Industrials

• Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 11,500 won and 13,500 won.
• At the high end of the IPO price range, the expected public offering amount is 202 billion won.
• According to the bankers’ valuation, the expected market cap after the IPO is 479 billion won to 562 billion won. 

• Investors should keep a close eye on Adani’s execution timeline, the impact on valuations in the sector, and the fundamentals of existing players in the C&W industry. 
• While Adani’s entry may bring some disruption, the sector’s strong growth prospects and the resilience of leading players suggest that there is still value to be found. 
• In the end, long-term success in this industry will depend on a combination of strategic vision, operational excellence, and the ability to adapt to changing market dynamics.

• DN Solutions (298440 KS), the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.
• In DN Solutions IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on tepid growth due to volume declines, early indications of margin pressure, rising cash conversion cycle, and mid-tier FCF margin.

• DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
• DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
• We have looked at its past performance in our earlier notes. In this note, we will undertake a peer comparison.

• Teledyne Technologies Incorporated presented a mixed financial performance in their fourth quarter of 2024 earnings call.
• The company reported record revenues, with a 5.4% increase in sales compared to the prior year.
• This growth was further highlighted by record achievements in full-year non-GAAP earnings per share and operating margins.

Despite a challenging trading environment in H225, which has prompted a modest adjustment to forecasts, Braemar’s trading outlook for FY26 is promising. The underlying activities continue to expand and diversify, and the company remains well positioned to leverage its strong balance sheet to drive its growth strategy in a fragmented market. Although we have adjusted forecasts modestly, we have maintained our 535p valuation as this is driven by our dividend discount model, which remains unchanged. Furthermore, it is worth highlighting the substantial valuation differential between Braemar and its only quoted peer, Clarkson.

• Q3 2025/3 Earnings Result Summary: Nitto Kogyo Corporation (hereafter, the Company) announced net sales of JPY 133,354 mn (+14.1% YoY), operating profit of JPY 9,298 mn (+3.3% YoY), ordinary profit of JPY 9,503 mn (-0.0% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 9,014 mn (+36.3% YoY).
• The double-digit increase in net profit was attributed to the recording of extraordinary gains on the acquisition of shares in a subsidiary.
• FY2025/3 Earnings Forecast: The forecast calls for net sales of JPY178,000 mn (+10.8% YoY), operating profit of JPY12,000 mn (+0.3% YoY), ordinary profit of JPY12,000 mn (-4.5% YoY), and net profit of JPY10,000 mn (+14.7% YoY).

• By some measures, combined Jan-Feb volume growth slowed vs recent trend growth rates
• Volume leader ZTO rejoining volume share game in FY25, -ive implications for pricing?
• With concerns about mainstream price growing, we continue to favor only SF Holding

• Sono Group is a pioneering German solar technology company dedicated to revolutionizing the transportation industry. 
• Sono’s focus is on developing and commercializing innovative solar integration technologies for a wide range of vehicles, including solar kits for trucks, semi-truck trailers, vans, RVs, and buses.
• The products are designed to reduce fuel consumption and CO2 emissions, offering cost savings and environmental benefits to commercial fleet operators.

• Jiangsu Zenergy Battery Technologies (JSZENERGY CH) is looking to raise up to US$300m in its upcoming HK IPO.
• Zenergy is an EV and energy storage system battery manufacturer providing integrated battery solutions, encompassing battery cells, modules, packs and battery management systems dedicated to large-scale applications of electrochemical products.
• In this note, we talk about the not-so-positive aspects of the deal.

• 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: DN Solutions (298440 KS) seeks to raise US$1.1 billion in a KRX IPO.
• Event-Driven developments: CK Hutchison Holdings (1 HK), Canvest Environmental Protection Group (1381 HK), ENN Energy (2688 HK), HKBN Ltd (1310 HK), Shandong Fengxiang (9977 HK), Spartan Resources (SPR AU). 

• China Merchants Port (144 HK) may potentially play a role in CK Hutchison Holdings (1 HK)‘s port portfolio disposal should the mainland government want to step in. 
• While CMPH’s size is small relative to the port portfolio, its parent China Merchants Group and sister China Merchants Bank H (3968 HK) can easily facilitate such a transaction.
• Having the portfolio in the hands of mainland company is desirable to the Chinese government. Even if CMPH has no role, its 7.6x PER and 6% yield are attractive.

