Industrials

• In the second quarter of 2025, Honeywell International Inc. delivered robust financial results, maintaining or exceeding expectations across various metrics, despite economic fluctuations.
• The company reported a 5% increase in organic sales growth, driven by strong performances in the Defense and Space and UOP segments, as well as overall increases in orders and backlog reaching a record of $36.6 billion.
• Earnings per share rose by 4% to $2.45, with an adjusted earnings per share up by 10% to $2.75.

• Westports Holdings (WPRTS MK), along with MMC Port Holdings Berhad (2436494D MK), are the two largest container port terminal operators in Malaysia.
• With a stranglehold on Port Klang, where it holds a 75% market share, the company will be the beneficiary of significant tariff hikes of 30% over the next 1.5 years.
• Despite the recent rally, the stock trades at 18x/15x FY25e/26e earnings and a dividend yield of 4%. Following the pricing-led growth, the company is embarking on an expansion plan post-2028. 

• TransUnion’s second-quarter 2025 earnings reflected notable strength in performance, with the company exceeding its financial guidance across key metrics.
• The revenue demonstrated significant resilience, increasing by 9% on an organic constant currency basis.
• The U.S. Markets segment was particularly strong, achieving 10% growth, buoyed by an impressive 17% increase in Financial Services revenue.

• What you need to know: • BQE’s contract at the Eagle Gold Mine has been extended to October 2025, with operations expected to wind down in Q3.
• • BQE discharged 600,000m3 of treated water at the mine under emergency response after Victoria Gold’s heap leach failure.
• • The Company’s success reinforces its technical leadership and strengthens its reputation as a trusted partner for complex water treatment.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, AAC Technologies, Tata Motors
• UST yields rose yesterday, as the market priced in lower rate cuts for 2025, following the strong Q2 GDP numbers and after Fed Chair Jerome Powell said no decision has been made on a September rate cut. The UST curve bear flattened, with the yield on the 2Y UST rising 7 bps to 3.94%, while that on the 10Y UST was up 5 bps at 4.37%.
• Equity movements were mixed, as tech stocks were supported by solid earnings from Microsoft and Meta Platforms.

• 2Q25 adjusted EPS of $1.11 came in significantly ahead of our estimate of $0.87 on solid growth in both segments despite ongoing macro headwinds and continued margin expansion even as tariff headwinds and investment in growth made themselves felt.
• HNI posted growth in both segments (WF and RBP), with the growth in contract within WF particularly notable.
• WF organic revenue was up 8%. While some of the 2Q gains were attributable to demand pull-forward in the face of tariffs (about $18 million or $0.10-0.12 in EPS), the 15% gains in contract and the positive leading indicators speak to a general uptick in demand within contract that we have seen over the past several quarters as return-to-office continues to gain traction.

• Dover Corporation’s second quarter 2025 performance showcased both commendable achievements and areas presenting challenges.
• On the positive side, the company demonstrated robust operational efficiency, which was marked by its impressive margin performance.
• The adjusted segment EBITDA margins exceeded 25%, reflecting the success of prior cost actions and a favorable product mix.

• Revenue decreased 2.3% YoY, with operating profit up 84.7% YoY; gross profit increased 25.2% YoY.
• Meiwa projects FY03/26 revenue of JPY160.0bn (+2.1% YoY), with declines in operating and recurring profits.
• Dividend for FY03/26 expected to decrease to JPY38.00 per share, following a JPY5 increase in FY03/25.

• The company reported a 32.4% YoY increase in revenue to JPY15.8bn and a 31.1% YoY rise in operating profit.
• The Engineering segment saw a 31.8% YoY revenue increase and a significant 1,842.9% rise in operating profit.
• The GX segment expanded revenue by 69.3% YoY but incurred an operating loss of JPY119mn compared to a prior profit.

• The proposed merger between DNOW and MRC Global would create a premier energy and industrial solutions provider with a strong North American presence along with expanded global reach.
• DNOW will enjoy significantly expanded scale across a diverse set of industries positioning it to pursue global opportunities where it can leverage its supply chain network to serve vendors and customers.
• DNOW will continue to be led by David Cherechinsky, its current President and Chief Executive officer, and Mark Johnson, its current Senior Vice President and Chief Financial Officer.

