Industrials

• LG Energy Solution has been on a dark, long tunnel in the past two and half years. However, there is finally some light showing post its excellent 2Q 2025 results.
• LG Energy Solution reported much better than expected operating profit in 2Q25. It had operating profit of 492.2 billion won (up 152% YoY) and 56.3% higher than consensus in 2Q25.
• The company is showing initial signs of a turnaround, with a significantly better than expected operating profit in 2Q 2025.

• MegaRobo Technologies files for Hong Kong IPO and seeks fresh funding to expand production capacity, accelerate R&D efforts and improve working capital.
• The rapidly growing autonomous agent provider in robotics applications in China did not disclose the proposed size and price range for the share sale in filings. 
• MegaRobo Technologies is enjoying healthy ~40% growth. I estimate the company’s TAM is ~$4.7B in 2024 and is expected to grow to ~$19B by 2030 only in China.

In its Q126 trading update, discoverIE confirmed that trading in Q1 was in line with management expectations. Organic revenues were flat year-on-year, showing continued improvement from last year. Following the trend flagged at recent full year results, three of the four operating units showed organic growth, with only Controls still seeing weaker demand. Management’s expectations for full year earnings are unchanged and we maintain our forecasts.

• Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) is an industrial equipment–related trading company founded in 1916 with a history that goes back more than a century.
• Its strength lies in technological expertise developed through years of collaboration between the Engineering and Construction Management Departments, which gives the company a strong competitive advantage.
• The company also leverages co- development and strategic alliances starting from the research stage for products with leading market share, such as power transmission chains and platform screen doors. 

• LG Energy Solution has been on a dark, long tunnel in the past two and half years. However, there is finally some light showing post its excellent 2Q 2025 results.
• LG Energy Solution reported much better than expected operating profit in 2Q25. It had operating profit of 492.2 billion won (up 152% YoY) and 56.3% higher than consensus in 2Q25.
• The company is showing initial signs of a turnaround, with a significantly better than expected operating profit in 2Q 2025.

• MegaRobo Technologies files for Hong Kong IPO and seeks fresh funding to expand production capacity, accelerate R&D efforts and improve working capital.
• The rapidly growing autonomous agent provider in robotics applications in China did not disclose the proposed size and price range for the share sale in filings. 
• MegaRobo Technologies is enjoying healthy ~40% growth. I estimate the company’s TAM is ~$4.7B in 2024 and is expected to grow to ~$19B by 2030 only in China.

In its Q126 trading update, discoverIE confirmed that trading in Q1 was in line with management expectations. Organic revenues were flat year-on-year, showing continued improvement from last year. Following the trend flagged at recent full year results, three of the four operating units showed organic growth, with only Controls still seeing weaker demand. Management’s expectations for full year earnings are unchanged and we maintain our forecasts.

• Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) is an industrial equipment–related trading company founded in 1916 with a history that goes back more than a century.
• Its strength lies in technological expertise developed through years of collaboration between the Engineering and Construction Management Departments, which gives the company a strong competitive advantage.
• The company also leverages co- development and strategic alliances starting from the research stage for products with leading market share, such as power transmission chains and platform screen doors. 

• CK Hutchison Holdings (1 HK)‘s delicate dance continues as it juggles U.S and Beijing politics; and its fiduciary duty to shareholders, as the Blackrock exclusivity long stop date looms.
• In a double dose of StubWorld this week, preceding my comments on CKH – and CK Infrastructure Holdings (1038 HK) – are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Deere & Co is no longer just a symbol of tractors and green machines — it has quietly transformed into one of the most dominant forces in agricultural technology.
• At the intersection of artificial intelligence and farming, Deere is building a future where its equipment not only performs fieldwork but also interprets real-time data, automates decision-making, and boosts crop yields through precision.
• The company’s recent developments, including strong second-quarter financials for fiscal 2025 and an impressive Investor Day presentation in Brazil, reveal a clear trajectory: Deere is shifting from traditional machinery to becoming a full-scale agri-tech platform.

• Aux Electric Co Ltd (0917839D HK)  (AECL) is looking to raise about US$100m in its upcoming Hong Kong IPO. The bookrunners for the deal are CICC and Oriental Securities.
• AECL is engaged in the design, R&D, manufacturing, sales, and after-sales services of both household and central air conditioners, with operations spanning over 150 countries and regions.
• According to F&S Report, AECL was among the top five global air conditioner providers by sales volume in 2024, with a market share of 7.1%.