• Jiangsu Zenergy Battery Technologies (JSZENERGY CH) (Zenergy) is looking to raise up to US$300m in its upcoming HK IPO.
• Zenergy is an EV and energy storage system battery manufacturer providing integrated battery solutions, encompassing battery cells, modules, packs and battery management systems dedicated to large-scale applications of electrochemical products.
• In this note, we talk about the positive aspects of the deal.

• Hesai Group, a global leader in LiDAR solutions in the ADAS and robotics markets, forecasted hyper-growth and GAAP profitability for the full year of 2025.
• The stock has bottomed in the low $4s (~0.3x 2025E EV/Revs) in 2024 and gained about 350%. Hesai Group currently trades at ~4x EV/2025E revenues, ~32% discount relative to RoboSense.
• I believe that the market has already priced in growth acceleration (~58% y/y) scenario in 2025 along with GAAP profitability and 1M+ LiDAR shipments this year.

• 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: DN Solutions (298440 KS) seeks to raise US$1.1 billion in a KRX IPO.
• Event-Driven developments: CK Hutchison Holdings (1 HK), Canvest Environmental Protection Group (1381 HK), ENN Energy (2688 HK), HKBN Ltd (1310 HK), Shandong Fengxiang (9977 HK), Spartan Resources (SPR AU). 

• China Merchants Port (144 HK) may potentially play a role in CK Hutchison Holdings (1 HK)‘s port portfolio disposal should the mainland government want to step in. 
• While CMPH’s size is small relative to the port portfolio, its parent China Merchants Group and sister China Merchants Bank H (3968 HK) can easily facilitate such a transaction.
• Having the portfolio in the hands of mainland company is desirable to the Chinese government. Even if CMPH has no role, its 7.6x PER and 6% yield are attractive.

• Jiangsu Zenergy Battery Technologies (JSZENERGY CH) (Zenergy) is looking to raise up to US$300m in its upcoming HK IPO.
• Zenergy is an EV and energy storage system battery manufacturer providing integrated battery solutions, encompassing battery cells, modules, packs and battery management systems dedicated to large-scale applications of electrochemical products.
• In this note, we talk about the positive aspects of the deal.

• Hesai Group, a global leader in LiDAR solutions in the ADAS and robotics markets, forecasted hyper-growth and GAAP profitability for the full year of 2025.
• The stock has bottomed in the low $4s (~0.3x 2025E EV/Revs) in 2024 and gained about 350%. Hesai Group currently trades at ~4x EV/2025E revenues, ~32% discount relative to RoboSense.
• I believe that the market has already priced in growth acceleration (~58% y/y) scenario in 2025 along with GAAP profitability and 1M+ LiDAR shipments this year.

• Japan’s top defense and aerospace contractor is being rerated to account for the limits on relying on the U.S. for defense in an alarming national security environment.
• A reasonably optimistic scenario brings MHI’s P/E ratio down to 22X in FY Mar-28, by which time Japan’s defense spending is scheduled reach 2% of GDP.
• The Trump administration wants Japan to spend more, but getting the budget through the national Diet is difficult enough as it is. 

• DN Solutions (298440 KS), the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.   
• DN Automotive (007340 KS) is the largest shareholder, representing 84.8% of outstanding shares. The primary/secondary split is 43%/57%.
• The bull case rests on the market share gains, high barriers to entry, healthy forward revenue indicators, a return to growth, and top-tier EBIT margin.

• Robert Half International’s fourth-quarter 2024 earnings results reveal a mixed performance, reflecting both challenges and opportunities.
• The company reported global enterprise revenues of $1.382 billion, marking a decline of 6% from the previous year on a reported basis.
• The net income per share for the quarter was $0.53, significantly down from $0.83 a year ago.

• In the latest earnings, AMETEK reported mixed results for the fourth quarter of 2024, reflecting both strengths and areas of concern that investors might weigh in evaluating the company’s future prospects.
• The company demonstrated robust financial metrics overall, achieving record levels in sales, operating income, EBITDA, and earnings per share, notably driven by efficient operational execution and effective cost management.
• 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.