• In the second quarter of 2025, Honeywell International Inc. delivered robust financial results, maintaining or exceeding expectations across various metrics, despite economic fluctuations.
• The company reported a 5% increase in organic sales growth, driven by strong performances in the Defense and Space and UOP segments, as well as overall increases in orders and backlog reaching a record of $36.6 billion.
• Earnings per share rose by 4% to $2.45, with an adjusted earnings per share up by 10% to $2.75.

• Westports Holdings (WPRTS MK), along with MMC Port Holdings Berhad (2436494D MK), are the two largest container port terminal operators in Malaysia.
• With a stranglehold on Port Klang, where it holds a 75% market share, the company will be the beneficiary of significant tariff hikes of 30% over the next 1.5 years.
• Despite the recent rally, the stock trades at 18x/15x FY25e/26e earnings and a dividend yield of 4%. Following the pricing-led growth, the company is embarking on an expansion plan post-2028. 

• TransUnion’s second-quarter 2025 earnings reflected notable strength in performance, with the company exceeding its financial guidance across key metrics.
• The revenue demonstrated significant resilience, increasing by 9% on an organic constant currency basis.
• The U.S. Markets segment was particularly strong, achieving 10% growth, buoyed by an impressive 17% increase in Financial Services revenue.

• What you need to know: • BQE’s contract at the Eagle Gold Mine has been extended to October 2025, with operations expected to wind down in Q3.
• • BQE discharged 600,000m3 of treated water at the mine under emergency response after Victoria Gold’s heap leach failure.
• • The Company’s success reinforces its technical leadership and strengthens its reputation as a trusted partner for complex water treatment.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, AAC Technologies, Tata Motors
• UST yields rose yesterday, as the market priced in lower rate cuts for 2025, following the strong Q2 GDP numbers and after Fed Chair Jerome Powell said no decision has been made on a September rate cut. The UST curve bear flattened, with the yield on the 2Y UST rising 7 bps to 3.94%, while that on the 10Y UST was up 5 bps at 4.37%.
• Equity movements were mixed, as tech stocks were supported by solid earnings from Microsoft and Meta Platforms.

• 2Q25 adjusted EPS of $1.11 came in significantly ahead of our estimate of $0.87 on solid growth in both segments despite ongoing macro headwinds and continued margin expansion even as tariff headwinds and investment in growth made themselves felt.
• HNI posted growth in both segments (WF and RBP), with the growth in contract within WF particularly notable.
• WF organic revenue was up 8%. While some of the 2Q gains were attributable to demand pull-forward in the face of tariffs (about $18 million or $0.10-0.12 in EPS), the 15% gains in contract and the positive leading indicators speak to a general uptick in demand within contract that we have seen over the past several quarters as return-to-office continues to gain traction.

• Dover Corporation’s second quarter 2025 performance showcased both commendable achievements and areas presenting challenges.
• On the positive side, the company demonstrated robust operational efficiency, which was marked by its impressive margin performance.
• The adjusted segment EBITDA margins exceeded 25%, reflecting the success of prior cost actions and a favorable product mix.

• Revenue decreased 2.3% YoY, with operating profit up 84.7% YoY; gross profit increased 25.2% YoY.
• Meiwa projects FY03/26 revenue of JPY160.0bn (+2.1% YoY), with declines in operating and recurring profits.
• Dividend for FY03/26 expected to decrease to JPY38.00 per share, following a JPY5 increase in FY03/25.

• The company reported a 32.4% YoY increase in revenue to JPY15.8bn and a 31.1% YoY rise in operating profit.
• The Engineering segment saw a 31.8% YoY revenue increase and a significant 1,842.9% rise in operating profit.
• The GX segment expanded revenue by 69.3% YoY but incurred an operating loss of JPY119mn compared to a prior profit.

