Industrials

• I tally 32 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
• One new deal was discussed on Smartkarma this week: Ajinomoto Malaysia (AJI MK)‘s Offer from parent, Ajinomoto Co (2802 JP).
• Key updates/news also took place on: Atlas Arteria (ALX AU), Australian Strategic Materials (ASM AU), Clearview Wealth (CVW AU), Tourism Holdings (THL NZ), and Changhong Jiahua (3991 HK).

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Anker Innovations Technology (668 HK), Momenta Global (MOMENTA HK), Jio Platforms Ltd (1797135D IN) and Manipal Health Enterprises Ltd (1217834D IN) listings.
• Event-Driven developments: Makino Milling Machine Co (6135 JP), Shinko Shoji (8141 JP), Get Nice (64 HK), Clearview Wealth (CVW AU), Ajinomoto Malaysia (AJI MK), Tourism Holdings (THL NZ). 

• Gates Industrial Corporation reported first quarter 2026 results characterized by operational challenges related primarily to the recent implementation of a new enterprise resource planning (ERP) system in its European operations and the impact of two fewer working days compared to the prior year.
• These factors contributed to a reported core sales decline of 2.9% for the quarter, with European core sales falling approximately 8.5% year-over-year largely due to distribution inefficiencies and backlog buildup during the ERP transition.
• However, management indicated that March sales trends improved with core sales growth in March rising to mid-single digits and a book-to-bill ratio above 1.

• Sunrun Inc. reported first-quarter 2026 results reflecting continued growth in customers and expansion of its distributed power infrastructure, complemented by ongoing adjustments in its business mix and capital deployment strategy amid evolving industry dynamics.
• The company added approximately 19,000 customers during the quarter, with a storage attachment rate increasing to 73%, reinforcing its focus on integrated solar and storage solutions.
• Aggregate contracted subscriber value reached $1.1 billion, exceeding guidance, while contracted net value creation approximated $108 million, near the upper end of the projected range.

• TFI International reported first-quarter 2026 adjusted diluted earnings per share (EPS) of $0.69, supported by a stable revenue base of $1.7 billion before fuel surcharges, consistent with the prior year’s quarter.
• Consolidated operating earnings stood at $97 million, reflecting a 5.7% margin, while net cash from operating activities was $122 million.
• The company maintained a solid financial position, generating $124 million in free cash flow during the quarter and ending March with a funded debt-to-EBITDA ratio of 2.6. Dividend payments totaled $38 million.

• FY26 consolidated revenue grew 15% to Rs.2,093 crore, but a Rs.67 crore revenue reversal at French unit Huron, tied to an ongoing export-control investigation, masked underlying momentum and dented margins.
• By September 2026, a new 10,000-machine line will increase total capacity to 16,000 machines, supporting growth against a record Rs. 4,732 crore order book.
• The core India business deserves premium, but Huron’s investigation and revenue deferral make the consolidated story less clean. At roughly 51.5x trailing earnings, execution risk matters more than headline growth. 

• Force Motors reported record FY26 revenue and profitability, followed by softer April–May FY27 sales. The stock reaction has focused on the dip, not the product-cycle transition.
• Traveller N, Urbania, Trax and defence orders can rebuild volume momentum, while the BMW/Mercedes engine franchise adds a differentiated non-vehicle earnings layer.
• The thesis moves from simple volume recovery to mix-led earnings resilience. Monthly sales volatility matters, but margin quality and portfolio breadth matter more.

• Ashok Leyland delivered its highest-ever FY26 revenue, EBITDA and PAT, with CV volumes crossing the earlier FY19 peak.
• The commercial vehicle cycle has moved from weak replacement demand to broad-based recovery, supported by GST-led price relief and freight activity.
• The story is no longer only cyclical M&HCV recovery; LCV, exports, defence, aftermarket and EVs now add optionality.

• Intertek is a high-quality operator in the defensive Testing, Inspection, and Certification (TIC) industry, benefiting from structural growth drivers such as increasing regulation, complex global supply chains, and a growing focus on sustainability.
• The company’s performance is currently overshadowed by a potential acquisition by private equity firm EQT. The offer represents a significant premium, but the deal’s completion faces execution and timing risks related to extensive regulatory approvals.
• Financially, Intertek demonstrates a robust track record of margin expansion, strong cash flow generation, and consistent dividend growth, underpinning its ‘AAA’ growth strategy focused on delivering mid-single-digit revenue growth and margin accretion.

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

• FY26 domestic tractor volumes rose to 4,596 units from 3,876 units in FY25. Q4 domestic tractor volumes also grew 20.5% YoY.
• Power tillers delivered the headline growth, but tractor traction can widen the growth runway and improve revenue mix resilience.
• The stock’s next leg depends on repeatability in tractors, retail finance penetration, and FY27 monsoon risk management.

