Industrials

• There was an article in mid-May saying Technopro Holdings (6028 JP) might be privatised. It is an appropriate candidate. The stock popped 20% immediately, and has since risen another 20%. 
• Today’s article follows one which came out ~2 weeks ago with non-sourced editorial content suggesting the price might be 20x EBITDA (i.e. a lot higher). 
• Today, an article says Blackstone will buy the firm for “Roughly ¥500bn” which would be 3% down from yesterday. Beware the Nikkei. Beware expectations.

• The Nikkei reports that Blackstone (BX US) will launch the tender offer for Technopro Holdings (6028 JP) just below JPY4,900, a 44.6% premium to the undisturbed price.
• While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time high.
• It is unclear if the offer is preconditional on regulatory approvals. Blackstone is likely to secure irrevocables from activists like Orbis to project a secure path to completion. 

• Ecopro BM reported net profit of 34.3 billion won (up 397% YoY and TB YoY in 2Q25). Profits from its Indonesian investment also contributed to earnings, reaching 40.5 billion won.
• The European EV market started to turn around in 2Q 2025 driven by OEM new car launches and customer inventory normalization compared to the end of 2024.
• There are increasing signs of a positive turnaround at Ecopro BM. The company’s excellent results in 2Q 2025 are likely to result in higher earnings revisions by the consensus.

• Nextracker, a provider of advanced solar tracking systems, reported its financial performance for the first quarter of fiscal year 2026, showcasing both strengths and underlying challenges.
• The company achieved a significant year-over-year revenue increase of 20% to $864 million, buoyed by strong global demand and robust operational execution.
• Adjusted EBITDA similarly grew by 23% to $215 million, representing an EBITDA margin of 25%, a 100 basis point improvement from the prior year.

• July 2025 saw significant buying by promoters and key management in 14 companies, signaling insider confidence across diverse sectors.
• Engineering, Pharmaceuticals, Consumer, Infrastructure, and Financials stood out with consistent insider purchases.
• Notable Companies:Shoppers Stop (SHOP IN),Anup Engineering (ANUP IN), D.B. Corp Ltd (DBCL IN) , La Opala Rg Ltd (LOG IN) , and Paisalo Digital (PAISALO IN) saw aggressive accumulation.

EOS Optic Systems has announced a landmark order. The group has been developing High Energy Laser Weapons (HELW) systems to expand on its traditional kinetic systems for a number of years. The €71.4m order provides a clear validation of the group’s strategy and technology as well as an income stream for the next three years.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, Tata Motors
• UST yields fell slightly yesterday, led by the long end, with yield movements muted ahead of this week’s heavy slate of bond auctions. The yield on the 2Y UST declined 1 bp to 3.68%, while the yield on the 10Y UST fell 2 bps to 4.19%.
• Equities recovered from last Friday’s sell-off, driven by solid earnings and expectations of Fed rate cuts.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.

• In this edition: • B&S Group | strong cash flow performance • PostNL | too early to adopt a more positive stance • DHL Group | clear beat in results thanks to costs management and pricing discipline

• Horizon Aircraft (NASDAQ: HOVR) is an early-stage aerospace OEM that is developing a hybrid electric vertical takeoff and landing (“eVTOL”) aircraft for the regional air mobility market.
• Horizon Aircraft recently announced a collaboration with ZeroAvia to evaluate using ZeroAvia’s ZA600 hydrogen-electric powertrain in Horizon’s Cavorite X7.
• We think this relationship could open up substantial new markets to Horizon if it can offer a zero-emission eVTOL for regional air transportation.

• There was an article in mid-May saying Technopro Holdings (6028 JP) might be privatised. It is an appropriate candidate. The stock popped 20% immediately, and has since risen another 20%. 
• Today’s article follows one which came out ~2 weeks ago with non-sourced editorial content suggesting the price might be 20x EBITDA (i.e. a lot higher). 
• Today, an article says Blackstone will buy the firm for “Roughly ¥500bn” which would be 3% down from yesterday. Beware the Nikkei. Beware expectations.

• The Nikkei reports that Blackstone (BX US) will launch the tender offer for Technopro Holdings (6028 JP) just below JPY4,900, a 44.6% premium to the undisturbed price.
• While the rumoured offer is 1.5% below the last close, it is attractive as it resulted from an auction and represents a pre-media rumour all-time high.
• It is unclear if the offer is preconditional on regulatory approvals. Blackstone is likely to secure irrevocables from activists like Orbis to project a secure path to completion. 