• The proposed merger between DNOW and MRC Global would create a premier energy and industrial solutions provider with a strong North American presence along with expanded global reach.
• DNOW will enjoy significantly expanded scale across a diverse set of industries positioning it to pursue global opportunities where it can leverage its supply chain network to serve vendors and customers.
• DNOW will continue to be led by David Cherechinsky, its current President and Chief Executive officer, and Mark Johnson, its current Senior Vice President and Chief Financial Officer.

• Fujitec Co Ltd (6406 JP) has recommended a preconditional tender offer from EQT (EQT SS) at JPY5,700, an 8.1% discount to the last close price of JPY6,205.
• The precondition relates to regulatory approvals in several countries. The tender offer is expected to commence in late January 2026.
• Although the offer is light, it is likely to succeed, as it resulted from an auction process and was supported by irrevocables from the two prominent activists on the register.

• This is a short insight, informing readers that we intend to initiate a container port terminal product, following our recent initiation on Asian Terminals (ATI PM) 
• This product will be followed by initiations on high-quality companies like Westports Holdings (WPRTS MK) / ICTSI (ICT PM) / Port of Tauranga (POT NZ), etc, and a monthly screen.
• In this insight, we will highlight our rationale for introducing this product and outline the screening metrics for companies. 

• Since inception on May 15, our Model Portfolio (up 6.2%) underperformed the MSCI Asia-ex-Japan index (up 7.87%) due to underperforming stock picks in India, ASEAN and China consumer proxies.
• The main themes: China’s changing consumption and investment patterns, Korea’s improving corporate governance, continuing global infrastructure investments and India’s earnings disappointment. Korea, HK/China remain overweight; India is downgraded to Neutral.
• We exclude Meituan, Titan, Infosys, Bharat Dynamics, Krafton. We include Laopu Gold, Lonking Holdings, China Hongqiao, AIA and Hyundai Engineering and Construction. We are now Neutral Industrials and Underweight Technology.

• Daehan Shipbuilding (439260 KS) raised US$370m in its upcoming Korean IPO.
• It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Otis Worldwide Corporation’s second-quarter 2025 earnings report presents both strengths and challenges impacting its investment potential.
• A key positive for Otis is its Service segment, which continues to drive significant performance improvements.
• Service sales were up 4% organically, with all business lines and regions contributing to growth.

• Graco Inc.’s latest financial results outline a multifaceted performance with a mix of positive and challenging developments.
• In the second quarter, Graco reported sales of $572 million, marking a 3% increase from the same period last year.
• However, this growth was driven by acquisitions contributing 6%, while organic sales declined by 3%.

• KOKUYO’s revenue increased by 3.5% YoY, driven by strong demand in the Furniture business for office relocations and renovations.
• Operating profit rose by 11.1% YoY due to price revisions, while recurring profit declined by 3.0% YoY from foreign exchange losses.
• The full-year forecast for FY12/25 was revised, projecting revenue of JPY357.0bn and operating profit of JPY25.0bn.

• Waste Connections, Inc. reported its second-quarter 2025 results, which exceeded the high end of their earlier outlook despite several challenges, such as lower-than-expected contributions from commodity-related activities and broader economic sluggishness.
• The company achieved a 7.1% increase in revenue, driven primarily by a core pricing gain of 6.6% in solid waste operations.
• This strong performance highlights the resilience of Waste Connections’ solid waste business against a backdrop of economic volatility.

• Lennox International Inc.’s second quarter results provide a comprehensive view into the company’s operational dynamics amidst current market challenges.
• The firm’s achievement of a 3% revenue growth and margin expansion to 23.6% indicates a robust performance driven by strategic product offerings, particularly the transition to low global warming potential (GWP) R-454B products.
• This transition seems to have been majorly successful, with approximately 90% of Lennox’s sales now comprising R-454B refrigerant, enhancing product mix and overall profitability.

• Rollins, Inc.’s second-quarter 2025 performance demonstrates a combination of strategic growth and some operational challenges.
• The company reported notable revenue growth, with total revenue increasing by 12.1% compared to the previous year, and organic growth marking a 7.3% rise.
• This expansion was driven by solid performances across all major service lines, including residential, commercial pest control, and termite and ancillary services.