• MDA Space has moved quickly from outlining inorganic growth ambitions to signing a definitive agreement to acquire Blue Canyon Technologies from RTX in an all-cash transaction valued at US$620 million.
• The proposed deal, expected to close by the end of 2026 subject to regulatory approvals, comes shortly after MDA reported a strong Q1 2026, with revenue up 32% year-over-year and adjusted EBITDA margin of 19.5%.
• The timing is notable because MDA has been expanding its U.S. profile through its NYSE listing, defense wins, MDA AURORA satellite production, MDA MIDNIGHT space-control platform, and MDA CHORUS geointelligence roadmap.

• Clarivate, a global information and analytics company, reported moderate progress in the first quarter of 2026, reflecting ongoing execution of its Value Creation Plan (VCP) aimed at improving organic revenue growth, margin expansion, and free cash flow generation.
• Revenues totaled $586 million, with organic annual contract value (ACV) growth of 1.6% and subscription organic revenue growth of 1.7%, indicating a continued shift toward a subscription-based business model.
• Adjusted EBITDA reached $241 million, translating to a margin of 41%, up nearly 200 basis points year-over-year, underlining benefits from the subscription-first strategy and cost discipline.

• FY26 consolidated revenue grew 15% to Rs.2,093 crore, but a Rs.67 crore revenue reversal at French unit Huron, tied to an ongoing export-control investigation, masked underlying momentum and dented margins.
• By September 2026, a new 10,000-machine line will increase total capacity to 16,000 machines, supporting growth against a record Rs. 4,732 crore order book.
• The core India business deserves premium, but Huron’s investigation and revenue deferral make the consolidated story less clean. At roughly 51.5x trailing earnings, execution risk matters more than headline growth. 

• Force Motors reported record FY26 revenue and profitability, followed by softer April–May FY27 sales. The stock reaction has focused on the dip, not the product-cycle transition.
• Traveller N, Urbania, Trax and defence orders can rebuild volume momentum, while the BMW/Mercedes engine franchise adds a differentiated non-vehicle earnings layer.
• The thesis moves from simple volume recovery to mix-led earnings resilience. Monthly sales volatility matters, but margin quality and portfolio breadth matter more.

• Ashok Leyland delivered its highest-ever FY26 revenue, EBITDA and PAT, with CV volumes crossing the earlier FY19 peak.
• The commercial vehicle cycle has moved from weak replacement demand to broad-based recovery, supported by GST-led price relief and freight activity.
• The story is no longer only cyclical M&HCV recovery; LCV, exports, defence, aftermarket and EVs now add optionality.

• Intertek is a high-quality operator in the defensive Testing, Inspection, and Certification (TIC) industry, benefiting from structural growth drivers such as increasing regulation, complex global supply chains, and a growing focus on sustainability.
• The company’s performance is currently overshadowed by a potential acquisition by private equity firm EQT. The offer represents a significant premium, but the deal’s completion faces execution and timing risks related to extensive regulatory approvals.
• Financially, Intertek demonstrates a robust track record of margin expansion, strong cash flow generation, and consistent dividend growth, underpinning its ‘AAA’ growth strategy focused on delivering mid-single-digit revenue growth and margin accretion.

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

• FY26 domestic tractor volumes rose to 4,596 units from 3,876 units in FY25. Q4 domestic tractor volumes also grew 20.5% YoY.
• Power tillers delivered the headline growth, but tractor traction can widen the growth runway and improve revenue mix resilience.
• The stock’s next leg depends on repeatability in tractors, retail finance penetration, and FY27 monsoon risk management.

• MDA Space has moved quickly from outlining inorganic growth ambitions to signing a definitive agreement to acquire Blue Canyon Technologies from RTX in an all-cash transaction valued at US$620 million.
• The proposed deal, expected to close by the end of 2026 subject to regulatory approvals, comes shortly after MDA reported a strong Q1 2026, with revenue up 32% year-over-year and adjusted EBITDA margin of 19.5%.
• The timing is notable because MDA has been expanding its U.S. profile through its NYSE listing, defense wins, MDA AURORA satellite production, MDA MIDNIGHT space-control platform, and MDA CHORUS geointelligence roadmap.

• Clarivate, a global information and analytics company, reported moderate progress in the first quarter of 2026, reflecting ongoing execution of its Value Creation Plan (VCP) aimed at improving organic revenue growth, margin expansion, and free cash flow generation.
• Revenues totaled $586 million, with organic annual contract value (ACV) growth of 1.6% and subscription organic revenue growth of 1.7%, indicating a continued shift toward a subscription-based business model.
• Adjusted EBITDA reached $241 million, translating to a margin of 41%, up nearly 200 basis points year-over-year, underlining benefits from the subscription-first strategy and cost discipline.

