Industrials

• Oswal Pumps (1019841D IN) raised about US$162m in its India IPO.
• Oswal Pumps Ltd (OPL) specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• After nearly two years of decline, TOWA’s new orders appear to have hit bottom this quarter and should start to recover in the three months to September.
• Sales and profits should follow a similar trajectory with management expecting nearly 60% of FY Mar-26 sales and more than 80% of operating profit to be recorded in 2H.
• Rising demand for AI-related high-bandwidth memory (HBM) and GPU packaging should drive growth for the next 2-3 years, bringing the projected P/E ratio for FY Mar-28 down to 12X.

• Wesco International, Inc. presented its first quarter 2025 financial results and outlook and reported a 6% organic sales growth for the first quarter, primarily fueled by a 70% increase in its data center business, along with notable surpluses in their OEM and Broadband segments.
• These results exceeded initial forecasts and reflect the company’s ability to capitalize on high-demand areas within technology infrastructure.
• The firm achieved a stable gross margin sequentially, a strategic play given potential global tariff impacts.

• HEICO Corporation delivered a robust second quarter financial performance for fiscal 2025, demonstrating strong organic growth and successful integration of acquisitions.
• The company saw record increases in both consolidated operating income and net sales, which rose by 19% and 15% respectively compared to the same period in fiscal 2024.
• The Flight Support Group (FSG) set all-time quarterly records with a 19% net sales increase and a 24% increase in operating income reflecting a 14% organic growth.

• Matson Inc.’s recent financial earnings for the first quarter of 2025 provided a nuanced view of the company’s current standing and its challenges ahead.
• The report reflects a mixed performance across various metrics and presents a cautious outlook for the remainder of the year.
• The positives from the call include a significant year-over-year increase in consolidated operating income for the first quarter, driven largely by continued elevated freight rates from China and robust demand post-Lunar New Year.

• The crash of Air India Flight AI171 has jolted the global aviation industry and once again cast a long shadow over Boeing’s safety record.
• The Dreamliner, once heralded as a revolutionary leap in aviation technology with a flawless fatality record, now lies at the center of a growing storm.
• The flight, a Boeing 787-8 en route to the U.K., crashed shortly after takeoff from Ahmedabad, killing 241 of the 242 onboard.

• Parsons Corporation’s latest financial results for the first quarter of 2025 showcased both strong performance and certain challenges.
• The company achieved record highs in several key financial metrics, including total revenue of $1.6 billion, net income, earnings per share, and adjusted EBITDA.
• This indicates strong underlying business performance amidst a challenging environment, particularly involving a confidential federal contract that continues to operate at a lower volume due to external political factors.

• Sensata Technologies reported a robust first quarter for 2025, with earnings exceeding their initial guidance, despite facing a challenging tariff environment.
• The company achieved a revenue of $911 million, slightly down from $1.007 billion in Q1 2024, but this was largely due to the divestment of lower-margin products, and sales were flat year-over-year when adjusted.
• Adjusted operating income stood at $167 million, representing an 18.3% margin.

• Nippon Aqua Co., Ltd. (hereinafter, “the Company”) is a high-growth enterprise listed on the Prime Market of the Tokyo Stock Exchange.
• Guided by its management philosophy—“Contribution to society through the creation of living environments that are friendly to people and the earth”—the Company leverages insulation and waterproofing technologies to drive energy efficiency and support a sustainable society.
• It holds the leading domestic share in on-site urethane foam insulation installation and operates its business through three key divisions: Single-family homes , Buildings, and Waterproofing.

• Fluor Corporation’s recent quarterly financial performance offers a nuanced perspective showcasing both strengths and areas requiring attention.
• The company’s revenue for the first quarter was $4 billion, with a strong inflow of new awards amounting to $5.8 billion.
• The book-to-burn ratio of 1.5 indicates a healthy intake of new projects relative to the services rendered, pointing towards sustained future revenue streams.

• Oswal Pumps (1019841D IN) raised about US$162m in its India IPO.
• Oswal Pumps Ltd (OPL) specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• After nearly two years of decline, TOWA’s new orders appear to have hit bottom this quarter and should start to recover in the three months to September.
• Sales and profits should follow a similar trajectory with management expecting nearly 60% of FY Mar-26 sales and more than 80% of operating profit to be recorded in 2H.
• Rising demand for AI-related high-bandwidth memory (HBM) and GPU packaging should drive growth for the next 2-3 years, bringing the projected P/E ratio for FY Mar-28 down to 12X.

