Industrials

• In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the December 2025 index rebal event.
• We expect one change for ASX 50, one change for ASX 100, and four changes for ASX 200. 
• The official index changes will be announced after the close on Friday 5th December 2025.

• On 24 September, Hyundai Elevator Co (017800 KS) announced that it plans to sell 7.8 million shares of Hyundai Movex (319400 KS), representing 7% of its outstanding shares.
• Over the next several weeks, we expect continued outperformance of Hyundai Elevator vs Hyundai Movex. 
• We like the pair trade of going long Hyundai Elevator and going short Hyundai Movex over the next 1-3 months, especially due to concerns about a 7% sale in Movex.

• Earnings Growth: Non-resource engines (Food, FamilyMart, ICT, Textiles) compounding at double-digit rates; mid- to high-single-digit EPS growth outlook.
• Valuation: Trades at ~13× FY2026E P/E, in line with peers, offering steady TSR without a valuation premium.
• Capital Returns: ¥200/share dividend + ¥150 bn buybacks underpin 40–50% payout; EPS uplift from share reduction.

Braemar’s H126 trading update confirms that the first half was a tough period but the company is making progress against its FY30 growth targets (announced earlier this year). These include the opening of a new Cape Town office focusing on tanker chartering, which brought Braemar’s global footprint to 19 offices in 14 countries. The long-term fundamentals remain in place and we expect a return to growth in FY27e. Following the update, our profit estimates are unchanged, as is our valuation of 462p, which offers c 90% upside.

• Petards Group PLC (PEG) announced it’s interim results for the half year ended 30 June 2025.
• We have published research on this which is attached and a snapshot of the research is below.
• The Affini acquisition, the third acquisition since 2016, has had a strong positive impact on the Interims results to June 2025, while the other divisions achieved either higher or similar revenues to last year.

• Shares of Plug Power have defied gravity in recent weeks, notching an unprecedented 10-day winning streak and more than doubling in value to $2.82 as of September 23, 2025.
• Despite a historical track record of operating losses and continued projections of negative earnings in fiscal 2025, the stock has caught fire amid a convergence of bullish catalysts.
• Chief among them is the potential for a $370 million cash injection from warrant exercises by Heights Capital Management, following a new disclosure by the company.

Key points (machine generated)

• Qualtec reported record highs in sales, operating profit, and ordinary profit for the fiscal year ending June 2025, with sales reaching 4,025 million yen, an 11.1% increase year-on-year.
• The company’s growth is attributed to rising orders in power semiconductor testing and bio-related sectors.
• Qualtec specializes in reliability evaluation services and has gained recognition for its Total Quality Solution (TQS) among major clients, including complete vehicle manufacturers.

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

• Advanced Drainage Systems, Inc. reported its first-quarter fiscal 2026 results, reflecting a mix of both positive performance indicators and challenges in the current market environment.
• Notably, the company achieved a 33.5% adjusted EBITDA margin, showcasing resilience despite facing demand headwinds.
• Revenue increased by 2%, driven primarily by the recent Orenco acquisition, while organic sales experienced a slight decline, although core nonresidential and residential markets remained stable.

• Sunwoda Electronic Co Ltd A (300207 CH) is looking to raise around US$400m in its upcoming H-share listing.
• It is a lithium-ion battery manufacturer. It covers a rich product matrix including consumer battery, EV battery and ESS.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Frontier Management (hereafter, the Company) announced its H1 FY2025/12 results after market close on August 13, 2025.
• Net sales rose 26.6% YoY to JPY 5,771 mn, supported by the consolidation of HobbyLink Japan, an investee company, while operating profit recorded a loss of JPY 10 mn.
• In addition, ordinary profit posted a loss of JPY 199 mn due to financing costs such as arrangement fees for a syndicated loan.

• In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the December 2025 index rebal event.
• We expect one change for ASX 50, one change for ASX 100, and four changes for ASX 200. 
• The official index changes will be announced after the close on Friday 5th December 2025.

• On 24 September, Hyundai Elevator Co (017800 KS) announced that it plans to sell 7.8 million shares of Hyundai Movex (319400 KS), representing 7% of its outstanding shares.
• Over the next several weeks, we expect continued outperformance of Hyundai Elevator vs Hyundai Movex. 
• We like the pair trade of going long Hyundai Elevator and going short Hyundai Movex over the next 1-3 months, especially due to concerns about a 7% sale in Movex.