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the September 2026 index rebal event.
• We expect two changes for ASX 50, one change for ASX 100, and eight changes for ASX 200. Separately, we see 13 ADDs and 11 DELs for ASX 300.
• There are still a couple of months left in the reference period which means our expectations may change.

• Castlelake raised its proposal to 650p/share and secured limited due diligence, while easyJet rejected the offer and obtained a PUSU extension to 5 July to continue discussions.
• At 650p, easyJet would be acquired at 3.6x NTM EBITDA, below the 4.1x sector median and roughly half Ryanair’s 7.2x multiple, supporting the Board’s position.
• I raise my target price to 675p/share. The probability-weighted value is 677p, as ownership concerns have eased and valuation now appears the principal remaining issue.

• Continental Aerospace Technologies announced liquidation, selling assets for US$500-520m, distributing HK$0.4263-0.4433/share, offering 9.3%-13.7% upside.
• Office asset sold to AVIC for HK$69.5m, yielding HK$0.0073/share; independent valuation may prompt renegotiation.
• US$535.42m sale price reduced by leakage, PPP loan settlement, and withholding tax, resulting in US$500-520m proceeds.

• Circuit Fabology Microelectronics Equipment (9630 HK) priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case and Circuit Fabology H Share Listing (9630 HK): Valuation Insights. 
• The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings. 

• GMM Pfaudler is a global leader in corrosion-resistant technologies, with a dominant market position in the glass-lined equipment (GLE) sector, particularly in India where it holds approximately 50% market share.
• The company has strategically diversified its portfolio through acquisitions, reducing its reliance on the cyclical chemical and pharmaceutical industries by expanding into non-GLE products and services which now cater to a wider range of sectors including oil & gas, water treatment, and food & beverage.
• While long-term revenue growth has been strong, recent financial performance shows significant pressure on profitability, with declining net income and margins over the past three years, alongside a sharp drop in its market capitalization and earnings per share.

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

• Guangdong Dtech Technology is a leading provider of integrated solutions for the Printed Circuit Board (PCB) and Computer Numerical Control (CNC) precision parts industries, with a strong market position, particularly in PCB drill bits.
• The company is poised to benefit from favorable industry tailwinds, including the growth of the global electronics market, advancements in 5G, AI, and automotive electronics, which are driving demand for more complex and high-precision PCBs and components.
• Recent financial performance indicates strong growth, with significant increases in revenue and net income. The company’s planned dual listing in Hong Kong is expected to provide additional capital for expansion and enhance its international profile.

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

• Tourism Holdings (THL NZ) received a competing, non-binding proposal from an unnamed strategic buyer at NZ$3.30 to NZ$3.40, representing a 6.5% to 9.7% premium over the BGH/Trouchet NZ$3.10 offer.
• The AFR reported that the strategic buyer is Indie Campers, which on 15 February 2026 agreed to acquire THL’s UK and Ireland business assets for NZ$58.3 million.
• The competing bid is likely to be structured as an off-market takeover offer with step-up payments. This development is likely to increase the odds of a bidding war.  

• Circuit Fabology Microelectronics Equipment (9630 HK) raised US$413m in its upcoming Hong Kong IPO.
• It is the world’s largest provider of PCB direct imaging equipment, delivering PCB direct imaging and semiconductor direct-writing lithography equipment. 
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• DPC upsized its IPO and priced above range before opening 33.3% higher, reflecting exceptionally strong institutional demand.
• Sources indicate the deal was more than 30x oversubscribed with substantial participation from long-only investors and anchor accounts
• Aerospace suppliers remain a favored theme, and limited allocations may continue driving aftermarket demand as investors fill positions.

• Doncasters (NYSE: DPC) delivered another strong performance on its public market debut, opening at $44.00 after pricing its upsized IPO at $33.00 , a gain of more than 33% from the offering price.
• IPO Prophet established bullish sentiment at the opening trade , and that outlook remained intact throughout the session as the stock never triggered a bearish momentum marker.
• Shares finished the day at $46.96 , up 42.3% from the IPO price and 6.7% above the opening trade.

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the September 2026 index rebal event.
• We expect two changes for ASX 50, one change for ASX 100, and eight changes for ASX 200. Separately, we see 13 ADDs and 11 DELs for ASX 300.
• There are still a couple of months left in the reference period which means our expectations may change.

• Castlelake raised its proposal to 650p/share and secured limited due diligence, while easyJet rejected the offer and obtained a PUSU extension to 5 July to continue discussions.
• At 650p, easyJet would be acquired at 3.6x NTM EBITDA, below the 4.1x sector median and roughly half Ryanair’s 7.2x multiple, supporting the Board’s position.
• I raise my target price to 675p/share. The probability-weighted value is 677p, as ownership concerns have eased and valuation now appears the principal remaining issue.