• Wesco International, Inc. presented its first quarter 2025 financial results and outlook and reported a 6% organic sales growth for the first quarter, primarily fueled by a 70% increase in its data center business, along with notable surpluses in their OEM and Broadband segments.
• These results exceeded initial forecasts and reflect the company’s ability to capitalize on high-demand areas within technology infrastructure.
• The firm achieved a stable gross margin sequentially, a strategic play given potential global tariff impacts.

• HEICO Corporation delivered a robust second quarter financial performance for fiscal 2025, demonstrating strong organic growth and successful integration of acquisitions.
• The company saw record increases in both consolidated operating income and net sales, which rose by 19% and 15% respectively compared to the same period in fiscal 2024.
• The Flight Support Group (FSG) set all-time quarterly records with a 19% net sales increase and a 24% increase in operating income reflecting a 14% organic growth.

• Matson Inc.’s recent financial earnings for the first quarter of 2025 provided a nuanced view of the company’s current standing and its challenges ahead.
• The report reflects a mixed performance across various metrics and presents a cautious outlook for the remainder of the year.
• The positives from the call include a significant year-over-year increase in consolidated operating income for the first quarter, driven largely by continued elevated freight rates from China and robust demand post-Lunar New Year.

• The crash of Air India Flight AI171 has jolted the global aviation industry and once again cast a long shadow over Boeing’s safety record.
• The Dreamliner, once heralded as a revolutionary leap in aviation technology with a flawless fatality record, now lies at the center of a growing storm.
• The flight, a Boeing 787-8 en route to the U.K., crashed shortly after takeoff from Ahmedabad, killing 241 of the 242 onboard.

• Parsons Corporation’s latest financial results for the first quarter of 2025 showcased both strong performance and certain challenges.
• The company achieved record highs in several key financial metrics, including total revenue of $1.6 billion, net income, earnings per share, and adjusted EBITDA.
• This indicates strong underlying business performance amidst a challenging environment, particularly involving a confidential federal contract that continues to operate at a lower volume due to external political factors.

• Sensata Technologies reported a robust first quarter for 2025, with earnings exceeding their initial guidance, despite facing a challenging tariff environment.
• The company achieved a revenue of $911 million, slightly down from $1.007 billion in Q1 2024, but this was largely due to the divestment of lower-margin products, and sales were flat year-over-year when adjusted.
• Adjusted operating income stood at $167 million, representing an 18.3% margin.

• Nippon Aqua Co., Ltd. (hereinafter, “the Company”) is a high-growth enterprise listed on the Prime Market of the Tokyo Stock Exchange.
• Guided by its management philosophy—“Contribution to society through the creation of living environments that are friendly to people and the earth”—the Company leverages insulation and waterproofing technologies to drive energy efficiency and support a sustainable society.
• It holds the leading domestic share in on-site urethane foam insulation installation and operates its business through three key divisions: Single-family homes , Buildings, and Waterproofing.

• Fluor Corporation’s recent quarterly financial performance offers a nuanced perspective showcasing both strengths and areas requiring attention.
• The company’s revenue for the first quarter was $4 billion, with a strong inflow of new awards amounting to $5.8 billion.
• The book-to-burn ratio of 1.5 indicates a healthy intake of new projects relative to the services rendered, pointing towards sustained future revenue streams.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
• Currently, we see 9 ADDs/DELs for the CSI 300 index and 41 ADDs/DELs for the CSI 500 index.

• Samyang Comtec (a mid-sized defense company) is getting ready to complete its IPO in KOSDAQ in July. It is one of the leaders in the bulletproof and protective materials sector.
• The IPO price range is from 6,600 won to 7,700 won per share. The IPO offering amount range is from 95.7 billion won to 111.7 billion won.
• The company has experienced a surging growth in exports in the past several years. Exports which accounted for only 6.3% of total sales in 2022, increased to 41% in 2024.

• Beijer Ref AB (Beijer Ref) recently announced its financial performance for the first quarter of 2025, providing a mixed set of results amid varying global economic conditions.
• The company reported a robust total sales growth of 16%, driven by both organic expansion and strategic acquisitions.
• Organic growth stood at 4%, suggesting steady underlying business momentum, while acquisition-driven expansion played a significant role in overall sales achievement.

