In today’s briefing:
- Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?
- Afcons Infrastructure IPO – Decent Upside from the Price Range
- Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes
- Nidec (6594)| Q2 In-Line; Long-Term Outlook Intact
- SITC International (1308 HK): Unbeatable
- ASR US – Actinver Research – ASUR 3Q24: Positive Results, In line with our estimates (Quick View)
- Actinver Research – VOLAR 3Q24: Positive Quarterly Results, Beating Our Estimates (Quick View)
Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?
- Tokyo Metro (9023 JP) had a blockbuster listing yesterday, finishing the day 45% higher. That took the estimated div yield down from 3.33% (at the IPO price) to 2.3%.
- One expected index inclusion will not take place due to insufficient information on IPO allocations and that leads to a much lower free float than expected.
- That inclusion will now be deferred to June; BUT there could be two other (bigger) index inclusions on the cards prior to that.
Afcons Infrastructure IPO – Decent Upside from the Price Range
- Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
- Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
- In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.
Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes
- In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
- Separately, we see multiple M&A-related intra-review changes in the next few months.
- There could also be more regular changes during the December 2024 rebalanced event
Nidec (6594)| Q2 In-Line; Long-Term Outlook Intact
- Nidec’s Q2 operating income beat my estimates, driven by strong small motors and appliance segments, though automotive profits underperformed
- The automotive division is shifting focus from e-axles to broader auto parts, while improving operational efficiency through partnerships and streamlined logistics
- Despite macro risks, Nidec remains well-positioned for long-term growth in digitalization, decarbonization, and automation, with a price target of ¥4,350
SITC International (1308 HK): Unbeatable
- Together with the just-announced HK$0.40 special DPS, SITC International (1308 HK) has already handed back HK$1.12/share to shareholders YTD, realising a dividend yield of 6.5%.
- Its 3Q24 performance is impressive, with revenue surging 56.6% YoY. Both volume (+13.4%) and average freight rates (+44.1%) have exhibited solid momentum.
- While the consensus forecasts have been upgraded by 7-11% since the 1H24 result, there appears more room to go. FY24 ROE is now expected to be 32.2%.
ASR US – Actinver Research – ASUR 3Q24: Positive Results, In line with our estimates (Quick View)
- Operating Revenues of P$6.8bn were driven by solid aeronautical growth.
- Total operating sales growth of 14% YoY was driven by a solid 19% YoY gain in aeronautical revenues, mainly explained by higher average tariffs (+22% YoY), which offset the 2% drop in total PAX.
- On the other hand, non-aeronautical revenues (34% of the total) gained 5% YoY, supported by an implicit gain of 7% YoY in the non-aeronautical revenue per PAX.
Actinver Research – VOLAR 3Q24: Positive Quarterly Results, Beating Our Estimates (Quick View)
- Operating revenues of US$813 m decreased by 4% YoY.
- Top-line results were negatively impacted by a 14% YoY contraction in the ASMs (due to mandatory engine inspections, which resulted in the landing on average of 34 airplanes) and a 13% YoY drop in RPMs. Yields in the quarter ended at US$53.0, implying a 9% YoY gain and 7% above our estimate.
- The load factor in 3Q24 was 87.4%, with a +1.0 pp YoY expansion.
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