Industrials

• 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.

• Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
• CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.

• Quick screen shows ₩1T+ names under 0.4x PBR — mostly retail, financials, and holdcos. Locals are keeping an eye on these with the election theme in play.
• This isn’t just hopeful chatter — both parties are seriously leaning into value-up policies. With dividend tax reform and solid sector catalysts, locals see real potential in the post-election trade.
• Long regional banks, hedge with KB and Shinhan. In retail, long domestic names, short China-dependent ones. For holdcos, long Hanwha and Doosan, short CJ and Kolon.

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

• The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough. 
• The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders. 
• For that, this deal is NOT a done deal. There may be games played on this deal. 

• Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close. 
• The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples. 
• While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out. 

• Strong Execution: 3-yr PAT CAGR of ~22% with ₹80,354 Cr order book offers 2–4 years of revenue visibility from high-margin defence programs.
• Growth Levers: Expanding in seekers, EW, AI, and smart infra; 5 new units and key contracts like Akash, LRSAM, and Shakti drive forward pipeline.
• Valuation Stretch: Trading at ~45x FY25E P/E vs 3-yr average of 32x; pricing reflects peak sentiment and leaves little room for error.

• Trades below Cash and liquidation value and has a profitable operating business
• Operations have been consistently profitable and free cash flow generating
• Industry is not growing but getting consolidated. Market is pricing in a business to become zero

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

• Recruit Holdings (6098 JP)  reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
• Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
• Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

• Contemporary Amperex Technology (CATL) (300750 CH) could raise up to US$5.1bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a huge allocation to cornerstone investors that is locked up for 6 months. That significantly reduces float and the probability of Fast Entry inclusion to global indexes.
• CATL (3750 HK) will be added to Southbound Stock Connect from the open of trading on 16 June following the end of the Price Stabilisation period.

• Quick screen shows ₩1T+ names under 0.4x PBR — mostly retail, financials, and holdcos. Locals are keeping an eye on these with the election theme in play.
• This isn’t just hopeful chatter — both parties are seriously leaning into value-up policies. With dividend tax reform and solid sector catalysts, locals see real potential in the post-election trade.
• Long regional banks, hedge with KB and Shinhan. In retail, long domestic names, short China-dependent ones. For holdcos, long Hanwha and Doosan, short CJ and Kolon.

• Contemporary Amperex Technology (CATL) (300750 CH) , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the IPO pricing.

• Contemporary Amperex Technology (CATL) (300750 CH) has launched its H Share listing at a maximum price of HK$263. Pricing will be on 19 May, and the listing on 20 May.
• I discussed the H Share listing in CATL H Share Listing: The Investment Case, CATL H Share Listing: AH Discount Views, CATL H Share Listing: PHIP Reinforces the Investment Case.
• Our valuation analysis suggests that the low AH discount can be justified. We would participate in the listing.

• The deal price is higher than the Bloomberg article insinuated. The closing date is earlier than the Bloomberg article suggested. But that doesn’t mean it’s enough. 
• The Large ToSTNeT-3 buyback last year changed the shareholder structure significantly, but many holders who sold are unknown. I would expect they were cross-holders. 
• For that, this deal is NOT a done deal. There may be games played on this deal. 

• Nissin Corp (9066 JP) has recommended a Bain-sponsored MBO tender offer of JPY8,100 per share, a 27.6% premium to the last close. 
• The offer is attractive compared to peer multiples and historical trading ranges. However, it is light compared to precedent transaction multiples. 
• While the offer represents an all-time high, it is below the midpoint of the target IFA DCF valuation range. A counterbid cannot be ruled out. 

• Strong Execution: 3-yr PAT CAGR of ~22% with ₹80,354 Cr order book offers 2–4 years of revenue visibility from high-margin defence programs.
• Growth Levers: Expanding in seekers, EW, AI, and smart infra; 5 new units and key contracts like Akash, LRSAM, and Shakti drive forward pipeline.
• Valuation Stretch: Trading at ~45x FY25E P/E vs 3-yr average of 32x; pricing reflects peak sentiment and leaves little room for error.