• Continental Aerospace Technologies announced liquidation, selling assets for US$500-520m, distributing HK$0.4263-0.4433/share, offering 9.3%-13.7% upside.
• Office asset sold to AVIC for HK$69.5m, yielding HK$0.0073/share; independent valuation may prompt renegotiation.
• US$535.42m sale price reduced by leakage, PPP loan settlement, and withholding tax, resulting in US$500-520m proceeds.

• Circuit Fabology Microelectronics Equipment (9630 HK) priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case and Circuit Fabology H Share Listing (9630 HK): Valuation Insights. 
• The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings. 

• GMM Pfaudler is a global leader in corrosion-resistant technologies, with a dominant market position in the glass-lined equipment (GLE) sector, particularly in India where it holds approximately 50% market share.
• The company has strategically diversified its portfolio through acquisitions, reducing its reliance on the cyclical chemical and pharmaceutical industries by expanding into non-GLE products and services which now cater to a wider range of sectors including oil & gas, water treatment, and food & beverage.
• While long-term revenue growth has been strong, recent financial performance shows significant pressure on profitability, with declining net income and margins over the past three years, alongside a sharp drop in its market capitalization and earnings per share.

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

• Guangdong Dtech Technology is a leading provider of integrated solutions for the Printed Circuit Board (PCB) and Computer Numerical Control (CNC) precision parts industries, with a strong market position, particularly in PCB drill bits.
• The company is poised to benefit from favorable industry tailwinds, including the growth of the global electronics market, advancements in 5G, AI, and automotive electronics, which are driving demand for more complex and high-precision PCBs and components.
• Recent financial performance indicates strong growth, with significant increases in revenue and net income. The company’s planned dual listing in Hong Kong is expected to provide additional capital for expansion and enhance its international profile.

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

• Tourism Holdings (THL NZ) received a competing, non-binding proposal from an unnamed strategic buyer at NZ$3.30 to NZ$3.40, representing a 6.5% to 9.7% premium over the BGH/Trouchet NZ$3.10 offer.
• The AFR reported that the strategic buyer is Indie Campers, which on 15 February 2026 agreed to acquire THL’s UK and Ireland business assets for NZ$58.3 million.
• The competing bid is likely to be structured as an off-market takeover offer with step-up payments. This development is likely to increase the odds of a bidding war.  

• Circuit Fabology Microelectronics Equipment (9630 HK) raised US$413m in its upcoming Hong Kong IPO.
• It is the world’s largest provider of PCB direct imaging equipment, delivering PCB direct imaging and semiconductor direct-writing lithography equipment. 
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• DPC upsized its IPO and priced above range before opening 33.3% higher, reflecting exceptionally strong institutional demand.
• Sources indicate the deal was more than 30x oversubscribed with substantial participation from long-only investors and anchor accounts
• Aerospace suppliers remain a favored theme, and limited allocations may continue driving aftermarket demand as investors fill positions.

• Doncasters (NYSE: DPC) delivered another strong performance on its public market debut, opening at $44.00 after pricing its upsized IPO at $33.00 , a gain of more than 33% from the offering price.
• IPO Prophet established bullish sentiment at the opening trade , and that outlook remained intact throughout the session as the stock never triggered a bearish momentum marker.
• Shares finished the day at $46.96 , up 42.3% from the IPO price and 6.7% above the opening trade.

• Street chatter points to Samsung buyback board approval likely landing in the first half of next month, pre mid month, with management increasingly focused on Hynix market cap flip risk.
• Samsung common outperforms prefs today. Street reads it as management leaning into Hynix relative performance and skewed toward common driven flow impact.
• Lean into Hynix ADR setup with overhang reinforcing long Samsung short Hynix. July buyback flow adds tailwind. Square Hynix outperformance may re lock into listing window despite today’s pullback.

• The Nikkei reported that NSSK has made a revised proposal for Makino Milling Machine Co (6135 JP) at around JPY16,000, a 36.2% premium to the failed MBK JPY11,751 offer.
• The Nikkei highlights a risk that the NSSK tender offer may be rejected in favour of implementing the updated corporate enhancement plan (announced on 13 May). 
• However, the Board is likely to support an NSSK offer of around JPY16,000, as it would represent an all-time high and exceed the peer- and market-adjusted undisturbed price. 

• Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.

• On June 29, 2026, Honeywell will break into two large-cap industrials: Honeywell Aerospace (HONA) and Honeywell Technologies (HON).

• I think the breakup unlocks value. My base-case sum-of-the-parts points to ~24% upside, even assuming both pieces trade at a discount to peers.

• But that discount isn’t enough to make me buy ahead of the spin.

