Industrials

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 Demerger: Value Unlocking & Strategic Shift to Drive Growth

By Nimish Maheshwari

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 Pre-IPO – The Negatives – Stagnant Volumes

By Sumeet Singh

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 Inc.: Will Its Cost Reduction Measures Be Enough To Add Some Level Of Financial Stability?

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%.

Waste Management: An Insight Into Its Healthcare Solutions

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.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Industrials: Canvest Environmental Protection Group, Hanwha Ocean , Contemporary Amperex Technology (CATL), DN Solutions and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Canvest (1381 HK): Get Involved
Hunting for Outsized Moves in Off-The-Radar Korean Sector ETFs: SOL Shipbuilding & PLUS K-Defense
Asian Equities: Keep an Eye on These Earnings Inflections
DN Solutions IPO Valuation Analysis
DN Solutions Pre-IPO – The Positives – Growing Market Share

Canvest (1381 HK): Get Involved

After SAFE gave the green light on the 19th Feb, I estimated only a week was required to secure the (strangely) outstanding internal guarantees. It took a frustrating three-and-a-half weeks.
Nevertheless, all pre-cons are now done. Canvest Environmental (1381 HK)‘s Scheme Document is expected to be dispatched or before the 25th April.
Assuming the Scheme gets up – and it will – expect payment around the 20th June. This is done.

Hunting for Outsized Moves in Off-The-Radar Korean Sector ETFs: SOL Shipbuilding & PLUS K-Defense

March 5 price action overshot passive impact. Theme-trade momentum, one-way institutional flows, and ETF rebalancing (~10% turnover) juiced the move—Hanwha Ocean -5.41%, Samsung Heavy +5.34%, HD KSOE +6.58%.
June’s rebalance gets spicier—another ETF, ARIRANG K-Defense ETF (449450 KS), also runs the same 20% reversion on June 13, doubling the flow impact and setting up amplified price action.
Key 20% reversion hits: Hanwha Ocean (SOL Shipbuilding) & Hanwha Aerospace (PLUS K-Defense). ~5%p passive outflows (~0.1x DTV) expected, with Hanwha Ocean facing double impact from both ETFs.

Asian Equities: Keep an Eye on These Earnings Inflections

By Manishi Raychaudhuri

Change in earnings estimate directions, especially when estimates start increasing after a long period of decline, are what we call “inflections”. These, we believe, are the strongest share price catalysts.
We identify nine market-sectors across Asia ex Japan exhibiting upward earnings inflections. Four are from financials, two from telecoms and one each from utilities, consumer durables and industrials.
These market-sectors are from HK/China (3), Korea (1), ASEAN (5). Financials’ domination indicates that a broader Asian macroeconomic recovery could be under way. Eight companies are primarily driving the upgrades.

DN Solutions IPO Valuation Analysis

Our base case valuation of DN Solutions suggests target price of 90,167 won per share, which is 1% higher than the high end of the IPO price range.
Our base case valuation is based on 17.9x P/E using our estimated net profit of 317.9 billion won for DN Solutions in 2025.
Given the lack of upside, we have a Negative View of this IPO. DN Solutions has higher operating margin and ROE but lower revenue growth than its comps.

DN Solutions Pre-IPO – The Positives – Growing Market Share

By Sumeet Singh

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 company’s past performance.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Industrials: Canvest Environmental Protection Group, Hanwha Ocean , Contemporary Amperex Technology (CATL), DN Solutions and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Canvest (1381 HK): Get Involved
Hunting for Outsized Moves in Off-The-Radar Korean Sector ETFs: SOL Shipbuilding & PLUS K-Defense
Asian Equities: Keep an Eye on These Earnings Inflections
DN Solutions IPO Valuation Analysis
DN Solutions Pre-IPO – The Positives – Growing Market Share

Canvest (1381 HK): Get Involved

After SAFE gave the green light on the 19th Feb, I estimated only a week was required to secure the (strangely) outstanding internal guarantees. It took a frustrating three-and-a-half weeks.
Nevertheless, all pre-cons are now done. Canvest Environmental (1381 HK)‘s Scheme Document is expected to be dispatched or before the 25th April.
Assuming the Scheme gets up – and it will – expect payment around the 20th June. This is done.

