J P M O R G A N Global Markets Strategy 09 July 2025 ASEAN Equity Strategy Taking stock of Deals, Negotiations and New Tariffs Being the first country in ASEAN to strike a tariff deal with the US at a 20% rate (40% for transshipment), Vietnam saw its stock market rally by more than 3% MTD. The US-Vietnam trade framework could be a template for ASEAN countries. Thailand, Malaysia, Indonesia, and the Philippines are still in discussions with the US (see Table 1 for a summary). We believe countries actively wo ...

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1: Analyst Background - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and previously spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. Group 2: Investment Philosophy - The investment recommendations are based on a comprehensive understanding of the investment ecosystem, highlighting the interconnectedness of various sectors and companies [1].

Group 1 - The article discusses the search for financial instruments that have reached their bottom, focusing on identifying undervalued assets compared to competitors [1] - The investing group Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The article emphasizes the importance of community engagement, inviting active investors to join a free trial and participate in discussions with sophisticated traders [1]

Company Performance - Broadwind Energy, Inc. (BWEN) stock decreased by 1.06% to $1.86, underperforming the S&P 500 which fell by 0.33% [1] - The stock has declined by 0.53% over the past month, lagging behind the Industrial Products sector's gain of 6.25% and the S&P 500's gain of 4.07% [1] Earnings Projections - The upcoming earnings disclosure is anticipated to show earnings per share (EPS) of $0.02, unchanged from the same quarter last year [2] - Quarterly revenue is projected at $38.02 million, reflecting a 4.31% increase from the previous year [2] Full Year Estimates - For the full year, earnings are estimated at $0.08 per share, representing a 60% increase from the previous year, with revenue projected at $151.29 million, a 5.7% increase [3] - Recent analyst estimate revisions indicate a positive outlook for the company's business and profitability [3] Zacks Rank and Valuation - Broadwind Energy, Inc. currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong historical performance [5] - The company is trading at a Forward P/E ratio of 23.5, which is higher than the industry average of 22.58, suggesting a premium valuation [6] Industry Context - The Manufacturing - General Industrial industry, part of the Industrial Products sector, has a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [6] - The strength of industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Core Insights - The article highlights the importance of a comprehensive investment ecosystem approach rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, he spent over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1]. - Investment recommendations are based on the entirety of the investment ecosystem, emphasizing a holistic view of market dynamics [1].

Core Viewpoint - Illinois Tool Works Inc. (ITW) is set to release its second quarter 2025 financial results on July 30, 2025, followed by a webcast for investors [1] Group 1: Company Overview - ITW is a Fortune 300 global multi-industrial manufacturing leader with a revenue of $15.9 billion in 2024 [2] - The company operates in seven industry-leading segments, utilizing the ITW Business Model to achieve solid growth and best-in-class margins [2] - ITW employs approximately 44,000 dedicated colleagues worldwide, fostering a decentralized and entrepreneurial culture [2] Group 2: Upcoming Events - The second quarter 2025 earnings webcast will take place at 9:00 a.m. CDT on July 30, 2025, following the results release at 7:00 a.m. CDT [1] - Participants can access the conference call by dialing specific numbers provided for domestic and international callers [1] - An audio-only replay of the webcast will be available from July 30 through August 6 [1]

Dividend Announcement - CSW Industrials, Inc. declared a regular quarterly cash dividend of $0.27 per share [1][2] - The dividend is payable on August 8, 2025, to shareholders of record as of July 25, 2025 [1][2] Company Overview - CSW Industrials is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [3] - The company provides niche, value-added products characterized by performance and reliability [3] - Primary end markets served include HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation [3]

Malaysia’s industrial production grew at a slower-than-expected pace for the second straight month, adding to signs of an economic slowdown https://t.co/hqcENuuHjr ...

Group 1 - The analyst has over 14 years of experience in stock analysis and writing, with a focus on both long and short positions in an unbiased manner [1] - The primary focus of the analyst's coverage is on the energy sector, specifically the oilfield equipment services sector, for the past 7 years [1] - The analyst also covers the Industrial Supply industry and occasionally collaborates with another contributor [1] Group 2 - There is no disclosure of any stock, option, or similar derivative positions in the companies mentioned, nor any plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated beyond contributions to Seeking Alpha [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2]

Core Insights - The second quarter was marked by uncertainty in the market due to unclear tariff regulations and geopolitical tensions, affecting customer investment decisions [3][15] - Order intake for the quarter was SEK 816 million, reflecting an organic increase of 8%, driven by modest market improvements and better alignment of customer inventory with demand [4][9] - Net sales for the quarter were SEK 843 million, showing an organic decrease of 5%, impacted by currency fluctuations and delivery challenges [6][9] - The gross margin remained stable at 61.8%, although slightly lower than recent quarters due to currency changes and tariff effects [10][11] - The integration of Red Lion is progressing well, with significant advancements in implementing ERP and CRM systems [12] Financial Performance - Adjusted EBIT for the quarter reached SEK 181 million, corresponding to a margin of 21.4% [9][11] - Cash flow from operating activities amounted to SEK 201 million, driven by inventory adjustments and reduced accounts receivable [11][9] - For the first six months, order intake increased by 41% to SEK 1,746 million, while net sales rose by 19% to SEK 1,733 million [9] Market and Divisional Insights - Demand within Industrial Network Technology (INT) is improving, particularly among European customers, although from low levels [7] - Industrial Data Solutions (IDS) reported growth in order intake, but fewer large project orders were noted compared to previous quarters [8] - The New Industries (NI) segment is experiencing a cautious market environment due to tariff announcements, particularly affecting the European automotive industry [8] Tariff and Regulatory Environment - Ongoing tariff negotiations between the US and its trading partners are critical, with expectations of approximately 10% tariffs on finished goods from Europe to the US [14] - The company has introduced price adjustments on new orders to mitigate tariff impacts and is closely monitoring the situation [14] Outlook - The short-term market outlook remains uncertain due to tariffs and geopolitical factors, but there is cautious optimism for long-term growth driven by increased automation and digitalization needs in the US manufacturing sector [15][16]