• Fujitec Co Ltd (6406 JP) has recommended a preconditional tender offer from EQT (EQT SS) at JPY5,700, an 8.1% discount to the last close price of JPY6,205.
• The precondition relates to regulatory approvals in several countries. The tender offer is expected to commence in late January 2026.
• Although the offer is light, it is likely to succeed, as it resulted from an auction process and was supported by irrevocables from the two prominent activists on the register.

• This is a short insight, informing readers that we intend to initiate a container port terminal product, following our recent initiation on Asian Terminals (ATI PM) 
• This product will be followed by initiations on high-quality companies like Westports Holdings (WPRTS MK) / ICTSI (ICT PM) / Port of Tauranga (POT NZ), etc, and a monthly screen.
• In this insight, we will highlight our rationale for introducing this product and outline the screening metrics for companies. 

• Since inception on May 15, our Model Portfolio (up 6.2%) underperformed the MSCI Asia-ex-Japan index (up 7.87%) due to underperforming stock picks in India, ASEAN and China consumer proxies.
• The main themes: China’s changing consumption and investment patterns, Korea’s improving corporate governance, continuing global infrastructure investments and India’s earnings disappointment. Korea, HK/China remain overweight; India is downgraded to Neutral.
• We exclude Meituan, Titan, Infosys, Bharat Dynamics, Krafton. We include Laopu Gold, Lonking Holdings, China Hongqiao, AIA and Hyundai Engineering and Construction. We are now Neutral Industrials and Underweight Technology.

• Daehan Shipbuilding (439260 KS) raised US$370m in its upcoming Korean IPO.
• It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Otis Worldwide Corporation’s second-quarter 2025 earnings report presents both strengths and challenges impacting its investment potential.
• A key positive for Otis is its Service segment, which continues to drive significant performance improvements.
• Service sales were up 4% organically, with all business lines and regions contributing to growth.

• Graco Inc.’s latest financial results outline a multifaceted performance with a mix of positive and challenging developments.
• In the second quarter, Graco reported sales of $572 million, marking a 3% increase from the same period last year.
• However, this growth was driven by acquisitions contributing 6%, while organic sales declined by 3%.

• KOKUYO’s revenue increased by 3.5% YoY, driven by strong demand in the Furniture business for office relocations and renovations.
• Operating profit rose by 11.1% YoY due to price revisions, while recurring profit declined by 3.0% YoY from foreign exchange losses.
• The full-year forecast for FY12/25 was revised, projecting revenue of JPY357.0bn and operating profit of JPY25.0bn.

• Waste Connections, Inc. reported its second-quarter 2025 results, which exceeded the high end of their earlier outlook despite several challenges, such as lower-than-expected contributions from commodity-related activities and broader economic sluggishness.
• The company achieved a 7.1% increase in revenue, driven primarily by a core pricing gain of 6.6% in solid waste operations.
• This strong performance highlights the resilience of Waste Connections’ solid waste business against a backdrop of economic volatility.

• Lennox International Inc.’s second quarter results provide a comprehensive view into the company’s operational dynamics amidst current market challenges.
• The firm’s achievement of a 3% revenue growth and margin expansion to 23.6% indicates a robust performance driven by strategic product offerings, particularly the transition to low global warming potential (GWP) R-454B products.
• This transition seems to have been majorly successful, with approximately 90% of Lennox’s sales now comprising R-454B refrigerant, enhancing product mix and overall profitability.

• Rollins, Inc.’s second-quarter 2025 performance demonstrates a combination of strategic growth and some operational challenges.
• The company reported notable revenue growth, with total revenue increasing by 12.1% compared to the previous year, and organic growth marking a 7.3% rise.
• This expansion was driven by solid performances across all major service lines, including residential, commercial pest control, and termite and ancillary services.

