Industrials

• The MV Global Defense Industry Index represents the performance of companies in national defense industries.
• There will be 3 ADDs for the MV Global Defense Index in June 2025. 
• We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%. 

• Hyundai Rotem, RENK Group and Karman Holdings will be added to the MV Global Defense Industry Index after the close of trading on 20 June.
• Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8.8% and a round-trip trade of US$1.1bn.
• The index has moved up steadily over the last few years and the ETF has taken in a big chunk of money over the last 6 months.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• GMO Financial Gate (4051 JP) and Azoom (3496 JP) have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.
• Kitazato (368A JP) is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July. 

• Is Hino (7205 JP) a short or a long at ¥366/share? Suggest short, but also selling more as the stock goes up, and buying back the short on big dips.
• A Bloomberg op-ed piece concludes it is time to move on from “from an archaic currency regime“. That conclusion on the Hong Kong peg appears presumptuous. And uninformed.
• A spin-off makes sense as Zijin (2899 HK) capitalises on the upward cycle in gold prices. However,  Zijin is trading at a single-digit NAV discount. Before any holding company discount.

• Sandvik’s first quarter of 2025 showcased varied performance across its business segments and regions, colored by a mix of positive and challenging elements within the broader macroeconomic context.
• The company’s Mining segment showed significant momentum, driven by robust demand and major orders in Australia and South America, contributing to a 7% increase in organic order intake.
• Conversely, the Cutting Tools and Infrastructure divisions displayed continued strain from economic uncertainties, with notable declines in key markets such as Europe and North America.

• Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
• The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
• This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

• The MV Global Uranium & Nuclear Energy index represents the performance of the biggest and the most liquid companies in the Uranium and Nuclear industries.
• Cgn Mining (1164 HK) will be an ADD and Endesa SA (ELE SM) will be a DELETE in June 2025.
• There are also some big capping flows so we expect a one-way flow of US$227mn for June 2025, which translates to a turnover of 15.7%.

• EnerSys reported its fourth quarter and full year fiscal 2025 results, reflecting both strengths and challenges that are integral to its ongoing business strategy and market environment.
• The company achieved a notable 7% increase in revenue for the fourth quarter, marking its second-highest revenue quarter ever, with a record adjusted diluted EPS of $1.86.
• A significant contribution came from the Motive Power segment, which exhibited strong margin growth, and overall, EnerSys reported solid contributions from the recently acquired Bren-Tronics.

• The MV Global Defense Industry Index represents the performance of companies in national defense industries.
• There will be 3 ADDs for the MV Global Defense Index in June 2025. 
• We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%. 

• Hyundai Rotem, RENK Group and Karman Holdings will be added to the MV Global Defense Industry Index after the close of trading on 20 June.
• Constituent changes, float changes and capping changes result in an estimated one-way turnover of 8.8% and a round-trip trade of US$1.1bn.
• The index has moved up steadily over the last few years and the ETF has taken in a big chunk of money over the last 6 months.

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• GMO Financial Gate (4051 JP) and Azoom (3496 JP) have confirmed their moves to the Prime Market which would trigger TOPIX Inclusions for these names at the end of July.
• Kitazato (368A JP) is expected to get listed in the Prime market in late-June and that name would also have a TOPIX Inclusion at the end of July. 

• Is Hino (7205 JP) a short or a long at ¥366/share? Suggest short, but also selling more as the stock goes up, and buying back the short on big dips.
• A Bloomberg op-ed piece concludes it is time to move on from “from an archaic currency regime“. That conclusion on the Hong Kong peg appears presumptuous. And uninformed.
• A spin-off makes sense as Zijin (2899 HK) capitalises on the upward cycle in gold prices. However,  Zijin is trading at a single-digit NAV discount. Before any holding company discount.