• Ecopro BM reported net profit of 34.3 billion won (up 397% YoY and TB YoY in 2Q25). Profits from its Indonesian investment also contributed to earnings, reaching 40.5 billion won.
• The European EV market started to turn around in 2Q 2025 driven by OEM new car launches and customer inventory normalization compared to the end of 2024.
• There are increasing signs of a positive turnaround at Ecopro BM. The company’s excellent results in 2Q 2025 are likely to result in higher earnings revisions by the consensus.

• Nextracker, a provider of advanced solar tracking systems, reported its financial performance for the first quarter of fiscal year 2026, showcasing both strengths and underlying challenges.
• The company achieved a significant year-over-year revenue increase of 20% to $864 million, buoyed by strong global demand and robust operational execution.
• Adjusted EBITDA similarly grew by 23% to $215 million, representing an EBITDA margin of 25%, a 100 basis point improvement from the prior year.

• July 2025 saw significant buying by promoters and key management in 14 companies, signaling insider confidence across diverse sectors.
• Engineering, Pharmaceuticals, Consumer, Infrastructure, and Financials stood out with consistent insider purchases.
• Notable Companies:Shoppers Stop (SHOP IN),Anup Engineering (ANUP IN), D.B. Corp Ltd (DBCL IN) , La Opala Rg Ltd (LOG IN) , and Paisalo Digital (PAISALO IN) saw aggressive accumulation.

EOS Optic Systems has announced a landmark order. The group has been developing High Energy Laser Weapons (HELW) systems to expand on its traditional kinetic systems for a number of years. The €71.4m order provides a clear validation of the group’s strategy and technology as well as an income stream for the next three years.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, Tata Motors
• UST yields fell slightly yesterday, led by the long end, with yield movements muted ahead of this week’s heavy slate of bond auctions. The yield on the 2Y UST declined 1 bp to 3.68%, while the yield on the 10Y UST fell 2 bps to 4.19%.
• Equities recovered from last Friday’s sell-off, driven by solid earnings and expectations of Fed rate cuts.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.

• In this edition: • B&S Group | strong cash flow performance • PostNL | too early to adopt a more positive stance • DHL Group | clear beat in results thanks to costs management and pricing discipline

• Horizon Aircraft (NASDAQ: HOVR) is an early-stage aerospace OEM that is developing a hybrid electric vertical takeoff and landing (“eVTOL”) aircraft for the regional air mobility market.
• Horizon Aircraft recently announced a collaboration with ZeroAvia to evaluate using ZeroAvia’s ZA600 hydrogen-electric powertrain in Horizon’s Cavorite X7.
• We think this relationship could open up substantial new markets to Horizon if it can offer a zero-emission eVTOL for regional air transportation.

• The five year data period for the September 2025 Nikkei 225 rebalance is now over (as of 31 July). First obvious news? No Fast Retailing (9983 JP) capping.
• That was obvious a couple months ago, and the BayCurrent Consulting (6532 JP) buying to come has been known for five months.
• The Kokusai Electric (6525 JP) Offering last month makes it more likely an ADD than it was in June (when it didn’t replace NTT Data), but not a done deal.

• Hoshizaki Corporation (6465 JP)‘s stock price has dropped over the last 3 months, and the lower market cap could result in global index deletion in August. 
• An early cutoff in the review period could result in the stock staying on in the index but that puts it at risk of deletion in November.
• There has been an increase in short interest and cumulative excess volume over the last couple of months and that indicates positioning in the stock.

• King Slide Works (2059 TT)‘s stock price has more than doubled over the last 4 months and that should result in global index inclusion in August.
• King Slide Works (2059 TT) has outperformed its peer group over the last few months and now trades at a big valuation premium.
• There has been a lot of short covering, and positioning in the stock appears to be smaller than the estimated passive buying.

• There has been an increasing probability that Boston Dynamics (BD) announces a fourth rights offering capital raise worth about 1.2 trillion won (US$870 million) in the next several weeks.
• All the Hyundai Motor Group related entities are expected to increase their ownership stakes in Boston Dynamics whereas it is expected to decline for Softbank post the capital raise.
• The current valuation estimates of Boston Dynamics (post capital raise) vary widely from about 4 trillion won to 10 trillion won.