• Inviting a PRC investor to join the bidding consortium as a significant member, as opposed to a majority player, appears the panacea to get this port deal over the line. 
• Although CK Hutchison Holdings (1 HK) stopped short of naming the investor, China’s state-owned shipping conglomerate Cosco is widely expected/rumoured to join BlackRock and Swiss-Italian shipping company MSC.
• Participation through effective intervention? Cosco’s involvement should all-but seal Chinese regulatory approvals. The green light from the US administration, the EU, and other jurisdictions, will pivot off how much involvement. 

Severfield has suffered greatly in the last 12 months, but the outlook appears to be improving as the order book is expanding and the low embedded margins within it wash out over the next 12 months or so. Furthermore, we anticipate the recruitment of a new chief executive ‘imminently’ and the company could return to paying dividends in the current year if the outlook and balance sheet improve sufficiently. Margin recovery could imply that risks are to the upside in FY27.

• A big rally in Hitachi Energy India (POWERIND IN) this year could lead to the stock being added to a global index in August.
• Hitachi Energy India (POWERIND IN) has outperformed its peers and now trades at significantly higher valuations compared to its peer group.
• There is positioning in the stock and early entrants could be looking to unwind some of their holdings over the next couple of weeks.

• Company operates home grown CCTV brand ‘CP PLUS’. Also the sole distributor for Zhejiang Dahua Technology A (002236 CH) in India. Dahua is also its primary components supplier.
• Expect 15-25% revenue growth vs 16% for industry with operating margins gradually improving to 10% translating to FY26E earnings range of 20-24.
• Company is raising 1,300cr (500cr fresh and 800cr OFS) at implied multiple of ~30x in line with valuation paid by Dixon Technologies India Ltd (DIXON IN) for its 6.5% stake.

• Flynas (4264 SR) listed on the Saudi Stock Exchange on 18 June at a valuation of $3.6bn, raising $1.1bn.
• The security is expected to be added to Global SmallCap at the November 2025 review.
• The security is expected to be added to Global All-World at the December 2025 review.

• Inviting a PRC investor to join the bidding consortium as a significant member, as opposed to a majority player, appears the panacea to get this port deal over the line. 
• Although CK Hutchison Holdings (1 HK) stopped short of naming the investor, China’s state-owned shipping conglomerate Cosco is widely expected/rumoured to join BlackRock and Swiss-Italian shipping company MSC.
• Participation through effective intervention? Cosco’s involvement should all-but seal Chinese regulatory approvals. The green light from the US administration, the EU, and other jurisdictions, will pivot off how much involvement. 

Severfield has suffered greatly in the last 12 months, but the outlook appears to be improving as the order book is expanding and the low embedded margins within it wash out over the next 12 months or so. Furthermore, we anticipate the recruitment of a new chief executive ‘imminently’ and the company could return to paying dividends in the current year if the outlook and balance sheet improve sufficiently. Margin recovery could imply that risks are to the upside in FY27.

• A big rally in Hitachi Energy India (POWERIND IN) this year could lead to the stock being added to a global index in August.
• Hitachi Energy India (POWERIND IN) has outperformed its peers and now trades at significantly higher valuations compared to its peer group.
• There is positioning in the stock and early entrants could be looking to unwind some of their holdings over the next couple of weeks.

• Company operates home grown CCTV brand ‘CP PLUS’. Also the sole distributor for Zhejiang Dahua Technology A (002236 CH) in India. Dahua is also its primary components supplier.
• Expect 15-25% revenue growth vs 16% for industry with operating margins gradually improving to 10% translating to FY26E earnings range of 20-24.
• Company is raising 1,300cr (500cr fresh and 800cr OFS) at implied multiple of ~30x in line with valuation paid by Dixon Technologies India Ltd (DIXON IN) for its 6.5% stake.

• Flynas (4264 SR) listed on the Saudi Stock Exchange on 18 June at a valuation of $3.6bn, raising $1.1bn.
• The security is expected to be added to Global SmallCap at the November 2025 review.
• The security is expected to be added to Global All-World at the December 2025 review.

• Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
• Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
• There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

• They 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.
• The company’s principal stockholder is private-equity firm AE Industrial which made its initial investment in Firefly Aerospace in 2022 and is a 47.4% stakeholder.
• Revenue in Q2 is up more around 140% versus the same period in 2024 but the company’s net losses continue to mount.

