Industrials

• Luxshare Precision Industry (2475 HK) is a leading manufacturer of electronic components. It is seeking to raise US$3.1 billion.
• Luxshare is a global leader in the PIMS industry, holding top positions in the PIMS markets of consumer electronics, automotive electronics, and data centres by revenue in 2025.
• The investment case is based on a strong market position, acquisition-driven growth, a relatively stable margin profile, an expected return to cash generation, and a strong balance sheet.  

• EACON Group Co., Ltd (1868613D CH) raised around US$293m in its Hong Kong IPO.
• EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Kelly Services may be privatized by Hunt Companies, requiring a premium for minority shareholder approval.
• Unicycive Therapeutics’ stock dropped 40% due to FDA timeline issues, not drug-related problems, with potential 65% upside.
• Waldencast sold Obagi for $366m cash, with potential shareholder returns and remaining Milk Makeup business optionality.

• KEC International regained Power Grid tender access on June 26, 2026, and soon after announced INR 1,754 crore of fresh orders, including its largest USA tower order.
• The timing is important. PGCIL is expected to release nearly INR 6,000 crore of tenders, while KEC’s FY27 order intake has already crossed INR 4,000 crore.
• The order pipeline has improved, but Q4 execution was weak. The next two quarters will show whether fresh access and order wins translate into margin recovery.

• Sunwoda, a lithium-ion battery manufacturer, is seeking an A+H listing. Goldman Sachs and CITIC are the sponsors.
• We look at the company’s core segments: consumer battery, EV battery and ESS.
• We discussed our preliminary thoughts on the company’s valuation based on A-H premium.

• AKR Corporindo is a dominant private player in Indonesia’s downstream petroleum and basic chemicals distribution sector, underpinned by an extensive and integrated logistics and infrastructure network.
• Significant growth is anticipated from its industrial estate segment, particularly the Java Integrated Industrial and Port Estate (JIIPE), which is attracting major industrial tenants and benefiting from its Special Economic Zone (SEZ) status.
• The company demonstrates a strong commitment to shareholder returns, evidenced by a high dividend yield and a consistent history of dividend payments, supported by solid operating cash flow generation.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Bloom Energy is strategically positioned to capitalize on the surging power demand from AI-driven data centers, a key driver of its significant revenue growth and substantial project backlog.
• The company’s core solid-oxide fuel cell (SOFC) technology offers a differentiated value proposition, providing reliable, on-site power with rapid deployment timelines compared to traditional grid connections.
• Despite strong growth prospects, the company faces considerable risks related to its high valuation, historical unprofitability, execution on its large-scale projects, and competitive pressures in the evolving clean energy landscape.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• 50-Day MAs have held on SPX and QQQ, but we’re concerned of a prolonged consolidation–primarily for QQQ and likely through mid-to-late-August–following the latest stumble for semiconductors, memory, and optical equipment.
• The IWM and equal-weighted S&P 500 (RSP) remain leadership while Technology has continued to consolidate, and support remains at the 20-day MAs on IWM and RSP.
• IWM and RSP leadership tells us this remains a healthy and broad-based bull market, and we believe the current “rotation trade” is likely to continue for at least another month.

• Woodside Energy Group Limited reported full-year 2025 results reflecting a year of robust operational execution and disciplined financial management amid a complex macro environment.
• The company achieved record annual production of 198.8 million barrels of oil equivalent, exceeding guidance, primarily driven by strong performance at Sangomar and reliability across its operating portfolio.
• This operational success offset lower realized prices compared to 2024, resulting in an underlying net profit after tax of $2.6 billion.

• The Rs. 439.5 crore IPO closed with heavy demand. Overall subscription was reported at ~83.3x, led by QIB and NII demand.
• Knack sits in the branded bulk packaging shift: PLWPP bags, export customers, integrated manufacturing, and an estimated 10.1% share in India’s flexible bulk PLWPP market.
• The IPO is not a deep-value issue at ~22.4x FY26 earnings, so future performance will depend on how efficiently the company scales capacity, manages working capital, and sustains margins.

• Luxshare Precision Industry (2475 HK) is a leading manufacturer of electronic components. It is seeking to raise US$3.1 billion.
• Luxshare is a global leader in the PIMS industry, holding top positions in the PIMS markets of consumer electronics, automotive electronics, and data centres by revenue in 2025.
• The investment case is based on a strong market position, acquisition-driven growth, a relatively stable margin profile, an expected return to cash generation, and a strong balance sheet.  