• Sandvik’s first quarter of 2025 showcased varied performance across its business segments and regions, colored by a mix of positive and challenging elements within the broader macroeconomic context.
• The company’s Mining segment showed significant momentum, driven by robust demand and major orders in Australia and South America, contributing to a 7% increase in organic order intake.
• Conversely, the Cutting Tools and Infrastructure divisions displayed continued strain from economic uncertainties, with notable declines in key markets such as Europe and North America.

• Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
• The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
• This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

• The MV Global Uranium & Nuclear Energy index represents the performance of the biggest and the most liquid companies in the Uranium and Nuclear industries.
• Cgn Mining (1164 HK) will be an ADD and Endesa SA (ELE SM) will be a DELETE in June 2025.
• There are also some big capping flows so we expect a one-way flow of US$227mn for June 2025, which translates to a turnover of 15.7%.

• EnerSys reported its fourth quarter and full year fiscal 2025 results, reflecting both strengths and challenges that are integral to its ongoing business strategy and market environment.
• The company achieved a notable 7% increase in revenue for the fourth quarter, marking its second-highest revenue quarter ever, with a record adjusted diluted EPS of $1.86.
• A significant contribution came from the Motive Power segment, which exhibited strong margin growth, and overall, EnerSys reported solid contributions from the recently acquired Bren-Tronics.

• Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn in its H-share listing.
• ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Zhejiang Sanhua Intelligent Controls (2050 HK) has launched its H Share listing at HK$21.21 to HK$22.53 per H Share. Pricing will be on 19 June.
• I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
• The proposed AH discount of 20.2%-24.9% (based on 12 June A Share price) is attractive and I would participate in the H Share listing.

• Past Growth: Oswal scaled rapidly under PM-KUSUM, becoming India’s largest solar pump supplier with strong revenue and order book growth.
• Plans: It aims to expand capacity, enter industrial pumps and motors, and grow exports and private-sector sales.
• Risks: Heavy reliance on a tapering subsidy scheme, limited post-KUSUM demand, and exposure to policy, ESG, and working capital challenges.

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• U-Haul benefited from a step up in top-line demand for self-moving services during the pandemic, namely in FY2021 & FY2022.

• Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) (ZSIC), a manufacturer of refrigeration and air-conditioning control components, aims to raise around US$1bn in its H-share listing.
• ZSIC is a market leader in a number of products, with commanding market share both domestically and globally.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Zhejiang Sanhua Intelligent Controls (2050 HK) has launched its H Share listing at HK$21.21 to HK$22.53 per H Share. Pricing will be on 19 June.
• I discussed the H Share listing in Sanhua Intelligent Controls H Share Listing: The Investment Case.
• The proposed AH discount of 20.2%-24.9% (based on 12 June A Share price) is attractive and I would participate in the H Share listing.

• Past Growth: Oswal scaled rapidly under PM-KUSUM, becoming India’s largest solar pump supplier with strong revenue and order book growth.
• Plans: It aims to expand capacity, enter industrial pumps and motors, and grow exports and private-sector sales.
• Risks: Heavy reliance on a tapering subsidy scheme, limited post-KUSUM demand, and exposure to policy, ESG, and working capital challenges.

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• U-Haul benefited from a step up in top-line demand for self-moving services during the pandemic, namely in FY2021 & FY2022.

• On the 10th of June, Toyota Motor (7203 JP) subsidiary Hino Motors Ltd (7205 JP) and Mitsubishi-Fuso Truck & Bus Company announced their long-awaited integration plans. We have a deal.
• An agreement was signed in 2023, but Hino got in big trouble for falsifying testing data on gasoline engine emissions/efficiency. Hino took a hit in 2023, then 2025. Talks advanced. 
• The deal announced suggests Toyota has thrown itself and Hino minorities under the proverbial Fuso bus. It’s VERY odd. But… it deserves a look because 2026 will see a re-IPO.

• Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.  
• There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK). 
• The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.