• Sweco AB, a prominent architecture and engineering consultancy in Europe, reported a strong start to the fiscal year with its Q1 results.
• The company achieved a growth in net sales exceeding SEK 8 billion, marking a 4% organic growth increase.
• EBITDA rose by 10%, and the EBITDA margin improved to 11.2%, reflecting enhanced operational efficiency through higher average fees, improved billing ratios, and effective cost control measures.

• Moog Inc.’s financial performance in the second quarter of fiscal year 2025 demonstrated robust sales and strategic adaptability amid potential uncertainties from evolving tariffs.
• Overall, the company reported record-level sales of $935 million, which slightly surpassed last year’s second quarter figures.
• The company exhibited strength in its Defense, Military Aircraft, and Commercial Aircraft segments, although Industrial sector sales declined, primarily influenced by the company’s simplification initiatives.

• What you need to know: • BES has announced several positive updates over the last few months including an agreement with Enercare to distribute and install its home backup power system.
• • Braille is progressing through Enercare’s onboarding process and expects sales over the coming quarters.
• • EarlyAlert is in the final stages of its product development and will begin sales in the coming months.

• ManpowerGroup’s recent earnings revealed a mixed performance for the first quarter of 2025, highlighting both favorable and challenging aspects of its business environment.
• The company’s global operations spanning Europe, Latin America, the Asia Pacific, and North America faced varying levels of demand due to economic and geopolitical dynamics, particularly influenced by trade policy announcements in the U.S. which have resulted in heightened uncertainty and cautious client behavior.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
• In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
• Currently, we see 9 ADDs/DELs for the CSI 300 index and 41 ADDs/DELs for the CSI 500 index.

• Samyang Comtec (a mid-sized defense company) is getting ready to complete its IPO in KOSDAQ in July. It is one of the leaders in the bulletproof and protective materials sector.
• The IPO price range is from 6,600 won to 7,700 won per share. The IPO offering amount range is from 95.7 billion won to 111.7 billion won.
• The company has experienced a surging growth in exports in the past several years. Exports which accounted for only 6.3% of total sales in 2022, increased to 41% in 2024.

• Beijer Ref AB (Beijer Ref) recently announced its financial performance for the first quarter of 2025, providing a mixed set of results amid varying global economic conditions.
• The company reported a robust total sales growth of 16%, driven by both organic expansion and strategic acquisitions.
• Organic growth stood at 4%, suggesting steady underlying business momentum, while acquisition-driven expansion played a significant role in overall sales achievement.

• Sweco AB, a prominent architecture and engineering consultancy in Europe, reported a strong start to the fiscal year with its Q1 results.
• The company achieved a growth in net sales exceeding SEK 8 billion, marking a 4% organic growth increase.
• EBITDA rose by 10%, and the EBITDA margin improved to 11.2%, reflecting enhanced operational efficiency through higher average fees, improved billing ratios, and effective cost control measures.

• Moog Inc.’s financial performance in the second quarter of fiscal year 2025 demonstrated robust sales and strategic adaptability amid potential uncertainties from evolving tariffs.
• Overall, the company reported record-level sales of $935 million, which slightly surpassed last year’s second quarter figures.
• The company exhibited strength in its Defense, Military Aircraft, and Commercial Aircraft segments, although Industrial sector sales declined, primarily influenced by the company’s simplification initiatives.

• What you need to know: • BES has announced several positive updates over the last few months including an agreement with Enercare to distribute and install its home backup power system.
• • Braille is progressing through Enercare’s onboarding process and expects sales over the coming quarters.
• • EarlyAlert is in the final stages of its product development and will begin sales in the coming months.

• ManpowerGroup’s recent earnings revealed a mixed performance for the first quarter of 2025, highlighting both favorable and challenging aspects of its business environment.
• The company’s global operations spanning Europe, Latin America, the Asia Pacific, and North America faced varying levels of demand due to economic and geopolitical dynamics, particularly influenced by trade policy announcements in the U.S. which have resulted in heightened uncertainty and cautious client behavior.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The March 2025 Nikkei 225 review came out with a sparse set of changes. That gives us hints for the September 2025 review.
• For the moment, that leads me to believe we get ONE ADD and ONE DELETE though up to three of each is possible.
• For now, Fast Retailing (9983 JP) capping is off, but there’s an ad hoc coming in late Q3 or early Q4 and the Sony Financial spinoff to look forward to.