• Dongfang Electric (1072 HK)‘s recent rally following the Yarlung Zangbo hydropower project announcement appears overdone, as it now trades more than 3SD above average. 
• We estimate that, even with generous assumptions, the project will add 11.5% of revenue of its annual revenue. This seems unmatched with the 52.7% share price jump.
• 1Q25 has performed well and deserves a re-rating, but the current extent is excessive. Fair value for the next three years is HK$18-22.8, at best.

• In this edition: • AkzoNobel | no appetite for BASF Coatings • ASM International | reiterates FY25 outlook – order intake only outlier • KPN | beats 2Q25 consensus; raises FY25 guidance • Randstad | results fairly much in line with consensus – organic growth improves but still negative • PostNL | to deploy APMs in all Hoogvliet stores

• CK Hutchison Holdings (1 HK)‘s delicate dance continues as it juggles U.S and Beijing politics; and its fiduciary duty to shareholders, as the Blackrock exclusivity long stop date looms.
• In a double dose of StubWorld this week, preceding my comments on CKH – and CK Infrastructure Holdings (1038 HK) – are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Deere & Co is no longer just a symbol of tractors and green machines — it has quietly transformed into one of the most dominant forces in agricultural technology.
• At the intersection of artificial intelligence and farming, Deere is building a future where its equipment not only performs fieldwork but also interprets real-time data, automates decision-making, and boosts crop yields through precision.
• The company’s recent developments, including strong second-quarter financials for fiscal 2025 and an impressive Investor Day presentation in Brazil, reveal a clear trajectory: Deere is shifting from traditional machinery to becoming a full-scale agri-tech platform.

• Aux Electric Co Ltd (0917839D HK)  (AECL) is looking to raise about US$100m in its upcoming Hong Kong IPO. The bookrunners for the deal are CICC and Oriental Securities.
• AECL is engaged in the design, R&D, manufacturing, sales, and after-sales services of both household and central air conditioners, with operations spanning over 150 countries and regions.
• According to F&S Report, AECL was among the top five global air conditioner providers by sales volume in 2024, with a market share of 7.1%.

• Dongfang Electric (1072 HK)‘s recent rally following the Yarlung Zangbo hydropower project announcement appears overdone, as it now trades more than 3SD above average. 
• We estimate that, even with generous assumptions, the project will add 11.5% of revenue of its annual revenue. This seems unmatched with the 52.7% share price jump.
• 1Q25 has performed well and deserves a re-rating, but the current extent is excessive. Fair value for the next three years is HK$18-22.8, at best.

• In this edition: • AkzoNobel | no appetite for BASF Coatings • ASM International | reiterates FY25 outlook – order intake only outlier • KPN | beats 2Q25 consensus; raises FY25 guidance • Randstad | results fairly much in line with consensus – organic growth improves but still negative • PostNL | to deploy APMs in all Hoogvliet stores

• As short-term rates rise, Japan Post Bank (7182 JP)‘s perceived superior fundamentals may be leading to a short squeeze on the stock versus Japan Post Holdings (6178 JP).
• Preceding my comments on Japan Post – and Silicon Integrated Systems (2363 TT) – are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
• Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
• The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.

• The 145-day exclusivity period between CK Hutchison Holdings (1 HK) and the BlackRock-TiL consortium for the politically charged ports deal ends on July 27.
• The transaction is in limbo as China’s preferred pathway for approval (COSCO is included in the consortium as an equal partner) has several issues.
• It is equally probable that the deal will be finalised in some shape or form or fall apart. With shares up 31% and nearing a five-year high, take profits. 

• Korea Fuel Tech (123410 KS) is the 41st company in our Korea Small Cap Gem Series. 
• Korea Fuel Tech (FT) Corp is a Korean automotive components manufacturer specializing in emissions control systems, fuel system parts, and other auto plastic parts.
• Three key investment highlights include key beneficiary of growing demand for carbon canisters used in hybrid vehicles, compelling valuations, and sharp increase in operating margins/ROE. 

• General Electric Company (GE) Aerospace’s second quarter of 2025 earnings report reflects a robust performance and a constructive outlook characterized by growth in revenue, profits, and operational efficiencies.
• The company continues to leverage its strong position within the aerospace industry, both in commercial and defense sectors, to sustain and enhance its performance metrics.
• In the reported quarter, GE Aerospace exhibited solid growth across several financial parameters.