• EACON Group Co., Ltd (1868613D CH) raised around US$293m in its Hong Kong IPO.
• EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Sieyuan Electric, a power equipment manufacturer, is seeking an A+H listing. CITIC is the sole sponsor.
• We look at the company’s core segments: switchgear, transformers and protection and automation.
• We discuss our preliminary thoughts on the company’s valuation based on A-H premium.

• Middleby completed the tax-free 1:1 spin-off of Midera Food Processing (Nasdaq: MFP) on July 6, 2026. Regular-way trading in both stocks to begin July 7
• Our SOTP fair value is $202 combined – Middleby ex-Midera at $162 (14.2x FY2027E EBITDA) plus Midera at $40 (11.0x FY2027E EBITDA
• S&P DJI confirmed MFP joins the S&P SmallCap 600 effective July 8, creating passive buying demand that should partially offset post-spin technical selling.

• Bharat Coking Coal Limited (BCCL) (7535956Z IN) raised about US$119m in its India IPO in Jan 2026. The lockup on its promoter, Coal India is set to expire soon.
• BCCL is a Coal India subsidiary engaged in mining of coking coal, producing grades of coking coal, non-coking coal, and washed coal, primarily for use in steel and power sectors.
• In this note, we will talk about the lockup dynamics and possible placement.

• 50-Day MAs have held on SPX and QQQ, but we’re concerned of a prolonged consolidation–primarily for QQQ and likely through mid-to-late-August–following the latest stumble for semiconductors, memory, and optical equipment.
• The IWM and equal-weighted S&P 500 (RSP) remain leadership while Technology has continued to consolidate, and support remains at the 20-day MAs on IWM and RSP.
• IWM and RSP leadership tells us this remains a healthy and broad-based bull market, and we believe the current “rotation trade” is likely to continue for at least another month.

• Bloom Energy is strategically positioned to capitalize on the surging power demand from AI-driven data centers, a key driver of its significant revenue growth and substantial project backlog.
• The company’s core solid-oxide fuel cell (SOFC) technology offers a differentiated value proposition, providing reliable, on-site power with rapid deployment timelines compared to traditional grid connections.
• Despite strong growth prospects, the company faces considerable risks related to its high valuation, historical unprofitability, execution on its large-scale projects, and competitive pressures in the evolving clean energy landscape.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• KEC International regained Power Grid tender access on June 26, 2026, and soon after announced INR 1,754 crore of fresh orders, including its largest USA tower order.
• The timing is important. PGCIL is expected to release nearly INR 6,000 crore of tenders, while KEC’s FY27 order intake has already crossed INR 4,000 crore.
• The order pipeline has improved, but Q4 execution was weak. The next two quarters will show whether fresh access and order wins translate into margin recovery.

• Kelly Services may be privatized by Hunt Companies, requiring a premium for minority shareholder approval.
• Unicycive Therapeutics’ stock dropped 40% due to FDA timeline issues, not drug-related problems, with potential 65% upside.
• Waldencast sold Obagi for $366m cash, with potential shareholder returns and remaining Milk Makeup business optionality.

• GFL Environmental is considering a potential move to go private after receiving preliminary interest from buyout firms, making the North American waste-management company one of the more closely watched takeover stories in the environmental-services sector.
• The company has reportedly been speaking with advisers about its options, although deliberations remain at an early stage and there is no certainty that any transaction will happen.
• A deal would not be simple.

• Luxshare Precision Industry (2475 HK) is a leading manufacturer of electronic components. It is seeking to raise US$3.1 billion.
• Luxshare is a global leader in the PIMS industry, holding top positions in the PIMS markets of consumer electronics, automotive electronics, and data centres by revenue in 2025.
• The investment case is based on a strong market position, acquisition-driven growth, a relatively stable margin profile, an expected return to cash generation, and a strong balance sheet.  

• EACON Group Co., Ltd (1868613D CH) raised around US$293m in its Hong Kong IPO.
• EACON designs, develops, and integrates the core intelligent components, such as autonomous driving software, domain controllers, and drive-by-wire platforms.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Sieyuan Electric, a power equipment manufacturer, is seeking an A+H listing. CITIC is the sole sponsor.
• We look at the company’s core segments: switchgear, transformers and protection and automation.
• We discuss our preliminary thoughts on the company’s valuation based on A-H premium.