• Thirumalai Chemicals is nearing completion of two transformative capex projects in Dahej (India) and West Virginia (USA) set to expand capacity by over 130,000 TPA across commodity and specialty chemicals. 
• These investments position TCL to capture demand in both domestic import-substitution and underserved global food ingredient markets, while reducing dependency on cyclical PAN margins. 
• The company is transitioning from a commodity-heavy profile to a more diversified, global specialty player, unlocking long-term margin expansion and reducing volatility in earnings.

• The company will be offering 16.2mm shares at $35-$39 with an expected market cap between $4.9b and $5.5b and to debut on August 7th.
• According to our sources, the deal is being classified as multiple-times oversubscribed.
• FireFly is in growth mode and the ability to scale with improving margins and a significant and visible backlog makes this deal extremely attractive. 

• In Sambhv Steel Tubes (SAMBHV IN), the anchor investor lock-in expiry ends brought expected selling pressure, testing the stock’s resilience and investor conviction in its fundamentals.
• The company posted record Q1 revenue and profit, driven by strong volumes and margin expansion from its strategic value-added product focus.
• Management guides for sustained 12-13% EBITDA margins, backed by aggressive brownfield and greenfield expansions to capture future market demand.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.

• Revenue was JPY131.8bn (+18.9% YoY), operating profit JPY5.0bn (+111.0% YoY), and net income JPY2.7bn (+259.6% YoY).
• Products HR business revenue was JPY58.4bn (+9.9% YoY), segment profit JPY1.7bn (+46.0% YoY), driven by semiconductor demand.
• Real Estate business revenue was JPY24.8bn (+81.9% YoY), segment profit JPY2.1bn (+578.2% YoY), despite delayed property handovers.

• Armstrong World Industries Inc. reported strong financial results for the second quarter of 2025, demonstrating resilience amid market uncertainties.
• The company achieved record sales and earnings, marked by a 16% increase in net sales and a 23% rise in adjusted EBITDA, with a notable expansion in EBITDA margins by 200 basis points to 36%.
• This growth was reflected in a 29% year-over-year increase in adjusted diluted earnings per share, its highest since its separation from the flooring business in 2016.

• The five year data period for the September 2025 Nikkei 225 rebalance is now over (as of 31 July). First obvious news? No Fast Retailing (9983 JP) capping.
• That was obvious a couple months ago, and the BayCurrent Consulting (6532 JP) buying to come has been known for five months.
• The Kokusai Electric (6525 JP) Offering last month makes it more likely an ADD than it was in June (when it didn’t replace NTT Data), but not a done deal.

• Hoshizaki Corporation (6465 JP)‘s stock price has dropped over the last 3 months, and the lower market cap could result in global index deletion in August. 
• An early cutoff in the review period could result in the stock staying on in the index but that puts it at risk of deletion in November.
• There has been an increase in short interest and cumulative excess volume over the last couple of months and that indicates positioning in the stock.

• King Slide Works (2059 TT)‘s stock price has more than doubled over the last 4 months and that should result in global index inclusion in August.
• King Slide Works (2059 TT) has outperformed its peer group over the last few months and now trades at a big valuation premium.
• There has been a lot of short covering, and positioning in the stock appears to be smaller than the estimated passive buying.

• There has been an increasing probability that Boston Dynamics (BD) announces a fourth rights offering capital raise worth about 1.2 trillion won (US$870 million) in the next several weeks.
• All the Hyundai Motor Group related entities are expected to increase their ownership stakes in Boston Dynamics whereas it is expected to decline for Softbank post the capital raise.
• The current valuation estimates of Boston Dynamics (post capital raise) vary widely from about 4 trillion won to 10 trillion won.

• Thirumalai Chemicals is nearing completion of two transformative capex projects in Dahej (India) and West Virginia (USA) set to expand capacity by over 130,000 TPA across commodity and specialty chemicals. 
• These investments position TCL to capture demand in both domestic import-substitution and underserved global food ingredient markets, while reducing dependency on cyclical PAN margins. 
• The company is transitioning from a commodity-heavy profile to a more diversified, global specialty player, unlocking long-term margin expansion and reducing volatility in earnings.