• 3M Company’s recent earnings presentation highlighted a mixed performance across different metrics, reflecting both strides in operational efficiency and challenges from macroeconomic factors.
• With an adjusted earnings per share of $2.16, up 12% year-over-year and surpassing expectations, 3M reported a solid quarter.
• Organic sales growth of 1.5% showed a third consecutive quarter of growth across all business groups, demonstrating some resilience despite external challenges.

• Fastenal Company’s Q2 2025 results demonstrated a notable blend of achievements and challenges.
• The quarter marked a milestone with sales exceeding $2 billion for the first time, reflecting an 8.6% year-over-year increase.
• This growth, the strongest since early 2023, primarily stemmed from strategic market share gains, effective execution of the company’s strategic plan, and incremental pricing actions aimed at countering supply chain cost pressures.

• Virgin Australia ((VGN)) is back for another go (which brings the name into question), having entered administration as a result of covid before being revived under private equity ownership.
• Australia’s second airline has returned to listed life with a simplified portfolio and strategy that, Ord Minnett believes, should resonate well with investors attracted to the relatively high quality/low risk Australian domestic aviation market.
• The broker sees a compelling earnings outlook into FY26, with relatively stable fares, falling fuel expenses, and transformation benefits. 

• With a spate of A/H listings already done in the first half and a lot more in the pipeline, we look at some of the trends from the recent listings.
• In this note, we will also talk about how the A/H premiums have moved since our last note in March 2025.
• Overall, recent A/H listings have somewhat reversed the trend of past A/H listings not doing much in the near term, with a few exceptions.

• Vestas Wind Systems A/S has presented its Q1 2025 financial results, showcasing substantial growth and areas of concern.
• The company’s revenue for the quarter was 3.5 billion EUR, representing a 29% increase year-onyear, fueled by increased activity and higher average pricing in Power Solutions.
• The EBIT margin was marginally positive at 0.4%, attributed to revenue growth and improved project profitability despite typical low seasonal activity.

• As short-term rates rise, Japan Post Bank (7182 JP)‘s perceived superior fundamentals may be leading to a short squeeze on the stock versus Japan Post Holdings (6178 JP).
• Preceding my comments on Japan Post – and Silicon Integrated Systems (2363 TT) – are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
• Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
• The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.

• The 145-day exclusivity period between CK Hutchison Holdings (1 HK) and the BlackRock-TiL consortium for the politically charged ports deal ends on July 27.
• The transaction is in limbo as China’s preferred pathway for approval (COSCO is included in the consortium as an equal partner) has several issues.
• It is equally probable that the deal will be finalised in some shape or form or fall apart. With shares up 31% and nearing a five-year high, take profits. 

• Korea Fuel Tech (123410 KS) is the 41st company in our Korea Small Cap Gem Series. 
• Korea Fuel Tech (FT) Corp is a Korean automotive components manufacturer specializing in emissions control systems, fuel system parts, and other auto plastic parts.
• Three key investment highlights include key beneficiary of growing demand for carbon canisters used in hybrid vehicles, compelling valuations, and sharp increase in operating margins/ROE. 

• General Electric Company (GE) Aerospace’s second quarter of 2025 earnings report reflects a robust performance and a constructive outlook characterized by growth in revenue, profits, and operational efficiencies.
• The company continues to leverage its strong position within the aerospace industry, both in commercial and defense sectors, to sustain and enhance its performance metrics.
• In the reported quarter, GE Aerospace exhibited solid growth across several financial parameters.

• 3M Company’s recent earnings presentation highlighted a mixed performance across different metrics, reflecting both strides in operational efficiency and challenges from macroeconomic factors.
• With an adjusted earnings per share of $2.16, up 12% year-over-year and surpassing expectations, 3M reported a solid quarter.
• Organic sales growth of 1.5% showed a third consecutive quarter of growth across all business groups, demonstrating some resilience despite external challenges.

• Fastenal Company’s Q2 2025 results demonstrated a notable blend of achievements and challenges.
• The quarter marked a milestone with sales exceeding $2 billion for the first time, reflecting an 8.6% year-over-year increase.
• This growth, the strongest since early 2023, primarily stemmed from strategic market share gains, effective execution of the company’s strategic plan, and incremental pricing actions aimed at countering supply chain cost pressures.

• Virgin Australia ((VGN)) is back for another go (which brings the name into question), having entered administration as a result of covid before being revived under private equity ownership.
• Australia’s second airline has returned to listed life with a simplified portfolio and strategy that, Ord Minnett believes, should resonate well with investors attracted to the relatively high quality/low risk Australian domestic aviation market.
• The broker sees a compelling earnings outlook into FY26, with relatively stable fares, falling fuel expenses, and transformation benefits. 

