Industrials

• Nidec dropped 22% on Thursday following management’s decision to establish an independent committee to investigate accounting irregularities. It bounced back nearly 5% on Friday, but finished the week down 20%.
• In June, the Company received approval to postpone submitting its FY Mar-25 securities report until September 26. In July, it released incomplete 1Q results while postponing full disclosure.
• Without correct numbers, we can only guess at the full impact of the accounting irregularities and their effect on management. 

• With the exception of SF Holding, all listed express firms reported lower H1 OP%
• SF’s independence and unique product mix protected profits as volume surged
• We suggest going Long SF Hldg against Short positions in ZTO & J&T

• GMS Inc.’s latest earnings for the fourth quarter of fiscal year 2025 reflects a mixed performance amidst a challenging macroeconomic environment.
• On the positive side, the company reported net sales of $1.3 billion for the quarter, which aligns with the high end of their expectations provided earlier in the year.
• The sales were bolstered by recent acquisitions, including Kamco, Yvon Building Supply, R.S. Elliott, and Howard & Sons Building Materials, which contributed positively to their revenue.

• Robert Half’s latest earnings for Q2 2025 presents a mixed picture with some notable challenges and opportunities for its business units.
• The company’s global revenues were reported at $1.37 billion, reflecting a 7% year-over-year decline.
• This decline was in line with the midpoint of the company’s previous guidance.

• Valmont Industries, Inc.’s second quarter 2025 results reveal a complex picture of achievements and strategic recalibrations aimed at positioning the company for future growth while addressing current market conditions.
• The company’s revenue for the quarter reached $1.05 billion, marking a slight increase from the previous year, primarily driven by strong performance in the Utility, Telecommunications, and International Agriculture sectors.
• However, this modest growth is offset by challenges faced in other segments, such as Lighting & Transportation and the Solar business.

• Nidec dropped 22% on Thursday following management’s decision to establish an independent committee to investigate accounting irregularities. It bounced back nearly 5% on Friday, but finished the week down 20%.
• In June, the Company received approval to postpone submitting its FY Mar-25 securities report until September 26. In July, it released incomplete 1Q results while postponing full disclosure.
• Without correct numbers, we can only guess at the full impact of the accounting irregularities and their effect on management. 

• With the exception of SF Holding, all listed express firms reported lower H1 OP%
• SF’s independence and unique product mix protected profits as volume surged
• We suggest going Long SF Hldg against Short positions in ZTO & J&T

• GMS Inc.’s latest earnings for the fourth quarter of fiscal year 2025 reflects a mixed performance amidst a challenging macroeconomic environment.
• On the positive side, the company reported net sales of $1.3 billion for the quarter, which aligns with the high end of their expectations provided earlier in the year.
• The sales were bolstered by recent acquisitions, including Kamco, Yvon Building Supply, R.S. Elliott, and Howard & Sons Building Materials, which contributed positively to their revenue.

• Robert Half’s latest earnings for Q2 2025 presents a mixed picture with some notable challenges and opportunities for its business units.
• The company’s global revenues were reported at $1.37 billion, reflecting a 7% year-over-year decline.
• This decline was in line with the midpoint of the company’s previous guidance.

• Valmont Industries, Inc.’s second quarter 2025 results reveal a complex picture of achievements and strategic recalibrations aimed at positioning the company for future growth while addressing current market conditions.
• The company’s revenue for the quarter reached $1.05 billion, marking a slight increase from the previous year, primarily driven by strong performance in the Utility, Telecommunications, and International Agriculture sectors.
• However, this modest growth is offset by challenges faced in other segments, such as Lighting & Transportation and the Solar business.

• Axon reported strong Q2 earnings with 30% year-over-year growth and strong performance in both connected devices and software segments
• The company has been exceeding growth expectations, with 14 consecutive quarters of over 25% growth and 6 consecutive quarters of over 30% growth
• Axon has been focusing on leveraging AI technology to improve efficiency for police officers and drive growth in their software and services segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
• Hanwha Ocean’s share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
• We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean’s stock price.

• The biggest potential M&A event right now in Korea is the potential acquisition of HMM Co., Ltd. (011200 KS) by POSCO Holdings (005490 KS).
• Overall, we believe there is a higher probability of POSCO backing out of this potential acquisition of HMM, rather than POSCO completing this M&A deal.
• Although POSCO claims that it spends about 3 trillion won annually on logistics, the actual synergies among these three businesses (steel, rechargeable battery, and logistics) remain murky.

• Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
• Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
• Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.

• Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
• The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
• Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.

