In today’s briefing:
- Another HUGE Ushio (6925) Buyback After A HUGE Buyback Last Year
- Grab Holdings (GRAB US) – Rich in Initiatives
- Atlas Arteria (ALX AU): IFM Ups Stake As Shares Waver
- Sodick (6143 JP) – Incremental Progress Is Being Made
- CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
Another HUGE Ushio (6925) Buyback After A HUGE Buyback Last Year
- Last year with earnings, Ushio Inc (6925 JP) announced a HUUUGE buyback discussed in HUUUGE Ushio (6925) Buyback. The headline was 17% of shares out. They ended up buying 13.2%.
- Last year the stock popped on the news. Then shares went sideways for months. Then they went up on stable (bad) earnings guidance in H2. Today they beat Q3-updated guidance.
- But today they announced a “new growth strategy” to 2030, and guided to a SHARP (-60%) drop in OP and NP to March 2025, and announced a HUUUGE Buyback. Again.
Grab Holdings (GRAB US) – Rich in Initiatives
- Grab‘s focus last year was offering more affordable products, which helped to increase its addressable market. FY2024 will see the rollout of a broader range of initiatives across economic segments.
- This year Grab is rolling out more premium offerings and new initiatives, including advance bookings, family accounts, increased reviews, and new merchant features to grow revenue streams from advertising.
- The upcoming results are likely to reflect seasonal factors but should also reveal something about Grab’s new initiatives and the changing competitive environment, with GoTo investing more aggressively.
Atlas Arteria (ALX AU): IFM Ups Stake As Shares Waver
- Back in June 2022, US/Europe toll-road play Atlas Arteria (ALX AU) (ATLIX) rejected IFM Global Infrastructure’s request for limited company information, before deciding whether to submit a non-binding indicative proposal.
- Undeterred, IFM, which held 15% of shares out at the time, bumped its stake to 19% two months later; and has continued to capitalise on Australia’s creep provisions ever since.
- This morning, IFM is understood to have lifted its stake to ~26.5%, in an apparent attempt to gain additional board representation. Another tilt cannot be ruled out.
Sodick (6143 JP) – Incremental Progress Is Being Made
- An uplift in China orders – Q1 FY12/24 results saw a continued decline in sales by 7.4% YoY and 9.3% QoQ.
- However, the core Machine Tools segment saw flat sales QoQ, and order visibility improved with China orders rising by 39.4% QoQ albeit from a low base.
- Cost reduction efforts have commenced and are set to accelerate into Q2 FY12/24 which should improve the scope for profitability, although ultimately this will be sales volume dependent.
CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
- Management has indicated that the pipeline for new leases, renewals is robust as ICE & multiple government entities seek capacity.
- Company is engaged in multiple discussions.
- In addition, the recent debt issuance extended maturities & CXW was able to maintain the cost of capital despite the uncertain rate, economic outlook.
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