• Today after the close, Mitsui Matsushima (1518 JP) announced it would increase its buyback from 3.5mm shares to 4.0mm shares (31.3% to 35.8%). It also announced a Tender Offer Buyback.
• The tender offer starts tomorrow and goes til mid-July, paid 8 August. Murakami Group will tender a minimum of 3.3mm shares (more likely 4.2mm). 
• This is not a huge immediate win, but it’s OK. And it changes the structure of the company’s balance sheet, ROE, effective ROE, and possibly its dividend. 

• Trane Technologies reported strong first quarter results for 2025, showing resilience in a challenging macroeconomic environment.
• They achieved an 11% organic revenue growth and a 26% increase in adjusted EPS, largely propelled by their innovations in sustainable solutions and a strategic focus on high-demand sectors like Commercial HVAC.
• The company continues to benefit from its robust operating system and strategic direct sales force, which have driven significant market outperformance and growth in bookings across verticals such as data centers, healthcare, and higher education.

• In this edition: • Heineken | Vietnam’s consumption tax increases: no near-term impact expected • AMG Critical Materials | increases interest in Zinnwald Lithium to 29.6% • PostNL | House committees to meet today on which topics to declare controversial • E-commerce / E-com logistics | online spending in the Netherlands up 4% YoY in 1Q25

• Ryder System’s first quarter 2025 earnings highlighted a mix of strong strategic execution and challenges from market conditions.
• The company reported a 2% increase in operating revenue, reaching $2.6 billion, driven by contractual growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS), albeit partly offset by weaker rental demand.
• The comparable earnings per share (EPS) from continuing operations rose to $2.46 from $2.14 in the previous year, demonstrating resilience amid a challenging environment.

• NIBE Industrier AB’s Q1 2025 earnings highlighted key operational and financial aspects affecting its divisions, showcasing both challenges and positive strides within its Climate Solutions, Element, and Stoves segments.
• The leadership emphasized a cautious optimism amidst a stabilizing market environment, marking a transition to more traditional and predictable seasonal patterns.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• ARE&M reported Q4 FY25 with modest revenue growth but saw slight declines in EBITDAand PAT margins due to cost pressures and provisions.
• Elevated material and power costs significantly impacted profitability despite underlying business growth, presenting a challenge for margin recovery efforts.
• Focus shifts to monitoring the effectiveness of recent price hikes, cost-saving initiatives, and the ramp-up of new, more efficient manufacturing facilities in restoring targeted margins.

• Cintas Corporation announced its fiscal 2025 third-quarter results, highlighting both strengths and areas to monitor.
• The company demonstrated robust financial performance, reporting an 8.4% increase in total revenue to $2.61 billion, with an organic growth rate of 7.9%.
• Despite negative impacts from foreign currency exchange rate fluctuations, the Uniform Rental and Facility Services segment achieved a 7% organic growth, while First Aid and Safety Services and Fire Protection Services reported impressive double-digit growth, suggesting a strong customer value proposition.

• SHI officially terminated $3.54B worth of Russian contracts on June 18, citing prolonged non-performance by Zvezda.
• The company is pursuing arbitration in Singapore, aiming to retain $800M in advances and seek additional damages. Most such cases have favoured shipbuilders.
• With no production initiated and a strong $28–30B backlog, the impact on operations and FY25 guidance is expected to be minimal.

• Securitas AB reported its first-quarter financial results, showcasing a mixed performance marked by certain strategic advancements alongside ongoing challenges.
• The company reported a 3% organic growth rate, aligned with a 40-basis-point improvement in their operating margin, which reached 6.4%.
• Importantly, Securitas achieved a 16% growth in earnings per share (EPS), evidence of their financial momentum despite some operational constraints.

• The March 2025 Nikkei 225 review came out with a sparse set of changes. That gives us hints for the September 2025 review.
• For the moment, that leads me to believe we get ONE ADD and ONE DELETE though up to three of each is possible.
• For now, Fast Retailing (9983 JP) capping is off, but there’s an ad hoc coming in late Q3 or early Q4 and the Sony Financial spinoff to look forward to.