• Anup Engineering, a process equipment manufacturer, delivered record FY26 revenue of INR 822 crore and completed Kheda Phase-2, doubling capacity to 20,000 MT per annum.
• PAT declined 6.7% despite strong revenue, as steel inflation, execution delays and fixed-price contracts pressured margins. FY27 margin recovery is now the key test.
• The long-term story remains intact, led by nuclear entry, skid packages, technical services and a INR 1,200 crore pipeline. Near-term execution will decide the next re-rating.

• Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.
• Key KPI: Kubota’s ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.
• Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.

• Zhejiang Laifual Drive (3952 HK) is looking to raise up to US$147m in its upcoming Hong Kong IPO.
• Zhejiang Laifual Drive (ZLD) is a provider of core components for robotic precision transmission in China.
• In this note, we talk about the company’s background, past performances and valuations.

• On the 29th May 2026, Tourism Holdings (THL NZ/AU) announced an NZ$3.10/share NBIO from a consortium comprising BGH Capital and the founding Trouchet family. Due diligence was subsequently afforded. 
• The same consortium, holding 19.9% of shares out, offered NZ$2.30/share for the world’s largest commercial recreation vehicle rental operator in June 2025; however THL summarily rejected terms.
• This morning THL announced an NBIO of NZ$3.30-NZ$3.40/share from a “credible strategic buyer“. Due diligence has been afforded. Discussions remain ongoing with the BGH/Trouchet consortium.

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• The Moving & Storage rental dealer network has been expanded, and management continues to expand capacity in the self-storage segment and U-Box.

• KOEL, a Leading engine and power solutions company, recorded standalone quarterly sales of INR 1,522 crore in Q4 FY26, taking FY26 sales to INR 5,604 crore with 13.1% EBITDA margin.
• Powergen grew 32% in FY26, with over 50,000 units sold. High-horsepower share is now nearing double digits, led by OptiPrime and HHP demand.
• The debate has shifted to execution. KOEL’s INR 700 crore ongoing expansion and fresh INR 1,400 crore Kagal capex can reset scale, but absorption risk remains.

• Street chatter points to Samsung buyback board approval likely landing in the first half of next month, pre mid month, with management increasingly focused on Hynix market cap flip risk.
• Samsung common outperforms prefs today. Street reads it as management leaning into Hynix relative performance and skewed toward common driven flow impact.
• Lean into Hynix ADR setup with overhang reinforcing long Samsung short Hynix. July buyback flow adds tailwind. Square Hynix outperformance may re lock into listing window despite today’s pullback.

• The Nikkei reported that NSSK has made a revised proposal for Makino Milling Machine Co (6135 JP) at around JPY16,000, a 36.2% premium to the failed MBK JPY11,751 offer.
• The Nikkei highlights a risk that the NSSK tender offer may be rejected in favour of implementing the updated corporate enhancement plan (announced on 13 May). 
• However, the Board is likely to support an NSSK offer of around JPY16,000, as it would represent an all-time high and exceed the peer- and market-adjusted undisturbed price. 

• Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and likely A/H premium.

• On June 29, 2026, Honeywell will break into two large-cap industrials: Honeywell Aerospace (HONA) and Honeywell Technologies (HON).

• I think the breakup unlocks value. My base-case sum-of-the-parts points to ~24% upside, even assuming both pieces trade at a discount to peers.

• But that discount isn’t enough to make me buy ahead of the spin.

• Anup Engineering, a process equipment manufacturer, delivered record FY26 revenue of INR 822 crore and completed Kheda Phase-2, doubling capacity to 20,000 MT per annum.
• PAT declined 6.7% despite strong revenue, as steel inflation, execution delays and fixed-price contracts pressured margins. FY27 margin recovery is now the key test.
• The long-term story remains intact, led by nuclear entry, skid packages, technical services and a INR 1,200 crore pipeline. Near-term execution will decide the next re-rating.

• Buy into August: Positive estimate revisions and strong 1Q trends suggest potential upside to Street expectations of ~¥92bn operating profit in 2Q.
• Key KPI: Kubota’s ¥2.2tn finance book grew just ¥6.7bn despite 13.7% revenue growth, validating the core ROE-improvement thesis.
• Re-Rating path: Sustained receivables discipline, margin expansion and stronger capital allocation could drive ROE toward 12%, supporting valuation convergence with higher-return machinery peers.

• Zhejiang Laifual Drive (3952 HK) is looking to raise up to US$147m in its upcoming Hong Kong IPO.
• Zhejiang Laifual Drive (ZLD) is a provider of core components for robotic precision transmission in China.
• In this note, we talk about the company’s background, past performances and valuations.

