Industrials

• Today, logistics company SENKO Group Holdings Co., Ltd. (9069 JP) announced a bid for logistics company Maruwn Corp (9067 JP) with help from 35% holder JX Advanced Metals (5016 JP). 
• The TOB only needs 11+% to get to 50.1%. There are three holders who Senko clearly regard as not necessarily agreeable to the deal. They hold 28.0% between them. 
• If someone wanted to thwart this deal, there are a number of ways to do it. This could get interesting. 

• Maruwn Corp (9067 JP) has recommended a preconditional tender offer from SENKO Group Holdings Co., Ltd. (9069 JP) at JPY949, a 34.6% premium to the last close price.
• The offer is attractive as it is above the midpoint of the IFA DCF valuation range, represents an all-time high and implies a P/B of 1.08x.
• The key pushback is that Senko has not set the lower limit to achieve two-thirds voting rights. However, tendering by the second-largest shareholder will meet the lower limit. 

• 12mos ago the FT had an article suggesting PE might launch a bid foe Fujitec Co Ltd (6406 JP). 9mos later, EQT did at the same price as 9mos earlier. 
• There were some suggestions the deal would see an overbid. That was quashed early. It never traded through terms early on.
• This looks like a done deal to me. I think this sails through by year-end.

• This report examines the strength and tenacity of the Lib Work growth business model, and widespread adoption of technology to execute its business strategies.
• The nationwide single family (detached) housing market, the sum of custom-built and pre-built for sale homes, has contracted by CAGR of -1.9% over the last ten years.
• Chikara Seguchi, the CEO of Lib Work (51), has every expectation that this declining trend will continue for the foreseeable future. 

• Consolidated sales for 1H FY03/26 increased 4.8% YoY to JPY27.8bn, with improved profitability and operating profit.
• Orders for industrial robots grew 11.1% YoY to JPY6.8bn, while automotive application sales declined 6.5% YoY.
• Sales rose 27.1% YoY in Japan, declined 24.2% YoY in China, 5.0% in North America, and 4.3% in Europe.

• Ichiken’s 1H FY03/26 consolidated revenue reached JPY54.6bn, with operating profit at JPY3.7bn, exceeding initial forecasts.
• The Construction business, accounting for 99.8% of revenue, saw orders rise 4.9% YoY to JPY54.6bn.
• FY03/26 forecast revised upwards: revenue JPY101.0bn, operating profit JPY6.7bn, reflecting cost pass-throughs and project profitability.

• Ingersoll Rand’s third-quarter 2025 financial results present a mixed landscape influenced by varied market dynamics and strategic corporate actions.
• As the company navigates the complexities of a fluctuating macroeconomic environment, several critical aspects mark its performance and strategic outlook.
• Ingersoll Rand reported organic order growth of 2% year-to-date, with a book-to-bill ratio of 1.04x, indicating a modest yet steady increase in demand.

• 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 when the company returns to growth later this year.
• New management has implemented a new focus on AI and hopes to profit by aiding clients in its implementation.

• MasTec, Inc. delivered a robust financial performance in the third quarter of 2025, with substantial year-over-year revenue growth across several segments.
• Total revenue was slightly under $4 billion, marking a 22% increase compared to the prior year, while adjusted EBITDA improved by 20% to reach $374 million.
• This strong financial execution exceeded analyst expectations and was supported by a balance of scale and diversification across the company’s service offerings.

• Parker-Hannifin Corporation is making headlines again with its latest strategic maneuver—entering into a definitive agreement to acquire Filtration Group Corporation from Madison Industries for $9.25 billion in cash.
• The announcement, made public during its Veterans Day earnings call, marks a pivotal step in Parker’s ongoing transformation into a higher-margin, more resilient industrial powerhouse.
• Filtration Group, known for its presence in life sciences, HVAC, and industrial filtration, is expected to contribute $2 billion in annual sales at a 23.5% adjusted EBITDA margin.

• Today, logistics company SENKO Group Holdings Co., Ltd. (9069 JP) announced a bid for logistics company Maruwn Corp (9067 JP) with help from 35% holder JX Advanced Metals (5016 JP). 
• The TOB only needs 11+% to get to 50.1%. There are three holders who Senko clearly regard as not necessarily agreeable to the deal. They hold 28.0% between them. 
• If someone wanted to thwart this deal, there are a number of ways to do it. This could get interesting. 

• Maruwn Corp (9067 JP) has recommended a preconditional tender offer from SENKO Group Holdings Co., Ltd. (9069 JP) at JPY949, a 34.6% premium to the last close price.
• The offer is attractive as it is above the midpoint of the IFA DCF valuation range, represents an all-time high and implies a P/B of 1.08x.
• The key pushback is that Senko has not set the lower limit to achieve two-thirds voting rights. However, tendering by the second-largest shareholder will meet the lower limit. 