• Earnings Growth: Non-resource engines (Food, FamilyMart, ICT, Textiles) compounding at double-digit rates; mid- to high-single-digit EPS growth outlook.
• Valuation: Trades at ~13× FY2026E P/E, in line with peers, offering steady TSR without a valuation premium.
• Capital Returns: ¥200/share dividend + ¥150 bn buybacks underpin 40–50% payout; EPS uplift from share reduction.

Braemar’s H126 trading update confirms that the first half was a tough period but the company is making progress against its FY30 growth targets (announced earlier this year). These include the opening of a new Cape Town office focusing on tanker chartering, which brought Braemar’s global footprint to 19 offices in 14 countries. The long-term fundamentals remain in place and we expect a return to growth in FY27e. Following the update, our profit estimates are unchanged, as is our valuation of 462p, which offers c 90% upside.

• Petards Group PLC (PEG) announced it’s interim results for the half year ended 30 June 2025.
• We have published research on this which is attached and a snapshot of the research is below.
• The Affini acquisition, the third acquisition since 2016, has had a strong positive impact on the Interims results to June 2025, while the other divisions achieved either higher or similar revenues to last year.

• Shares of Plug Power have defied gravity in recent weeks, notching an unprecedented 10-day winning streak and more than doubling in value to $2.82 as of September 23, 2025.
• Despite a historical track record of operating losses and continued projections of negative earnings in fiscal 2025, the stock has caught fire amid a convergence of bullish catalysts.
• Chief among them is the potential for a $370 million cash injection from warrant exercises by Heights Capital Management, following a new disclosure by the company.

Key points (machine generated)

• Qualtec reported record highs in sales, operating profit, and ordinary profit for the fiscal year ending June 2025, with sales reaching 4,025 million yen, an 11.1% increase year-on-year.
• The company’s growth is attributed to rising orders in power semiconductor testing and bio-related sectors.
• Qualtec specializes in reliability evaluation services and has gained recognition for its Total Quality Solution (TQS) among major clients, including complete vehicle manufacturers.

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

• Advanced Drainage Systems, Inc. reported its first-quarter fiscal 2026 results, reflecting a mix of both positive performance indicators and challenges in the current market environment.
• Notably, the company achieved a 33.5% adjusted EBITDA margin, showcasing resilience despite facing demand headwinds.
• Revenue increased by 2%, driven primarily by the recent Orenco acquisition, while organic sales experienced a slight decline, although core nonresidential and residential markets remained stable.

• Sunwoda Electronic Co Ltd A (300207 CH) is looking to raise around US$400m in its upcoming H-share listing.
• It is a lithium-ion battery manufacturer. It covers a rich product matrix including consumer battery, EV battery and ESS.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Frontier Management (hereafter, the Company) announced its H1 FY2025/12 results after market close on August 13, 2025.
• Net sales rose 26.6% YoY to JPY 5,771 mn, supported by the consolidation of HobbyLink Japan, an investee company, while operating profit recorded a loss of JPY 10 mn.
• In addition, ordinary profit posted a loss of JPY 199 mn due to financing costs such as arrangement fees for a syndicated loan.

• In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2025.
• The seven potential additions are up on average 200% YTD. The eight potential deletion candidates are down on average 8.8% YTD. KOSPI is up 44.7% YTD.
• The average market cap of the seven potential additions is 3.5 trillion won. The average market cap of the seven potential deletion candidates is 0.6 trillion won.

• On 24 September, Ecopro Co confirmed that it will be raising 800 billion won through a PRS using its stake in Ecopro BM as the base asset.
• Ecopro BM has a market cap of 11.3 trillion won. A PRS worth 800 billion won represents 7.1% of Ecopro BM’s market cap. 
• All in all, we believe this PRS deal worth 800 billion won is likely to negatively impact both Ecopro Co and Ecopro BM.

• Copper earnings leverage: Equity-method stakes in Collahuasi and Anglo Sur mean every +10% copper move adds ~¥25–30 bn net income (~3% EPS), giving Mitsui underappreciated upside torque.
• LNG stability & cash flows: Long-term contracts in Mozambique, Cameron, Qatar, and Sakhalin underpin resilient earnings and support ¥400 bn annual buybacks (~5% equity).
• Valuation: P/B discount vs Itochu has closed (~1.1× each), but Berkshire’s ≥10% stake enforces capital discipline; TSR outlook is 6–9% CAGR through FY28, with copper strength providing double-digit upside.