• In this insight, we discuss the emergence of the North Korea reconciliation related stocks that are starting to outperform. We have seen this playbook before.
• With the new President Lee Jae-Myung, there is likely to be an outperformance of some of these stocks once again.
• Among the 6 stocks listed above, we believe Hyundai Elevator is one of best stocks to capitalize on the increased reconciliation with North Korea.

• Brookfield Asset Management Lt (BAM US) aims to raise around US$278m via selling 23.3% of Dalrymple Bay Infrastructure L (DBI AU).
• The shares have performed well over the last year or so, with the company having delivered consistent DPU growth.
• In this note we talk about the deal dynamics and run the deal through our ECM framework.

• Oswal Pumps (1019841D IN) is looking to raise about US$162m in its upcoming India IPO. The deal has been downsized from an earlier size of around US$250m.
• 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 in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

• GiG Works reported a recurring loss due to decreased revenue and JPY115mn crypto asset valuation losses, despite higher net income from share sales gains.
• The On-demand Economy business saw a decline in revenue and profit, while the Sharing Economy business experienced growth in both.
• The FY10/25 forecast anticipates revenue growth in System Solutions and Sharing Economy, with a dividend of JPY2 per share.

• On the 10th of June, Toyota Motor (7203 JP) subsidiary Hino Motors Ltd (7205 JP) and Mitsubishi-Fuso Truck & Bus Company announced their long-awaited integration plans. We have a deal.
• An agreement was signed in 2023, but Hino got in big trouble for falsifying testing data on gasoline engine emissions/efficiency. Hino took a hit in 2023, then 2025. Talks advanced. 
• The deal announced suggests Toyota has thrown itself and Hino minorities under the proverbial Fuso bus. It’s VERY odd. But… it deserves a look because 2026 will see a re-IPO.

• Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.  
• There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK). 
• The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.

• In this insight, we discuss the emergence of the North Korea reconciliation related stocks that are starting to outperform. We have seen this playbook before.
• With the new President Lee Jae-Myung, there is likely to be an outperformance of some of these stocks once again.
• Among the 6 stocks listed above, we believe Hyundai Elevator is one of best stocks to capitalize on the increased reconciliation with North Korea.

• Brookfield Asset Management Lt (BAM US) aims to raise around US$278m via selling 23.3% of Dalrymple Bay Infrastructure L (DBI AU).
• The shares have performed well over the last year or so, with the company having delivered consistent DPU growth.
• In this note we talk about the deal dynamics and run the deal through our ECM framework.

• Oswal Pumps (1019841D IN) is looking to raise about US$162m in its upcoming India IPO. The deal has been downsized from an earlier size of around US$250m.
• 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 in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

• GiG Works reported a recurring loss due to decreased revenue and JPY115mn crypto asset valuation losses, despite higher net income from share sales gains.
• The On-demand Economy business saw a decline in revenue and profit, while the Sharing Economy business experienced growth in both.
• The FY10/25 forecast anticipates revenue growth in System Solutions and Sharing Economy, with a dividend of JPY2 per share.

• Voyager Technologies priced 12.3mm shares (upsized from 11.0mm) at $31.00 ($2 Above the Range) and opened at $69.75 for a gain of 125.0% at first trade.
• The offering finished north of 20-times oversubscribed (on the new size) with the top 10 accounts taking 60% of the deal and the top 20 getting 80% of the transaction.
• The volume of VOYG was nearly 2x the float making this stock one that could potentially find buyers in days to come.

• Bharat Coking Coal Limited (BCCL) (7535956Z IN) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are IDBI, ICICI.
• BCCL is a subsidiary of Coal India Limited engaged primarily in the mining of coking coal. It produces various grades of coking coal, non-coking coal, and washed coal.
• According to the CRISIL Report, BCCL was the largest producer of coking coal in India in FY25, contributing 58.50% to the country’s total domestic coking coal production.

• Strong fundamentals priced in: Sinfonia’s sharp share price rally reflects robust FY3/25 results, but modest FY3/26 guidance limits near-term upside potential.
• Conservative outlook despite tailwinds: Management’s cautious projections for semiconductor and defense segments appear understated given ongoing structural growth in both industries.
• Valuation fair at current levels: Updated DCF suggests shares are reasonably valued; premium to peers justified by dual exposure to secular growth in aerospace and semiconductors.

• TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering, architectural construction, and real estate.
• As an equity-method affiliate of JR East, which holds a 19.6% stake, the Company secures stable, long-term orders for key projects such as the improvement work of major stations and the new Haneda Airport access line.
• Railroad construction accounts for approximately 40% of consolidated net sales. 

• CXW had liquidity of about $331m at 1Q25-end & plans to fund the $67.0m purchase using cash on hand and its revolving credit facility.
• Farmville is expected to produce annual incremental revenue of about $40.0m for CXW & we have revised our model.
• We believe the transaction also underscores CXW’s strong relationship with ICE, its largest government partner, and need for capacity.

• The company is calling for an extraordinary shareholders meeting to be held on June 27 to approve the delisting of GMXT’s shares in the Mexican Stock Exchange (BMV) and the RNV (Registro Nacional de Valores).
• No further details were provided and we are expecting to have more information after the shareholders meeting in order to have a sense of a potential delisting offering.
• Our current rating on GMXT is Market Perform with a 12M PT of P$36.0 / share.

• Voyager Technologies priced 12.3mm shares (upsized from 11.0mm) at $31.00 ($2 Above the Range) and opened at $69.75 for a gain of 125.0% at first trade.
• The offering finished north of 20-times oversubscribed (on the new size) with the top 10 accounts taking 60% of the deal and the top 20 getting 80% of the transaction.
• The volume of VOYG was nearly 2x the float making this stock one that could potentially find buyers in days to come.

• Bharat Coking Coal Limited (BCCL) (7535956Z IN) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are IDBI, ICICI.
• BCCL is a subsidiary of Coal India Limited engaged primarily in the mining of coking coal. It produces various grades of coking coal, non-coking coal, and washed coal.
• According to the CRISIL Report, BCCL was the largest producer of coking coal in India in FY25, contributing 58.50% to the country’s total domestic coking coal production.

• Strong fundamentals priced in: Sinfonia’s sharp share price rally reflects robust FY3/25 results, but modest FY3/26 guidance limits near-term upside potential.
• Conservative outlook despite tailwinds: Management’s cautious projections for semiconductor and defense segments appear understated given ongoing structural growth in both industries.
• Valuation fair at current levels: Updated DCF suggests shares are reasonably valued; premium to peers justified by dual exposure to secular growth in aerospace and semiconductors.

• TEKKEN CORPORATION (hereafter, “the Company”) is a construction firm centered on railroad construction, with operations spanning civil engineering, architectural construction, and real estate.
• As an equity-method affiliate of JR East, which holds a 19.6% stake, the Company secures stable, long-term orders for key projects such as the improvement work of major stations and the new Haneda Airport access line.
• Railroad construction accounts for approximately 40% of consolidated net sales. 

• CXW had liquidity of about $331m at 1Q25-end & plans to fund the $67.0m purchase using cash on hand and its revolving credit facility.
• Farmville is expected to produce annual incremental revenue of about $40.0m for CXW & we have revised our model.
• We believe the transaction also underscores CXW’s strong relationship with ICE, its largest government partner, and need for capacity.

• The company is calling for an extraordinary shareholders meeting to be held on June 27 to approve the delisting of GMXT’s shares in the Mexican Stock Exchange (BMV) and the RNV (Registro Nacional de Valores).
• No further details were provided and we are expecting to have more information after the shareholders meeting in order to have a sense of a potential delisting offering.
• Our current rating on GMXT is Market Perform with a 12M PT of P$36.0 / share.

• In early February, articles suggesting the PE owner of TRYT (9164 JP) wanted to cash out. Performance post-IPO had been bad. Catching up to the IPO price would be tough.
• But a second round of bidding came about, so the stock went limit up. Then it settled in the ¥480 range for three weeks. Then started to climb. 
• Now the company and its PE firm owner have announced a sale to a new PE Firm at ¥880/share. This is below IPO Price but it will get done.

