Industrials

• AH spreads are slightly narrower, but performance is concentrated in fewer names and broad spread volatility is up. BYD (1211 HK) AH is negative now, maybe on HSTECH inclusion expectations.
• I didn’t expect much out of Geneva last weekend. I was wrong in that there was a big announcement, but maybe not wrong because content was pretty slim.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

• Belrise Industries, founded by the Badve family, is a leading auto component maker launching its Rs2,150 crore IPO from May 21–23, 2025, at a price band of Rs85–90.
• It supplies key chassis and metal parts to top OEMs like Bajaj Auto, Hero MotoCorp, and HMSI, playing a critical role across ICE and EV platforms.
• While most proceeds are earmarked for debt repayment, high working capital needs suggest leverage could rebuild as the business scales.

• Technopro Holdings (6028 JP)  shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.
• Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target. 
• The precedent is Bain’s privatisation of Outsourcing Inc (2427 JP) at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple. 

• Technopro Holdings (6028 JP)  shares were up 20.7% on Friday based on a Mergermarket report that is conducting a privatisation auction with bids due in six weeks.
• Technopro responded that it has been continuously exploring various strategic alternatives, including privatisation, to enhance shareholder value. TechnoPro has the characteristics to make a good privatisation target. 
• The precedent is Bain’s privatisation of Outsourcing Inc (2427 JP) at a forward EV/EBITDA multiple of 13.5x. A similar multiple implies a JPY4,400 offer. TechnoPro can justify a higher multiple. 

• Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
• Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
• The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.

• On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
• The purpose of this EB issue is to repay the amount of EB issued two years ago. 
• The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.

• New Horizon Aircraft is a Canada-based aviation company specializing in the development of hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft
• HOVR’s flagship aircraft, the Cavorite X7 is likely to be commercially available in the next 24 to 36 months. HOVR has already completed the development of a 50%-scale prototype.
• The timeline looks achievable, and the Company has already committed to supplying five Cavorite X7 to Air Chile Ltd by the end of 2028.

• Revenue reached JPY100.0bn (+3.1% YoY) with operating profit at JPY2.3bn (+47.8% YoY) and net income JPY3.3bn (+121.4% YoY).
• Information-related segment saw increased revenue from transportation tickets, IC cards, and digital transformation services, despite promotional material order declines.
• Living and Industrial Materials segment focused on packaging solutions, addressing raw material costs, and expanding high-value-added product offerings.

• FY03/25 revenue was JPY67.4bn (-7.3% YoY), with operating profit at JPY3.7bn (-41.8% YoY) and net income JPY1.8bn (-59.7% YoY).
• FY03/26 forecast: Revenue JPY68.7bn (+2.0% YoY), operating profit JPY4.8bn (+30.1% YoY), net income JPY3.5bn (+94.0% YoY).
• Medium-term plan targets FY03/28 revenue over JPY77.0bn, OPM of at least 13%, and ROIC of 7%+.

• In this edition: • IMCD | acquires TECOM Ingredients in Spain

• FY03/25 revenue reached JPY115.6bn, a 6.8% YoY increase, with Automotive Parts segment revenue growing 9.0% YoY.
• Operating profit declined 55.2% YoY to JPY3.5bn due to JPY5.9bn impairment losses, affecting bottom-line profit.
• FY03/26 forecast: revenue JPY115.0bn, core operating profit JPY8.2bn, operating profit JPY9.5bn, profit attributable JPY6.7bn.

• Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
• The company trades below its peers and we expect stock price appreciation now that the company has returned to growth.
• New management has implemented a new focus on AI and hopes to profit by aiding clients in its implementation.

• Nomura Micro Science reported FY03/25 orders of JPY94.5bn, revenue of JPY96.4bn, and net income of JPY10.2bn.
• Revenue from water treatment systems increased 36.7% YoY, while maintenance and consumables rose 19.9% YoY.
• FY03/26 projections include a 24.0% YoY order increase, but a 37.7% YoY revenue decline due to project completions.

• IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period, with the decline primarily due to (1) a cautious consumer demand environment,
• (2) market uncertainty leading to slower order flow from retail partners such as Amazon, and
• (3) elevated purchasing volumes from IPW’s largest channel partner, Amazon, in the year-ago period, which presented a tough comp.

• Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
• Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
• The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.

• On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
• The purpose of this EB issue is to repay the amount of EB issued two years ago. 
• The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.

• New Horizon Aircraft is a Canada-based aviation company specializing in the development of hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft
• HOVR’s flagship aircraft, the Cavorite X7 is likely to be commercially available in the next 24 to 36 months. HOVR has already completed the development of a 50%-scale prototype.
• The timeline looks achievable, and the Company has already committed to supplying five Cavorite X7 to Air Chile Ltd by the end of 2028.