• Solarspace Technology (2221225D CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by China Securities International and CITIC Securities.
• Solarspace Technology Co., Ltd. is a global specialized photovoltaic (PV) cell manufacturer with an integrated presence in PV modules. which are the core components that convert sunlight into electricity.
• The company operates in the midstream of the solar value chain, focusing on the research, development, and large-scale production of both N-type and P-type PV cells, and PV modules.

• Largest Malaysian IPO in over a decade – MMC Port seeks to raise ~RM8.5bn (~US$2bn) at ~RM30bn valuation via an Offer-for-Sale; no new capital raised.
• Strong catalysts but yield/mix risks – Tariff hikes (+30% by 2027) and Gemini alliance (Maersk–Hapag) boost near-term throughput, but high transshipment share (73%) pressures yields.
• IPO Structure: Offer-for-Sale of up to 30%; no new proceeds for the company, making capital allocation and leverage management important post-listing

• CJ Corp‘s valuation and growth are increasingly driven by its unlisted subsidiary, CJ Olive Young, which is capitalizing on the global K-beauty trend and showing strong topline growth and margin expansion.
• The holding company’s overall financial performance is mixed, with the stellar results from CJ Olive Young being partially offset by disappointing performance at other major listed subsidiaries in the food, logistics, and media sectors.
• Key forward-looking catalysts include the potential IPO of CJ Olive Young and the return of Chinese tourists to Korea, while significant risks loom from potential US tariffs on cosmetics and the persistent underperformance of its diversified portfolio.

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

Key points (machine generated)

• Furusato Maruka Holdings, formed in October 2021, has revised its earnings forecast downward for the fiscal year ending December 2025.
• For the interim results of 2025, consolidated sales increased by 1.2% to 79,779 million yen, but operating profit fell by 11.7% and ordinary profit decreased by 14%.
• The company will change its name to Unisol Holdings Co., Ltd. on January 1, 2026, aiming to become a unique solution provider beyond traditional trading.

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

• In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2025.
• The seven potential additions are up on average 200% YTD. The eight potential deletion candidates are down on average 8.8% YTD. KOSPI is up 44.7% YTD.
• The average market cap of the seven potential additions is 3.5 trillion won. The average market cap of the seven potential deletion candidates is 0.6 trillion won.

• On 24 September, Ecopro Co confirmed that it will be raising 800 billion won through a PRS using its stake in Ecopro BM as the base asset.
• Ecopro BM has a market cap of 11.3 trillion won. A PRS worth 800 billion won represents 7.1% of Ecopro BM’s market cap. 
• All in all, we believe this PRS deal worth 800 billion won is likely to negatively impact both Ecopro Co and Ecopro BM.

• Copper earnings leverage: Equity-method stakes in Collahuasi and Anglo Sur mean every +10% copper move adds ~¥25–30 bn net income (~3% EPS), giving Mitsui underappreciated upside torque.
• LNG stability & cash flows: Long-term contracts in Mozambique, Cameron, Qatar, and Sakhalin underpin resilient earnings and support ¥400 bn annual buybacks (~5% equity).
• Valuation: P/B discount vs Itochu has closed (~1.1× each), but Berkshire’s ≥10% stake enforces capital discipline; TSR outlook is 6–9% CAGR through FY28, with copper strength providing double-digit upside.

• Solarspace Technology (2221225D CH) is looking to raise about US$100m in its upcoming Hong Kong IPO. The deal will be run by China Securities International and CITIC Securities.
• Solarspace Technology Co., Ltd. is a global specialized photovoltaic (PV) cell manufacturer with an integrated presence in PV modules. which are the core components that convert sunlight into electricity.
• The company operates in the midstream of the solar value chain, focusing on the research, development, and large-scale production of both N-type and P-type PV cells, and PV modules.

• Largest Malaysian IPO in over a decade – MMC Port seeks to raise ~RM8.5bn (~US$2bn) at ~RM30bn valuation via an Offer-for-Sale; no new capital raised.
• Strong catalysts but yield/mix risks – Tariff hikes (+30% by 2027) and Gemini alliance (Maersk–Hapag) boost near-term throughput, but high transshipment share (73%) pressures yields.
• IPO Structure: Offer-for-Sale of up to 30%; no new proceeds for the company, making capital allocation and leverage management important post-listing

• CJ Corp‘s valuation and growth are increasingly driven by its unlisted subsidiary, CJ Olive Young, which is capitalizing on the global K-beauty trend and showing strong topline growth and margin expansion.
• The holding company’s overall financial performance is mixed, with the stellar results from CJ Olive Young being partially offset by disappointing performance at other major listed subsidiaries in the food, logistics, and media sectors.
• Key forward-looking catalysts include the potential IPO of CJ Olive Young and the return of Chinese tourists to Korea, while significant risks loom from potential US tariffs on cosmetics and the persistent underperformance of its diversified portfolio.