• On the 29th May 2026, Tourism Holdings (THL NZ/AU) announced an NZ$3.10/share NBIO from a consortium comprising BGH Capital and the founding Trouchet family. Due diligence was subsequently afforded. 
• The same consortium, holding 19.9% of shares out, offered NZ$2.30/share for the world’s largest commercial recreation vehicle rental operator in June 2025; however THL summarily rejected terms.
• This morning THL announced an NBIO of NZ$3.30-NZ$3.40/share from a “credible strategic buyer“. Due diligence has been afforded. Discussions remain ongoing with the BGH/Trouchet consortium.

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• The Moving & Storage rental dealer network has been expanded, and management continues to expand capacity in the self-storage segment and U-Box.

• KOEL, a Leading engine and power solutions company, recorded standalone quarterly sales of INR 1,522 crore in Q4 FY26, taking FY26 sales to INR 5,604 crore with 13.1% EBITDA margin.
• Powergen grew 32% in FY26, with over 50,000 units sold. High-horsepower share is now nearing double digits, led by OptiPrime and HHP demand.
• The debate has shifted to execution. KOEL’s INR 700 crore ongoing expansion and fresh INR 1,400 crore Kagal capex can reset scale, but absorption risk remains.

• The SP 500 index tracks the 500 largest (mostly profitable) US-listed names and is one of the most highly-tracked indices in the world.
• We expect 2 changes during the September 2026 index rebal event, with three possible intra-review changes before the regular rebalance announcement.
• SpaceX’s CI/TMI addition on 18 June 2026 does not affect SP 500 eligibility, which we see no earlier than September 2027.

• Castlelake’s 625p proposal values easyJet at 3.45x NTM EBITDA, below the 4.1x peer median and less than half Ryanair’s 7.2x multiple, supporting the board’s rejection.
• Castlelake’s 625p proposal values easyJet at 3.45x NTM EBITDA, below the 4.1x peer median and less than half Ryanair’s 7.2x multiple, supporting the board’s rejection.
• My base-case valuation is 632p/share, rising to 731p at the sector median multiple. Probability-weighted value is 635p, versus the current share price of 518p.

• Buy ahead of August print: Mechatronics margins inflected to 9.4%, estimates are rising, and July divestitures should improve ROIC, supporting further re-rating from 1.0x book.
• Key catalyst: Semiconductor-equipment orders started weak (~6% of FY target achieved in Q1); evidence of stabilization, is enough to support guidance.
• Risk/Reward: Reaffirmed JPY60bn OP guidance could drive 15–25% upside via multiple expansion; another guidance cut would challenge the self-help story and pressure shares.

• Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)
• ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.
• Our SOTP valuation of $46.50 implies roughly 49% upside to REZI’s current price, highlighting the potential for value unlock via the spin-off.

• Aumann’s odd-lot tender offer consideration increased to €17.80/share, offering €200+ upside for holders of 100 shares or fewer.
• Holcim’s tender offer for Cementos Pacasmayo covers all shares at a minimum price of $13.00/share, eliminating proration risk.
• Apollo’s liquidation plans pressure Ambase to resolve litigation, affecting ARI’s liquidation estimates and investor returns.

Key points (machine generated)

• Iino Kaiun has launched a medium-term management plan called ‘Transformation for a Sustainable Future’ as of May 2026.
• The plan focuses on balancing capital efficiency with growth investments, prioritizing safety and future prosperity.
• Key strategies include managing the business portfolio for stable revenue, emphasizing resource and energy transportation, and promoting decarbonization initiatives.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Innospace is a South Korean aerospace company specializing in small satellite launch services, capitalizing on the rapidly growing global demand for small satellite deployment.
• The company’s core competitive advantage lies in its proprietary hybrid rocket technology, which utilizes a combination of solid paraffin-based fuel and liquid oxygen, aiming to provide a more cost-effective, reliable, and safer launch solution compared to traditional liquid or solid rockets.
• Despite its technological promise and position in a high-growth market, the company is in a pre-profitability stage, characterized by significant operating losses, negative cash flow, and a reliance on external funding, which creates considerable financial and execution risks, including potential shareholder dilution.

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• Set to rebound QoQ – Softening fundamentals in Q1-3 FY7/26 results stemmed from increased recruitment with lower-than-expected sales outcomes for new business, culminating in a downward revision to FY7/26 guidance.
• However, we believe the key issue is that the mismatch between increased headcount and capacity, with a limited sales pipeline, is a one-time event; this is indicated by implied guidance for Q4 FY7/26, where both sales and OP are expected to return to a YoY growth profile.
• While management has also toned down growth expectations for FY7/27 relative to targets outlined in their medium- to long-term vision, the earnings outlook remains one of YoY recovery.