• 12mos ago the FT had an article suggesting PE might launch a bid foe Fujitec Co Ltd (6406 JP). 9mos later, EQT did at the same price as 9mos earlier. 
• There were some suggestions the deal would see an overbid. That was quashed early. It never traded through terms early on.
• This looks like a done deal to me. I think this sails through by year-end.

• This report examines the strength and tenacity of the Lib Work growth business model, and widespread adoption of technology to execute its business strategies.
• The nationwide single family (detached) housing market, the sum of custom-built and pre-built for sale homes, has contracted by CAGR of -1.9% over the last ten years.
• Chikara Seguchi, the CEO of Lib Work (51), has every expectation that this declining trend will continue for the foreseeable future. 

• Consolidated sales for 1H FY03/26 increased 4.8% YoY to JPY27.8bn, with improved profitability and operating profit.
• Orders for industrial robots grew 11.1% YoY to JPY6.8bn, while automotive application sales declined 6.5% YoY.
• Sales rose 27.1% YoY in Japan, declined 24.2% YoY in China, 5.0% in North America, and 4.3% in Europe.

• Ichiken’s 1H FY03/26 consolidated revenue reached JPY54.6bn, with operating profit at JPY3.7bn, exceeding initial forecasts.
• The Construction business, accounting for 99.8% of revenue, saw orders rise 4.9% YoY to JPY54.6bn.
• FY03/26 forecast revised upwards: revenue JPY101.0bn, operating profit JPY6.7bn, reflecting cost pass-throughs and project profitability.

• Ingersoll Rand’s third-quarter 2025 financial results present a mixed landscape influenced by varied market dynamics and strategic corporate actions.
• As the company navigates the complexities of a fluctuating macroeconomic environment, several critical aspects mark its performance and strategic outlook.
• Ingersoll Rand reported organic order growth of 2% year-to-date, with a book-to-bill ratio of 1.04x, indicating a modest yet steady increase in demand.

• 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 when the company returns to growth later this year.
• New management has implemented a new focus on AI and hopes to profit by aiding clients in its implementation.

• MasTec, Inc. delivered a robust financial performance in the third quarter of 2025, with substantial year-over-year revenue growth across several segments.
• Total revenue was slightly under $4 billion, marking a 22% increase compared to the prior year, while adjusted EBITDA improved by 20% to reach $374 million.
• This strong financial execution exceeded analyst expectations and was supported by a balance of scale and diversification across the company’s service offerings.

• Parker-Hannifin Corporation is making headlines again with its latest strategic maneuver—entering into a definitive agreement to acquire Filtration Group Corporation from Madison Industries for $9.25 billion in cash.
• The announcement, made public during its Veterans Day earnings call, marks a pivotal step in Parker’s ongoing transformation into a higher-margin, more resilient industrial powerhouse.
• Filtration Group, known for its presence in life sciences, HVAC, and industrial filtration, is expected to contribute $2 billion in annual sales at a 23.5% adjusted EBITDA margin.

• Star Micronics (7718 JP) has recommended a tender offer from Taiyo Pacific Partners at JPY2,210, a 29.1% premium to the last close price.
• The offer is arguably light as it is marginally above book value (P/B of 1.09x) and 16% below the midpoint of the target IFA DCF valuation range. 
• However, the offer is attractive as it represents an all-time high and is 42.4% above Taiyo’s placement price in May 2025. Unless an activist emerges, this is likely done.  

• Today after the close, well-known Japan engagement fund Taiyo Pacific Partners announced a deal to buy Star Micronics (7718 JP) for ¥2,210/share. They’ve been involved small-big-small for 20yrs.
• The company launched a new capital plan and MTMP in February. Cash-rich, it needed no money to grow aggressively. So TPP proposed buying a third of the company. Board agreed.
• Despite ActionsToImplementManagementConsciousOfSharePriceAndCostOfCapital announced February, in April-November the Board decided to sell the entire company to TPP at <1x book. This is borderline outrageous. It deserves notice and complaint.

• Nearing the end of the review period for the December rebalance, there could be three changes for the iShares A50 China (2823 HK) / CSOP China A50 (HKD) (2822 HK). 
• Sungrow Power Supply, CMOC Group and China CSSC Holdings could replace S.F. Holding, China Everbright Bank and Bank of Jiangsu in the ETF at the close on 19 December.
• The forecast adds have outperformed the forecast deletes over the last 3 months and it is not even close as the gap has kept getting wider

• BSE SENSEX represents the 30 largest stocks listed in the Bombay Stock Exchange (BSE) of India.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• The official index changes could be announced publicly in the next few days.

• Quanta Services has released their third quarter 2025 results reporting impressive figures with record growth in several financial metrics, including double-digit increases in revenue, adjusted EBITDA, and adjusted EPS compared to the previous year.
• The company’s backlog reached a record $39.2 billion, indicating robust demand and a strong position going into 2026.
• This growth can be attributed to heightened activity in their Electric segment and the broader infrastructural needs driven by the transformation within the energy sector.