• The company will be offering 16.2mm shares at $35-$39 with an expected market cap between $4.9b and $5.5b and to debut on August 7th.
• According to our sources, the deal is being classified as multiple-times oversubscribed.
• FireFly is in growth mode and the ability to scale with improving margins and a significant and visible backlog makes this deal extremely attractive. 

• In Sambhv Steel Tubes (SAMBHV IN), the anchor investor lock-in expiry ends brought expected selling pressure, testing the stock’s resilience and investor conviction in its fundamentals.
• The company posted record Q1 revenue and profit, driven by strong volumes and margin expansion from its strategic value-added product focus.
• Management guides for sustained 12-13% EBITDA margins, backed by aggressive brownfield and greenfield expansions to capture future market demand.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.

• Revenue was JPY131.8bn (+18.9% YoY), operating profit JPY5.0bn (+111.0% YoY), and net income JPY2.7bn (+259.6% YoY).
• Products HR business revenue was JPY58.4bn (+9.9% YoY), segment profit JPY1.7bn (+46.0% YoY), driven by semiconductor demand.
• Real Estate business revenue was JPY24.8bn (+81.9% YoY), segment profit JPY2.1bn (+578.2% YoY), despite delayed property handovers.

• Armstrong World Industries Inc. reported strong financial results for the second quarter of 2025, demonstrating resilience amid market uncertainties.
• The company achieved record sales and earnings, marked by a 16% increase in net sales and a 23% rise in adjusted EBITDA, with a notable expansion in EBITDA margins by 200 basis points to 36%.
• This growth was reflected in a 29% year-over-year increase in adjusted diluted earnings per share, its highest since its separation from the flooring business in 2016.

• Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-March and/or end-December.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
• Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 5 could have passive outflows in August.

• 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: NSDL (NSDL IN) is seeking to raise US$464 million.
• Event-Driven developments: CK Hutchison Holdings (1 HK), Joy City Property (207 HK), HKBN Ltd (1310 HK), Fujitec Co Ltd (6406 JP), Nihon Chouzai (3341 JP), Krosaki Harima (5352 JP). 

• Tokyo Electron’s share price dropped 18% on Friday following the announcement of weak Q1 results and a huge downward revision to H2 FY Mar-26 guidance. 
• Push-Outs and/or cancellations of orders due to the uncertainty caused by President Trump apparently caught managment by surprise. Costs also rising as management ramps up capex and R&D.
• Impact of Trump’s yet-to-be-announced tariffs on semiconductors is still unknown, but 15% base rate on Japan already a negative. 

• On 30 July, Fujitec Co Ltd (6406 JP) and Swedish PE Firm EQT announced a deal to acquire the company with the Uchiyama family. Two activists signed tender agreements. 
• The deal is not expensive IF you underwrite strong profitability growth and assume the large net receivables position can be better addressed.
• But the stock is trading tight to terms and there are 6+ months until you get your money. 

• Spindex has announced that they have been approached by a third party on a possible transaction in relation to shares of the company.
• The discussions are ongoing and transaction may or may not happen
• We have published insight on 22nd April highlighting that the stock trades below 2x EV/EBDITA and has 60% of market cap

• The Boeing Company reported its second-quarter 2025 financial results, showcasing a mixed bag of performance indicators, strategic progress, and notable challenges.
• During this period, Boeing generated total revenue of $22.7 billion, marking a significant increase of 35% from the previous year.
• This uptick was primarily driven by an increase in commercial airplane deliveries.

• Hubbell Incorporated’s second quarter of 2025 financial results present a mixed picture, emphasizing the company’s strategic adaptability amidst continuing macroeconomic and inflationary pressures.
• The company reported a robust double-digit growth in adjusted earnings per share, driven by strong organic growth in its Grid Infrastructure and Electrical Solutions segments, accompanied by a notable year-over-year adjusted operating margin expansion of 120 basis points.
• Despite inflationary challenges, the company effectively managed costs through strategic price hikes and productivity enhancements, aimed at achieving positive price/cost productivity for the year.

• We follow our initiations on Westports Holdings (WPRTS MK) and Asian Terminals (ATI PM) with the Port of Tauranga (POT NZ) .
• The company has shown strong pricing power, significantly raising its access charges at MetroPort starting September 1, 2025, to over NZ$130/transaction.
• Despite this, based on our numbers, the stock trades at 26.6x/22x FY25/26 PE (ex-freehold land value). We believe this is expensive and would be neutral on the name. 