• WaterBridge Infrastructure filed for IPO on August 22nd and is to likely debut in late September or Early October.
• Their customers include active and well-capitalized E&P companies in the areas in which they operate, including BPX Energy, Chevron, Devon Energy Corporation, EOG Resources and Permian Resources.
• They had total revenue of 167.8 million and $166.3 million and net loss of $44.5 million and $29.8 million in the first half of 2024 and 2025, respectively.

• Axon reported strong Q2 earnings with 30% year-over-year growth and strong performance in both connected devices and software segments
• The company has been exceeding growth expectations, with 14 consecutive quarters of over 25% growth and 6 consecutive quarters of over 30% growth
• Axon has been focusing on leveraging AI technology to improve efficiency for police officers and drive growth in their software and services segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
• Hanwha Ocean’s share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
• We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean’s stock price.

• The biggest potential M&A event right now in Korea is the potential acquisition of HMM Co., Ltd. (011200 KS) by POSCO Holdings (005490 KS).
• Overall, we believe there is a higher probability of POSCO backing out of this potential acquisition of HMM, rather than POSCO completing this M&A deal.
• Although POSCO claims that it spends about 3 trillion won annually on logistics, the actual synergies among these three businesses (steel, rechargeable battery, and logistics) remain murky.

• Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
• Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
• Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.

• Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
• The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
• Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.

• WaterBridge Infrastructure filed for IPO on August 22nd and is to likely debut in late September or Early October.
• Their customers include active and well-capitalized E&P companies in the areas in which they operate, including BPX Energy, Chevron, Devon Energy Corporation, EOG Resources and Permian Resources.
• They had total revenue of 167.8 million and $166.3 million and net loss of $44.5 million and $29.8 million in the first half of 2024 and 2025, respectively.

• Nidec Corp (6594 JP) announced in June they were extending the release of their yuho for three months because of an internal investigation into NIDEC FIR INTERNATIONAL (Italy).
• Yesterday, the company announced it would establish a Third-Party Investigative Committee based on suspected improper accounting at the sub of a Chinese sub 1yr ago and parent management knowledge. 
• There’s been a lot of work done. Now the committee digs in. The announcement smacks of IMS issues. Today the marketcap fell 22% or nearly ¥800bn on ¥200mm of accounting.

• Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
• The company has released its H1 FY25 full year result (December year-end) which is in-line with pre-released data points and commentary.
• The Q2 cashflow statement and financial and operating update was released in July 2025 and included significant detail on group and divisional performance and guidance for the FY25 year.

• Nidec Corp (6594 JP) announced in June they were extending the release of their yuho for three months because of an internal investigation into NIDEC FIR INTERNATIONAL (Italy).
• Yesterday, the company announced it would establish a Third-Party Investigative Committee based on suspected improper accounting at the sub of a Chinese sub 1yr ago and parent management knowledge. 
• There’s been a lot of work done. Now the committee digs in. The announcement smacks of IMS issues. Today the marketcap fell 22% or nearly ¥800bn on ¥200mm of accounting.

• Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
• The company has released its H1 FY25 full year result (December year-end) which is in-line with pre-released data points and commentary.
• The Q2 cashflow statement and financial and operating update was released in July 2025 and included significant detail on group and divisional performance and guidance for the FY25 year.

• Major major local media including Maekyung Business Daily and Chosun Daily have reported that LS Cable & System is pushing forward with an EB worth 400 billion won. 
• The target stock to be used in the EB is LS Cable’s shares in its subsidiary LS Marine Solution. 
• LS Marine Solution is one of the largest marine engineering companies in Korea, specializing in the installation and maintenance of submarine cables, offshore wind infrastructure, and marine energy systems.

• On the 11th July, PEP offered A$4/share for integrated building services provider Johns Lyng (JLG AU), a 77% premium to undisturbed. CEO Scott Didier, JLG’s largest shareholder (17.62%), was supportive.
• Pricing is okay. The absence of a final year fully franked dividend, which was teased at the onset, was ostensibly disappointing.
• The Scheme Booklet is now out, with a Scheme Meeting on the 8th October, and expected implementation on or before the 23rd October. The IE (Kroll) says “fair & reasonable“.

• The Johns Lyng (JLG AU) IE considers PEP’s A$4.00 offer fair and reasonable as it is within its A$3.72-4.42 valuation range.
• The offer requires regulatory (FIRB and US) and shareholder approvals. The scheme vote should pass as no disinterested shareholder comes close to holding a blocking stake.  
• The offer is reasonable as the timing of an earnings recovery is highly uncertain. At the last close and for a 23 October payment, the gross/annualised spread is 1.5%/11.0%. 

Key points (machine generated)

• Air Lease is trading at 0.9 times its book value and is expected to double its earnings in three years.
• Factors contributing to earnings growth include new aircraft deliveries, increased yields from extended leases, and the end of lower-rate COVID-era leases.
• A potential stock buyback announcement is anticipated due to the company’s excess capital position.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Hesai Group (HSAI US) plans to raise around US$200-300m in its secondary listing in Hong Kong. 
• The company won HK listing approval and filed its PHIP on 31st August 2025. It will look to launch its secondary offering soon.
• In this note, we’ll take a look at the deal and talk about the impact of the raising.