• Revenue increased by 15.9% YoY to JPY74.2bn, with all segments showing revenue growth and operating profit up 35.1% YoY.
• Extraordinary loss of JPY5.9bn related to the Antimonopoly Act led to a net loss of JPY1.5bn.
• Domestic demand remained firm, with revenue and profit rising YoY due to product price revisions and improved productivity.

• In 1H FY03/26, Toa reported a 7.3% YoY decrease in orders, but revenue increased by 10.0% YoY.
• The company revised its FY03/26 forecast, raising orders to JPY265.0bn and revenue to JPY342.0bn.
• Toa expects a 73.2% YoY decrease in overseas orders for FY03/26, with revenue increasing 21.7% YoY.

• Revenue reached JPY20.6bn (+2.9% YoY), with significant growth in China and declines in Japan due to restructuring.
• Operating profit rose 42.9% YoY to JPY989mn, driven by strong performance in China despite high costs in Japan.
• Full-year forecasts revised upward: revenue JPY41.7bn, operating profit JPY1.6bn, net income JPY570mn, dividend per share JPY9.41.

• Republic Services, Inc. reported its third-quarter 2025 financial results, showcasing both strengths and challenges within its business operations.
• The company registered a revenue increase of 3.3% and an adjusted EBITDA growth of 6.1%, which also involved an 80-basis point expansion in adjusted EBITDA margin.
• This indicates the company’s ability to capitalize on pricing strategies even in an environment of volatile economic cycles, specifically in the construction and manufacturing sectors where headwinds are prevalent.

• Sales increased to JPY364.4bn (+10.3% YoY), with significant growth in Logistics and Property Management segments.
• Operating profit rose to JPY17.3bn (+31.1% YoY), driven by higher profits in Logistics and Property Management.
• Q3 sales and profit growth were influenced by new customer acquisition and a newly consolidated subsidiary.

• Star Micronics (7718 JP) has recommended a tender offer from Taiyo Pacific Partners at JPY2,210, a 29.1% premium to the last close price.
• The offer is arguably light as it is marginally above book value (P/B of 1.09x) and 16% below the midpoint of the target IFA DCF valuation range. 
• However, the offer is attractive as it represents an all-time high and is 42.4% above Taiyo’s placement price in May 2025. Unless an activist emerges, this is likely done.  

• Today after the close, well-known Japan engagement fund Taiyo Pacific Partners announced a deal to buy Star Micronics (7718 JP) for ¥2,210/share. They’ve been involved small-big-small for 20yrs.
• The company launched a new capital plan and MTMP in February. Cash-rich, it needed no money to grow aggressively. So TPP proposed buying a third of the company. Board agreed.
• Despite ActionsToImplementManagementConsciousOfSharePriceAndCostOfCapital announced February, in April-November the Board decided to sell the entire company to TPP at <1x book. This is borderline outrageous. It deserves notice and complaint.

• Nearing the end of the review period for the December rebalance, there could be three changes for the iShares A50 China (2823 HK) / CSOP China A50 (HKD) (2822 HK). 
• Sungrow Power Supply, CMOC Group and China CSSC Holdings could replace S.F. Holding, China Everbright Bank and Bank of Jiangsu in the ETF at the close on 19 December.
• The forecast adds have outperformed the forecast deletes over the last 3 months and it is not even close as the gap has kept getting wider

• BSE SENSEX represents the 30 largest stocks listed in the Bombay Stock Exchange (BSE) of India.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• The official index changes could be announced publicly in the next few days.

• Quanta Services has released their third quarter 2025 results reporting impressive figures with record growth in several financial metrics, including double-digit increases in revenue, adjusted EBITDA, and adjusted EPS compared to the previous year.
• The company’s backlog reached a record $39.2 billion, indicating robust demand and a strong position going into 2026.
• This growth can be attributed to heightened activity in their Electric segment and the broader infrastructural needs driven by the transformation within the energy sector.

• Revenue increased by 15.9% YoY to JPY74.2bn, with all segments showing revenue growth and operating profit up 35.1% YoY.
• Extraordinary loss of JPY5.9bn related to the Antimonopoly Act led to a net loss of JPY1.5bn.
• Domestic demand remained firm, with revenue and profit rising YoY due to product price revisions and improved productivity.

• In 1H FY03/26, Toa reported a 7.3% YoY decrease in orders, but revenue increased by 10.0% YoY.
• The company revised its FY03/26 forecast, raising orders to JPY265.0bn and revenue to JPY342.0bn.
• Toa expects a 73.2% YoY decrease in overseas orders for FY03/26, with revenue increasing 21.7% YoY.

• Revenue reached JPY20.6bn (+2.9% YoY), with significant growth in China and declines in Japan due to restructuring.
• Operating profit rose 42.9% YoY to JPY989mn, driven by strong performance in China despite high costs in Japan.
• Full-year forecasts revised upward: revenue JPY41.7bn, operating profit JPY1.6bn, net income JPY570mn, dividend per share JPY9.41.