• The Hanwha Group has received approval from the US’ CFIUS to acquire up to a 100% stake in Aussie-based shipbuilding and defense firm Austal Ltd (ASB AU).
• Hanwha currently holds 9.9% and a further 9.9% via a cash settled total return swap. Apparently Hanwha had initially filed with CFIUS to approve a 19.9% stake acquisition.
• Hanwha has also applied to FIRB to lift its position to 19.9%.  It’s unlikely the local regulator would block Hanwha subsequent to CFIUS’ nod. Note: Austal “disputes” CFIUS’ approval.

• Virgin Australia Holdings (VGN AU) is looking to raise A$685m in a secondary offering, valuing the company at A$2.27bn. The stock is expected to start trading on 24 June.
• Bain Capital and management are escrowed on their shares till early 2026. There is no escrow for Qatar Airways, but they have indicated that their shareholding is strategic.
• Virgin Australia Holdings (VGN AU) could be added to the S&P/ASX 300 Index in September and there could be global index inclusions in November and December.

• TRYT (9164 JP) has recommended a tender offer from Carlyle Group / (CG US) at JPY880, a 34.6% premium to last close and a 135.3% premium to the undisturbed price.
• Despite 26.7% below the IPO price, the offer is attractive compared to peer multiples and is above the mid-point of the IFA DCF valuation range.
• The chance of a competing proposal is low, as Carlyle’s offer was the highest in the auction. EQT has provided an irrevocable (60.00% ownership ratio), which ensures a done deal.  

• In this insight, we discuss the preferred shares of five major holding companies and how the share price gap relative to their common counterparts could decrease. 
• There is a relatively easy way to improve shareholder value of these holding companies which is to cancel the entire preferred shares that trade at discount to their common counterparts.
• The common shares of these five companies have experienced an average share price appreciation of 33.2% YTD versus 28.7% appreciation for their preferred shares counterparts.

PORR Group is domiciled in Austria with a business focused on solid-margin, niche markets such as data centres, infrastructure and specialist applications. Geographically, it targets markets with strong contractor protections, reliable customers and local resources that enable it to complete projects on time and to the highest standards. Over the past 20 years, PORR has delivered a stable EBIT margin of 2.0–3.3% in all but four years and a top-line CAGR of 7.2%.

• In this edition: • Randstad Holding | CareerBuilder + Monster weighing sale of firm • PostNL | the fall of the Dutch coalition government as a potential trigger for D+3?
• • Dutch politics | VVD rules our new collaboration with Geert Wilders’ Freedom Party (PVV)

• High-Conviction setup: Advent’s £37.63/share proposal offers an 85% premium; Spectris’ board is supportive, PUSU deadline is July 7 under UK Takeover Code.
• Attractive arbitrage: current spread offers ~17.5% gross upside; limited antitrust concerns and supportive FX backdrop enhance deal certainty. Interloper risk is modest but non-zero.
• Valuation re-rating: offer implies 14.1x EV/NTM EBITDA vs. 10.1x peer median, justified by control premium, margin uplift potential, and depressed pre-deal valuation (~6.1x).

Chemring’s H125 results showcase solid momentum in a transformed defence landscape, with order intake surging 42% to £488m and the order book reaching a record £1.3bn. Revenue grew 5% y-o-y to £234.3m, while the underlying operating margin improved modestly to 11.6%. Order book strength provides 85% visibility for FY25 revenue. With EU defence spending set to rise by more than €100bn by 2027 and the UK targeting 2.5% of GDP, Chemring’s positioning in niche market areas including energetics and electronic warfare creates a potentially solid investment case for the multi-decade rearmament cycle.