• Trades below Cash and liquidation value and has a profitable operating business
• Operations have been consistently profitable and free cash flow generating
• Industry is not growing but getting consolidated. Market is pricing in a business to become zero

• Contemporary Amperex Technology (CATL) (300750 CH)  , one of the world’s largest battery solutions providers, aims to raise around US$4bn in its H-share listing.
• CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
• In this note, we talk about the IPO pricing and how it compares to some of the past listings.

• Recruit Holdings (6098 JP)  reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
• Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
• Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

• Nissin Corp (9066 JP) shares were up 10.3% based on a Bloomberg report that it would be privatised through a Bain-sponsored MBO. 
• The deal is expected to exceed JPY100 billion. Assuming this refers to a market cap, the implied offer price is around JPY6,500 (21.5% premium to last close).
• While the rumoured offer represents an all-time high share price, it is light compared to precedent and peer multiples. A long-dated offer makes it susceptible to a counterbid. 

• Next day’s base price uses the 3:30pm close—NXT’s after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.
• NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.
• No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are set to launch H Share listings.
• Event-Driven developments: Imagica Robot Holdings (6879 JP), Mitsubishi Shokuhin (7451 JP), NTT Data Corp (9613 JP), Shibaura Electronics (6957 JP), Torii Pharmaceutical (4551 JP), ZEEKR (ZK US). 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are gearing up for an IPO launch soon.
• On the placements front, there were two primary placements in Hong Kong, along with a number of lockup expiries coming up.

• Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)‘s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix & increased competitive intensity.
• Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.
• Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.

• FY03/25 saw a 9.4% YoY sales increase, driven by a weaker yen and strong Japan and Southeast Asia performance.
• Operating profit rose 21.9% YoY due to higher sales and improved margins, while net income decreased slightly.
• FY03/26 forecasts sales growth but profit decline, with concerns over US tariffs, inflation, and geopolitical issues.

• FY03/25 results: Orders JPY206.3bn (+1.3% YoY), revenue JPY221.8bn (+18.1% YoY), operating profit JPY13.1bn (+44.1% YoY).
• FY03/26 forecast: Orders JPY230.0bn (+11.5% YoY), revenue JPY220.0bn (-0.8% YoY), operating profit JPY12.0bn (-8.4% YoY).
• DJK’s “V2030” strategy targets JPY18.0bn operating profit by FY03/31, with ROE of 10% or higher.

• Nissin Corp (9066 JP) shares were up 10.3% based on a Bloomberg report that it would be privatised through a Bain-sponsored MBO. 
• The deal is expected to exceed JPY100 billion. Assuming this refers to a market cap, the implied offer price is around JPY6,500 (21.5% premium to last close).
• While the rumoured offer represents an all-time high share price, it is light compared to precedent and peer multiples. A long-dated offer makes it susceptible to a counterbid. 

• Next day’s base price uses the 3:30pm close—NXT’s after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.
• NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.
• No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are set to launch H Share listings.
• Event-Driven developments: Imagica Robot Holdings (6879 JP), Mitsubishi Shokuhin (7451 JP), NTT Data Corp (9613 JP), Shibaura Electronics (6957 JP), Torii Pharmaceutical (4551 JP), ZEEKR (ZK US). 

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Medicine (600276 CH) are gearing up for an IPO launch soon.
• On the placements front, there were two primary placements in Hong Kong, along with a number of lockup expiries coming up.

• Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)‘s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix & increased competitive intensity.
• Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.
• Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.

• FY03/25 saw a 9.4% YoY sales increase, driven by a weaker yen and strong Japan and Southeast Asia performance.
• Operating profit rose 21.9% YoY due to higher sales and improved margins, while net income decreased slightly.
• FY03/26 forecasts sales growth but profit decline, with concerns over US tariffs, inflation, and geopolitical issues.

• FY03/25 results: Orders JPY206.3bn (+1.3% YoY), revenue JPY221.8bn (+18.1% YoY), operating profit JPY13.1bn (+44.1% YoY).
• FY03/26 forecast: Orders JPY230.0bn (+11.5% YoY), revenue JPY220.0bn (-0.8% YoY), operating profit JPY12.0bn (-8.4% YoY).
• DJK’s “V2030” strategy targets JPY18.0bn operating profit by FY03/31, with ROE of 10% or higher.

