Industrials: Itochu Corp, Hitachi Construction Machinery, Baycurrent Consulting, Atkore Inc, One Enterprise Public Co Ltd, Waskita Karya (Persero) and more

• Itochu today announced a buyback program to buy US$500mm+ in the next 10 weeks. 
• Net income growth, a rising dividend, and balanced risk book help it perform with low beta and medium correlation to peers. 
• The low volatility-relative multiple is supportive, and the buyback helps, but style bias vs Peers matters more. 

• Hitachi Construction Machinery continues to trade under ¥3,000 following the revelation that it would not be bought out by Hitachi. 
• There was little new at its conference call following the Itochu stake purchase announcement save some potential positives on the logistics front. 
• Nevertheless, with the stock trading at five-year lows vs. TOPIX and Komatsu, and consensus looking light we are extremely bullish here.

• Baycurrent Consulting (6532 JP) reported 3QFY02/2022 results last week. Revenue for the quarter increased 39.0% YoY to JPY15.0bn while OP increased 57.5% YoY to JPY3.7bn.
• The company has revised both its revenue and OP guidance upwards for full-year FY02/2022E to JPY56.5bn and JPY21bn respectively.
• The company has already met 73.5% and 72.7% of its revenue and OP target, we expect earnings beat for the full-year as fourth quarter is the strongest.

• This presentation runs through six current short ideas presented on a Smartkarma webinar on 22nd December.
• These are:  Atkore (ATKR), Danaher (DHR), Service Corp International (SCI), ABM Industries (ABM), Monro (MNRO), and Renewable Fuels (REGI).
• The presentation also summarizes Two Rivers’ short idea generation process.

• We reiterate ONEE with a BUY rating, based on a new target price of Bt12.70 (previous TP:11.80)derived from 26.7xPE’22E,which is the average for the stocks in Thailand’s communication services sector
• We expect the company to report 4Q21 net profit at Bt221m (-15%YoY +32%QoQ). Excluding deferred tax item in 4Q20, core earnings would grow 17%YoY, all-time high level.
• Ads spending via TV look resilient relative to overall media

Outlook stays rosy