• Republic Services, Inc. reported its third-quarter 2025 financial results, showcasing both strengths and challenges within its business operations.
• The company registered a revenue increase of 3.3% and an adjusted EBITDA growth of 6.1%, which also involved an 80-basis point expansion in adjusted EBITDA margin.
• This indicates the company’s ability to capitalize on pricing strategies even in an environment of volatile economic cycles, specifically in the construction and manufacturing sectors where headwinds are prevalent.

• Sales increased to JPY364.4bn (+10.3% YoY), with significant growth in Logistics and Property Management segments.
• Operating profit rose to JPY17.3bn (+31.1% YoY), driven by higher profits in Logistics and Property Management.
• Q3 sales and profit growth were influenced by new customer acquisition and a newly consolidated subsidiary.

• We present five reasons why there is no adrenaline rush for Tenneco Clean Air India Ltd (1880671D IN) ‘s IPO
• IPO is a complete offer for sale of USD 406 million. There is no fresh issue of equity.
• At 24x P/E on Q1FY26 annualized earnings, the IPO valuation appears fair.

• Tenneco Clean Air India Ltd (1880671D IN)  is now looking to raise up to US$406m in its upcoming India IPO.
• TCAIL designs and manufactures clean air, powertrain, and suspension solutions for Indian OEMs, export markets, and the aftermarket, serving PVs, CVs, OHs, and industrial applications.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the RHP updates and valuations.

• World Bank debarred TARIL from participating in its funded projects following old Nigerian contract issues; the company contests it.
• The incident has raised governance questions and led to an exaggerated stock sell-off, despite immaterial financial exposure and reaffirmed guidance. 
• Debarment is isolated and non-material. Execution delays are transitory. Strong order book, backward integration, and FY26 guidance make TARIL attractive on dips.

• Takamiya (hereafter, the Company) is a leading manufacturer of temporary equipment used at construction sites, with its business centered on the next-generation scaffolding system Iq System, launched in 2014.
• Its vision is to become the industry’s first scaffolding platform company, shifting from a flow-based to a stock-based business centered on the Takamiya Platform, with the aim of establishing a new profit structure and strengthening the balance sheet.
• Construction investment continues to trend upward, and construction volume among the Company’s customers remains resilient.

• Tenneco Clean Air India Ltd. is a leading Tier-I automotive component supplier in India with strong market positions in clean air and advanced ride technologies, poised to benefit from stricter emission norms and premiumization trends.
• The company has demonstrated robust profitability improvement through effective cost management, despite a recent decline in topline revenue, particularly in its clean air segment.
• The upcoming IPO is a 100% Offer for Sale by the promoter, which will not infuse capital into the company but aims to enhance visibility and provide a public market for its shares.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Sanyo Trading’s FY09/25 sales rose 2.7% YoY to JPY132.7bn, driven by strong Sustainability segment sales.
• Operating profit fell 9.1% YoY to JPY6.4bn due to higher SG&A expenses and investment valuation losses.
• FY09/26 forecasts project a 2.0% YoY sales decline to JPY130.0bn, with profit decreases at all levels.

• Leonardo DRS, in its third quarter fiscal year 2025 performance, displayed resilience and robust growth trends that highlight both the opportunities and challenges faced by the company.
• The company reported strong bookings and backlog figures, aligning closely with evolving customer priorities, particularly in areas such as counter unmanned aerial systems (UAS), advanced infrared sensing, naval network computing, and electric power and propulsion technologies.
• Bookings for the quarter reached $1.3 billion, contributing to a book-to-bill ratio of 1.4x, with the total backlog elevating to $8.9 billion, an 8% year-over-year increase.

• Revenue for cumulative Q3 FY12/25 declined YoY, with Machinery & Tools and Construction Machinery segments showing decreased revenue and profit.
• Domestic machinery sector revenue fell 9.7% YoY, while overseas revenue increased 2.1% YoY, with mixed regional performance.
• Steel construction materials sector revenue decreased 5.8% YoY, while housing equipment sector revenue grew 9.7% YoY.

• Regal Rexnord’s third quarter performance for 2025 was marked by some notable achievements and challenges.
• The company reported a 2% increase in sales and a 10% rise in orders, signaling a positive momentum in their operations.
• However, their adjusted gross margin decreased by 80 basis points due to unfavorable product mix and pressures from increased tariffs and rare earth magnet supply constraints.

• AMETEK, Inc. demonstrated robust performance during the third quarter of 2025, marked by noteworthy achievements across various financial metrics.
• The company announced double-digit growth in key areas such as sales, orders, operating profit, and diluted earnings per share.
• The quarter recorded a historical sales figure of $1.89 billion, reflecting an 11% increase compared to the same period in 2024.

• We present five reasons why there is no adrenaline rush for Tenneco Clean Air India Ltd (1880671D IN) ‘s IPO
• IPO is a complete offer for sale of USD 406 million. There is no fresh issue of equity.
• At 24x P/E on Q1FY26 annualized earnings, the IPO valuation appears fair.