• Landstar System, Inc. concluded fiscal year 2024 under challenging market conditions, yet managed to achieve certain noteworthy accomplishments amid soft freight demand and abundant truck capacity.
• Revenue in the fourth quarter of 2024 indicated resilience, with figures slightly above the midpoint of guidance, even as earnings per share fell modestly below guidance due to margin pressures and increased costs.
• The company’s performance in 2024 was marked by a significant record in the heavy haul division, where revenue rose to approximately $498 million, spurred by a 9% increase in revenue per load and a 3% uptick in volume.

• Illinois Tool Works Inc. (ITW) completed 2024 on a strong financial footing, achieving record results in several key performance areas.
• For the fourth quarter, the company reported a modest decline in total revenues by 1.3%, but a robust operating margin increase to 26.2%, an improvement of 140 basis points, driven primarily by enterprise initiatives.
• The company’s ability to expand operating income by 4% in spite of lower revenue demonstrates effective cost management and strategic execution.

• Price momentum remains very weak, and spot rates are already below 2024 lows
• Multiple deep-sea carriers have recently guided to a collapse in core earnings in 2025
• USTR / MARAD proposed rule changes could add to US tariff chaos & raise carriers’ costs

• J.B. Hunt Transport Services reported mixed results for the fourth quarter of 2024, reflecting both operational strengths and ongoing challenges in the freight market.
• The company recognized a 5% year-over-year revenue decline, despite a slight 2% increase in operating income and a 4% rise in diluted earnings per share.
• However, the year was weighed down by significant one-time charges, including $16 million in intangible asset impairments related to the BNSF Logistics acquisition, contributing to a 16% annual decline in operating income and a 20% decrease in EPS.

• Japan’s top defense and aerospace contractor is being rerated to account for the limits on relying on the U.S. for defense in an alarming national security environment.
• A reasonably optimistic scenario brings MHI’s P/E ratio down to 22X in FY Mar-28, by which time Japan’s defense spending is scheduled reach 2% of GDP.
• The Trump administration wants Japan to spend more, but getting the budget through the national Diet is difficult enough as it is. 

• DN Solutions (298440 KS), the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.   
• DN Automotive (007340 KS) is the largest shareholder, representing 84.8% of outstanding shares. The primary/secondary split is 43%/57%.
• The bull case rests on the market share gains, high barriers to entry, healthy forward revenue indicators, a return to growth, and top-tier EBIT margin.

• Robert Half International’s fourth-quarter 2024 earnings results reveal a mixed performance, reflecting both challenges and opportunities.
• The company reported global enterprise revenues of $1.382 billion, marking a decline of 6% from the previous year on a reported basis.
• The net income per share for the quarter was $0.53, significantly down from $0.83 a year ago.

• In the latest earnings, AMETEK reported mixed results for the fourth quarter of 2024, reflecting both strengths and areas of concern that investors might weigh in evaluating the company’s future prospects.
• The company demonstrated robust financial metrics overall, achieving record levels in sales, operating income, EBITDA, and earnings per share, notably driven by efficient operational execution and effective cost management.
• 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.

• Landstar System, Inc. concluded fiscal year 2024 under challenging market conditions, yet managed to achieve certain noteworthy accomplishments amid soft freight demand and abundant truck capacity.
• Revenue in the fourth quarter of 2024 indicated resilience, with figures slightly above the midpoint of guidance, even as earnings per share fell modestly below guidance due to margin pressures and increased costs.
• The company’s performance in 2024 was marked by a significant record in the heavy haul division, where revenue rose to approximately $498 million, spurred by a 9% increase in revenue per load and a 3% uptick in volume.

• Illinois Tool Works Inc. (ITW) completed 2024 on a strong financial footing, achieving record results in several key performance areas.
• For the fourth quarter, the company reported a modest decline in total revenues by 1.3%, but a robust operating margin increase to 26.2%, an improvement of 140 basis points, driven primarily by enterprise initiatives.
• The company’s ability to expand operating income by 4% in spite of lower revenue demonstrates effective cost management and strategic execution.