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

Key points (machine generated)

• Furusato Maruka Holdings, formed in October 2021, has revised its earnings forecast downward for the fiscal year ending December 2025.
• For the interim results of 2025, consolidated sales increased by 1.2% to 79,779 million yen, but operating profit fell by 11.7% and ordinary profit decreased by 14%.
• The company will change its name to Unisol Holdings Co., Ltd. on January 1, 2026, aiming to become a unique solution provider beyond traditional trading.

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

• On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
• We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. 
• Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.

• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the peer comparison and IPO valuations.

• Atlanta is the third largest manufcaturer of transformers in India. With recent capex coming online, it boasts of capacity and product offering in line with the market leaders.
• The company has a strong order book of 1,600cr and given the fairly short execution timeline is positioned to deliver 25-30% growth in FY26.
• We believe IPO is being fairly valued at 20-24 times FY26 EBITDA, implying a 30-35% discount vs market leader Transformers & Rectifiers (India) Ltd (TRIL IN) 

• Rolls-Royce is undergoing a significant transformation under new leadership, resulting in a sharp recovery in profitability and cash flow. This turnaround is driven by a rebound in Civil Aerospace aftermarket services and strong performance in its Defence and Power Systems divisions.
• The company operates in markets with high barriers to entry, particularly in the wide-body aircraft engine sector, affording it a strong competitive position. Long-term service agreements provide a resilient and recurring revenue stream tied to engine flying hours.
• While the outlook is positive, supported by a strong order book and strategic cost-cutting initiatives, the company’s valuation appears elevated relative to historical levels. Key risks include execution of the ongoing transformation, cyclicality of the commercial aviation market, and persistent supply chain pressures.

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

• Joby Aviation is a pre-revenue company at the forefront of the emerging electric vertical takeoff and landing (eVTOL) aircraft market, aiming to revolutionize urban transportation with an on-demand aerial ridesharing service.
• The company has made significant progress towards Federal Aviation Administration (FAA) certification for its aircraft, placing it ahead of many competitors. Strategic partnerships with major players like Toyota and Delta Air Lines, along with a strong financial position, are key enablers of its growth strategy.
• However, the company faces substantial risks, including a capital-intensive business model with a long road to profitability, intense competition from both startups and established aerospace giants, and significant regulatory and technological hurdles to overcome before commercial operations can commence.

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

• Technopro Holdings is the subject of a tender offer from private equity firm Blackstone at ¥4,870/share, which represents a significant premium but is considered potentially undervalued by some market observers.
• As a leading technology-focused staffing firm in Japan, the company is well-positioned to benefit from the country’s structural shortage of skilled engineers and increasing demand for digital transformation.
• Significant uncertainty surrounds the success of the Blackstone acquisition due to a high tender threshold of 66.67% and a large passive shareholder base, creating a key risk for investors at the current price.

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

• Leading Market Position with Diversified Operations: Kajima is one of Japan’s ‘Big Five’ general contractors, possessing a dominant position in the domestic construction market. The company is well-diversified across civil engineering, building construction, and a growing real estate development business, which provides a buffer against the cyclicality of the construction sector.
• Favorable Industry Tailwinds: The Japanese construction market is supported by robust public and private investment. Key drivers include large-scale urban redevelopment projects, government spending on national resilience and infrastructure renewal, and growing demand for advanced facilities like data centers and logistics centers.
• Shareholder-Focused Capital Allocation: Kajima has demonstrated a strong commitment to shareholder returns, evidenced by a 3-year dividend CAGR of over 21%. This is supported by a strategy to enhance profitability by focusing on high-margin projects and improving investment efficiency in its real estate development arm.