• Today after the close, Mitsui Matsushima (1518 JP) announced it would increase its buyback from 3.5mm shares to 4.0mm shares (31.3% to 35.8%). It also announced a Tender Offer Buyback.
• The tender offer starts tomorrow and goes til mid-July, paid 8 August. Murakami Group will tender a minimum of 3.3mm shares (more likely 4.2mm). 
• This is not a huge immediate win, but it’s OK. And it changes the structure of the company’s balance sheet, ROE, effective ROE, and possibly its dividend. 

• Trane Technologies reported strong first quarter results for 2025, showing resilience in a challenging macroeconomic environment.
• They achieved an 11% organic revenue growth and a 26% increase in adjusted EPS, largely propelled by their innovations in sustainable solutions and a strategic focus on high-demand sectors like Commercial HVAC.
• The company continues to benefit from its robust operating system and strategic direct sales force, which have driven significant market outperformance and growth in bookings across verticals such as data centers, healthcare, and higher education.

• In this edition: • Heineken | Vietnam’s consumption tax increases: no near-term impact expected • AMG Critical Materials | increases interest in Zinnwald Lithium to 29.6% • PostNL | House committees to meet today on which topics to declare controversial • E-commerce / E-com logistics | online spending in the Netherlands up 4% YoY in 1Q25

• Ryder System’s first quarter 2025 earnings highlighted a mix of strong strategic execution and challenges from market conditions.
• The company reported a 2% increase in operating revenue, reaching $2.6 billion, driven by contractual growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS), albeit partly offset by weaker rental demand.
• The comparable earnings per share (EPS) from continuing operations rose to $2.46 from $2.14 in the previous year, demonstrating resilience amid a challenging environment.

• NIBE Industrier AB’s Q1 2025 earnings highlighted key operational and financial aspects affecting its divisions, showcasing both challenges and positive strides within its Climate Solutions, Element, and Stoves segments.
• The leadership emphasized a cautious optimism amidst a stabilizing market environment, marking a transition to more traditional and predictable seasonal patterns.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• ARE&M reported Q4 FY25 with modest revenue growth but saw slight declines in EBITDAand PAT margins due to cost pressures and provisions.
• Elevated material and power costs significantly impacted profitability despite underlying business growth, presenting a challenge for margin recovery efforts.
• Focus shifts to monitoring the effectiveness of recent price hikes, cost-saving initiatives, and the ramp-up of new, more efficient manufacturing facilities in restoring targeted margins.

• Cintas Corporation announced its fiscal 2025 third-quarter results, highlighting both strengths and areas to monitor.
• The company demonstrated robust financial performance, reporting an 8.4% increase in total revenue to $2.61 billion, with an organic growth rate of 7.9%.
• Despite negative impacts from foreign currency exchange rate fluctuations, the Uniform Rental and Facility Services segment achieved a 7% organic growth, while First Aid and Safety Services and Fire Protection Services reported impressive double-digit growth, suggesting a strong customer value proposition.

• SHI officially terminated $3.54B worth of Russian contracts on June 18, citing prolonged non-performance by Zvezda.
• The company is pursuing arbitration in Singapore, aiming to retain $800M in advances and seek additional damages. Most such cases have favoured shipbuilders.
• With no production initiated and a strong $28–30B backlog, the impact on operations and FY25 guidance is expected to be minimal.

• Securitas AB reported its first-quarter financial results, showcasing a mixed performance marked by certain strategic advancements alongside ongoing challenges.
• The company reported a 3% organic growth rate, aligned with a 40-basis-point improvement in their operating margin, which reached 6.4%.
• Importantly, Securitas achieved a 16% growth in earnings per share (EPS), evidence of their financial momentum despite some operational constraints.

• KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
• The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
• If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.

• MHI has delivered a strong turnaround over the past four years, with revenue up 26% and business profit expanding nearly 10x from FY22 to FY25
• The consolidated order backlog crossed ¥10.2 trillion in FY25, up ~22% YoY, offering ~2 years of forward revenue visibility and skewed toward high-margin Energy and Defense segments.
• While the stock has rallied sharply, management’s solid FY25–30 guidance, along with structural tailwinds from energy transition and defense spending, continue to underpin the long-term thesis.

• MHI is up nearly 60% year-to-date to 46x management’s EPS guidance for FY Mar-26 and 27x our EPS estimate for FY Mar-30.
• By then, we expect Air, Defense & Space revenues to double and the division’s operating margin to rise from 10% to 15%, which is the likely cap on profitability. 
• Given Japan’s uncertain finances and the long time horizon that should already be discounted, we recommend profit taking. 

• KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities. 
• Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC. 
• While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

• Unlocking improved earnings potential – By prioritizing high-quality business opportunities, INTLOOP continues to improve OPM YoY, reflecting stronger operating efficiency.
• Q1-3 FY7/25 results were ahead of unchanged FY guidance, with the company continuing to invest in scaling capacity with new senior mid-career hires as well as graduates.
• Management believes there is further upside to margin expansion through profit-focused sales activities and price revisions. 

• Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing.
• Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• The Interims to March 2025 were reported on 3rd of June from the re-named designer and manufacturer of high-pressure containment products and services serving the global energy, defence, and industrial gases market.
• Disappointingly, revenues of £5.4m were 16.9% lower causing the gross profit margin to decline to 18.5% from 23.1%, with an EBITDA loss of £1.3m compared to an EBITDA loss of £0.7m in FY H1 2024.
• The lower revenue reflects the phasing of contracts weighted heavily to H2 and thereby also affecting the margins due to the business’ fixed costs. 

• COPRO-HOLDINGS. Co., Ltd., (hereafter, the Company) announced the full year results for FY2025/3 after the market close on Thursday, May 15, 2025.
• The key consolidated figures are net sales of JPY 30,015 mn (+24.6% YoY), gross profit of JPY 8,308 mn (+22.6% YoY), operating profit of JPY 2,763 mn (+29.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,820 mn (+24.4% YoY).
• COPRO Construction. Co., Ltd. (hereafter, COPRO CN), which operates the Company‘s core business of construction technician dispatching contributed significantly to results of strong growth due to record recruiting.

• FY2025/5 Q3 Results｜On April 10, 2025, OHBA (hereafter, the Company) announced its Q3 FY2025/5 results.
• Due to the seasonal nature of its business, which tends to concentrate earnings in Q4, progress rates toward the full-year plan appear low at first glance, with net sales at 68.6% and operating profit at 62.3%.
• However, SIR believes the Company is steadily progressing toward achieving its full-year targets of 6.1% YoY sales growth and 5.8% YoY operating profit growth. 

Following the disposal of its Precision Machined Components (PMC) division, Chesterfield Special Cylinders (CSC) is moving forward as a focused, specialist high-pressure cylinder business, as reflected in the recent change of name (formerly Pressure Technologies). As part of this strategy, management has set out ambitious targets for 30% sales growth and EBITDA margins of >12% by 2028. H125 results are unexciting but the strong order book supports management confidence for positive EBITDA in FY25, putting CSC firmly on the right trajectory. Key will be the speed at which the defence (75% of FY24 sales) and hydrogen (11%) activities, both expected to be supported by positive fundamentals, can grow.

• KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
• The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
• If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.

• MHI has delivered a strong turnaround over the past four years, with revenue up 26% and business profit expanding nearly 10x from FY22 to FY25
• The consolidated order backlog crossed ¥10.2 trillion in FY25, up ~22% YoY, offering ~2 years of forward revenue visibility and skewed toward high-margin Energy and Defense segments.
• While the stock has rallied sharply, management’s solid FY25–30 guidance, along with structural tailwinds from energy transition and defense spending, continue to underpin the long-term thesis.

• MHI is up nearly 60% year-to-date to 46x management’s EPS guidance for FY Mar-26 and 27x our EPS estimate for FY Mar-30.
• By then, we expect Air, Defense & Space revenues to double and the division’s operating margin to rise from 10% to 15%, which is the likely cap on profitability. 
• Given Japan’s uncertain finances and the long time horizon that should already be discounted, we recommend profit taking. 

• KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities. 
• Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC. 
• While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

• Unlocking improved earnings potential – By prioritizing high-quality business opportunities, INTLOOP continues to improve OPM YoY, reflecting stronger operating efficiency.
• Q1-3 FY7/25 results were ahead of unchanged FY guidance, with the company continuing to invest in scaling capacity with new senior mid-career hires as well as graduates.
• Management believes there is further upside to margin expansion through profit-focused sales activities and price revisions. 

• Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing.
• Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• The Interims to March 2025 were reported on 3rd of June from the re-named designer and manufacturer of high-pressure containment products and services serving the global energy, defence, and industrial gases market.
• Disappointingly, revenues of £5.4m were 16.9% lower causing the gross profit margin to decline to 18.5% from 23.1%, with an EBITDA loss of £1.3m compared to an EBITDA loss of £0.7m in FY H1 2024.
• The lower revenue reflects the phasing of contracts weighted heavily to H2 and thereby also affecting the margins due to the business’ fixed costs. 