• Middleby completed the tax-free 1:1 spin-off of Midera Food Processing (Nasdaq: MFP) on July 6, 2026. Regular-way trading in both stocks to begin July 7
• Our SOTP fair value is $202 combined – Middleby ex-Midera at $162 (14.2x FY2027E EBITDA) plus Midera at $40 (11.0x FY2027E EBITDA
• S&P DJI confirmed MFP joins the S&P SmallCap 600 effective July 8, creating passive buying demand that should partially offset post-spin technical selling.

• Bharat Coking Coal Limited (BCCL) (7535956Z IN) raised about US$119m in its India IPO in Jan 2026. The lockup on its promoter, Coal India is set to expire soon.
• BCCL is a Coal India subsidiary engaged in mining of coking coal, producing grades of coking coal, non-coking coal, and washed coal, primarily for use in steel and power sectors.
• In this note, we will talk about the lockup dynamics and possible placement.

• 50-Day MAs have held on SPX and QQQ, but we’re concerned of a prolonged consolidation–primarily for QQQ and likely through mid-to-late-August–following the latest stumble for semiconductors, memory, and optical equipment.
• The IWM and equal-weighted S&P 500 (RSP) remain leadership while Technology has continued to consolidate, and support remains at the 20-day MAs on IWM and RSP.
• IWM and RSP leadership tells us this remains a healthy and broad-based bull market, and we believe the current “rotation trade” is likely to continue for at least another month.

• Bloom Energy is strategically positioned to capitalize on the surging power demand from AI-driven data centers, a key driver of its significant revenue growth and substantial project backlog.
• The company’s core solid-oxide fuel cell (SOFC) technology offers a differentiated value proposition, providing reliable, on-site power with rapid deployment timelines compared to traditional grid connections.
• Despite strong growth prospects, the company faces considerable risks related to its high valuation, historical unprofitability, execution on its large-scale projects, and competitive pressures in the evolving clean energy landscape.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• KEC International regained Power Grid tender access on June 26, 2026, and soon after announced INR 1,754 crore of fresh orders, including its largest USA tower order.
• The timing is important. PGCIL is expected to release nearly INR 6,000 crore of tenders, while KEC’s FY27 order intake has already crossed INR 4,000 crore.
• The order pipeline has improved, but Q4 execution was weak. The next two quarters will show whether fresh access and order wins translate into margin recovery.

• Kelly Services may be privatized by Hunt Companies, requiring a premium for minority shareholder approval.
• Unicycive Therapeutics’ stock dropped 40% due to FDA timeline issues, not drug-related problems, with potential 65% upside.
• Waldencast sold Obagi for $366m cash, with potential shareholder returns and remaining Milk Makeup business optionality.

• GFL Environmental is considering a potential move to go private after receiving preliminary interest from buyout firms, making the North American waste-management company one of the more closely watched takeover stories in the environmental-services sector.
• The company has reportedly been speaking with advisers about its options, although deliberations remain at an early stage and there is no certainty that any transaction will happen.
• A deal would not be simple.

• After the Nikkei’s article Friday, at the lunch break today, Archion (543A JP) announced Daimler Truck and Toyota Motor (7203 JP) would each sell 394mm shares in an offering.
• The offering will have a greenshoe of 118.2mm shares so the total comes to 906mm shares, to be priced 22-27 Dec and placed 5 days later.
• The price is lower as the stock is lower. Some index demand now, more later. It is a re-IPO with the offering size at 600% of current MaxRealWorldFloat.

• Archion (543A JP) has announced a secondary offering of 787.9 million shares (906.0 million including overallotment), worth around US$1.4 billion (US$1.7 billion including overallotment).
• The offering was expected, as it would enable Toyota Motor and Daimler Truck to reduce their respective shareholdings to 25% of the total shares, thereby increasing the tradable share ratio.
• The offering, as a percentage of outstanding shares, is the fourth-highest, and, in terms of ADV, the highest among large Japanese placements since 2021. 

• The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
• In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in September 2026.
• The index changes are expected to be confirmed on 21st August 2026.

• Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion (543A JP).
• The news of the possible deal was already out last week and the deal terms are somewhat along expected lines.
• We have looked at most aspects of the deal in our earlier note. In this note, we will talk about the recent updates.

• The RNS confirms agreement in principle on the key financial terms of a recommended 690p/share cash offer and extends Castlelake’s Rule 2.6 deadline to 3 August 2026.
• The proposal remains subject to due diligence, definitive documentation and agreement of the partial unlisted share alternative. The 690p consideration is explicitly stated on a cum-dividend basis.
• EasyJet shares have risen to 613.8p, narrowing the spread to 12.4%. We maintain our 690p target price and continue to view execution, rather than valuation, as the principal remaining risk.

