In today’s briefing:
- Is MTAR Technologies Built for the Long Run?
- Eacon Group IPO: Worth Mining For Value
- Singapore Air (SIA): Capturing China Rebound
- Astroscale (186A JP): New Capital, New Phase of Growth
- Guangdong Dtech Technology (鼎泰高科) A+H Pre-IPO: Early Thoughts
- Director Accumulation Extends Across Established and Newly Listed Counters
- Aduro Clean Technologies, Inc – CEO on 2030 Mandates, 50% Margins, and Key Milestones
- Aequitas: Zhejiang Laifual Drive IPO Trading – Strong Retail, Decent Insti
- Atkore International Breaks Its Sales Slump — The First Increase Since Fiscal 2022!
- SSI Newsletter: Continental Aerospace Liquidation, NDLS Surge, THL Takeover and More
Is MTAR Technologies Built for the Long Run?
- MTAR’s recent rally has been driven primarily by Bloom Energy’s AI-fuelled expansion, positioning the company as an indirect beneficiary of the growing demand for distributed power infrastructure.
- Although clean energy remains the primary earnings driver today, MTAR’s expanding nuclear order book could gradually reduce customer concentration and support longer-term growth.
- Revenue growth appears well supported, but sustaining margins, improving working capital efficiency and executing capacity expansion will ultimately determine whether MTAR can justify its recent surge.
Eacon Group IPO: Worth Mining For Value
- Eacon Group launched its Hongkong IPO aiming to raise up to HK$2.3B (~ US$ 293M). They focus on the commercial deployment of autonomous driving solutions in the mining industry.
- Eacon Group intends to use the IPO proceeds for research & development, IT infrastructure development, overseas business expansion, strategic alliance/acquisition and working capital.
- The medium-term outlook for Eacon Group looks bright. We would recommend investors with to consider the name, given its potential.
Singapore Air (SIA): Capturing China Rebound
- The past 1 month’s share price appreciation combined with the uncertainty of the Straits of Hormuz reopening casts doubt.
- The recent JV announcement between Singapore Airlines (SIA SP) and Air China (753 HK) will improve SIA’s margin structurally.
- Air India’s crisis is not over and drags SIA share price lower but most of it has been priced in while the Air China’s JV has not been priced in.
Astroscale (186A JP): New Capital, New Phase of Growth
- ¥30.6 billion in new capital raised through stock and CB issues, equivalent to 3.8x equity, 95% of total assets, and 3X this year’s projected net loss.
- Gross margin has turned positive. Order backlog 2.6X midpoint of this fiscal year’s project income guidance. Outlook for new orders improving with Japan’s defense build-up.
- The share price has dropped back more than 60% from its recent peak to where it was in early April, presenting a new long-term investment opportunity.
Guangdong Dtech Technology (鼎泰高科) A+H Pre-IPO: Early Thoughts
- Guangdong Dtech Technology passed hearing for an A+H listing. CITIC and HSBC are the sponsors.
- We look at the company’s core segments: precision cutting tools and grinding and polishing materials.
- We discussed our preliminary thoughts on the company’s fair value based on A-H premium.
Director Accumulation Extends Across Established and Newly Listed Counters
- Over five sessions to 25 June, directors and CEOs reported 21 acquisitions and five disposals across 30 primary-listed stocks.
- Soon Hock Enterprise’s Executive Chairman increased his direct interest to 73.32% with a purchase of 2,033,000 shares.
- Lum Chang Creations entered a placement agreement for up to 35 million shares, raising up to S$11.4 million.
Aduro Clean Technologies, Inc – CEO on 2030 Mandates, 50% Margins, and Key Milestones
- HCT is being applied across waste plastics and challenging petroleum hydrocarbons, including heavy bitumen and highly paraffinic crudes, to produce higher-value hydrocarbons and chemical intermediates.
- End markets include circular plastics (products made from recycled rather than virgin feedstocks, a distinction that carries regulatory and commercial value under EU recycled-content mandates), fuel-related markets, and broader industrial applications.
- In plastics, HCT is designed to produce feedstock for naphtha crackers, supporting the production of new circular plastics.
Aequitas: Zhejiang Laifual Drive IPO Trading – Strong Retail, Decent Insti
- Zhejiang Laifual Drive (3952 HK) Zhejiang Laifual Drive raised around US$147m in its Hong Kong IPO.
- Zhejiang Laifual Drive (ZLD) is a provider of core components for robotic precision transmission in China.
- We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.
Atkore International Breaks Its Sales Slump — The First Increase Since Fiscal 2022!
- Atkore International Inc. reported second quarter fiscal year 2026 results marked by sequential improvements and ongoing strategic repositioning.
- The company achieved net sales of $731 million and an adjusted EBITDA of $81 million, with adjusted earnings per share (EPS) of $1.23.
- These metrics showed improvement from the previous quarter and represented the first quarterly net sales increase since the fourth quarter of fiscal 2022.
SSI Newsletter: Continental Aerospace Liquidation, NDLS Surge, THL Takeover and More
- Continental Aerospace Technologies (0232:HK) is liquidating, with initial distributions offering 9.3%-13.7% upside and a potential special dividend.
- Noodles & Company (NDLS) rose 40%, with strategic review pending; Tourism Holdings (THL:AX) received a competing takeover offer.
- Green Dot Corporation (GDOT) shareholders approved fintech sale and merger; Optimum Communications (OPTU) tender offer expires June 30.
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