• COPRO-HOLDINGS. Co., Ltd., (hereafter, the Company) announced the full year results for FY2025/3 after the market close on Thursday, May 15, 2025.
• The key consolidated figures are net sales of JPY 30,015 mn (+24.6% YoY), gross profit of JPY 8,308 mn (+22.6% YoY), operating profit of JPY 2,763 mn (+29.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,820 mn (+24.4% YoY).
• COPRO Construction. Co., Ltd. (hereafter, COPRO CN), which operates the Company‘s core business of construction technician dispatching contributed significantly to results of strong growth due to record recruiting.

• FY2025/5 Q3 Results｜On April 10, 2025, OHBA (hereafter, the Company) announced its Q3 FY2025/5 results.
• Due to the seasonal nature of its business, which tends to concentrate earnings in Q4, progress rates toward the full-year plan appear low at first glance, with net sales at 68.6% and operating profit at 62.3%.
• However, SIR believes the Company is steadily progressing toward achieving its full-year targets of 6.1% YoY sales growth and 5.8% YoY operating profit growth. 

Following the disposal of its Precision Machined Components (PMC) division, Chesterfield Special Cylinders (CSC) is moving forward as a focused, specialist high-pressure cylinder business, as reflected in the recent change of name (formerly Pressure Technologies). As part of this strategy, management has set out ambitious targets for 30% sales growth and EBITDA margins of >12% by 2028. H125 results are unexciting but the strong order book supports management confidence for positive EBITDA in FY25, putting CSC firmly on the right trajectory. Key will be the speed at which the defence (75% of FY24 sales) and hydrogen (11%) activities, both expected to be supported by positive fundamentals, can grow.

• Nakano Refrigerators (6411 JP) has recommended a tender offer from Marunouchi Capital at JPY7,900, a 35.0% premium to the last close price.
• The offer is attractive as it represents an all-time high and is above the midpoint of the IFA DCF valuation range.
• An attractive offer and irrevocables (33.19% ownership ratio) pave the way for deal completion. The tender runs from 17 June to 29 July.

• Haitian Flavouring  (3288 HK) and Sanhua (2050 HK) are forecasted to be added to Global All-World at the December 2025 review.
• Both securities are unlikely to meet the Global Standard float cap threshold before or after the lock-up expiry, based on the maximum offer price.
• Sanhua (2050 HK) has a better chance of inclusion to Global Standard at the February 2026 review following the lock-up expiry as its float cap is closer to the threshold.

• Dual-Listed Tourism Holdings (THL NZ), the world’s largest commercial recreation vehicle (RV) rental operator, announced this morning an unsolicited NBIO from a consortium comprising BGH Capital and the Trouchet family. 
• The consortium is offering, by way of a Scheme, NZ$2.30/share. THL traded higher thirteen months ago, before announcing a significant profit warning in May sent shares down 36%.
• BGH, now holding 19.9% (including the Trouchet’s family stake), is capitalising on a “sharp drop in interest for inbound travel to the US”, and “elevated cancellations of existing bookings“.

• In this edition: • PostNL | total number of APMs in the Netherlands up 70% last year

• YTD our absolute return strategy is up 12,0% Oil Prices Rise as Israel Attacks Iran’s Nuclear Facilities – What We Do Friday was marked by panic buying safe haven assets.
• Gold and Crude went up, risk assets went down. We’re now in a time of mass geopolitical uncertainty and related volatility.
• Therefore we think it is important to keep a cool head in such situations and don’t let headlines and breaking news change investment behavior.

• Institutions were net sellers of Singapore stocks with a net outflow of S$80 million from June 6-12.
• DBS Group Holdings, United Overseas Bank, and Oversea-Chinese Banking Corporation led share buybacks totaling S$66.8 million.
• Q & M Dental Group’s CEO increased his stake to 54.92% amid ongoing share buyback program since May 8.

• Timee Inc (215A JP)  reported 2QFY10/2025 results on Thursday, 12th June. Revenues fell below consensus while OP beat consensus by a huge margin despite 2Q being a seasonally weak quarter.
• Top line was hit by unauthorized use of services which forced Timee to strengthen counter measures. End of client fiscal year in food industry also contributed to the decline.
• There are signs of recovery and the company’s share price moved up 7% on Friday on the back of strengthening profitability.