• Revenue reached JPY100.0bn (+3.1% YoY) with operating profit at JPY2.3bn (+47.8% YoY) and net income JPY3.3bn (+121.4% YoY).
• Information-related segment saw increased revenue from transportation tickets, IC cards, and digital transformation services, despite promotional material order declines.
• Living and Industrial Materials segment focused on packaging solutions, addressing raw material costs, and expanding high-value-added product offerings.

• FY03/25 revenue was JPY67.4bn (-7.3% YoY), with operating profit at JPY3.7bn (-41.8% YoY) and net income JPY1.8bn (-59.7% YoY).
• FY03/26 forecast: Revenue JPY68.7bn (+2.0% YoY), operating profit JPY4.8bn (+30.1% YoY), net income JPY3.5bn (+94.0% YoY).
• Medium-term plan targets FY03/28 revenue over JPY77.0bn, OPM of at least 13%, and ROIC of 7%+.

• In this edition: • IMCD | acquires TECOM Ingredients in Spain

• FY03/25 revenue reached JPY115.6bn, a 6.8% YoY increase, with Automotive Parts segment revenue growing 9.0% YoY.
• Operating profit declined 55.2% YoY to JPY3.5bn due to JPY5.9bn impairment losses, affecting bottom-line profit.
• FY03/26 forecast: revenue JPY115.0bn, core operating profit JPY8.2bn, operating profit JPY9.5bn, profit attributable JPY6.7bn.

• Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
• The company trades below its peers and we expect stock price appreciation now that the company has returned to growth.
• New management has implemented a new focus on AI and hopes to profit by aiding clients in its implementation.

• Nomura Micro Science reported FY03/25 orders of JPY94.5bn, revenue of JPY96.4bn, and net income of JPY10.2bn.
• Revenue from water treatment systems increased 36.7% YoY, while maintenance and consumables rose 19.9% YoY.
• FY03/26 projections include a 24.0% YoY order increase, but a 37.7% YoY revenue decline due to project completions.

• IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period, with the decline primarily due to (1) a cautious consumer demand environment,
• (2) market uncertainty leading to slower order flow from retail partners such as Amazon, and
• (3) elevated purchasing volumes from IPW’s largest channel partner, Amazon, in the year-ago period, which presented a tough comp.

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.

• In February 2022, Shimizu Corp (1803 JP) bought an additional 25% to get to 50.1% of Nippon Road (1884 JP). It wasn’t a great price.
• It was, however, a good trade to buy the dip after, as recommended. I expected Shimizu to come back in one to three years. It took three. 
• Like last time, the price is light. The multiple is low. There are no synergies in the price analysis, in specific violation of the METI Fair M&A/CorpTakeover Guidelines.  Bah humbug.

• Noted activist Yoshiaki MURAKAMI and associates owned ~12.5% in March 2024, perhaps a tad more. Now they own ~29%. 
• Integrated Construction Co INFRONEER Holdings (5076 JP) – congenitally allergic to paying full price for acquisitions – is buying Sumitomo Mitsui Construction (1821 JP) well below FAs’ DCF range midpoints.
• But MURAKAMI-san has tossed his cards in, agreeing to tender. This looks like it gets done, but there are interesting angles.

• Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
• The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
• The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. 

• SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
• SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
• In this note, we look at the company’s past performance.

• In Q1 FY12/25, revenue increased by 10.3% YoY to JPY1.5bn, while operating profit declined by 19.8%.
• Renewable Energy Service business revenue rose 54.3% YoY, with recurring profit returning to the black from a prior loss.
• Design Service business revenue increased 0.5% YoY, with a 4.3% rise in recurring profit due to efficiency improvements.

• CIMC Enric Holdings (3899 HK)‘s YTD decline in share price provides an opportunity to pick up this name, which sees a solid sequential earnings improvement this year. 
• 1Q25 revenue growth accelerated to 24.4%, from 2.9% in 2H25. While 1Q25 new orders have dropped, there is a sharp rebound in Apr, with a more positive 2H25 outlook.
• At 9.3x FY25 PER after going ex-dividend (27 May), it is cheap relative to 14.7% 3-year EPS CAGR. The stock is also trading at the low-bound of the 3-year range.  

• Ravi Infrabuild Projects Ltd (1607447D IN)  (RIPL) is looking to raise about US$178m in its upcoming India IPO. The bookrunners for the deal are Axis, Motilal.
• RIPL is one of the leading infrastructure construction firms in India, experienced in executing structural projects such as flyovers, bridges, railways, highways, and expressways.
• RIPL had grown 16.6x in terms of its average order size, reaching INR2,577m (as on Dec 2024), as per the company.