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

• Privatization Marks New Chapter: After 74 years as a publicly traded entity, Toshiba was delisted in December 2023 following a successful $13.5 billion buyout by a consortium led by Japan Industrial Partners (JIP). This move ends a tumultuous period marked by accounting scandals, corporate governance crises, and battles with activist investors, allowing management to focus on a long-term revitalization strategy away from public market pressures.
• Strategic Refocus on Core Operations: Having divested numerous non-core businesses such as laptops, medical equipment, and home appliances, the new strategy centers on higher-margin and critical technology sectors. Key focus areas include energy systems, infrastructure, power semiconductors, and data-driven digital solutions, aiming to leverage the company’s technological strengths in areas critical to national security and global trends like decarbonization and digitalization.
• Path to Recovery Fraught with Challenges: Despite the potential benefits of privatization, Toshiba faces significant hurdles. The company is still recovering from a legacy of financial mismanagement and reputational damage. It operates in highly competitive global markets and must execute a complex turnaround plan to streamline operations, manage its debt, and regain its position as an innovative leader.

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

• Monopoly Position with Guaranteed Returns: SGP’s sole operating asset, the National Grid Corporation of the Philippines (NGCP), holds an exclusive 25-year concession to operate the entire Philippine power transmission network, creating a natural monopoly with significant barriers to entry. This structure provides a stable and predictable revenue stream based on a regulated asset base.
• Growth Driven by National Economic Expansion: The company is poised to benefit from the Philippines’ robust economic growth, which directly translates to increasing electricity demand. This necessitates significant capital expenditures for grid expansion and modernization, particularly to integrate renewable energy sources, thereby growing SGP’s asset base and future earnings potential.
• Significant Regulatory and Political Risks: As a regulated entity, SGP’s financial performance is highly susceptible to the decisions of the Energy Regulatory Commission (ERC), particularly concerning tariff setting and allowable returns. The strategic importance of the national grid also exposes the company to political scrutiny and potential government intervention, which can create uncertainty.

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

• Carlisle is a market-leading manufacturer of highly engineered building envelope products, with a dominant position in the North American commercial roofing market.
• The company is strategically focused on higher-growth, higher-margin businesses, having recently divested non-core assets. This aligns with their ‘Vision 2030’ plan, which targets significant earnings per share growth.
• While facing near-term headwinds from a softer construction market and destocking, Carlisle’s long-term outlook is supported by favorable trends in energy efficiency, re-roofing, and a strong track record of operational excellence through the Carlisle Operating System (COS).

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

• On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
• We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. 
• Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.

• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the peer comparison and IPO valuations.

• Atlanta is the third largest manufcaturer of transformers in India. With recent capex coming online, it boasts of capacity and product offering in line with the market leaders.
• The company has a strong order book of 1,600cr and given the fairly short execution timeline is positioned to deliver 25-30% growth in FY26.
• We believe IPO is being fairly valued at 20-24 times FY26 EBITDA, implying a 30-35% discount vs market leader Transformers & Rectifiers (India) Ltd (TRIL IN) 

• Rolls-Royce is undergoing a significant transformation under new leadership, resulting in a sharp recovery in profitability and cash flow. This turnaround is driven by a rebound in Civil Aerospace aftermarket services and strong performance in its Defence and Power Systems divisions.
• The company operates in markets with high barriers to entry, particularly in the wide-body aircraft engine sector, affording it a strong competitive position. Long-term service agreements provide a resilient and recurring revenue stream tied to engine flying hours.
• While the outlook is positive, supported by a strong order book and strategic cost-cutting initiatives, the company’s valuation appears elevated relative to historical levels. Key risks include execution of the ongoing transformation, cyclicality of the commercial aviation market, and persistent supply chain pressures.

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

• Joby Aviation is a pre-revenue company at the forefront of the emerging electric vertical takeoff and landing (eVTOL) aircraft market, aiming to revolutionize urban transportation with an on-demand aerial ridesharing service.
• The company has made significant progress towards Federal Aviation Administration (FAA) certification for its aircraft, placing it ahead of many competitors. Strategic partnerships with major players like Toyota and Delta Air Lines, along with a strong financial position, are key enablers of its growth strategy.
• However, the company faces substantial risks, including a capital-intensive business model with a long road to profitability, intense competition from both startups and established aerospace giants, and significant regulatory and technological hurdles to overcome before commercial operations can commence.

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

• Technopro Holdings is the subject of a tender offer from private equity firm Blackstone at ¥4,870/share, which represents a significant premium but is considered potentially undervalued by some market observers.
• As a leading technology-focused staffing firm in Japan, the company is well-positioned to benefit from the country’s structural shortage of skilled engineers and increasing demand for digital transformation.
• Significant uncertainty surrounds the success of the Blackstone acquisition due to a high tender threshold of 66.67% and a large passive shareholder base, creating a key risk for investors at the current price.