Key points (machine generated)

• FISCO Ltd. released a report on Nareru Group Inc.’s medium-term management plan, ‘Change and Growth 2030,’ targeting an operating profit of ¥5.0 billion by FY10/30.
• The plan focuses on revenue growth to ¥50 billion, an ROE of over 20%, and recruiting 8,000 engineers, with significant investments in core businesses and digital transformation.
• The report predicts a potential market capitalization exceeding ¥45 billion by FY10/30, despite initial pressures from upfront investments.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• FISCO Ltd. released a report on Nareru Group’s growth strategy ‘Change and Growth 2030’ for FY10/26 to FY10/30.
• The plan addresses construction industry challenges by enhancing core businesses and expanding into digital transformation and recruitment.
• Nareru Group aims for ¥50 billion revenue, ¥5 billion operating profit, over 20% ROE, and 8,000 engineers recruited by FY10/30.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• The SP 500 index tracks the 500 largest (mostly profitable) US-listed names and is one of the most highly-tracked indices in the world.
• We expect 2 changes during the September 2026 index rebal event, with three possible intra-review changes before the regular rebalance announcement.
• SpaceX’s CI/TMI addition on 18 June 2026 does not affect SP 500 eligibility, which we see no earlier than September 2027.

• Castlelake’s 625p proposal values easyJet at 3.45x NTM EBITDA, below the 4.1x peer median and less than half Ryanair’s 7.2x multiple, supporting the board’s rejection.
• Castlelake’s 625p proposal values easyJet at 3.45x NTM EBITDA, below the 4.1x peer median and less than half Ryanair’s 7.2x multiple, supporting the board’s rejection.
• My base-case valuation is 632p/share, rising to 731p at the sector median multiple. Probability-weighted value is 635p, versus the current share price of 518p.

• Buy ahead of August print: Mechatronics margins inflected to 9.4%, estimates are rising, and July divestitures should improve ROIC, supporting further re-rating from 1.0x book.
• Key catalyst: Semiconductor-equipment orders started weak (~6% of FY target achieved in Q1); evidence of stabilization, is enough to support guidance.
• Risk/Reward: Reaffirmed JPY60bn OP guidance could drive 15–25% upside via multiple expansion; another guidance cut would challenge the self-help story and pressure shares.

• Spin separates a high-margin manufacturer (Resideo, ex-ADI) from a larger but lower-margin distributor (ADI)
• ADI starts standalone life with ~$1.0B new debt, ~$831M net debt, and ~$23M of incremental recurring public-company costs.
• Our SOTP valuation of $46.50 implies roughly 49% upside to REZI’s current price, highlighting the potential for value unlock via the spin-off.

• Aumann’s odd-lot tender offer consideration increased to €17.80/share, offering €200+ upside for holders of 100 shares or fewer.
• Holcim’s tender offer for Cementos Pacasmayo covers all shares at a minimum price of $13.00/share, eliminating proration risk.
• Apollo’s liquidation plans pressure Ambase to resolve litigation, affecting ARI’s liquidation estimates and investor returns.

Key points (machine generated)

• Iino Kaiun has launched a medium-term management plan called ‘Transformation for a Sustainable Future’ as of May 2026.
• The plan focuses on balancing capital efficiency with growth investments, prioritizing safety and future prosperity.
• Key strategies include managing the business portfolio for stable revenue, emphasizing resource and energy transportation, and promoting decarbonization initiatives.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Innospace is a South Korean aerospace company specializing in small satellite launch services, capitalizing on the rapidly growing global demand for small satellite deployment.
• The company’s core competitive advantage lies in its proprietary hybrid rocket technology, which utilizes a combination of solid paraffin-based fuel and liquid oxygen, aiming to provide a more cost-effective, reliable, and safer launch solution compared to traditional liquid or solid rockets.
• Despite its technological promise and position in a high-growth market, the company is in a pre-profitability stage, characterized by significant operating losses, negative cash flow, and a reliance on external funding, which creates considerable financial and execution risks, including potential shareholder dilution.

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

• Set to rebound QoQ – Softening fundamentals in Q1-3 FY7/26 results stemmed from increased recruitment with lower-than-expected sales outcomes for new business, culminating in a downward revision to FY7/26 guidance.
• However, we believe the key issue is that the mismatch between increased headcount and capacity, with a limited sales pipeline, is a one-time event; this is indicated by implied guidance for Q4 FY7/26, where both sales and OP are expected to return to a YoY growth profile.
• While management has also toned down growth expectations for FY7/27 relative to targets outlined in their medium- to long-term vision, the earnings outlook remains one of YoY recovery.