• With a spate of A/H listings already done in the first half and a lot more in the pipeline, we look at some of the trends from the recent listings.
• In this note, we will also talk about how the A/H premiums have moved since our last note in March 2025.
• Overall, recent A/H listings have somewhat reversed the trend of past A/H listings not doing much in the near term, with a few exceptions.

• Vestas Wind Systems A/S has presented its Q1 2025 financial results, showcasing substantial growth and areas of concern.
• The company’s revenue for the quarter was 3.5 billion EUR, representing a 29% increase year-onyear, fueled by increased activity and higher average pricing in Power Solutions.
• The EBIT margin was marginally positive at 0.4%, attributed to revenue growth and improved project profitability despite typical low seasonal activity.

• NAV sets the floor under the proposed bill. That’d cut the swap ratio from 1:0.162 to 1:0.128 — meaning Infracore holders get fewer CE shares than under market pricing.
• Unlike the Doosan deal, this one’s unlikely to get walked back. With wide spreads and HD setting a 10% SO cap, the dislocation looks tradable despite appraisal right overhang.
• Top holders/NPS hold ~50%, local instos 20%, foreigners 15% and retail the rest. Sentiment’s cautious but not hostile; appraisal risk looks manageable, making this spread a potential convergence play.

• Past Performance: KHI has rebounded from FY21 losses to record-high revenues and profits in FY25, driven by aerospace recovery and energy systems strength.
• Future Growth: Orderbook visibility of ~¥3 trillion supports 5–6% annual growth, led by hydrogen, commercial engines, and automation.
• Valuations: At 7.6x EV/EBITDA and 14x PE (NTM), KHI trades at a discount to peers like MHI and Komatsu, reflecting lower ROE and execution risk on long-cycle capex bets.

• LIG Nex1 Co (079550 KS)‘s stock price has doubled over the last 3 months, and the increased market cap could now result in a global index inclusion.
• LIG Nex1 Co (079550 KS) has outperformed most of its peers over the last few months and now trades expensive on a range of metrics.
• While momentum could take the stock higher, there is a risk of pullback as positioning in the stock is unwound.

• The management ownership stake of Hyundai Hyms is up for sale. J&P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers. 
• Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.
• Since the second largest shareholder, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.

• Brambles Limited’s performance for the first half of 2025 presents a mixed picture, combining robust growth with specific challenges.
• The company demonstrated a 4% increase in sales, equally contributed by price realization and volume growth, along with a notable 10% uplift in underlying profit.
• This growth is largely credited to the U.S. pallets business, reflecting successful net new business wins.

• The latest financial results for Transurban display a mix of positive operational advances and some challenges that merit attention.
• The company reported a promising 6.2% increase in proportional toll revenue.
• Over the same period, cost-cutting measures contributed to a 3% decline in expenses, which translated into a 9.4% rise in operating EBITDA and a 220 basis point enhancement in the EBITDA margin.

• Strong finals to March 2025 are reported with a 13.7% increase in Revenue to £78.1m and a 42% increase in PBT of £3.1m compared to £2.1m.
• The jump in EPS from 9.5p to 16.8p was aided by the tender offer and cancellation of 5m shares.
• The dividend is increased to 2.5p from 2p and reflecting the strong performance, a special dividend of 1p will be paid to shareholders on the register on 29 August 2025.

• NAV sets the floor under the proposed bill. That’d cut the swap ratio from 1:0.162 to 1:0.128 — meaning Infracore holders get fewer CE shares than under market pricing.
• Unlike the Doosan deal, this one’s unlikely to get walked back. With wide spreads and HD setting a 10% SO cap, the dislocation looks tradable despite appraisal right overhang.
• Top holders/NPS hold ~50%, local instos 20%, foreigners 15% and retail the rest. Sentiment’s cautious but not hostile; appraisal risk looks manageable, making this spread a potential convergence play.

• Past Performance: KHI has rebounded from FY21 losses to record-high revenues and profits in FY25, driven by aerospace recovery and energy systems strength.
• Future Growth: Orderbook visibility of ~¥3 trillion supports 5–6% annual growth, led by hydrogen, commercial engines, and automation.
• Valuations: At 7.6x EV/EBITDA and 14x PE (NTM), KHI trades at a discount to peers like MHI and Komatsu, reflecting lower ROE and execution risk on long-cycle capex bets.