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

• Leading Market Position with Diversified Operations: Kajima is one of Japan’s ‘Big Five’ general contractors, possessing a dominant position in the domestic construction market. The company is well-diversified across civil engineering, building construction, and a growing real estate development business, which provides a buffer against the cyclicality of the construction sector.
• Favorable Industry Tailwinds: The Japanese construction market is supported by robust public and private investment. Key drivers include large-scale urban redevelopment projects, government spending on national resilience and infrastructure renewal, and growing demand for advanced facilities like data centers and logistics centers.
• Shareholder-Focused Capital Allocation: Kajima has demonstrated a strong commitment to shareholder returns, evidenced by a 3-year dividend CAGR of over 21%. This is supported by a strategy to enhance profitability by focusing on high-margin projects and improving investment efficiency in its real estate development arm.

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

• Privatization Marks New Chapter: After 74 years as a publicly traded entity, Toshiba was delisted in December 2023 following a successful $13.5 billion buyout by a consortium led by Japan Industrial Partners (JIP). This move ends a tumultuous period marked by accounting scandals, corporate governance crises, and battles with activist investors, allowing management to focus on a long-term revitalization strategy away from public market pressures.
• Strategic Refocus on Core Operations: Having divested numerous non-core businesses such as laptops, medical equipment, and home appliances, the new strategy centers on higher-margin and critical technology sectors. Key focus areas include energy systems, infrastructure, power semiconductors, and data-driven digital solutions, aiming to leverage the company’s technological strengths in areas critical to national security and global trends like decarbonization and digitalization.
• Path to Recovery Fraught with Challenges: Despite the potential benefits of privatization, Toshiba faces significant hurdles. The company is still recovering from a legacy of financial mismanagement and reputational damage. It operates in highly competitive global markets and must execute a complex turnaround plan to streamline operations, manage its debt, and regain its position as an innovative leader.

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

• Monopoly Position with Guaranteed Returns: SGP’s sole operating asset, the National Grid Corporation of the Philippines (NGCP), holds an exclusive 25-year concession to operate the entire Philippine power transmission network, creating a natural monopoly with significant barriers to entry. This structure provides a stable and predictable revenue stream based on a regulated asset base.
• Growth Driven by National Economic Expansion: The company is poised to benefit from the Philippines’ robust economic growth, which directly translates to increasing electricity demand. This necessitates significant capital expenditures for grid expansion and modernization, particularly to integrate renewable energy sources, thereby growing SGP’s asset base and future earnings potential.
• Significant Regulatory and Political Risks: As a regulated entity, SGP’s financial performance is highly susceptible to the decisions of the Energy Regulatory Commission (ERC), particularly concerning tariff setting and allowable returns. The strategic importance of the national grid also exposes the company to political scrutiny and potential government intervention, which can create uncertainty.

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

• Carlisle is a market-leading manufacturer of highly engineered building envelope products, with a dominant position in the North American commercial roofing market.
• The company is strategically focused on higher-growth, higher-margin businesses, having recently divested non-core assets. This aligns with their ‘Vision 2030’ plan, which targets significant earnings per share growth.
• While facing near-term headwinds from a softer construction market and destocking, Carlisle’s long-term outlook is supported by favorable trends in energy efficiency, re-roofing, and a strong track record of operational excellence through the Carlisle Operating System (COS).

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

• Market Leader with Robust Order Book: Larsen & Toubro is a dominant player in India’s engineering and construction (E&C) sector with a record order book of ₹6.1 lakh crore as of June 2025, providing strong revenue visibility. A significant 46% of this order book is from international markets, particularly the Middle East, indicating successful geographical diversification.
• Diversified Business Model Mitigates Risk: The company operates a well-diversified model across Infrastructure, Energy, Hi-Tech Manufacturing, IT & Technology Services (through LTIMindtree and L&T Technology Services), and Financial Services. This structure allows L&T to capture growth across various economic sectors and mitigate risks associated with the cyclicality of the E&C industry.
• Strategic Focus on High-Growth Areas: L&T is strategically positioning itself for future growth by focusing on high-margin areas like green hydrogen, smart city technology, defense manufacturing, and digital services. The company’s new five-year plan emphasizes deepening its strengths in India and the Middle East while exploring these new, technology-driven opportunities.