• In this edition: • ABN Amro | launches a neobank alternative aimed at youngsters • Aegon / a.s.r. Nederland | Aegon reduced its stake in ASR; ASR absorbs EUR 105m itself • InPost | post earnings call comment: investment case remains intact • Dutch CPI | consumer prices rose 2.8% YoY in August

Key points (machine generated)

• Herc Holdings (HRI) is the third-largest equipment rental company, recently acquiring H&E to strengthen its market position.
• HRI has improved its operations since separating from Hertz, adopting successful strategies from industry leaders.
• Despite a narrower competitive advantage, HRI is seen as undervalued with resilient earnings expected even during recessions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Amaero Ltd (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.
• The company has announced new revenue guidance for FY26 in the range of A$30-35m with a 40/60 split to H1/H2.
• The revenue guidance was given during a webinar following the announcement of a five-year exclusive supplier and development agreement with Titomic (ASX:TTT) for refractory and titanium alloy spherical powders.

• Major major local media including Maekyung Business Daily and Chosun Daily have reported that LS Cable & System is pushing forward with an EB worth 400 billion won. 
• The target stock to be used in the EB is LS Cable’s shares in its subsidiary LS Marine Solution. 
• LS Marine Solution is one of the largest marine engineering companies in Korea, specializing in the installation and maintenance of submarine cables, offshore wind infrastructure, and marine energy systems.

• On the 11th July, PEP offered A$4/share for integrated building services provider Johns Lyng (JLG AU), a 77% premium to undisturbed. CEO Scott Didier, JLG’s largest shareholder (17.62%), was supportive.
• Pricing is okay. The absence of a final year fully franked dividend, which was teased at the onset, was ostensibly disappointing.
• The Scheme Booklet is now out, with a Scheme Meeting on the 8th October, and expected implementation on or before the 23rd October. The IE (Kroll) says “fair & reasonable“.

• The Johns Lyng (JLG AU) IE considers PEP’s A$4.00 offer fair and reasonable as it is within its A$3.72-4.42 valuation range.
• The offer requires regulatory (FIRB and US) and shareholder approvals. The scheme vote should pass as no disinterested shareholder comes close to holding a blocking stake.  
• The offer is reasonable as the timing of an earnings recovery is highly uncertain. At the last close and for a 23 October payment, the gross/annualised spread is 1.5%/11.0%. 

Key points (machine generated)

• Air Lease is trading at 0.9 times its book value and is expected to double its earnings in three years.
• Factors contributing to earnings growth include new aircraft deliveries, increased yields from extended leases, and the end of lower-rate COVID-era leases.
• A potential stock buyback announcement is anticipated due to the company’s excess capital position.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Hesai Group (HSAI US) plans to raise around US$200-300m in its secondary listing in Hong Kong. 
• The company won HK listing approval and filed its PHIP on 31st August 2025. It will look to launch its secondary offering soon.
• In this note, we’ll take a look at the deal and talk about the impact of the raising.

• In this edition: • ABN Amro | launches a neobank alternative aimed at youngsters • Aegon / a.s.r. Nederland | Aegon reduced its stake in ASR; ASR absorbs EUR 105m itself • InPost | post earnings call comment: investment case remains intact • Dutch CPI | consumer prices rose 2.8% YoY in August

Key points (machine generated)

• Herc Holdings (HRI) is the third-largest equipment rental company, recently acquiring H&E to strengthen its market position.
• HRI has improved its operations since separating from Hertz, adopting successful strategies from industry leaders.
• Despite a narrower competitive advantage, HRI is seen as undervalued with resilient earnings expected even during recessions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Amaero Ltd (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.
• The company has announced new revenue guidance for FY26 in the range of A$30-35m with a 40/60 split to H1/H2.
• The revenue guidance was given during a webinar following the announcement of a five-year exclusive supplier and development agreement with Titomic (ASX:TTT) for refractory and titanium alloy spherical powders.

• Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.
• Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.
• Focus on 32 Korean holding companies >KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK’s holding companies, Samsung C&T, Hanwha, LG, LS—are prime re-rating plays.

• Number 1 service provider in inspection and technical testing services in Singapore
• Very high net profit margin of 20% and 20%+ ROE
• Consistently makes free cash flow but earnings growth is limited

• Hesai Group (HSAI US), a global leader in LiDAR solutions, is seeking to raise US$300 million through an H Share listing.
• On 9 February 2023, Hesai listed on the Nasdaq, raising US$190 million at US$19.00 per ADS.
• The investment case is based on a solid competitive positioning, high growth, emerging profitability, declining cash burn, and a reasonable valuation.