• Tenneco Clean Air India Ltd (1880671D IN)  is now looking to raise up to US$406m in its upcoming India IPO.
• TCAIL designs and manufactures clean air, powertrain, and suspension solutions for Indian OEMs, export markets, and the aftermarket, serving PVs, CVs, OHs, and industrial applications.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the RHP updates and valuations.

• World Bank debarred TARIL from participating in its funded projects following old Nigerian contract issues; the company contests it.
• The incident has raised governance questions and led to an exaggerated stock sell-off, despite immaterial financial exposure and reaffirmed guidance. 
• Debarment is isolated and non-material. Execution delays are transitory. Strong order book, backward integration, and FY26 guidance make TARIL attractive on dips.

• Takamiya (hereafter, the Company) is a leading manufacturer of temporary equipment used at construction sites, with its business centered on the next-generation scaffolding system Iq System, launched in 2014.
• Its vision is to become the industry’s first scaffolding platform company, shifting from a flow-based to a stock-based business centered on the Takamiya Platform, with the aim of establishing a new profit structure and strengthening the balance sheet.
• Construction investment continues to trend upward, and construction volume among the Company’s customers remains resilient.

• Tenneco Clean Air India Ltd. is a leading Tier-I automotive component supplier in India with strong market positions in clean air and advanced ride technologies, poised to benefit from stricter emission norms and premiumization trends.
• The company has demonstrated robust profitability improvement through effective cost management, despite a recent decline in topline revenue, particularly in its clean air segment.
• The upcoming IPO is a 100% Offer for Sale by the promoter, which will not infuse capital into the company but aims to enhance visibility and provide a public market for its shares.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Sanyo Trading’s FY09/25 sales rose 2.7% YoY to JPY132.7bn, driven by strong Sustainability segment sales.
• Operating profit fell 9.1% YoY to JPY6.4bn due to higher SG&A expenses and investment valuation losses.
• FY09/26 forecasts project a 2.0% YoY sales decline to JPY130.0bn, with profit decreases at all levels.

• Leonardo DRS, in its third quarter fiscal year 2025 performance, displayed resilience and robust growth trends that highlight both the opportunities and challenges faced by the company.
• The company reported strong bookings and backlog figures, aligning closely with evolving customer priorities, particularly in areas such as counter unmanned aerial systems (UAS), advanced infrared sensing, naval network computing, and electric power and propulsion technologies.
• Bookings for the quarter reached $1.3 billion, contributing to a book-to-bill ratio of 1.4x, with the total backlog elevating to $8.9 billion, an 8% year-over-year increase.

• Revenue for cumulative Q3 FY12/25 declined YoY, with Machinery & Tools and Construction Machinery segments showing decreased revenue and profit.
• Domestic machinery sector revenue fell 9.7% YoY, while overseas revenue increased 2.1% YoY, with mixed regional performance.
• Steel construction materials sector revenue decreased 5.8% YoY, while housing equipment sector revenue grew 9.7% YoY.

• Regal Rexnord’s third quarter performance for 2025 was marked by some notable achievements and challenges.
• The company reported a 2% increase in sales and a 10% rise in orders, signaling a positive momentum in their operations.
• However, their adjusted gross margin decreased by 80 basis points due to unfavorable product mix and pressures from increased tariffs and rare earth magnet supply constraints.

• AMETEK, Inc. demonstrated robust performance during the third quarter of 2025, marked by noteworthy achievements across various financial metrics.
• The company announced double-digit growth in key areas such as sales, orders, operating profit, and diluted earnings per share.
• The quarter recorded a historical sales figure of $1.89 billion, reflecting an 11% increase compared to the same period in 2024.

• On the 27th October, Jardine Matheson Holdings (JM SP) announced an Offer for 88.04%-held Mandarin Oriental International (MAND SP), after MAND concurrently announced the partial sale of OCB to Alibaba.  
• MAND will pocket US$925mn from the sale. The privatisation will set Matheson back ~US$500mn. Alibaba is ostensibly funding MAND’s privatisation. And then some.  
• Last week Matheson announced it will undertake a US$250mn buyback, which is expected to  complete in 2026.

• Square closed ₩290,000, missing all criteria; Level 2 removal effectively confirmed, with KRX disclosure expected ~8 p.m. Seoul, effective from tomorrow’s open.
• Square vs Hynix hinges on retail chase structurally, but near‑term Square’s underperformance worsened by asymmetric leverage shackles.
• Square’s Level 2 setup ends tomorrow; flows normalize, likely giving Square more juice vs Hynix. Key spot to watch from tomorrow’s open.

• Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.
• LG Corp’s investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp’s entire market cap.
• Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.

• Announced last Friday, FY Sep-25 sales and net profit were in line with guidance, but operating profit fell short. On Monday, the shares dropped 4.5%, wiping out a month’s gains.
• Looking ahead, management expects three years of sales and profit growth as capex declines, depreciation and R&D level off, and the NKT Photonics acquisition approaches breakeven.
• In this scenario, semiconductor, bio-medical, defense and quantum computing applications should drive 3-year sales growth of 24% and a 71% increase in net profit, bringing the P/E down to 20X.