• Carrier Global Corporation delivered a compelling set of results for the second quarter of 2025, with notable achievements and some challenges reflecting the current market dynamics.
• From a growth perspective, the company posted 6% organic growth, driven primarily by a substantial 45% increase in commercial HVAC sales in the Americas and a 13% rise in aftermarket growth.
• Regions like India, Japan, and the Middle East also contributed significantly to the growth figures, accentuating Carrier’s global operational reach.

• Republic Services Inc. reported its financial performance for the second quarter of 2025, reflecting both strengths and challenges.
• The company achieved a revenue growth of 4.6%, which was attributed primarily to strong pricing strategies, despite facing reduced demand in construction and manufacturing sectors.
• This was translated into an adjusted EBITDA growth of 8%, which in turn expanded the adjusted EBITDA margin by 100 basis points during the quarter.

• Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-March and/or end-December.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
• Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 5 could have passive outflows in August.

• 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: NSDL (NSDL IN) is seeking to raise US$464 million.
• Event-Driven developments: CK Hutchison Holdings (1 HK), Joy City Property (207 HK), HKBN Ltd (1310 HK), Fujitec Co Ltd (6406 JP), Nihon Chouzai (3341 JP), Krosaki Harima (5352 JP). 

• Tokyo Electron’s share price dropped 18% on Friday following the announcement of weak Q1 results and a huge downward revision to H2 FY Mar-26 guidance. 
• Push-Outs and/or cancellations of orders due to the uncertainty caused by President Trump apparently caught managment by surprise. Costs also rising as management ramps up capex and R&D.
• Impact of Trump’s yet-to-be-announced tariffs on semiconductors is still unknown, but 15% base rate on Japan already a negative. 

• On 30 July, Fujitec Co Ltd (6406 JP) and Swedish PE Firm EQT announced a deal to acquire the company with the Uchiyama family. Two activists signed tender agreements. 
• The deal is not expensive IF you underwrite strong profitability growth and assume the large net receivables position can be better addressed.
• But the stock is trading tight to terms and there are 6+ months until you get your money. 

• Spindex has announced that they have been approached by a third party on a possible transaction in relation to shares of the company.
• The discussions are ongoing and transaction may or may not happen
• We have published insight on 22nd April highlighting that the stock trades below 2x EV/EBDITA and has 60% of market cap

• The Boeing Company reported its second-quarter 2025 financial results, showcasing a mixed bag of performance indicators, strategic progress, and notable challenges.
• During this period, Boeing generated total revenue of $22.7 billion, marking a significant increase of 35% from the previous year.
• This uptick was primarily driven by an increase in commercial airplane deliveries.

• Hubbell Incorporated’s second quarter of 2025 financial results present a mixed picture, emphasizing the company’s strategic adaptability amidst continuing macroeconomic and inflationary pressures.
• The company reported a robust double-digit growth in adjusted earnings per share, driven by strong organic growth in its Grid Infrastructure and Electrical Solutions segments, accompanied by a notable year-over-year adjusted operating margin expansion of 120 basis points.
• Despite inflationary challenges, the company effectively managed costs through strategic price hikes and productivity enhancements, aimed at achieving positive price/cost productivity for the year.

• We follow our initiations on Westports Holdings (WPRTS MK) and Asian Terminals (ATI PM) with the Port of Tauranga (POT NZ) .
• The company has shown strong pricing power, significantly raising its access charges at MetroPort starting September 1, 2025, to over NZ$130/transaction.
• Despite this, based on our numbers, the stock trades at 26.6x/22x FY25/26 PE (ex-freehold land value). We believe this is expensive and would be neutral on the name. 

• Carrier Global Corporation delivered a compelling set of results for the second quarter of 2025, with notable achievements and some challenges reflecting the current market dynamics.
• From a growth perspective, the company posted 6% organic growth, driven primarily by a substantial 45% increase in commercial HVAC sales in the Americas and a 13% rise in aftermarket growth.
• Regions like India, Japan, and the Middle East also contributed significantly to the growth figures, accentuating Carrier’s global operational reach.