• What does a company do when its original business is producing good profitability, strong cashflow and return on equity (“ROE”), but no growth?

• VICOM Ltd. (“VICOM”) is one such company.

• It is a pioneer in Singapore’s Vehicle Inspection industry and has close to 73% market share, in an industry whose demand is guaranteed by government regulation that all vehicles have to be inspected at regular intervals.

• Legence Corp set terms for its IPO and will offer 26 million shares at $25-$29 and is scheduled to debut on Friday, September 12th.
• The company is private-equity backed by BlackStone and PE-backed deals have struggled, broadly speaking, in 2025. 
• From 2021 to 2024, their revenues grew at a CAGR of approximately 39% and as of June 30, 2025, they had $2.8 billion of backlog and awarded contracts.

• ISOTeam’s FY2025 results fell short of our expectations, with revenue declining 8.4% yoy to S$119.2m (11.7% below our forecast) and net profit attributable to shareholders dropping 21.2% yoy to S$5.1m (29.2% below forecast).
• The weaker performance was primarily driven by delayed project commencements in Repairs & Redecoration (–42.9% yoy) and Coating & Painting (–14.4%) segments, partially offset by strong growth in Addition & Alteration (25.0% yoy) and Others (10.4% yoy) segments.
• Gross margin improved modestly on better project mix and pricing, but earnings was further weighed down by lower other income and a higher effective tax rate.

• Last week in its June quarter earnings release Alibaba “demoted” CaiNiao’s status
• It’s become clear that boosting eComm logistics simply isn’t a priority for Alibaba
• For firms that took investment from Alibaba & CaiNiao, implications are -Ive

• In this edition: • InPost | solid set of 1H25 numbers; reiterates FY25 guidance • TKH Group | awarded 140km inter-array cable contract for Gennaker offshore wind farm • Dutch retail sales | up 5% YoY in value terms in July; volume up 3.2%

• Titan International Inc.(TWI) Company Sponsored Research Report

• Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.
• Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.
• Focus on 32 Korean holding companies >KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK’s holding companies, Samsung C&T, Hanwha, LG, LS—are prime re-rating plays.

• Number 1 service provider in inspection and technical testing services in Singapore
• Very high net profit margin of 20% and 20%+ ROE
• Consistently makes free cash flow but earnings growth is limited

• Hesai Group (HSAI US), a global leader in LiDAR solutions, is seeking to raise US$300 million through an H Share listing.
• On 9 February 2023, Hesai listed on the Nasdaq, raising US$190 million at US$19.00 per ADS.
• The investment case is based on a solid competitive positioning, high growth, emerging profitability, declining cash burn, and a reasonable valuation.

• What does a company do when its original business is producing good profitability, strong cashflow and return on equity (“ROE”), but no growth?

• VICOM Ltd. (“VICOM”) is one such company.

• It is a pioneer in Singapore’s Vehicle Inspection industry and has close to 73% market share, in an industry whose demand is guaranteed by government regulation that all vehicles have to be inspected at regular intervals.

• Legence Corp set terms for its IPO and will offer 26 million shares at $25-$29 and is scheduled to debut on Friday, September 12th.
• The company is private-equity backed by BlackStone and PE-backed deals have struggled, broadly speaking, in 2025. 
• From 2021 to 2024, their revenues grew at a CAGR of approximately 39% and as of June 30, 2025, they had $2.8 billion of backlog and awarded contracts.

• ISOTeam’s FY2025 results fell short of our expectations, with revenue declining 8.4% yoy to S$119.2m (11.7% below our forecast) and net profit attributable to shareholders dropping 21.2% yoy to S$5.1m (29.2% below forecast).
• The weaker performance was primarily driven by delayed project commencements in Repairs & Redecoration (–42.9% yoy) and Coating & Painting (–14.4%) segments, partially offset by strong growth in Addition & Alteration (25.0% yoy) and Others (10.4% yoy) segments.
• Gross margin improved modestly on better project mix and pricing, but earnings was further weighed down by lower other income and a higher effective tax rate.

• Last week in its June quarter earnings release Alibaba “demoted” CaiNiao’s status
• It’s become clear that boosting eComm logistics simply isn’t a priority for Alibaba
• For firms that took investment from Alibaba & CaiNiao, implications are -Ive

• In this edition: • InPost | solid set of 1H25 numbers; reiterates FY25 guidance • TKH Group | awarded 140km inter-array cable contract for Gennaker offshore wind farm • Dutch retail sales | up 5% YoY in value terms in July; volume up 3.2%

• Titan International Inc.(TWI) Company Sponsored Research Report