In today’s briefing:
- TOPIX Inclusions: Who Is Ready (Jan 2024)
- All Nippon Airways: Difficult to Outperform Expectations – In Contrast to JAL
- Adi Sarana Armada (ASSA IJ) – Leading Player in People and Goods Mobility
- Rohm (6963 JP): Quantum Process Optimization
TOPIX Inclusions: Who Is Ready (Jan 2024)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Furuya Metal (7826 JP) and Visional (4194 JP) are expected to be included in the TOPIX index at the end of January 2024
- There are couple of other pre-event names that we have been tracking for the past few months.
All Nippon Airways: Difficult to Outperform Expectations – In Contrast to JAL
- Our FY24 to March 2024 EBIT forecast for ANA of ¥ 196bn is considerably higher than company guidance of ¥ 140bn, supported by our analysis of historical earnings seasonality.
- However, we are only narrowly above consensus of ¥186bn, and narrowly below consensus of ¥204bn, ¥208bn in FY25, FY26.
- In contrast, we see considerably greater upside to expectations at JAL, where our FY24 EBIT is 27% above consensus.
Adi Sarana Armada (ASSA IJ) – Leading Player in People and Goods Mobility
- Adi Sarana Armada (ASSA IJ) represents one of the most interesting plays on people and goods mobility and end-to-end logistics in Indonesia, being market leaders in auto leasing and auctions.
- Revenues slowed in 9M2023 due to a slowdown in Anteraja because of slower e-commerce but other areas saw strong growth, especially its auction and used car business.
- Adi Sarana Armada continues to build its renamed Cargoshare end-to-end logistics business with new customers and a move into cold chain logistics. Valuations are attractive relative to growth.
Rohm (6963 JP): Quantum Process Optimization
- Use of quantum technology expected to improve electrical die sorting (EDS) performance by several percentage points.
- Collaboration with Quanmatic aims at full-scale introduction in April, the first month of FY Mar-25.
- Buy for long-term growth led by power semiconductors with margin expansion from efficiency gains.
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