JPY17.2bn (+6.1% YoY), driven by strong overseas subsidiaries and a weaker yen.
- Operating profit decreased to JPY1.9bn (-15.3% YoY) due to increased SG&A expenses and reduced high GPM LCL export cargo.
- Overseas segment sales grew to JPY6.0bn (+30.2% YoY), with solid warehouse operations in India and South Korea.
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