• Republic Services Inc. reported its financial performance for the second quarter of 2025, reflecting both strengths and challenges.
• The company achieved a revenue growth of 4.6%, which was attributed primarily to strong pricing strategies, despite facing reduced demand in construction and manufacturing sectors.
• This was translated into an adjusted EBITDA growth of 8%, which in turn expanded the adjusted EBITDA margin by 100 basis points during the quarter.

• Intervention seeds participation as a PRC investor (COSCO?) is expected to join the bidding consortium for CK Hutchison Holdings (1 HK) ports.
• GMO Internet Group (9449 JP) needs to sell shares in GMO Internet (4784 JP)to achieve a “float” of 35% by 31 December 2026. Recent filings show they are selling. 
• Prosus NV (PRX NA) has been selling Tencent (700 HK), then buying back its shares. (As has Tencent). Reportedly Prosus is now selling shares in Meituan (3690 HK).

• Intervention seeds participation as a PRC investor (COSCO?) is expected to join the bidding consortium for CK Hutchison Holdings (1 HK) ports.
• GMO Internet Group (9449 JP) needs to sell shares in GMO Internet (4784 JP)to achieve a “float” of 35% by 31 December 2026. Recent filings show they are selling. 
• Prosus NV (PRX NA) has been selling Tencent (700 HK), then buying back its shares. (As has Tencent). Reportedly Prosus is now selling shares in Meituan (3690 HK).

• Samyang Comtech completed solid book building results. The IPO price has been finalized at 7,700 won per share, which was at the high end of the IPO price range.
• A 48.4% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is a bullish signal. 
• Our valuation analysis suggests target price of 13,187 won, which represents a 71% upside from IPO price. Given the excellent upside, we have a Positive view of this IPO.

• While Mineral Resources performed strongly operationally in the fourth quarter, not everyone is comfortable with its debt and the outlook for commodity prices.
• -Mineral Resources’ strong fourth quarter across all segments -Production outperformance, strong cashflows at Wodgina and Onslow -Onslow progressing toward nameplate capacity -Improving balance sheet, but sensitivity to commodity prices remains

• A.
• O.
• Smith’s second-quarter fiscal 2025 earnings results reflect a mixed performance, highlighting both strengths and challenges in the company’s global operations and strategic initiatives.

• Companywide revenue remained flat YoY at JPY251.1bn, while operating profit decreased by 9.6% YoY to JPY10.6bn.
• ICT Solution segment revenue rose 23.7% YoY, with operating profit increasing 64.0% YoY to JPY2.3bn.
• Aerospace and motor vehicles business saw revenue decline by 16.6% YoY, with a 21.2% YoY drop in operating profit.

• Orders increased by 2.5% YoY to JPY74.3bn, while revenue rose by 0.4% YoY to JPY57.7bn.
• The Special Purpose Truck business saw a 26.2% YoY rise in orders to JPY42.9bn, with revenue up 4.2%.
• The company revised its FY03/26 forecast, expecting orders of JPY320.0bn and revenue of JPY285.0bn, despite weaker EV demand.

• L3Harris Technologies’ second-quarter results for 2025 underscore a strong execution in a complex business environment characterized by evolving global defense dynamics.
• The company’s earnings call revealed key updates in financial performance, strategic alignment, and future opportunities that investors might consider when evaluating L3Harris as an investment.
• The financial performance in the second quarter was robust, with revenue increasing to $5.4 billion, reflecting an organic growth rate of 6%.

• Ryder Systems’ second quarter of 2025 presented a mixed bag of results, signaling both positive performance and existing challenges.
• The company’s financial performance was bolstered primarily by continued strength in its Supply Chain Solutions (SCS) segment, with earnings showing double-digit growth.
• This strong performance was offset partly by higher than expected used vehicle wholesale volumes, which Ryder undertook to manage aged inventory levels.

• Saia, Inc. presented its second quarter 2025 financial results in a recent call, revealing a mix of both challenges and accomplishments.
• The company’s operating ratio, a key performance indicator in the transport industry, improved by 330 basis points sequentially to 87.8%, despite lacking the typical volume increase expected for the second quarter.
• The focus on optimizing variable costs and enhancing network efficiency played a significant role in this performance.

• Revenue increased by 1.6% YoY to JPY16.0bn, driven by strong orders in the Chemicals segment.
• Operating profit decreased by 27.1% YoY to JPY426mn due to higher expenses from growth investments.
• Net income fell by 62.6% YoY to JPY362mn, impacted by the absence of extraordinary gains from previous securities sales.