• LIG Nex1 Co (079550 KS)‘s stock price has doubled over the last 3 months, and the increased market cap could now result in a global index inclusion.
• LIG Nex1 Co (079550 KS) has outperformed most of its peers over the last few months and now trades expensive on a range of metrics.
• While momentum could take the stock higher, there is a risk of pullback as positioning in the stock is unwound.

• The management ownership stake of Hyundai Hyms is up for sale. J&P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers. 
• Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.
• Since the second largest shareholder, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.

• Brambles Limited’s performance for the first half of 2025 presents a mixed picture, combining robust growth with specific challenges.
• The company demonstrated a 4% increase in sales, equally contributed by price realization and volume growth, along with a notable 10% uplift in underlying profit.
• This growth is largely credited to the U.S. pallets business, reflecting successful net new business wins.

• The latest financial results for Transurban display a mix of positive operational advances and some challenges that merit attention.
• The company reported a promising 6.2% increase in proportional toll revenue.
• Over the same period, cost-cutting measures contributed to a 3% decline in expenses, which translated into a 9.4% rise in operating EBITDA and a 220 basis point enhancement in the EBITDA margin.

• Strong finals to March 2025 are reported with a 13.7% increase in Revenue to £78.1m and a 42% increase in PBT of £3.1m compared to £2.1m.
• The jump in EPS from 9.5p to 16.8p was aided by the tender offer and cancellation of 5m shares.
• The dividend is increased to 2.5p from 2p and reflecting the strong performance, a special dividend of 1p will be paid to shareholders on the register on 29 August 2025.

• Kawasaki Heavy Industries (7012 JP) stock price has moved higher over the last few months, and the increased market cap should result in global index inclusion in August.
• Kawasaki Heavy Industries (7012 JP) has underperformed its larger peers, and the stock is trading cheaper than the average of its peers on most metrics. 
• There will be positioning in the stock that has been built up over the last month and a relative value trade could offer better risk reward here.

• DH Shipbuilding reported a solid IPO book building results analysis. The IPO price has been finalized at 50,000 won per share (high end of the IPO price range).
• At the IPO price of 50,000 won, the expected market cap will be 1.9 trillion won. DH Shipbuilding will start trading on 1 August. 
• Our base case valuation of DH Shipbuilding is target price of 67,576 won per share, which represents a 35% upside to the IPO price.

• With the review period nearing completion, there could be 4 changes (including 1 migration) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in September.
• There is one stock close to inclusion zone and one stock close to deletion zone and price movements over the rest of the month will determine the final changes.
• Estimated one-way turnover is 7.8% resulting in a one-way trade of INR 30.06bn (US$350m). Six of the eight potential changes will have over 2x ADV to trade from passive trackers.

• Singapore’s yield superiority is not restricted to the REIT and Banking Sectors.
• There are 13 stocks (that are not REITs or Banks) that have been identified as high performing dividend stocks.
• These stocks trade more than US$3m ADT in the last six months and are outside the REIT and Banking sectors. 

• Q4 FY25 delivered best operational quarter with 27% EBITDA margin and steady 80–85% utilization despite global steel demand weakness.
• Expanding graphite electrodes to 100 ktpa, commissioning 20 ktpa anode plant by FY27, and deepening exposure via GrafTech stake.
• Base case SOTP implies Rs614/share, valuing core at 8× EV/EBITDA and anode business at 2.5× invested capital.

• Norfolk Southern Corp. has emerged as a potential acquisition target for Union Pacific Corp., with early-stage discussions underway that could reshape the North American rail landscape.
• If the deal materializes, it would combine the largest and fifth-largest railroads by revenue, creating a network valued at nearly $200 billion and extending from coast to coast — an unprecedented footprint in U.S. rail history.
• Union Pacific CEO Jim Vena has publicly discussed the strategic merits of a transcontinental railroad, and Norfolk Southern CFO Jason Zampi has echoed support for such a structure, citing potential benefits.

• Sanli Environmental and mDR saw significant increases in average daily trading turnover, with returns of 98.9% and 137.5% respectively.
• Q&M Dental led net institutional inflows with S$7.68 million, alongside increased CEO ownership and active share buybacks.
• OKP Holdings secured a S$258 million contract, boosting its order book to S$736 million, with visibility to 2031.

• MMC Port Holdings Berhad (2436494D MK) is looking to raise up to US$2bn in its upcoming Malaysian IPO.
• It is principally involved in port operations in Malaysia. The firm operates five sea ports and a solid product jetty terminal, and conducts ship-to-ship (STS) services at an offshore port.
• In this note, we talk about the not-so-positive aspects of the deal.