• LIM Advisors built to 18% then fully exited by March — the largest holder saw little value.
• Market pricing Kitagawa as a structural compounder at 55x EBITDA; it is a cyclical equipment supplier with lumpy revenues and no asset floor.
• Yesterday’s -17% drop on AI unwind confirms high thematic beta; with the “activist” money out, downside risk growing.

• BlackBuck is India’s largest digital trucking platform. In FY26, revenue grew 53% to INR 651.9 crore and PAT turned positive at INR 160.3 crore.
• The platform serves 8.18 lakh monthly truckers, with INR 25,905 crore tolling GTV. High-margin operations and cross-sell deepen the platform advantage.
• BlackBuck has moved from turnaround to profitable scale-up. The next test is whether SuperLoads and vehicle finance can become meaningful standalone growth engines.

• If you have even a remote interest in the stock market (and if not, why the heck are you reading my newsletter?), then it has probably not escaped your attention that we have recently witnessed the largest IPO in history, with SpaceX raising $75B at a valuation of $1.8T.
• As of mid-June, the stock has risen almost 50%, meaning SpaceX’s market value has now crossed $2.5T, a valuation of over 130x revenues. Yes, you read that right.
• Not only does the valuation seem outright outrageous, but the company’s value proposition for creating shareholder value also reads somewhat vaguely.

• Sacra estimates Locus Robotics hit $180M ARR in June 2026, up from $165M at the end of 2025, valued at $2B as of its 2022 Series F for a ~20x multiple on $100M ARR.
• Finding product-market fit with the high-volume, piece-picking 3PL operations (DHL, GEODIS) and then expanding into retail (Carhartt), industrial (Brother Gearmotors, Kimball Midwest) and healthcare (Cardinal Health, UPS Healthcare), Sacra estimates.
• Locus has progressed closer to full end-to-end automation, most recently with Array (April 2026), a 10-foot robot with integrated arm that picks, replenishes shelves, counts & sorts packages, taking over ~90% of all warehouse tasks.

• Leading Digital Platform with Diversified Operations: Edenred is a global leader in specific-purpose payment solutions, operating a B2B2C digital platform that connects over 60 million users with 2 million merchants across 45 countries. The company’s operations are diversified across Employee Benefits (65% of revenue), Fleet & Mobility, and Complementary Solutions, which mitigates sector-specific risks.
• Consistent Growth and Strong Financial Profile: The company has a proven track record of delivering profitable growth, with double-digit revenue and net income CAGRs over the past 3, 5, and 10-year periods. Its asset-light, scalable business model generates strong recurring revenue, high EBITDA margins (over 40%), and significant free cash flow.
• Strategic Focus on Digitalization and Expansion: Under its ‘Amplify 25-28’ strategic plan, Edenred is focused on expanding its user base and increasing revenue per user by investing heavily in technology, data, and AI. The strategy includes attracting new clients in underpenetrated markets, cross-selling its diverse portfolio, and monetizing its user platform, with a goal of reaching over €5 billion in revenue by 2030.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• After the Nikkei’s article Friday, at the lunch break today, Archion (543A JP) announced Daimler Truck and Toyota Motor (7203 JP) would each sell 394mm shares in an offering.
• The offering will have a greenshoe of 118.2mm shares so the total comes to 906mm shares, to be priced 22-27 Dec and placed 5 days later.
• The price is lower as the stock is lower. Some index demand now, more later. It is a re-IPO with the offering size at 600% of current MaxRealWorldFloat.

• Archion (543A JP) has announced a secondary offering of 787.9 million shares (906.0 million including overallotment), worth around US$1.4 billion (US$1.7 billion including overallotment).
• The offering was expected, as it would enable Toyota Motor and Daimler Truck to reduce their respective shareholdings to 25% of the total shares, thereby increasing the tradable share ratio.
• The offering, as a percentage of outstanding shares, is the fourth-highest, and, in terms of ADV, the highest among large Japanese placements since 2021. 

• The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
• In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in September 2026.
• The index changes are expected to be confirmed on 21st August 2026.

• Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) (DT) are looking to raise up to US$1.7bn via selling around 35% of their stake in Archion (543A JP).
• The news of the possible deal was already out last week and the deal terms are somewhat along expected lines.
• We have looked at most aspects of the deal in our earlier note. In this note, we will talk about the recent updates.