International Airlines Group’s (IAG’s) Q325 results show the company is executing effectively its strategy of delivering peer-leading profitability through a focus on customer experience and operational transformation, while returning substantial capital to shareholders. With a favourable demand outlook, likely lower cost pressures and a strong balance sheet, management intends to announce further returns with the publication of FY25 results in February 2026, and has optionality to undertake M&A.

• Electric aircraft company BETA Technologies (BETA US) went public on 4 November 2025 on NYSE and has a current market cap of over $7.5bn.
• Inclusion in US indices is expected in December 2025 and March 2026, as the security meets US eligibility criteria before the lock-up expiry.
• Earliest inclusion in Global indices is expected in February and June 2026, with potential delay due to free float and float cap constraints during the lock-up period.

• Mitsuboshi’s revenue rose 0.9% YoY, with Belts segments offsetting lower Building & Construction Materials revenue.
• The company plans to pay an annual dividend of JPY186 per share in FY03/26, unchanged from FY03/25.
• Mitsuboshi announced a resolution to repurchase 350,000 shares, valued at JPY1.0bn, via market purchases on the Tokyo Stock Exchange.

• RR Kabel delivered a strong Q2FY26 with 19.5% YoY revenue growth and EBITDA doubling, driven by robust volume expansion in its high-margin Cables & Wires segment.
• Solid core performance, backed by aggressive capex and margin expansion targets, positions RR Kabel as a key beneficiary of India’s accelerating infrastructure and industrial growth cycle.
• RR Kabel remains structurally well-placed for growth, though long-term margin gains depend on timely capex execution and a successful turnaround of its FMEG business.

• FY03/26 sales were JPY114.5bn (+3.0% YoY), operating profit JPY6.2bn (+34.1% YoY), net income JPY3.6bn (+51.1% YoY).
• Information and Communications sales to corporate clients rose 12.0% YoY, driven by carrier and cloud services growth.
• Aqua services customer count increased by 16,000, surpassing 200,000, with sales JPY5.3bn (+9.9% YoY), operating profit JPY244mn (+82.9% YoY).

• 1H FY03/26 results showed a decline in sales, operating profit, recurring profit, and net income YoY.
• The company maintained its full-year earnings forecast, expecting higher costs and excluding foreign exchange gains/losses.
• Capital expenditures planned at JPY3.5bn, with significant spending on digital upgrades and new prototype building.

• On the 27th October, Jardine Matheson Holdings (JM SP) announced an Offer for 88.04%-held Mandarin Oriental International (MAND SP), after MAND concurrently announced the partial sale of OCB to Alibaba.  
• MAND will pocket US$925mn from the sale. The privatisation will set Matheson back ~US$500mn. Alibaba is ostensibly funding MAND’s privatisation. And then some.  
• Last week Matheson announced it will undertake a US$250mn buyback, which is expected to  complete in 2026.

• Square closed ₩290,000, missing all criteria; Level 2 removal effectively confirmed, with KRX disclosure expected ~8 p.m. Seoul, effective from tomorrow’s open.
• Square vs Hynix hinges on retail chase structurally, but near‑term Square’s underperformance worsened by asymmetric leverage shackles.
• Square’s Level 2 setup ends tomorrow; flows normalize, likely giving Square more juice vs Hynix. Key spot to watch from tomorrow’s open.

• Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.
• LG Corp’s investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp’s entire market cap.
• Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.

• Announced last Friday, FY Sep-25 sales and net profit were in line with guidance, but operating profit fell short. On Monday, the shares dropped 4.5%, wiping out a month’s gains.
• Looking ahead, management expects three years of sales and profit growth as capex declines, depreciation and R&D level off, and the NKT Photonics acquisition approaches breakeven.
• In this scenario, semiconductor, bio-medical, defense and quantum computing applications should drive 3-year sales growth of 24% and a 71% increase in net profit, bringing the P/E down to 20X.

International Airlines Group’s (IAG’s) Q325 results show the company is executing effectively its strategy of delivering peer-leading profitability through a focus on customer experience and operational transformation, while returning substantial capital to shareholders. With a favourable demand outlook, likely lower cost pressures and a strong balance sheet, management intends to announce further returns with the publication of FY25 results in February 2026, and has optionality to undertake M&A.

• Electric aircraft company BETA Technologies (BETA US) went public on 4 November 2025 on NYSE and has a current market cap of over $7.5bn.
• Inclusion in US indices is expected in December 2025 and March 2026, as the security meets US eligibility criteria before the lock-up expiry.
• Earliest inclusion in Global indices is expected in February and June 2026, with potential delay due to free float and float cap constraints during the lock-up period.

• Mitsuboshi’s revenue rose 0.9% YoY, with Belts segments offsetting lower Building & Construction Materials revenue.
• The company plans to pay an annual dividend of JPY186 per share in FY03/26, unchanged from FY03/25.
• Mitsuboshi announced a resolution to repurchase 350,000 shares, valued at JPY1.0bn, via market purchases on the Tokyo Stock Exchange.