• Canadian National Railway Company (CN) presented its financial and operational results for the second quarter of 2025, reflecting a cautiously optimistic outlook amidst challenging external conditions.
• The company reported a 2% growth in adjusted earnings per share (EPS), despite a static year-over-year carload count and a 1% reduction in revenue ton miles (RTMs).
• Key highlights and challenges from the earnings call offer insights into CN’s operational strategy and market conditions.

• Institutions were net buyers of Singapore stocks with a net inflow of S$334 million from July 18 to 24.
• Four primary-listed companies conducted share buybacks totaling S$29.8 million, led by United Overseas Bank’s repurchase of 800,000 shares.
• Ginko-AGT Global Growth Fund increased its stake in ISOTeam, acquiring 5,986,600 shares at S$0.086 each.

• General Dynamics has recently reported its second-quarter 2025 earnings, highlighting several key aspects of its financial performance and operational activities.
• The company recorded earnings of $3.74 per share, surpassing analyst expectations by $0.19, with revenues coming in at $13 billion, marking an 8.9% increase year-over-year.
• The operational earnings also showed positive growth, rising by nearly 13% to $1.3 billion, while net earnings increased by 12%.

• Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$151m in its India IPO.
• Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

• Pentair’s second quarter of 2025 showed strong performance across key financial metrics, with record-breaking sales, adjusted operating income, return on sales, and adjusted EPS.
• Sales grew by 2%, driven largely by the Pool segment with a 9% increase, while adjusted operating income saw a 9% rise.
• The company’s return on sales expanded by 170 basis points to 26.4%, and adjusted EPS climbed by 14% to $1.39.

• GE Vernova’s second-quarter 2025 results reveal a strategic positioning amid soaring demand driven by an era of accelerated electrification and decarbonization.
• While leveraging expanded capabilities in gas power and grid infrastructure, the company highlighted strong order inflow and backlog across several segments, notably in its Gas Power and Electrification businesses.
• However, challenges persist, particularly within its Wind segment, and the volatility of larger project demand in Electrification raises notable concerns.

• Enphase Energy reported its financial results for the second quarter of 2025, which details a mix of positive developments and challenges ahead.
• The revenue for the quarter was $363.2 million, reflecting a continuation of momentum, though the company did experience a slight increase in microinverter channel inventory levels.
• The company shipped 1.53 million microinverters and 190.9 MWh of batteries, coupled with a notable gross margin of 49%, although impacted by a 2% margin hit due to tariffs.

• Our estimations for FY 2025 annual revenue range at around €76,084 million and for FY 2026 at around €82,813 million.
• The company’s annual revenue reached €69,230 million in 2024 compared to €65,446 million in 2023, posting an increase by 5.78%.
• Airbus’ gross profit for FY 2024 was €10,675 million, increased by 6.28% com- pared to €10,044 million for the corresponding period of 2023.

• Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
• Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
• There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

• They 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.
• The company’s principal stockholder is private-equity firm AE Industrial which made its initial investment in Firefly Aerospace in 2022 and is a 47.4% stakeholder.
• Revenue in Q2 is up more around 140% versus the same period in 2024 but the company’s net losses continue to mount.

• Canadian National Railway Company (CN) presented its financial and operational results for the second quarter of 2025, reflecting a cautiously optimistic outlook amidst challenging external conditions.
• The company reported a 2% growth in adjusted earnings per share (EPS), despite a static year-over-year carload count and a 1% reduction in revenue ton miles (RTMs).
• Key highlights and challenges from the earnings call offer insights into CN’s operational strategy and market conditions.

• Institutions were net buyers of Singapore stocks with a net inflow of S$334 million from July 18 to 24.
• Four primary-listed companies conducted share buybacks totaling S$29.8 million, led by United Overseas Bank’s repurchase of 800,000 shares.
• Ginko-AGT Global Growth Fund increased its stake in ISOTeam, acquiring 5,986,600 shares at S$0.086 each.