• AH spreads are basically flat on the shortened week. AH premia rose in Pharma and Tech, fell in Industrials, Finance, and Banks. 
• All eyes will be on what happens in Geneva. I personally don’t expect much. 
• 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.

• Last year, Nissin Corp (9066 JP) started race-walking the good governance walk. The day they released earnings they announced crossholding sales and an overnight 23.61% ToSTNeT-3 Buyback (executed successfully).
• They also expected 19% Net Income Growth (to go with accretion), and in November, nearly doubled their dividend on new payout policy (minimum 4% DOE). 
• Now, Bloomberg reports they are considering going private via a Bain MBO at ¥100bn+ (or a 30% premium). 

• PACCAR Inc.’s recent earnings for the first quarter of 2025 presented a nuanced view of the company’s financial performance and strategic positioning amid complex global economic conditions.
• The company reported revenues of $7.4 billion and an adjusted net income of $770 million, indicating solid financial health.
• PACCAR Parts achieved record quarterly revenues of $1.7 billion, with pretax income of $427 million, a testament to their successful expansion and market demand for their products.

• United Parcel Service, Inc. (UPS) reported its first-quarter 2025 financial results amidst a complex global trade landscape and strategic shifts in its business model.
• The company’s consolidated revenue for the quarter stood at $21.5 billion, a slight decrease of 0.7% from the previous year, aligning with its forecasts.
• Meanwhile, operating profit rose by 0.9% to $1.8 billion, reflected in an operating margin improvement to 8.2%.

• Woodward, Inc. delivered a promising performance in the second quarter of fiscal 2025, with net sales rising by 6% year-over-year and adjusted earnings per share increasing by 4%, reflecting steady growth despite challenges, notably from decreased volumes in China’s on-highway market.
• Excluding the China on-highway impacts, the company posted a 12% increase in revenue and a significant 22% rise in operating earnings, showcasing resilience and efficiency in a challenging global environment.
• 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.

• Honeywell International Inc. delivered a strong start to fiscal 2025, reporting first-quarter results that exceeded Wall Street expectations and raised guidance despite a complex macroeconomic backdrop.
• The company posted adjusted earnings per share of $2.51 on revenue of $9.8 billion, surpassing analyst estimates of $2.21 EPS on $9.6 billion in revenue.
• This performance also marked a year-over-year improvement from $2.25 EPS on $9.1 billion in sales.

• Xylem Inc. closed the first quarter of 2025 with a performance that surpassed expectations and reaffirmed their guidance for the year.
• The company reported a robust revenue increase across all segments, contributing to a 120 basis point rise in EBITDA margin and a double-digit growth in earnings per share (EPS), which hit $1.03, outpacing the guidance midpoint by $0.08.
• Maintaining a backlog of $5.1 billion, Xylem showcased resilience in demand with a book-to-bill ratio exceeding one, although orders slightly dipped due to challenging comparisons in key segments.

• NV5 Global, Inc.’s fiscal first quarter 2025 financial results highlight a mixture of strength and challenges.
• The company’s stated focus on providing non-discretionary services in essential sectors, such as infrastructure and utilities, serves as a hedge against economic volatility and supply chain issues.
• In this quarter, NV5 reported a 10% year-over-year increase in gross revenues, reaching $234 million, and a 10% increase in gross profit to $123.2 million.

• AH spreads are basically flat on the shortened week. AH premia rose in Pharma and Tech, fell in Industrials, Finance, and Banks. 
• All eyes will be on what happens in Geneva. I personally don’t expect much. 
• 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.

• Last year, Nissin Corp (9066 JP) started race-walking the good governance walk. The day they released earnings they announced crossholding sales and an overnight 23.61% ToSTNeT-3 Buyback (executed successfully).
• They also expected 19% Net Income Growth (to go with accretion), and in November, nearly doubled their dividend on new payout policy (minimum 4% DOE). 
• Now, Bloomberg reports they are considering going private via a Bain MBO at ¥100bn+ (or a 30% premium). 