• RR Kabel delivered a strong Q2FY26 with 19.5% YoY revenue growth and EBITDA doubling, driven by robust volume expansion in its high-margin Cables & Wires segment.
• Solid core performance, backed by aggressive capex and margin expansion targets, positions RR Kabel as a key beneficiary of India’s accelerating infrastructure and industrial growth cycle.
• RR Kabel remains structurally well-placed for growth, though long-term margin gains depend on timely capex execution and a successful turnaround of its FMEG business.

• FY03/26 sales were JPY114.5bn (+3.0% YoY), operating profit JPY6.2bn (+34.1% YoY), net income JPY3.6bn (+51.1% YoY).
• Information and Communications sales to corporate clients rose 12.0% YoY, driven by carrier and cloud services growth.
• Aqua services customer count increased by 16,000, surpassing 200,000, with sales JPY5.3bn (+9.9% YoY), operating profit JPY244mn (+82.9% YoY).

• 1H FY03/26 results showed a decline in sales, operating profit, recurring profit, and net income YoY.
• The company maintained its full-year earnings forecast, expecting higher costs and excluding foreign exchange gains/losses.
• Capital expenditures planned at JPY3.5bn, with significant spending on digital upgrades and new prototype building.

• Mitsubishi Electric is successfully executing a multi-year pivot toward becoming a high-margin digital solutions provider, anchored by its DX strategy and acquisition of OT security leader Nozomi Networks.
• H1 FY26 financial results confirm clear operating strength, showing a strong 60% year-over-year surge in net profit and strong revenue growth, especially within the Infrastructure and Life segments.
• Management’s shift to higher-margin software and services, along with disciplined capital management, is materializing value and helps justify a positive long-term view.

• Allison Transmission’s third quarter 2025 earnings call sheds light on the various dynamics influencing its performance, revealing both opportunities and challenges facing the company.
• The primary challenges are rooted in the North American On-Highway market, a segment that has witnessed significant demand reductions due to uncertain macroeconomic conditions.
• This decline is attributed to factors such as tariffs, evolving trade policies, and upcoming emissions regulations, leading to decreased purchasing activities among end users.

• Clean Harbors reported its third-quarter 2025 results, which showcased a mixture of strengths and challenges, leaving investors with a nuanced investment thesis.
• The company’s performance was marked by a year-over-year growth in revenue and adjusted EBITDA, driven primarily by increased waste volumes and pricing gains across the network, although macroeconomic factors presented headwinds.
• Positively, Clean Harbors achieved a consolidated adjusted EBITDA margin improvement of 100 basis points, reaching 20.7%, a sign of effective pricing and cost-saving strategies.

• IDEX Corporation’s third quarter 2025 results and strategic direction reveal both opportunities and challenges.
• The company’s performance exceeded expectations, marked by organic order growth of 7% and sales growth of 5%, particularly driven by its Health & Science Technologies (HST) segment.
• Key drivers of HST’s momentum include growth in markets such as pharmaceutical, data centers, semiconductor consumables, and space and defense.

• ITT Inc.’s third-quarter results for 2025 reflect a complex landscape of both opportunities and challenges as the company continues its trajectory towards its 2030 targets.
• For the quarter ending September 27, 2025, ITT reported robust financials, with several notable positives and some areas that warrant close monitoring.
• On the positive side, ITT achieved nearly $1 billion in total orders for the third consecutive quarter, marking a 3% increase.

• Q2 revenue (INR 680 billion, +10% YoY) missed estimates on transient issues, but order inflows surged 45%, leading to a record INR 6.67 lakh crore (approx. US$80 billion) order book.
• L&T is successfully exiting its largest legacy drag (Hyderabad Metro) and capturing a dominant share of the Middle East hydrocarbon boom and the domestic private capex wave.
• The strategic pivot to new-age manufacturing and green energy, funded by a booming core, is building a more resilient, higher-growth L&T for the future.

• Masco Corporation’s third-quarter 2025 performance reflects a mixed landscape of challenges and opportunities.
• The company’s net sales experienced a 3% decrease in local currency (2% excluding the divestiture of Kichler), impacted by prevailing geopolitical and macroeconomic uncertainties.
• A 1% rise in plumbing sales in local currency illustrates some positive performance, notably from Delta Faucet’s strong showing in e-commerce and trade channels.

• The latest earnings call for Smurfit Westrock highlighted a blend of achievements and ongoing challenges for the company, which recently formed from the merger of Smurfit Kappa and Westrock.
• Key focal points include performance results, strategic adjustments, and regional performance insights.
• Positively, Smurfit Westrock reported an adjusted EBITDA margin of 16.3% and operating cash flow of $1.1 billion, demonstrating financial stability amidst a challenging macroeconomic environment.