• General Dynamics has recently reported its second-quarter 2025 earnings, highlighting several key aspects of its financial performance and operational activities.
• The company recorded earnings of $3.74 per share, surpassing analyst expectations by $0.19, with revenues coming in at $13 billion, marking an 8.9% increase year-over-year.
• The operational earnings also showed positive growth, rising by nearly 13% to $1.3 billion, while net earnings increased by 12%.

• Aditya Infotech Ltd (6596564Z IN) is looking to raise about US$151m in its India IPO.
• Aditya Infotech is a CCTV/video surveillance provider offering a range of advanced video security and surveillance products, technologies and solutions for enterprise and consumer segments under its CP PLUS brand.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

• Pentair’s second quarter of 2025 showed strong performance across key financial metrics, with record-breaking sales, adjusted operating income, return on sales, and adjusted EPS.
• Sales grew by 2%, driven largely by the Pool segment with a 9% increase, while adjusted operating income saw a 9% rise.
• The company’s return on sales expanded by 170 basis points to 26.4%, and adjusted EPS climbed by 14% to $1.39.

• GE Vernova’s second-quarter 2025 results reveal a strategic positioning amid soaring demand driven by an era of accelerated electrification and decarbonization.
• While leveraging expanded capabilities in gas power and grid infrastructure, the company highlighted strong order inflow and backlog across several segments, notably in its Gas Power and Electrification businesses.
• However, challenges persist, particularly within its Wind segment, and the volatility of larger project demand in Electrification raises notable concerns.

• Enphase Energy reported its financial results for the second quarter of 2025, which details a mix of positive developments and challenges ahead.
• The revenue for the quarter was $363.2 million, reflecting a continuation of momentum, though the company did experience a slight increase in microinverter channel inventory levels.
• The company shipped 1.53 million microinverters and 190.9 MWh of batteries, coupled with a notable gross margin of 49%, although impacted by a 2% margin hit due to tariffs.

• Our estimations for FY 2025 annual revenue range at around €76,084 million and for FY 2026 at around €82,813 million.
• The company’s annual revenue reached €69,230 million in 2024 compared to €65,446 million in 2023, posting an increase by 5.78%.
• Airbus’ gross profit for FY 2024 was €10,675 million, increased by 6.28% com- pared to €10,044 million for the corresponding period of 2023.

• In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
• The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
• Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.

• Sai Gon Cargo Service (SCS VN) reported flat earnings for Q2 FY25, with operating margins/net margins at 75%/65% and ROCEs topping 50%. 
• The tariff increases (16% YoY) offset the degrowth in volumes (-5%YoY) and the increase in effective taxation (from 11% to 20%). 
• Based on management guidance, the stock trades at 9.3x FY25 PE, with an 8.6% dividend yield

• Earlier this month, Substack writer Gezzogero mentioned AeroEdge (7409 JP) (7409 JP — US$88 million) on his blog.
• I thought it was a fantastic write-up and wanted to dig into it myself.
• The company is a supplier of aircraft components. It manufactures low-pressure turbine blades for the well-regarded LEAP jet engine, which is used in narrow-body aircraft such as the Airbus (AIR FP) A320neo and Boeing (BA US) 737 MAX.

• In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
• The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
• Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.

• Sai Gon Cargo Service (SCS VN) reported flat earnings for Q2 FY25, with operating margins/net margins at 75%/65% and ROCEs topping 50%. 
• The tariff increases (16% YoY) offset the degrowth in volumes (-5%YoY) and the increase in effective taxation (from 11% to 20%). 
• Based on management guidance, the stock trades at 9.3x FY25 PE, with an 8.6% dividend yield

• Earlier this month, Substack writer Gezzogero mentioned AeroEdge (7409 JP) (7409 JP — US$88 million) on his blog.
• I thought it was a fantastic write-up and wanted to dig into it myself.
• The company is a supplier of aircraft components. It manufactures low-pressure turbine blades for the well-regarded LEAP jet engine, which is used in narrow-body aircraft such as the Airbus (AIR FP) A320neo and Boeing (BA US) 737 MAX.