Key points (machine generated)

• FISCO Ltd. released a report on Nareru Group Inc.’s medium-term management plan, ‘Change and Growth 2030,’ targeting an operating profit of ¥5.0 billion by FY10/30.
• The plan focuses on revenue growth to ¥50 billion, an ROE of over 20%, and recruiting 8,000 engineers, with significant investments in core businesses and digital transformation.
• The report predicts a potential market capitalization exceeding ¥45 billion by FY10/30, despite initial pressures from upfront investments.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

Key points (machine generated)

• FISCO Ltd. released a report on Nareru Group’s growth strategy ‘Change and Growth 2030’ for FY10/26 to FY10/30.
• The plan addresses construction industry challenges by enhancing core businesses and expanding into digital transformation and recruitment.
• Nareru Group aims for ¥50 billion revenue, ¥5 billion operating profit, over 20% ROE, and 8,000 engineers recruited by FY10/30.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Maxicity (2295 HK), a slope engineering specialist, is currently suspended pursuant to the Takeovers Code. Maxicity is 75% held by founders Shing Kee Sieh and Ka Ki Ho.
• Maxicity was inauspiciously listed on GEM board on the 19th December 2019 at HK$0.60/share; before being transferred to the Main Board on the 31st December 2021.  
• At a guess, I can see Sieh/Ho taking the company private by way of a Scheme. 

• Crealights Technology (1191 HK) is looking to raise up to US$191m in its upcoming Hong Kong IPO.
• It is a global optoelectronic interconnection products provider. It has established a comprehensive high-speed optoelectronic interconnection product matrix. 
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• DPC supplies mission-critical aerospace and industrial gas turbine components to leading OEMs benefiting from powerful long-term demand trends.
• Approximately 70% of revenue is covered by long-term agreements, providing strong visibility into future revenue, margins, and production planning.
• IPO proceeds will primarily reduce debt, positioning the company to improve financial flexibility and capitalize on significant growth opportunities.

• Eureka Forbes, a water and cleaning solutions leader, delivered its second straight year of double-digit revenue growth and record Q4 adjusted EBITDA margin of 13.2%.
• The growth appears structural, supported by a 14-million-customer service base, faster robotics and air purifier adoption, and a debt-free balance sheet.
• The key benchmark is FY30: management targets 2x revenue to INR 5,400-5,600 crore and 3x adjusted EBITDA to INR 800-850 crore.

• RBC Bearings reported fiscal fourth quarter 2026 net sales of $518 million, reflecting an 18.3% year-over-year increase driven mainly by robust growth in its Aerospace & Defense (A&D) segment and steady performance in the Industrial segment.
• The company’s consolidated gross margin stood at 44.4% (45.3% adjusted), slightly up from the prior-year period, while adjusted diluted earnings per share rose 27.9% to $3.62.
• Adjusted EBITDA increased 21% to $168.9 million, and free cash flow remained strong at $67.5 million.

• Shenzhen Senior Technology Material (6067 HK) , a manufacturer of lithium-ion battery separators, aims to raise around US$171m in its H-share listing.
• SSTM’s H-share offering comes at an interesting point in the battery materials cycle. Despite posting less-than-ideal financials over the past years, the industry backdrop has started to look more constructive.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• Under the new president Masahito Imai, TEKKEN CORPORATION (hereinafter, the Company) has updated its Mid-Term Management Plan 2028.
• The plan sets 10% ROE as a mandatory target by FY2029/3, and introduces a number of initiatives: (1) the formal adoption of a corporate purpose and clarification of the Company’s long-term ambition as the“100th-Anniversary Dream,” (2) upward revisions of numerical targets, (3) a streamlined and more detailed investment plan, and (4) a shift to a DOE-base shareholder-return policy.
• At the same time, the two prior catchphrases— the Company’s inherent profit-generating capacity (= target operating margin of 3%) and the eliminating unprofitable projects— have been removed. SIR views these changes as clear evidence that the Company has completed a strategic shift from “pursuing scale” to “pursuing qualitative growth and sustainable value creation”.

• Anhui Huachuang New Materials Co Ltd (2662959D HK) (AHCL) plans to raise around US$100m in its upcoming Hong Kong IPO. The deal will be run by Citic.
• AHCL specializes in the R&D, production and sales of high-performance electrolytic copper foil products.
• As per Frost & Sullivan, it ranked as the third-largest electrolytic copper foil producer in the world by shipment volume in 2025, with a market share of approximately 5.4%.

Key points (machine generated)

• Neo Marketing reported record sales of 1,385 million yen for the fiscal year ending September 2026, a 6.7% increase year-on-year.
• The company specializes in consumer engagement to assist clients in building sustainable purchasing systems.
• Neo Marketing is implementing a growth strategy that involves strategic mergers and acquisitions to strengthen its market position.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Amaero Inc (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
• Amaero has announced it has commissioned its third electrode induction melting gas atomiser (EIGA) ahead of schedule at its Tennessee manufacturing facility, expanding its US production platform across both refractory and titanium alloy powders.
• The company now has annual production capacity of approximately 200t for refractory alloys and approximately 480t for titanium alloys, making it potentially the largest capacity US domestic producer of spherical refractory and titanium alloy powders.