• AerCap Holdings NV’s third quarter 2025 performance provides a comprehensive look at both the strengths and challenges facing the company, which remains a major player in the aircraft leasing industry.
• The company announced a GAAP net income of $1.2 billion, with a notable EPS of $6.98, driven largely by gains on aircraft sales and insurance recoveries from previous conflicts.
• The adjusted net income was reported at $865 million, resulting in a record adjusted EPS of $4.97.

• Watsco, Inc. reported its third-quarter financial results, demonstrating resilience despite a challenging market environment.
• The company navigated a year of transition due to regulatory changes impacting 55% of its products, which included introducing next-generation A2L refrigerants.
• This transition created volatility, yet Watsco managed to maintain its earnings substantially intact, showcasing its ability to adapt and perform under pressure.

• Mitsubishi Electric is successfully executing a multi-year pivot toward becoming a high-margin digital solutions provider, anchored by its DX strategy and acquisition of OT security leader Nozomi Networks.
• H1 FY26 financial results confirm clear operating strength, showing a strong 60% year-over-year surge in net profit and strong revenue growth, especially within the Infrastructure and Life segments.
• Management’s shift to higher-margin software and services, along with disciplined capital management, is materializing value and helps justify a positive long-term view.

• Allison Transmission’s third quarter 2025 earnings call sheds light on the various dynamics influencing its performance, revealing both opportunities and challenges facing the company.
• The primary challenges are rooted in the North American On-Highway market, a segment that has witnessed significant demand reductions due to uncertain macroeconomic conditions.
• This decline is attributed to factors such as tariffs, evolving trade policies, and upcoming emissions regulations, leading to decreased purchasing activities among end users.

• Clean Harbors reported its third-quarter 2025 results, which showcased a mixture of strengths and challenges, leaving investors with a nuanced investment thesis.
• The company’s performance was marked by a year-over-year growth in revenue and adjusted EBITDA, driven primarily by increased waste volumes and pricing gains across the network, although macroeconomic factors presented headwinds.
• Positively, Clean Harbors achieved a consolidated adjusted EBITDA margin improvement of 100 basis points, reaching 20.7%, a sign of effective pricing and cost-saving strategies.

• IDEX Corporation’s third quarter 2025 results and strategic direction reveal both opportunities and challenges.
• The company’s performance exceeded expectations, marked by organic order growth of 7% and sales growth of 5%, particularly driven by its Health & Science Technologies (HST) segment.
• Key drivers of HST’s momentum include growth in markets such as pharmaceutical, data centers, semiconductor consumables, and space and defense.

• ITT Inc.’s third-quarter results for 2025 reflect a complex landscape of both opportunities and challenges as the company continues its trajectory towards its 2030 targets.
• For the quarter ending September 27, 2025, ITT reported robust financials, with several notable positives and some areas that warrant close monitoring.
• On the positive side, ITT achieved nearly $1 billion in total orders for the third consecutive quarter, marking a 3% increase.

• Q2 revenue (INR 680 billion, +10% YoY) missed estimates on transient issues, but order inflows surged 45%, leading to a record INR 6.67 lakh crore (approx. US$80 billion) order book.
• L&T is successfully exiting its largest legacy drag (Hyderabad Metro) and capturing a dominant share of the Middle East hydrocarbon boom and the domestic private capex wave.
• The strategic pivot to new-age manufacturing and green energy, funded by a booming core, is building a more resilient, higher-growth L&T for the future.

• Masco Corporation’s third-quarter 2025 performance reflects a mixed landscape of challenges and opportunities.
• The company’s net sales experienced a 3% decrease in local currency (2% excluding the divestiture of Kichler), impacted by prevailing geopolitical and macroeconomic uncertainties.
• A 1% rise in plumbing sales in local currency illustrates some positive performance, notably from Delta Faucet’s strong showing in e-commerce and trade channels.

• The latest earnings call for Smurfit Westrock highlighted a blend of achievements and ongoing challenges for the company, which recently formed from the merger of Smurfit Kappa and Westrock.
• Key focal points include performance results, strategic adjustments, and regional performance insights.
• Positively, Smurfit Westrock reported an adjusted EBITDA margin of 16.3% and operating cash flow of $1.1 billion, demonstrating financial stability amidst a challenging macroeconomic environment.

• AerCap Holdings NV’s third quarter 2025 performance provides a comprehensive look at both the strengths and challenges facing the company, which remains a major player in the aircraft leasing industry.
• The company announced a GAAP net income of $1.2 billion, with a notable EPS of $6.98, driven largely by gains on aircraft sales and insurance recoveries from previous conflicts.
• The adjusted net income was reported at $865 million, resulting in a record adjusted EPS of $4.97.

• Watsco, Inc. reported its third-quarter financial results, demonstrating resilience despite a challenging market environment.
• The company navigated a year of transition due to regulatory changes impacting 55% of its products, which included introducing next-generation A2L refrigerants.
• This transition created volatility, yet Watsco managed to maintain its earnings substantially intact, showcasing its ability to adapt and perform under pressure.