• Revenue increased to JPY63.5bn (+15.8% YoY), with operating profit at JPY2.5bn (+292.9% YoY) and recurring profit at JPY2.4bn (+298.0% YoY).
• Products HR business revenue was JPY28.1bn (+9.7% YoY), with segment profit at JPY750mn (+202.4% YoY).
• Real Estate business revenue was JPY12.5bn (+61.2% YoY), with segment profit at JPY1.5bn (+206.9% YoY).

• Consolidated sales for FY03/25 declined 0.3% YoY to JPY55.6bn, with operating profit down 94.4% YoY.
• Q4 parent orders increased 22.9% YoY to JPY8.0bn, driven by industrial robots and semiconductor equipment orders.
• HDSI forecasts 1H FY03/26 sales at JPY27.0bn, with operating profit of JPY300mn, recovering from previous losses.

• Kulr Technology (NASDAQ: KULR) makes technology to manage heat levels in batteries.
• We believe KULR has failed at building a product relevant to a large market.
• Now, with less than $11 mln in annual revenue after 12 years of trying, KULR appears to have built a cottage industry in promoting its own stock.

• In February 2022, Shimizu Corp (1803 JP) bought an additional 25% to get to 50.1% of Nippon Road (1884 JP). It wasn’t a great price.
• It was, however, a good trade to buy the dip after, as recommended. I expected Shimizu to come back in one to three years. It took three. 
• Like last time, the price is light. The multiple is low. There are no synergies in the price analysis, in specific violation of the METI Fair M&A/CorpTakeover Guidelines.  Bah humbug.

• Noted activist Yoshiaki MURAKAMI and associates owned ~12.5% in March 2024, perhaps a tad more. Now they own ~29%. 
• Integrated Construction Co INFRONEER Holdings (5076 JP) – congenitally allergic to paying full price for acquisitions – is buying Sumitomo Mitsui Construction (1821 JP) well below FAs’ DCF range midpoints.
• But MURAKAMI-san has tossed his cards in, agreeing to tender. This looks like it gets done, but there are interesting angles.

• Nippon Road (1884 JP) has recommended a tender offer from Shimizu Corp (1803 JP) at JPY2,520, a 16.2% premium to the undisturbed price.
• The offer represents an all-time high and is 26.0% higher than the 2022 partial tender offer price. However, it is light compared to peer multiples.
• The offer is below the midpoint of the target IFA DCF valuation range. However, the required minority acceptance rate is not onerous, and this is a done deal. 

• SMPP Ltd is planning to raise about US$476m through its upcoming IPO in India.
• SMPP Ltd. designs and manufactures defence equipment, specialising in ammunition components and personal protection products for the Indian armed forces, police, and security agencies.
• In this note, we look at the company’s past performance.

• In Q1 FY12/25, revenue increased by 10.3% YoY to JPY1.5bn, while operating profit declined by 19.8%.
• Renewable Energy Service business revenue rose 54.3% YoY, with recurring profit returning to the black from a prior loss.
• Design Service business revenue increased 0.5% YoY, with a 4.3% rise in recurring profit due to efficiency improvements.

• CIMC Enric Holdings (3899 HK)‘s YTD decline in share price provides an opportunity to pick up this name, which sees a solid sequential earnings improvement this year. 
• 1Q25 revenue growth accelerated to 24.4%, from 2.9% in 2H25. While 1Q25 new orders have dropped, there is a sharp rebound in Apr, with a more positive 2H25 outlook.
• At 9.3x FY25 PER after going ex-dividend (27 May), it is cheap relative to 14.7% 3-year EPS CAGR. The stock is also trading at the low-bound of the 3-year range.  

• Ravi Infrabuild Projects Ltd (1607447D IN)  (RIPL) is looking to raise about US$178m in its upcoming India IPO. The bookrunners for the deal are Axis, Motilal.
• RIPL is one of the leading infrastructure construction firms in India, experienced in executing structural projects such as flyovers, bridges, railways, highways, and expressways.
• RIPL had grown 16.6x in terms of its average order size, reaching INR2,577m (as on Dec 2024), as per the company.

• Revenue increased to JPY63.5bn (+15.8% YoY), with operating profit at JPY2.5bn (+292.9% YoY) and recurring profit at JPY2.4bn (+298.0% YoY).
• Products HR business revenue was JPY28.1bn (+9.7% YoY), with segment profit at JPY750mn (+202.4% YoY).
• Real Estate business revenue was JPY12.5bn (+61.2% YoY), with segment profit at JPY1.5bn (+206.9% YoY).

