Daily Brief Industrials: T’Way Air, Jiangsu Guofu, Aditya Infotech Ltd, Checkmate, Waste Connections , AZEK /, Creek & River, GMS Inc, Griffon Corp and more

• It’s unclear if this will turn into a tender offer battle like Korea Zinc, and we need to assess both sides’ financial strength carefully.
• Today’s reports suggest Sono has more financial flexibility than T’way Holdings, but we should be cautious. T’way Air might also consider buying back shares with borrowed funds.
• T’way Air has fewer institutional investors and more available float than Korea Zinc, suggesting significant price swings and an attractive trading setup, as seen in today’s volume spike.

• In the past several days, there have been an increased speculation in the local media about a potential M&A fight for T’Way Air between Yearimdang Publishing and Daemyung Sono Group. 
• The difference in ownership of T’Way Air by Daemyung Sono Group and Yearimdang Group is only 3.2%, which could lead to an intensified management rights dispute. 
• According to local sources, Daemyung Sono Group has recently contacted several law firms to review plans to potentially conduct a tender offer on T’Way Air. 

• Jiangsu Guofu (1628452D CH) is looking to raise about US$500m in its upcoming Hong Kong IPO. The deal will be run by Haitong International, CLSA, CCB International and China Securities.
• Jiangsu Guofu is a leading hydrogen energy storage and transport equipment manufacturer in China.
• It develops and manufactures hydrogen energy core equipment used in the entire industrial value chain of hydrogen energy, consisting of production, storage, transportation, refueling and use.

• Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$155m in its upcoming India IPO. The deal will be run by ICICI and IIFL.
• It is a CCTV/video surveillance provider company offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
• According to the F&S report, it was the largest Indian-owned company offering video security and surveillance products, solutions and services, in terms of revenues in FY24.

• Checkmate, a provider of pre-employment screening solutions in New Zealand, has completed its US$1.6 million seed funding round from Wavemaker Partners.
• The capital will fuel Checkmate’s expansion into existing and new markets, including Australia, the US, and Southeast Asia, specifically the Philippines.
• The funds will also support improvements in the company’s technological capabilities and user experience as more organisations seek reliable and efficient pre-employment screening.

• Waste Connections (WCN) is the third largest solid waste company in North America with strong EBITDA margins and free cash flow conversion
• WCN strategically targets less competitive secondary or rural markets to achieve dominant market shares
• WCN operates in monopolistic or oligopolistic market structures in 90% of its markets, making it a solid all-weather investment option despite its premium valuation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• AZEK Company’s fiscal third quarter of 2024 earnings results demonstrated robust performance, propelled by strategic growth initiatives and market-focused optimization.
• A 12% net sales increase year-over-year was reported, with the residential segment, excluding the divested Vycom business, seeing an 18% growth.
• This segment benefited significantly from strong demand across Deck, Rail, and Accessories.

• Sales increased by JPY580mn (+2.3% YoY), driven by growth in Creative (Japan) and Other sectors, despite project reductions.
• Operating profit decreased by JPY407mn (-15.6% YoY), impacted by development costs and reduced profits in most segments except Creative (South Korea).
• Medical Principle’s sales and operating profit decreased YoY due to reduced COVID-19 projects and structural reforms.

• GMS Inc., a leading distributor of wallboard and suspended ceilings systems, reported mixed financial results for the first quarter of Fiscal 2025.
• The company experienced a slight increase in net sales, reaching $1.45 billion, a 2.8% rise compared to the same period a year ago.
• This growth was primarily driven by volume growth across all four major product categories, which was largely attributed to recent acquisitions.

• Griffon Corporation recently reported its fiscal third quarter 2024 earnings.
• On the positive front, Griffon Corporation reported strong operating performances in its two main segments: Home and Building Products (HBP) and Consumer and Professional Products (CPP).
• HBP achieved an impressive EBITDA margin of 30.1%, demonstrating robust profitability despite a challenging market environment characterized by softening in the commercial sector.