• The RNS confirms agreement in principle on the key financial terms of a recommended 690p/share cash offer and extends Castlelake’s Rule 2.6 deadline to 3 August 2026.
• The proposal remains subject to due diligence, definitive documentation and agreement of the partial unlisted share alternative. The 690p consideration is explicitly stated on a cum-dividend basis.
• EasyJet shares have risen to 613.8p, narrowing the spread to 12.4%. We maintain our 690p target price and continue to view execution, rather than valuation, as the principal remaining risk.

• LIM Advisors built to 18% then fully exited by March — the largest holder saw little value.
• Market pricing Kitagawa as a structural compounder at 55x EBITDA; it is a cyclical equipment supplier with lumpy revenues and no asset floor.
• Yesterday’s -17% drop on AI unwind confirms high thematic beta; with the “activist” money out, downside risk growing.

• BlackBuck is India’s largest digital trucking platform. In FY26, revenue grew 53% to INR 651.9 crore and PAT turned positive at INR 160.3 crore.
• The platform serves 8.18 lakh monthly truckers, with INR 25,905 crore tolling GTV. High-margin operations and cross-sell deepen the platform advantage.
• BlackBuck has moved from turnaround to profitable scale-up. The next test is whether SuperLoads and vehicle finance can become meaningful standalone growth engines.

• If you have even a remote interest in the stock market (and if not, why the heck are you reading my newsletter?), then it has probably not escaped your attention that we have recently witnessed the largest IPO in history, with SpaceX raising $75B at a valuation of $1.8T.
• As of mid-June, the stock has risen almost 50%, meaning SpaceX’s market value has now crossed $2.5T, a valuation of over 130x revenues. Yes, you read that right.
• Not only does the valuation seem outright outrageous, but the company’s value proposition for creating shareholder value also reads somewhat vaguely.

• Sacra estimates Locus Robotics hit $180M ARR in June 2026, up from $165M at the end of 2025, valued at $2B as of its 2022 Series F for a ~20x multiple on $100M ARR.
• Finding product-market fit with the high-volume, piece-picking 3PL operations (DHL, GEODIS) and then expanding into retail (Carhartt), industrial (Brother Gearmotors, Kimball Midwest) and healthcare (Cardinal Health, UPS Healthcare), Sacra estimates.
• Locus has progressed closer to full end-to-end automation, most recently with Array (April 2026), a 10-foot robot with integrated arm that picks, replenishes shelves, counts & sorts packages, taking over ~90% of all warehouse tasks.

• Leading Digital Platform with Diversified Operations: Edenred is a global leader in specific-purpose payment solutions, operating a B2B2C digital platform that connects over 60 million users with 2 million merchants across 45 countries. The company’s operations are diversified across Employee Benefits (65% of revenue), Fleet & Mobility, and Complementary Solutions, which mitigates sector-specific risks.
• Consistent Growth and Strong Financial Profile: The company has a proven track record of delivering profitable growth, with double-digit revenue and net income CAGRs over the past 3, 5, and 10-year periods. Its asset-light, scalable business model generates strong recurring revenue, high EBITDA margins (over 40%), and significant free cash flow.
• Strategic Focus on Digitalization and Expansion: Under its ‘Amplify 25-28’ strategic plan, Edenred is focused on expanding its user base and increasing revenue per user by investing heavily in technology, data, and AI. The strategy includes attracting new clients in underpenetrated markets, cross-selling its diverse portfolio, and monetizing its user platform, with a goal of reaching over €5 billion in revenue by 2030.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Friday after the close the Nikkei reported that Toyota Motor (7203 JP) and Daimler plan on offering ¥200-300bn of shares in Archion (543A JP) within the month, perhaps next week.
• This has been VERY well-flagged. OR should have been. I wrote about it in June 2025, then Jan 2026, then March 2026, then a few days later in April. 
• They say 30% of shares out or ~900mm shares which would be the full offering, but the ownership drop looks like 35.2% in their diagram. It is a BIG offering.

• On 29 June, Dida (2559 HK) announced two transactions: Tongcheng Travel (780 HK)‘s voluntary conditional offer at HK$1.3875 per share and a special dividend of HK$1.1745 per share. 
• The total consideration of HK$2.5620 is a 108.3% premium to the undisturbed price. The key condition is a minimum acceptance of 50%, which will be satisfied by the irrevocables.
• This is a low-risk deal as the offer does not require PRC regulatory approvals. Despite being below the 52-week high, the total offer is attractive. 

• Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in Archion (543A JP), as per media reports.
• Post the news break on Friday, the company clarified that it is exploring various options, including a secondary.
• In this note, we will talk about the possible deal dynamics.

• Unitree Robotics (UNITREE CH) intends to raise Rmb4.2bn in the A-share STAR market. Given its leadership in humanoid robots, we expect good interests.
• The key investment thesis includes its global market leadership with proven scale, vertical integration, which creates a moat, and massive AI investment to build the “brain”.
• We initially estimate its FY26F PER and P/S at 74.5x and 19.3x. The higher-than-peer P/S is justified by its better profit margin. 

• 690p appears to have bridged the valuation gap. The Board is now minded to recommend a firm offer, leaving execution and regulatory approvals as the key remaining hurdles.
• Our previous thesis has largely played out. We argued valuation, rather than ownership, would determine the outcome and increased our target price to 675p with a probability-weighted value of 677p/share.
• We raise our TP to 690p/share. The shares should move materially higher on Monday, although we expect a merger-arbitrage spread to persist until a firm Rule 2.7 offer is announced.

• Friday after the close the Nikkei reported that Toyota Motor (7203 JP) and Daimler plan on offering ¥200-300bn of shares in Archion (543A JP) within the month, perhaps next week.
• This has been VERY well-flagged. OR should have been. I wrote about it in June 2025, then Jan 2026, then March 2026, then a few days later in April. 
• They say 30% of shares out or ~900mm shares which would be the full offering, but the ownership drop looks like 35.2% in their diagram. It is a BIG offering.

• On 29 June, Dida (2559 HK) announced two transactions: Tongcheng Travel (780 HK)‘s voluntary conditional offer at HK$1.3875 per share and a special dividend of HK$1.1745 per share. 
• The total consideration of HK$2.5620 is a 108.3% premium to the undisturbed price. The key condition is a minimum acceptance of 50%, which will be satisfied by the irrevocables.
• This is a low-risk deal as the offer does not require PRC regulatory approvals. Despite being below the 52-week high, the total offer is attractive. 

• Toyota Motor (7203 JP) and Daimler Truck Holding (DTG GR) could look to raise JPY200-300bn (US$1.3-1.9bn) via a secondary in Archion (543A JP), as per media reports.
• Post the news break on Friday, the company clarified that it is exploring various options, including a secondary.
• In this note, we will talk about the possible deal dynamics.

• Unitree Robotics (UNITREE CH) intends to raise Rmb4.2bn in the A-share STAR market. Given its leadership in humanoid robots, we expect good interests.
• The key investment thesis includes its global market leadership with proven scale, vertical integration, which creates a moat, and massive AI investment to build the “brain”.
• We initially estimate its FY26F PER and P/S at 74.5x and 19.3x. The higher-than-peer P/S is justified by its better profit margin. 

• 690p appears to have bridged the valuation gap. The Board is now minded to recommend a firm offer, leaving execution and regulatory approvals as the key remaining hurdles.
• Our previous thesis has largely played out. We argued valuation, rather than ownership, would determine the outcome and increased our target price to 675p with a probability-weighted value of 677p/share.
• We raise our TP to 690p/share. The shares should move materially higher on Monday, although we expect a merger-arbitrage spread to persist until a firm Rule 2.7 offer is announced.

• Nippon Densetsu Kogyo is a leading engineering firm specializing in railway and general electrical infrastructure, with a deeply entrenched, strategic relationship with its largest shareholder, East Japan Railway Co. (JR East), which provides a stable and significant revenue base.
• The company is demonstrating robust financial performance, characterized by accelerating revenue and net income growth, significant margin expansion, and a strong commitment to shareholder returns through rapidly increasing dividends.
• Future growth is expected to be driven by sustained investment in Japan’s railway infrastructure, including modernization and high-speed rail projects, as well as expansion into non-railway sectors like building electrical systems, telecommunications, and renewable energy solutions.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Nippon Densetsu Kogyo is a leading engineering firm specializing in railway and general electrical infrastructure, with a deeply entrenched, strategic relationship with its largest shareholder, East Japan Railway Co. (JR East), which provides a stable and significant revenue base.
• The company is demonstrating robust financial performance, characterized by accelerating revenue and net income growth, significant margin expansion, and a strong commitment to shareholder returns through rapidly increasing dividends.
• Future growth is expected to be driven by sustained investment in Japan’s railway infrastructure, including modernization and high-speed rail projects, as well as expansion into non-railway sectors like building electrical systems, telecommunications, and renewable energy solutions.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.