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

• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the company’s past performance

• In this edition: • BAM Group | Fehmarnbelt tunnel delayed 18 months • Fugro | withdraws financial guidance for 2025

• Market Leader with Robust Order Book: Larsen & Toubro is a dominant player in India’s engineering and construction (E&C) sector with a record order book of ₹6.1 lakh crore as of June 2025, providing strong revenue visibility. A significant 46% of this order book is from international markets, particularly the Middle East, indicating successful geographical diversification.
• Diversified Business Model Mitigates Risk: The company operates a well-diversified model across Infrastructure, Energy, Hi-Tech Manufacturing, IT & Technology Services (through LTIMindtree and L&T Technology Services), and Financial Services. This structure allows L&T to capture growth across various economic sectors and mitigate risks associated with the cyclicality of the E&C industry.
• Strategic Focus on High-Growth Areas: L&T is strategically positioning itself for future growth by focusing on high-margin areas like green hydrogen, smart city technology, defense manufacturing, and digital services. The company’s new five-year plan emphasizes deepening its strengths in India and the Middle East while exploring these new, technology-driven opportunities.

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• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the company’s past performance

• In this edition: • BAM Group | Fehmarnbelt tunnel delayed 18 months • Fugro | withdraws financial guidance for 2025

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Oneconnect Financial Technology (6638 HK), Joy City Property (207 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), PointsBet Holdings (PBH AU), Mandom Corp (4917 JP), Humm Group (HUM AU), Fuji Oil Co Ltd (5017 JP).

• Generac Holdings, Inc., in its second quarter of 2025 earnings call, reported net sales of $1.06 billion, marking a 6% increase compared to the prior year.
• The growth was driven by a rise in commercial and industrial (C&I) product sales and residential energy storage system shipments.
• Residential product sales increased by 7% due to notable growth in residential energy technology solutions and portable generators.

• FedEx Corporation recently announced its first-quarter results for fiscal 2026, presenting a mixed bag of positives and challenges.
• On the revenue side, the company showed a 3% year-over-year increase, primarily driven by strength in the U.S. domestic package services.
• Despite this growth in revenue, FedEx faces continuing headwinds from global trade uncertainties and the expiration of a significant contract with the U.S. Postal Service, which together posed a notable financial impact.

• Concerted rate increase on Sept 1 failed, deep sea rates are still falling
• Carrier revenues in July-August down ~40% Y/Y, W Coast volumes weak
• We retain our -ive view on container shipping, seek opportunities to Short

• Stanley Black & Decker’s financial results for the second quarter of 2025 highlight a mixed performance amidst a challenging economic environment.
• The company reported revenues of $3.9 billion, a 2% decrease compared to the previous year, with organic revenues down by 3%.
• This decline was primarily impacted by a slow start to the outdoor buying season and disruptions in shipments due to customers’ reactions to tariffs.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Oneconnect Financial Technology (6638 HK), Joy City Property (207 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), PointsBet Holdings (PBH AU), Mandom Corp (4917 JP), Humm Group (HUM AU), Fuji Oil Co Ltd (5017 JP).

• Generac Holdings, Inc., in its second quarter of 2025 earnings call, reported net sales of $1.06 billion, marking a 6% increase compared to the prior year.
• The growth was driven by a rise in commercial and industrial (C&I) product sales and residential energy storage system shipments.
• Residential product sales increased by 7% due to notable growth in residential energy technology solutions and portable generators.

• FedEx Corporation recently announced its first-quarter results for fiscal 2026, presenting a mixed bag of positives and challenges.
• On the revenue side, the company showed a 3% year-over-year increase, primarily driven by strength in the U.S. domestic package services.
• Despite this growth in revenue, FedEx faces continuing headwinds from global trade uncertainties and the expiration of a significant contract with the U.S. Postal Service, which together posed a notable financial impact.

• Concerted rate increase on Sept 1 failed, deep sea rates are still falling
• Carrier revenues in July-August down ~40% Y/Y, W Coast volumes weak
• We retain our -ive view on container shipping, seek opportunities to Short

• Stanley Black & Decker’s financial results for the second quarter of 2025 highlight a mixed performance amidst a challenging economic environment.
• The company reported revenues of $3.9 billion, a 2% decrease compared to the previous year, with organic revenues down by 3%.
• This decline was primarily impacted by a slow start to the outdoor buying season and disruptions in shipments due to customers’ reactions to tariffs.