• Price momentum remains very weak, and spot rates are already below 2024 lows
• Multiple deep-sea carriers have recently guided to a collapse in core earnings in 2025
• USTR / MARAD proposed rule changes could add to US tariff chaos & raise carriers’ costs

• J.B. Hunt Transport Services reported mixed results for the fourth quarter of 2024, reflecting both operational strengths and ongoing challenges in the freight market.
• The company recognized a 5% year-over-year revenue decline, despite a slight 2% increase in operating income and a 4% rise in diluted earnings per share.
• However, the year was weighed down by significant one-time charges, including $16 million in intangible asset impairments related to the BNSF Logistics acquisition, contributing to a 16% annual decline in operating income and a 20% decrease in EPS.

• Voltas Ltd (VOLT IN) is shifting to a volume-led strategy while investing INR 260 crore to build in-house compressor manufacturing under PLI 3.0.
• This approach de-risks supply chains, maintains mass-market pricing, and supports growth amid rising raw material and currency pressures.
• Voltas is evolving from a margin-led to scale-focused player, making it a resilient long-term bet on India’s low AC penetration and summer-driven demand.

• Fortive Corporation recently presented their fourth-quarter and full-year results, highlighting a combination of strengths and challenges that investors might consider when evaluating the company’s investment potential.
• Positive aspects of Fortive’s performance include a strong track record of financial accomplishments in 2024.
• The company reported better-than-expected core growth, adjusted earnings, and free cash flow, capping a robust year.

• We believe the key highlight of Q1-2 FY7/25 results is OPM expansion YoY from 4.7% to 6.6%.
• The company aims to secure high-margin projects aligned with its strategic aims while maintaining business investment in new hires to grow.
• Business expansion via strategic alliances is bearing fruit with Itochu Corporation (8001), with other initiatives being unveiled in the food and logistics sectors to expand and diversify the solutions portfolio and accelerate growth. 

• Simpson Manufacturing Company reported its financial performance for the fiscal year 2024 amidst challenges in the housing markets in both the U.S. and Europe.
• The company’s net sales for 2024 reached $2.23 billion, showing modest growth compared to 2023.
• In North America, net sales increased to $1.74 billion, supported by sales volume enhancements and acquisitions, although the company faced a competitive landscape, with housing starts remaining lower.

• Q3 FY2025/3 Earnings results summary: Takamiya (hereafter, the Company) reported its Q3(9M) FY2025/3 consolidated earnings results: sales of JPY 32,335 mn (+0.5% YoY), operating profit of JPY 1,316 mn (-45.3% YoY), ordinary profit of JPY 1,209 mn (-52.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 867 mn (-49.8% YoY).
• Due to the postponement of the large-scale projects’ commencements, rental volumes fell short of initial expectations.
• Additionally, due to delays in the delivery schedule of sales and OPE-MANE projects, the net sales saw only a slight increase.

• ASGN Incorporated’s latest earnings report reveals a complex picture of the company’s performance and strategic initiatives for the fourth quarter and full year of 2024.
• On the positive side, ASGN has shown a robust commitment to advancing its business towards higher-end IT consulting solutions, with IT consulting revenues now forming a notable portion of total revenues, increasing from 53% to 58% year-over-year.
• This growth highlights the strategic shift toward a more specialized, high-margin service offering, particularly in areas like AI, cybersecurity, and data infrastructure.

• Old Dominion Freight Line, a prominent player in the less-than-truckload (LTL) industry, reported its fourth quarter and full-year 2024 financial results amidst a challenging economic environment.
• The earnings call highlighted both positive and negative aspects, providing a comprehensive view of the company’s current standing and future prospects.
• On the positive side, Old Dominion Freight Line reported strong operational discipline and superior customer service despite declining revenue.

• In today’s edition: • Unilever | to sell The Vegetarian Butcher to Vivera • InPost/Allegro/DHL | DS Smith survey illustrates the importance of the last mile delivery • PostNL | Budbee plans to triple its APM footprint in the Netherlands • Dutch consumer confidence | dropped even further in March

• Voltas Ltd (VOLT IN) is shifting to a volume-led strategy while investing INR 260 crore to build in-house compressor manufacturing under PLI 3.0.
• This approach de-risks supply chains, maintains mass-market pricing, and supports growth amid rising raw material and currency pressures.
• Voltas is evolving from a margin-led to scale-focused player, making it a resilient long-term bet on India’s low AC penetration and summer-driven demand.