• In early February, articles suggesting the PE owner of TRYT (9164 JP) wanted to cash out. Performance post-IPO had been bad. Catching up to the IPO price would be tough.
• But a second round of bidding came about, so the stock went limit up. Then it settled in the ¥480 range for three weeks. Then started to climb. 
• Now the company and its PE firm owner have announced a sale to a new PE Firm at ¥880/share. This is below IPO Price but it will get done.

• The Hanwha Group has received approval from the US’ CFIUS to acquire up to a 100% stake in Aussie-based shipbuilding and defense firm Austal Ltd (ASB AU).
• Hanwha currently holds 9.9% and a further 9.9% via a cash settled total return swap. Apparently Hanwha had initially filed with CFIUS to approve a 19.9% stake acquisition.
• Hanwha has also applied to FIRB to lift its position to 19.9%.  It’s unlikely the local regulator would block Hanwha subsequent to CFIUS’ nod. Note: Austal “disputes” CFIUS’ approval.

• Virgin Australia Holdings (VGN AU) is looking to raise A$685m in a secondary offering, valuing the company at A$2.27bn. The stock is expected to start trading on 24 June.
• Bain Capital and management are escrowed on their shares till early 2026. There is no escrow for Qatar Airways, but they have indicated that their shareholding is strategic.
• Virgin Australia Holdings (VGN AU) could be added to the S&P/ASX 300 Index in September and there could be global index inclusions in November and December.

• TRYT (9164 JP) has recommended a tender offer from Carlyle Group / (CG US) at JPY880, a 34.6% premium to last close and a 135.3% premium to the undisturbed price.
• Despite 26.7% below the IPO price, the offer is attractive compared to peer multiples and is above the mid-point of the IFA DCF valuation range.
• The chance of a competing proposal is low, as Carlyle’s offer was the highest in the auction. EQT has provided an irrevocable (60.00% ownership ratio), which ensures a done deal.  

• In this insight, we discuss the preferred shares of five major holding companies and how the share price gap relative to their common counterparts could decrease. 
• There is a relatively easy way to improve shareholder value of these holding companies which is to cancel the entire preferred shares that trade at discount to their common counterparts.
• The common shares of these five companies have experienced an average share price appreciation of 33.2% YTD versus 28.7% appreciation for their preferred shares counterparts.

PORR Group is domiciled in Austria with a business focused on solid-margin, niche markets such as data centres, infrastructure and specialist applications. Geographically, it targets markets with strong contractor protections, reliable customers and local resources that enable it to complete projects on time and to the highest standards. Over the past 20 years, PORR has delivered a stable EBIT margin of 2.0–3.3% in all but four years and a top-line CAGR of 7.2%.

• In this edition: • Randstad Holding | CareerBuilder + Monster weighing sale of firm • PostNL | the fall of the Dutch coalition government as a potential trigger for D+3?
• • Dutch politics | VVD rules our new collaboration with Geert Wilders’ Freedom Party (PVV)

• High-Conviction setup: Advent’s £37.63/share proposal offers an 85% premium; Spectris’ board is supportive, PUSU deadline is July 7 under UK Takeover Code.
• Attractive arbitrage: current spread offers ~17.5% gross upside; limited antitrust concerns and supportive FX backdrop enhance deal certainty. Interloper risk is modest but non-zero.
• Valuation re-rating: offer implies 14.1x EV/NTM EBITDA vs. 10.1x peer median, justified by control premium, margin uplift potential, and depressed pre-deal valuation (~6.1x).

Chemring’s H125 results showcase solid momentum in a transformed defence landscape, with order intake surging 42% to £488m and the order book reaching a record £1.3bn. Revenue grew 5% y-o-y to £234.3m, while the underlying operating margin improved modestly to 11.6%. Order book strength provides 85% visibility for FY25 revenue. With EU defence spending set to rise by more than €100bn by 2027 and the UK targeting 2.5% of GDP, Chemring’s positioning in niche market areas including energetics and electronic warfare creates a potentially solid investment case for the multi-decade rearmament cycle.