• PACCAR Inc.’s recent earnings for the first quarter of 2025 presented a nuanced view of the company’s financial performance and strategic positioning amid complex global economic conditions.
• The company reported revenues of $7.4 billion and an adjusted net income of $770 million, indicating solid financial health.
• PACCAR Parts achieved record quarterly revenues of $1.7 billion, with pretax income of $427 million, a testament to their successful expansion and market demand for their products.

• United Parcel Service, Inc. (UPS) reported its first-quarter 2025 financial results amidst a complex global trade landscape and strategic shifts in its business model.
• The company’s consolidated revenue for the quarter stood at $21.5 billion, a slight decrease of 0.7% from the previous year, aligning with its forecasts.
• Meanwhile, operating profit rose by 0.9% to $1.8 billion, reflected in an operating margin improvement to 8.2%.

• Woodward, Inc. delivered a promising performance in the second quarter of fiscal 2025, with net sales rising by 6% year-over-year and adjusted earnings per share increasing by 4%, reflecting steady growth despite challenges, notably from decreased volumes in China’s on-highway market.
• Excluding the China on-highway impacts, the company posted a 12% increase in revenue and a significant 22% rise in operating earnings, showcasing resilience and efficiency in a challenging global environment.
• 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.

• Honeywell International Inc. delivered a strong start to fiscal 2025, reporting first-quarter results that exceeded Wall Street expectations and raised guidance despite a complex macroeconomic backdrop.
• The company posted adjusted earnings per share of $2.51 on revenue of $9.8 billion, surpassing analyst estimates of $2.21 EPS on $9.6 billion in revenue.
• This performance also marked a year-over-year improvement from $2.25 EPS on $9.1 billion in sales.

• Xylem Inc. closed the first quarter of 2025 with a performance that surpassed expectations and reaffirmed their guidance for the year.
• The company reported a robust revenue increase across all segments, contributing to a 120 basis point rise in EBITDA margin and a double-digit growth in earnings per share (EPS), which hit $1.03, outpacing the guidance midpoint by $0.08.
• Maintaining a backlog of $5.1 billion, Xylem showcased resilience in demand with a book-to-bill ratio exceeding one, although orders slightly dipped due to challenging comparisons in key segments.

• NV5 Global, Inc.’s fiscal first quarter 2025 financial results highlight a mixture of strength and challenges.
• The company’s stated focus on providing non-discretionary services in essential sectors, such as infrastructure and utilities, serves as a hedge against economic volatility and supply chain issues.
• In this quarter, NV5 reported a 10% year-over-year increase in gross revenues, reaching $234 million, and a 10% increase in gross profit to $123.2 million.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (9 to 23 May 2025).
• Our top 10 picks in the past two weeks were up on average 5.0% (from 25 April to 9 May), outperforming KOSPI which was up 1.2% in the same period.
• Our top 10 picks in this bi-weekly include HD Hyundai, Hyundai Elevator, KT Corp, Shinsegae, Coway, Hanwha Aerospace, F&F Co, SM Entertainment, and SK Inc. 

• Company revenue reached JPY1.1tn, a 6.6% YoY increase, achieving 95.5% of the full-year forecast.
• Operating profit decreased 4.1% YoY to JPY42.1bn, with SG&A expenses increasing 8.4% YoY to JPY115.1bn.
• Profit attributable to owners rose 18.3% YoY to JPY27.5bn, with ROE at 16.5% and ROIC at 7.6%.

• Revenue increased to JPY65.1bn (+1.6% YoY), with operating profit at JPY2.1bn (-4.7% YoY) and net income at JPY2.2bn (+18.6% YoY).
• FY03/26 forecast anticipates revenue of JPY70.5bn (+8.2% YoY) and operating profit of JPY2.3bn (+11.0% YoY).
• The company raised FY03/27 financial targets, projecting consolidated net income of JPY2.4bn or more, with ROE at 8%.

• In FY03/25, sales rose 5.0% YoY, with operating profit up 27.6% YoY, aided by yen depreciation.
• The company achieved 100.5% of sales target, 100.7% of gross profit target, and 107.1% of operating profit target.
• FY03/25 forecasts assume JPY143.0/USD, with operating profit expected to rise 1.1% YoY to JPY39.5bn.