• Fortive Corporation recently presented their fourth-quarter and full-year results, highlighting a combination of strengths and challenges that investors might consider when evaluating the company’s investment potential.
• Positive aspects of Fortive’s performance include a strong track record of financial accomplishments in 2024.
• The company reported better-than-expected core growth, adjusted earnings, and free cash flow, capping a robust year.

• We believe the key highlight of Q1-2 FY7/25 results is OPM expansion YoY from 4.7% to 6.6%.
• The company aims to secure high-margin projects aligned with its strategic aims while maintaining business investment in new hires to grow.
• Business expansion via strategic alliances is bearing fruit with Itochu Corporation (8001), with other initiatives being unveiled in the food and logistics sectors to expand and diversify the solutions portfolio and accelerate growth. 

• Simpson Manufacturing Company reported its financial performance for the fiscal year 2024 amidst challenges in the housing markets in both the U.S. and Europe.
• The company’s net sales for 2024 reached $2.23 billion, showing modest growth compared to 2023.
• In North America, net sales increased to $1.74 billion, supported by sales volume enhancements and acquisitions, although the company faced a competitive landscape, with housing starts remaining lower.

• Q3 FY2025/3 Earnings results summary: Takamiya (hereafter, the Company) reported its Q3(9M) FY2025/3 consolidated earnings results: sales of JPY 32,335 mn (+0.5% YoY), operating profit of JPY 1,316 mn (-45.3% YoY), ordinary profit of JPY 1,209 mn (-52.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 867 mn (-49.8% YoY).
• Due to the postponement of the large-scale projects’ commencements, rental volumes fell short of initial expectations.
• Additionally, due to delays in the delivery schedule of sales and OPE-MANE projects, the net sales saw only a slight increase.

• ASGN Incorporated’s latest earnings report reveals a complex picture of the company’s performance and strategic initiatives for the fourth quarter and full year of 2024.
• On the positive side, ASGN has shown a robust commitment to advancing its business towards higher-end IT consulting solutions, with IT consulting revenues now forming a notable portion of total revenues, increasing from 53% to 58% year-over-year.
• This growth highlights the strategic shift toward a more specialized, high-margin service offering, particularly in areas like AI, cybersecurity, and data infrastructure.

• Old Dominion Freight Line, a prominent player in the less-than-truckload (LTL) industry, reported its fourth quarter and full-year 2024 financial results amidst a challenging economic environment.
• The earnings call highlighted both positive and negative aspects, providing a comprehensive view of the company’s current standing and future prospects.
• On the positive side, Old Dominion Freight Line reported strong operational discipline and superior customer service despite declining revenue.

• In today’s edition: • Unilever | to sell The Vegetarian Butcher to Vivera • InPost/Allegro/DHL | DS Smith survey illustrates the importance of the last mile delivery • PostNL | Budbee plans to triple its APM footprint in the Netherlands • Dutch consumer confidence | dropped even further in March

• Market sees this as an M&A play, not just de-leveraging. Sentiment’s split, and despite a tight discount, uncertainty on take-up could spark major dislocations in stock and rights.
• Hanwha’s ₩3.6T raise drops just a week after Samsung SDI’s ₩2T—₩5.5T back-to-back. Absorption looks brutal, setting up serious volatility and prime trading opps if liquidity tightens.
• The FSC fast-tracked this, flagging it instantly but also hinting approval. With regulator risk off, any cash market snapback tomorrow should stay in check.

• Hanwha Aerospace (012450 KS) announced a rights offering capital raise of 3.6 trillion won (US$2.5 billion), which is the largest ever rights offering capital raise in Korea.
• We believe this capital raise is likely to result in higher concerns about shares dilution at Hanwha Aerospace and negatively impact its share price.
• It is also likely to have a significant negative impact on the entire Korean defense stocks, as it signals a top on this sector. 