• On Friday 6 June, File Forge Technology PLC (to be renamed Amirose London Holdings PLC), announced the completion of its acquisition of Amirose London Ltd and the Admission to trading on the Access Segment of the Aquis Stock Exchange.
• Amirose provides contract manufacturing services in the personal care sector for global and boutique premium brands.
• Turnover for the year ended 30 March 2024 was £12.7m and profits of £38.8k. 

• Lifco AB’s recent financial performance presents a nuanced picture, demonstrating both strengths and challenges within its diversified portfolio.
• In the latest quarter, Lifco recorded a 15% increase in sales, benefiting from approximately 8% organic growth and an equivalent growth from successful acquisitions.
• This growth trajectory, however, displays variability across its business segments, which provides a broad reflection of differing market conditions and strategic decisions in place.

• Nakano Refrigerators (6411 JP) has recommended a tender offer from Marunouchi Capital at JPY7,900, a 35.0% premium to the last close price.
• The offer is attractive as it represents an all-time high and is above the midpoint of the IFA DCF valuation range.
• An attractive offer and irrevocables (33.19% ownership ratio) pave the way for deal completion. The tender runs from 17 June to 29 July.

• Haitian Flavouring  (3288 HK) and Sanhua (2050 HK) are forecasted to be added to Global All-World at the December 2025 review.
• Both securities are unlikely to meet the Global Standard float cap threshold before or after the lock-up expiry, based on the maximum offer price.
• Sanhua (2050 HK) has a better chance of inclusion to Global Standard at the February 2026 review following the lock-up expiry as its float cap is closer to the threshold.

• Dual-Listed Tourism Holdings (THL NZ), the world’s largest commercial recreation vehicle (RV) rental operator, announced this morning an unsolicited NBIO from a consortium comprising BGH Capital and the Trouchet family. 
• The consortium is offering, by way of a Scheme, NZ$2.30/share. THL traded higher thirteen months ago, before announcing a significant profit warning in May sent shares down 36%.
• BGH, now holding 19.9% (including the Trouchet’s family stake), is capitalising on a “sharp drop in interest for inbound travel to the US”, and “elevated cancellations of existing bookings“.

• In this edition: • PostNL | total number of APMs in the Netherlands up 70% last year

• YTD our absolute return strategy is up 12,0% Oil Prices Rise as Israel Attacks Iran’s Nuclear Facilities – What We Do Friday was marked by panic buying safe haven assets.
• Gold and Crude went up, risk assets went down. We’re now in a time of mass geopolitical uncertainty and related volatility.
• Therefore we think it is important to keep a cool head in such situations and don’t let headlines and breaking news change investment behavior.

• Institutions were net sellers of Singapore stocks with a net outflow of S$80 million from June 6-12.
• DBS Group Holdings, United Overseas Bank, and Oversea-Chinese Banking Corporation led share buybacks totaling S$66.8 million.
• Q & M Dental Group’s CEO increased his stake to 54.92% amid ongoing share buyback program since May 8.

• Timee Inc (215A JP)  reported 2QFY10/2025 results on Thursday, 12th June. Revenues fell below consensus while OP beat consensus by a huge margin despite 2Q being a seasonally weak quarter.
• Top line was hit by unauthorized use of services which forced Timee to strengthen counter measures. End of client fiscal year in food industry also contributed to the decline.
• There are signs of recovery and the company’s share price moved up 7% on Friday on the back of strengthening profitability.

• On Friday 6 June, File Forge Technology PLC (to be renamed Amirose London Holdings PLC), announced the completion of its acquisition of Amirose London Ltd and the Admission to trading on the Access Segment of the Aquis Stock Exchange.
• Amirose provides contract manufacturing services in the personal care sector for global and boutique premium brands.
• Turnover for the year ended 30 March 2024 was £12.7m and profits of £38.8k. 

• Lifco AB’s recent financial performance presents a nuanced picture, demonstrating both strengths and challenges within its diversified portfolio.
• In the latest quarter, Lifco recorded a 15% increase in sales, benefiting from approximately 8% organic growth and an equivalent growth from successful acquisitions.
• This growth trajectory, however, displays variability across its business segments, which provides a broad reflection of differing market conditions and strategic decisions in place.