• Consolidated sales for FY03/25 declined 0.3% YoY to JPY55.6bn, with operating profit down 94.4% YoY.
• Q4 parent orders increased 22.9% YoY to JPY8.0bn, driven by industrial robots and semiconductor equipment orders.
• HDSI forecasts 1H FY03/26 sales at JPY27.0bn, with operating profit of JPY300mn, recovering from previous losses.

• Kulr Technology (NASDAQ: KULR) makes technology to manage heat levels in batteries.
• We believe KULR has failed at building a product relevant to a large market.
• Now, with less than $11 mln in annual revenue after 12 years of trying, KULR appears to have built a cottage industry in promoting its own stock.

• With earnings today (which beat guidance), Mitsui Matsushima (1518 JP) announced upbeat guidance for next year, a very large dividend hike from ¥130/share to ¥230/share, and a Very Large Buyback.
• The buyback is ¥20bn (vs ¥47bn market cap) or 3.5mm shares (31.3%). It starts 2 June. Astute Murakami trackers may recognise the potential pattern here.
• If the company buys back all 3.5mm shares at just below book, EPS of ¥756 = 12.9% ROE and PER of 7.8x. Even up 30% from here that isn’t super-rich.

• In this edition: • Ahold Delhaize | Delhaize aims for market leadership in online groceries in Belgium • ASM International | looking for bolt-on acquisitions • Heineken | row with Jumbo not only on price gap but also on lower discount • InPost | signs contract with ASOS for D+1 OOH delivery in the UK • TKH Group | slow start of the year as expected, reiterates FY25 guidance • Alfen | revises both FY25 revenue and adjusted EBITDA guidance downward • Kendrion | Mobility continues its strong growth, Industrial mixed performance

• Sai Gon Cargo Service (SCS VN)  reported a solid set of Q1 2025 numbers, with revenue up 25% YoY and profits up 15% YoY.
• Volumes were up 10% YoY, and the balance revenue growth was from recent tariff hikes.  
• The stock trades at 8.0/7.6x FY24/25e PE and a 10% dividend yield (22% of market cap in cash), as trade wars remain an overhang on it. 

• From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
• In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
• For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).

• The company reported FY03/25 revenue of JPY208.4bn (+4.9% YoY) and operating profit of JPY11.0bn (-20.8% YoY).
• The company forecasts FY03/26 revenue of JPY220.0bn (+5.6% YoY) and operating profit of JPY11.9bn (+8.5% YoY).
• The medium-term management plan targets FY03/28 revenue of JPY280.0bn (+34.4% vs. FY03/25) and operating profit of JPY20.0bn (+82.3%).

• Orders decreased by 3.6% YoY to JPY24.5bn, while revenue increased 11.7% YoY to JPY20.3bn, boosting operating profit by 51.5%.
• Orders grew 35.5% YoY to JPY8.5bn, with revenue up 16.3% YoY, and operating profit surged 146.1% YoY.
• Orders fell 30.2% YoY to JPY3.3bn, revenue decreased 12.0% YoY, resulting in an operating loss of JPY234mn.

• Sales decreased by 8.7% YoY to JPY11.5bn, with operating profit down 15.9% YoY to JPY2.1bn.
• Special graphite product sales fell 18.4% YoY, while SiC-coated graphite product sales increased YoY.
• Gross profit declined 6.5% YoY to JPY4.4bn, with SG&A expenses rising 4.7% YoY to JPY2.2bn.

• FY03/25 saw gross sales rise 41.4% YoY to JPY290.4bn, with revenue up 8.0% to JPY93.7bn.
• Energy business revenue increased 18.4% YoY to JPY35.2bn, while Industrial Machinery revenue declined 10.1% YoY to JPY24.8bn.
• The company anticipates an extraordinary gain of JPY1.3bn from selling cross-shareholdings in 1H FY03/26.

• Vestis Corporation recently reported its fiscal second-quarter results for 2025, highlighting several key trends and challenges.
• The company faced a revenue decline, reporting $665 million for the quarter, a 2.7% decrease from the previous quarter.
• This result fell short of the anticipated growth.

• Tokyu Construction’s FY03/25 revenue was JPY338.0bn (+15.3% YoY), with operating profit at JPY9.5bn (+7.5% YoY).
• The company increased its budget for human capital and DX investment to JPY61.0bn, targeting FY03/31 goals.
• Dividend policy remains based on DOE of 4.0% or more, with potential for flexible share buybacks.