• Watsco is North America’s largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.
• They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.
• Watsco’s transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.

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

• In this edition: • KPN | has overtaken VodafoneZiggo as the largest consumer broadband provider • Unilever | ice cream division to be named The Magnum Ice Cream Company • Arcadis | acquires WSP Infrastructure Engineering – at current share price trading at highly attractive level

• Q424 revenue growth & EBITDA margin both improved noticeably vs Q324 
• Additionally, ZTO gave FY25 parcel volume guidance that implies an acceleration of growth
• But “key” change in revenue mix is crushing cash returns (Q424 OpCF down -28% Y/Y)

• Market sees this as an M&A play, not just de-leveraging. Sentiment’s split, and despite a tight discount, uncertainty on take-up could spark major dislocations in stock and rights.
• Hanwha’s ₩3.6T raise drops just a week after Samsung SDI’s ₩2T—₩5.5T back-to-back. Absorption looks brutal, setting up serious volatility and prime trading opps if liquidity tightens.
• The FSC fast-tracked this, flagging it instantly but also hinting approval. With regulator risk off, any cash market snapback tomorrow should stay in check.

• Hanwha Aerospace (012450 KS) announced a rights offering capital raise of 3.6 trillion won (US$2.5 billion), which is the largest ever rights offering capital raise in Korea.
• We believe this capital raise is likely to result in higher concerns about shares dilution at Hanwha Aerospace and negatively impact its share price.
• It is also likely to have a significant negative impact on the entire Korean defense stocks, as it signals a top on this sector. 

• Watsco is North America’s largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.
• They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.
• Watsco’s transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.

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

• In this edition: • KPN | has overtaken VodafoneZiggo as the largest consumer broadband provider • Unilever | ice cream division to be named The Magnum Ice Cream Company • Arcadis | acquires WSP Infrastructure Engineering – at current share price trading at highly attractive level

• Q424 revenue growth & EBITDA margin both improved noticeably vs Q324 
• Additionally, ZTO gave FY25 parcel volume guidance that implies an acceleration of growth
• But “key” change in revenue mix is crushing cash returns (Q424 OpCF down -28% Y/Y)

• Every year it’s the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.
• The month-end and quarter-end bring big flows, or not, depending on how things have gone.
• Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!

• The Makino Milling Machine Co (6135 JP) Board has proposed introducing countermeasures to nudge Nidec Corp (6594 JP) to delay the start of the tender to 9 May. 
• The countermeasure was likely needed to facilitate a competing offer rather than force Nidec to provide the required information and delay the start (Nidec is still evaluating the request).
• Nidec’s offer at current terms has a low chance of success, necessitating revised terms. The Board claims that there is a sufficient probability of a competing proposal.

• Quess Corp Ltd (QUESS IN) is strategically demerging into 3 distinct segments, enabling focused strategies and boosting growth potential for each, paving the way for greater success and innovation.
• Previously, the high-margin Global Technology Solutions segment contributed 12% of revenue, but its potential was overlooked within the larger company. Now, with demerging, it gains specialized focus and proper valuation.
• The demerger gives investors the flexibility to choose between cash-generating, high-margin, or moderate-margin businesses, with the added option of a platform for job hunting, all backed by focused, specialized management.

• DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
• DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
• In this note, we talk about the not-so-positive aspects of the deal.

• Plug Power recently reported its earnings and has embarked on Project Quantum Leap to streamline its operations, aiming for significant cost savings ranging from $150 million to $200 million annually by reducing staff, refining product focus, and consolidating facilities.
• This restructuring demonstrates the company’s commitment to improving operational efficiency, especially crucial as they face a slower-than-anticipated development of the hydrogen market.
• The company remains optimistic about hydrogen’s long-term role in the global energy mix, predicting its contribution to be 10% to 20%.

• The latest earnings report from Waste Management, Inc. (WM) highlights a period of substantial operational and financial performance improvements in 2024.
• The company has focused on a combination of top-line growth strategies and diligent cost management which positioned it well in its markets.
• Notably, there was a marked increase in operating EBITDA by more than 10% within its legacy business, achieving a 30% operating EBITDA margin — the highest in its history.