Industrials: Guodian Technology & Environment Group, Winia Aid, Valmont Industries, KNR Constructions, Larsen & Toubro and more

• Guodian Technology & Environment Group (1296 HK)‘s (GTE) pre-cons are now fulfilled – bang in line with my timetable estimate.
• The Composite Document should be despatched to the shareholders on or before 29 April 2022. 
• Assuming all goes to plan – and there is every indication it will – payment under the Offer is expected around mid-June.

• Winia Aid is getting ready to complete its IPO in June. According to the bankers’ valuation, market cap after the IPO is from 219 billion won to 249 billion won.
• It has three main businesses including distribution, logistics, and services. Distribution and logistics are for Winia and other global products. Service is mainly for Apple’s authorized service provider in Korea. 
• The company has a solid growth in sales and profits. From 2018 to 2021, the company’s revenue and operating profit increased by 39.2% and 86.2% CAGR, respectively.

• Valmont Industries operates in four primary business segments: Engineered Infrastructure Products, Utility Support Structures, Irrigation and Coatings; as well as in the tubing, grinding media and electrolytic manganese dioxide businesses.
• Valmont focuses on two global markets: infrastructure and agriculture.
• The Irrigation segment manufactures and distributes mechanical irrigation equipment, and related parts and services under the Valley brand name for the agricultural industry; and tubular products for industrial customers

• KNRC sits on a strong order book of ~INR100b (excluding recently won projects), which provides clear revenue visibility for the next three years.
• It has received appointed dates (AD) for two HAM projects in Jan’22 and financial closure (FC) in one HAM project in Apr’22, which will support execution in FY23E and FY24E.
• We expect margin to stay elevated, despite inflationary pressures from higher commodity prices, as a sizable portion (~26%) of its order book consists of irrigation projects.

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• LTTS reported a 3.6% QoQ CC growth in 4QFY22, 90bp below our estimate due to softer growth in Industrial Products (-0.5% QoQ), Medical Devices (flat QoQ), and Telecom and Hi-Tech (+1.1% QoQ), while Transportation grew a robust 7.8% QoQ.
• Despite the large 400bp shift in its on-site revenue mix and lower utilization (-80bp QoQ), operating margin was flat QoQ.
• Attrition spiked to 20.4% (+290bp QoQ) in 4QFY22, indicating continued supply pressures.

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