• For FY03/25, the company reported revenue of JPY49.5bn (+5.5% YoY) and operating profit of JPY2.6bn (+24.7% YoY).
• Revenue growth was driven by the healthcare field, price revisions, and increased demand for CARELEAVES™ and ROIHI-TSUBOKO.
• The company forecasts FY03/26 revenue of JPY51.5bn (+4.1% YoY) and operating profit of JPY3.0bn (+16.0% YoY).

Carr’s Group is now a focused specialist agricultural group. The benefits of the reinvigorated management’s actions are being seen in the UK, providing confidence in the strategy as a specialist branded product animal supplements business. Challenges remain, such as softness in the drought-affected southern US market. With a strong balance sheet, a cash-generative business and growth opportunities in existing and new geographical markets, the group is successfully transitioning from the value realisation of the last few years to a new growth mandate.

• FY03/25 revenue was JPY22.8bn (+2.6% YoY); operating profit JPY4.1bn (+12.8% YoY); net income JPY2.9bn (+0.7% YoY).
• Consulting business FY03/25 revenue JPY20.4bn (+17.2% YoY); Investment business revenue JPY2.4bn (-50.0% YoY); gross profit JPY1.2bn (+33.6% YoY).
• FY03/26 forecast: revenue JPY26.0bn (+14.2% YoY); operating profit JPY3.8bn (-8.0% YoY); dividend JPY77.0 per share.

• Frontier Management (hereafter referred to as “the Company”) is a consulting firm that operates in the three pillars of management consulting, M&A advisory, and business revitalization services, as well as an investment business that began in 2022.
• Founded primarily by Mr. Shoichiro Onishi, a former employees of the Industrial Revitalization Corporation of Japan, the Company has expanded its operations through proactive hiring.
• It is characterized by its lineup of specialists with diverse backgrounds and is able to solve a wide variety of management issues as a one-stop shop.

• 1QFY25 Adj EPS of $0.44 beat our estimate of $0.35 on better-than-expected revenues in both segments and continued margin strength.
• HNI saw growth on the contract side of Workplace Furnishings, with revenue up 4% Y/Y, and in the renovation/retrofit side of Residential Building Products, with sales up 13% Y/Y.
• These gains offset relative weakness in the traditionally more volatile SMB component of Workplace Furnishings, down 5% Y/Y, and in the new construction component of Residential Building Products, which was only up 3% Y/Y. 

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (9 to 23 May 2025).
• Our top 10 picks in the past two weeks were up on average 5.0% (from 25 April to 9 May), outperforming KOSPI which was up 1.2% in the same period.
• Our top 10 picks in this bi-weekly include HD Hyundai, Hyundai Elevator, KT Corp, Shinsegae, Coway, Hanwha Aerospace, F&F Co, SM Entertainment, and SK Inc. 

• Company revenue reached JPY1.1tn, a 6.6% YoY increase, achieving 95.5% of the full-year forecast.
• Operating profit decreased 4.1% YoY to JPY42.1bn, with SG&A expenses increasing 8.4% YoY to JPY115.1bn.
• Profit attributable to owners rose 18.3% YoY to JPY27.5bn, with ROE at 16.5% and ROIC at 7.6%.

• Revenue increased to JPY65.1bn (+1.6% YoY), with operating profit at JPY2.1bn (-4.7% YoY) and net income at JPY2.2bn (+18.6% YoY).
• FY03/26 forecast anticipates revenue of JPY70.5bn (+8.2% YoY) and operating profit of JPY2.3bn (+11.0% YoY).
• The company raised FY03/27 financial targets, projecting consolidated net income of JPY2.4bn or more, with ROE at 8%.

• In FY03/25, sales rose 5.0% YoY, with operating profit up 27.6% YoY, aided by yen depreciation.
• The company achieved 100.5% of sales target, 100.7% of gross profit target, and 107.1% of operating profit target.
• FY03/25 forecasts assume JPY143.0/USD, with operating profit expected to rise 1.1% YoY to JPY39.5bn.

• For FY03/25, the company reported revenue of JPY49.5bn (+5.5% YoY) and operating profit of JPY2.6bn (+24.7% YoY).
• Revenue growth was driven by the healthcare field, price revisions, and increased demand for CARELEAVES™ and ROIHI-TSUBOKO.
• The company forecasts FY03/26 revenue of JPY51.5bn (+4.1% YoY) and operating profit of JPY3.0bn (+16.0% YoY).