• Institutions were net buyers of Singapore stocks, with a net inflow of S$113 million from July 11 to 17.
• Aberdeen Group plc increased its interest in CapitaLand India Trust to 6.15% after acquiring over 2.5 million units.
• United Overseas Bank led share buybacks, purchasing 1 million shares at an average price of S$36.80.

• What you need to know: • Defence and aerospace small-cap equities are emerging as key beneficiaries of increasing government defence budgets.
• • Canada has committed to meeting NATO’s 2% GDP target by 2025-2026, with interim boosts totalling C$9B in new spending.
• • Demand for fighter jets, naval systems, NORAD upgrades, and drone defence create multi-year tailwinds for niche suppliers.

• Kawasaki Heavy Industries (7012 JP) stock price has moved higher over the last few months, and the increased market cap should result in global index inclusion in August.
• Kawasaki Heavy Industries (7012 JP) has underperformed its larger peers, and the stock is trading cheaper than the average of its peers on most metrics. 
• There will be positioning in the stock that has been built up over the last month and a relative value trade could offer better risk reward here.

• DH Shipbuilding reported a solid IPO book building results analysis. The IPO price has been finalized at 50,000 won per share (high end of the IPO price range).
• At the IPO price of 50,000 won, the expected market cap will be 1.9 trillion won. DH Shipbuilding will start trading on 1 August. 
• Our base case valuation of DH Shipbuilding is target price of 67,576 won per share, which represents a 35% upside to the IPO price.

• With the review period nearing completion, there could be 4 changes (including 1 migration) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in September.
• There is one stock close to inclusion zone and one stock close to deletion zone and price movements over the rest of the month will determine the final changes.
• Estimated one-way turnover is 7.8% resulting in a one-way trade of INR 30.06bn (US$350m). Six of the eight potential changes will have over 2x ADV to trade from passive trackers.

• Singapore’s yield superiority is not restricted to the REIT and Banking Sectors.
• There are 13 stocks (that are not REITs or Banks) that have been identified as high performing dividend stocks.
• These stocks trade more than US$3m ADT in the last six months and are outside the REIT and Banking sectors. 

• Q4 FY25 delivered best operational quarter with 27% EBITDA margin and steady 80–85% utilization despite global steel demand weakness.
• Expanding graphite electrodes to 100 ktpa, commissioning 20 ktpa anode plant by FY27, and deepening exposure via GrafTech stake.
• Base case SOTP implies Rs614/share, valuing core at 8× EV/EBITDA and anode business at 2.5× invested capital.

• Norfolk Southern Corp. has emerged as a potential acquisition target for Union Pacific Corp., with early-stage discussions underway that could reshape the North American rail landscape.
• If the deal materializes, it would combine the largest and fifth-largest railroads by revenue, creating a network valued at nearly $200 billion and extending from coast to coast — an unprecedented footprint in U.S. rail history.
• Union Pacific CEO Jim Vena has publicly discussed the strategic merits of a transcontinental railroad, and Norfolk Southern CFO Jason Zampi has echoed support for such a structure, citing potential benefits.

• Sanli Environmental and mDR saw significant increases in average daily trading turnover, with returns of 98.9% and 137.5% respectively.
• Q&M Dental led net institutional inflows with S$7.68 million, alongside increased CEO ownership and active share buybacks.
• OKP Holdings secured a S$258 million contract, boosting its order book to S$736 million, with visibility to 2031.

• MMC Port Holdings Berhad (2436494D MK) is looking to raise up to US$2bn in its upcoming Malaysian IPO.
• It is principally involved in port operations in Malaysia. The firm operates five sea ports and a solid product jetty terminal, and conducts ship-to-ship (STS) services at an offshore port.
• In this note, we talk about the not-so-positive aspects of the deal.

• Institutions were net buyers of Singapore stocks, with a net inflow of S$113 million from July 11 to 17.
• Aberdeen Group plc increased its interest in CapitaLand India Trust to 6.15% after acquiring over 2.5 million units.
• United Overseas Bank led share buybacks, purchasing 1 million shares at an average price of S$36.80.

• What you need to know: • Defence and aerospace small-cap equities are emerging as key beneficiaries of increasing government defence budgets.
• • Canada has committed to meeting NATO’s 2% GDP target by 2025-2026, with interim boosts totalling C$9B in new spending.
• • Demand for fighter jets, naval systems, NORAD upgrades, and drone defence create multi-year tailwinds for niche suppliers.