• Textron Inc. reported a positive quarter with robust revenue growth across key segments, demonstrating solid performance in its aviation and helicopter businesses.
• The company posted revenues of $3.7 billion, which represents a 5.4% increase year-over-year, attributed to heightened sales in commercial aircraft and helicopters, as well as momentum in the Bell FLRAA program, now known as the MV-75.
• The quarterly results highlighted a minor increase in segment profit, up by $3 million to $346 million, while adjusted income from continuing operations remained almost flat at $1.55 per share compared to $1.54 per share in the previous year.

• Samyang Comtech completed solid book building results. The IPO price has been finalized at 7,700 won per share, which was at the high end of the IPO price range.
• A 48.4% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is a bullish signal. 
• Our valuation analysis suggests target price of 13,187 won, which represents a 71% upside from IPO price. Given the excellent upside, we have a Positive view of this IPO.

• While Mineral Resources performed strongly operationally in the fourth quarter, not everyone is comfortable with its debt and the outlook for commodity prices.
• -Mineral Resources’ strong fourth quarter across all segments -Production outperformance, strong cashflows at Wodgina and Onslow -Onslow progressing toward nameplate capacity -Improving balance sheet, but sensitivity to commodity prices remains

• A.
• O.
• Smith’s second-quarter fiscal 2025 earnings results reflect a mixed performance, highlighting both strengths and challenges in the company’s global operations and strategic initiatives.

• Companywide revenue remained flat YoY at JPY251.1bn, while operating profit decreased by 9.6% YoY to JPY10.6bn.
• ICT Solution segment revenue rose 23.7% YoY, with operating profit increasing 64.0% YoY to JPY2.3bn.
• Aerospace and motor vehicles business saw revenue decline by 16.6% YoY, with a 21.2% YoY drop in operating profit.

• Orders increased by 2.5% YoY to JPY74.3bn, while revenue rose by 0.4% YoY to JPY57.7bn.
• The Special Purpose Truck business saw a 26.2% YoY rise in orders to JPY42.9bn, with revenue up 4.2%.
• The company revised its FY03/26 forecast, expecting orders of JPY320.0bn and revenue of JPY285.0bn, despite weaker EV demand.

• L3Harris Technologies’ second-quarter results for 2025 underscore a strong execution in a complex business environment characterized by evolving global defense dynamics.
• The company’s earnings call revealed key updates in financial performance, strategic alignment, and future opportunities that investors might consider when evaluating L3Harris as an investment.
• The financial performance in the second quarter was robust, with revenue increasing to $5.4 billion, reflecting an organic growth rate of 6%.

• Ryder Systems’ second quarter of 2025 presented a mixed bag of results, signaling both positive performance and existing challenges.
• The company’s financial performance was bolstered primarily by continued strength in its Supply Chain Solutions (SCS) segment, with earnings showing double-digit growth.
• This strong performance was offset partly by higher than expected used vehicle wholesale volumes, which Ryder undertook to manage aged inventory levels.

• Saia, Inc. presented its second quarter 2025 financial results in a recent call, revealing a mix of both challenges and accomplishments.
• The company’s operating ratio, a key performance indicator in the transport industry, improved by 330 basis points sequentially to 87.8%, despite lacking the typical volume increase expected for the second quarter.
• The focus on optimizing variable costs and enhancing network efficiency played a significant role in this performance.

• Revenue increased by 1.6% YoY to JPY16.0bn, driven by strong orders in the Chemicals segment.
• Operating profit decreased by 27.1% YoY to JPY426mn due to higher expenses from growth investments.
• Net income fell by 62.6% YoY to JPY362mn, impacted by the absence of extraordinary gains from previous securities sales.

• Textron Inc. reported a positive quarter with robust revenue growth across key segments, demonstrating solid performance in its aviation and helicopter businesses.
• The company posted revenues of $3.7 billion, which represents a 5.4% increase year-over-year, attributed to heightened sales in commercial aircraft and helicopters, as well as momentum in the Bell FLRAA program, now known as the MV-75.
• The quarterly results highlighted a minor increase in segment profit, up by $3 million to $346 million, while adjusted income from continuing operations remained almost flat at $1.55 per share compared to $1.54 per share in the previous year.