Carr’s Group is now a focused specialist agricultural group. The benefits of the reinvigorated management’s actions are being seen in the UK, providing confidence in the strategy as a specialist branded product animal supplements business. Challenges remain, such as softness in the drought-affected southern US market. With a strong balance sheet, a cash-generative business and growth opportunities in existing and new geographical markets, the group is successfully transitioning from the value realisation of the last few years to a new growth mandate.

• FY03/25 revenue was JPY22.8bn (+2.6% YoY); operating profit JPY4.1bn (+12.8% YoY); net income JPY2.9bn (+0.7% YoY).
• Consulting business FY03/25 revenue JPY20.4bn (+17.2% YoY); Investment business revenue JPY2.4bn (-50.0% YoY); gross profit JPY1.2bn (+33.6% YoY).
• FY03/26 forecast: revenue JPY26.0bn (+14.2% YoY); operating profit JPY3.8bn (-8.0% YoY); dividend JPY77.0 per share.

• Frontier Management (hereafter referred to as “the Company”) is a consulting firm that operates in the three pillars of management consulting, M&A advisory, and business revitalization services, as well as an investment business that began in 2022.
• Founded primarily by Mr. Shoichiro Onishi, a former employees of the Industrial Revitalization Corporation of Japan, the Company has expanded its operations through proactive hiring.
• It is characterized by its lineup of specialists with diverse backgrounds and is able to solve a wide variety of management issues as a one-stop shop.

• 1QFY25 Adj EPS of $0.44 beat our estimate of $0.35 on better-than-expected revenues in both segments and continued margin strength.
• HNI saw growth on the contract side of Workplace Furnishings, with revenue up 4% Y/Y, and in the renovation/retrofit side of Residential Building Products, with sales up 13% Y/Y.
• These gains offset relative weakness in the traditionally more volatile SMB component of Workplace Furnishings, down 5% Y/Y, and in the new construction component of Residential Building Products, which was only up 3% Y/Y. 

• Post-Demerger, Siemens Ltd (SIEM IN) continues with Digital Industries, Smart Infrastructure, and Mobility, focusing on core segments like automation, electrification, and rail transport.
• The company is getting significant orders in each segment with strong tailwind across all segment.
• Siemens Limited’s remaining business is projected to grow at a 15% CAGR, supported by strong order backlogs and improved margins.

• Siemens is demerging its Energy business into SEIL, focusing on energy solutions and doubling transmission capacity with a INR 3.6 billion investment over 2–3 years.
• SEIL’s energy transition initiatives drive growth, with a 29.9% YoY increase in orders. Siemens Ltd.’s Digital Industries faced headwinds but remains optimistic about turnover.
• The demerger creates two independent growth engines, with Siemens Ltd. investing ₹4 billion in Smart Infrastructure, positioning both entities for strong future growth.

• Zacks Small-Cap Research Note for CoreCivic, Inc. (CXW)

• Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
• The company has released its quarterly 4C cash-flow statement and a Q1FY25 financial and operating update (December year-end).
• The Q1 result showed a continuation of momentum from Q4FY24 and sets the company up for the remainder of the year.

• Maersk’s Q125 results slightly beat expectations, but earnings momentum continues to wane
• Financial guidance for FY25 unchanged, but there are notable tweaks to key assumptions
• Q125 likely carriers’ best financial period of FY25 (by far), profits set to erode rest of year

• Revenue increased by 3.7% YoY to JPY243.4bn, with operating profit rising 25.8% YoY to JPY15.6bn.
• New housing complex market revenue grew 10.7% YoY, driven by urban demand and price hikes.
• Medium-term management plan targets remain unchanged, with a focus on achieving an 8% ROE by FY03/27.

• The company reported record-high sales of JPY243.5bn (+5.2% YoY) and operating profit of JPY16.8bn (+8.6% YoY).
• Segment sales and operating profits increased YoY, with notable growth in LP gas, construction, and Aqua services.
• The company forecasts FY03/26 sales of JPY253.0bn (+3.9% YoY) and net income of JPY10.0bn (+8.5% YoY).