Hunting for Outsized Moves in Off-The-Radar Korean Sector ETFs: SOL Shipbuilding & PLUS K-Defense

March 5 price action overshot passive impact. Theme-trade momentum, one-way institutional flows, and ETF rebalancing (~10% turnover) juiced the move—Hanwha Ocean -5.41%, Samsung Heavy +5.34%, HD KSOE +6.58%.
June’s rebalance gets spicier—another ETF, ARIRANG K-Defense ETF (449450 KS), also runs the same 20% reversion on June 13, doubling the flow impact and setting up amplified price action.
Key 20% reversion hits: Hanwha Ocean (SOL Shipbuilding) & Hanwha Aerospace (PLUS K-Defense). ~5%p passive outflows (~0.1x DTV) expected, with Hanwha Ocean facing double impact from both ETFs.

Asian Equities: Keep an Eye on These Earnings Inflections

By Manishi Raychaudhuri

Change in earnings estimate directions, especially when estimates start increasing after a long period of decline, are what we call “inflections”. These, we believe, are the strongest share price catalysts.
We identify nine market-sectors across Asia ex Japan exhibiting upward earnings inflections. Four are from financials, two from telecoms and one each from utilities, consumer durables and industrials.
These market-sectors are from HK/China (3), Korea (1), ASEAN (5). Financials’ domination indicates that a broader Asian macroeconomic recovery could be under way. Eight companies are primarily driving the upgrades.

DN Solutions IPO Valuation Analysis

Our base case valuation of DN Solutions suggests target price of 90,167 won per share, which is 1% higher than the high end of the IPO price range.
Our base case valuation is based on 17.9x P/E using our estimated net profit of 317.9 billion won for DN Solutions in 2025.
Given the lack of upside, we have a Negative View of this IPO. DN Solutions has higher operating margin and ROE but lower revenue growth than its comps.

DN Solutions Pre-IPO – The Positives – Growing Market Share

By Sumeet Singh

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 company’s past performance.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 18

Daily Brief Industrials: Canvest Environmental Protection Group, DN Solutions, Jardine Matheson Holdings, SATS, Tokyo Electron, Arwana Citramulia, Verisk Analytics, CBAK Energy Technology , Electrovaya and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Canvest (1381 HK): Precondition Satisfied
DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule
DN Solutions IPO: OC’s Out, but the Hit-And-Run Setup Post-Listing Is Still in Play
StubWorld: Matheson Looks Stretched
SATS: Integrating WFS –Key to Acquisition Success
Tokyo Electron (8035 JP): Buy if You’re Not Afraid of Recession
Arwana Citramulia (ARNA IJ) – Rectifying and Enlarging
Verisk Analytics: A Value-Driven Pricing Strategy In Play But Is It Working?
CBAT: Reasons for optimism are on the horizon as the company discusses new expansion plans.
Sustainable Investing Surveyor: Focus on Electrovaya, Inc. (ELVA)

Canvest (1381 HK): Precondition Satisfied

Grandblue Environment Co A (600323 CH) has satisfied the precondition related to its privatisation offer for Canvest Environmental Protection Group (1381 HK).
The offer remains attractive despite the re-rating of peers since announcing the deal. The vote risk is low as the two shareholders holding blocking stakes will be supportive.
This is a done deal. At the last close, the gross/annualised spread for a mid-June payment is 3.8%/13.0%.

DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule

By Brian Freitas

DN Solutions (298440 KS) is looking to raise up to KRW 1,573bn (US$1.08bn), valuing the company at KRW 5.66 trillion (US$3.9bn) at the top end of the IPO price range.
The highest probability of DN Solutions being added to the KOSPI200 Index is at the June 2026 rebalance. The stock needs to move 60% higher to be added in December 2025.
Inclusion in global indices could commence in August/November and will depend on institutional investor lock-up schedules. Flows are small unless the stock moves higher and is included in bigger indices.

DN Solutions IPO: OC’s Out, but the Hit-And-Run Setup Post-Listing Is Still in Play

Wild card here is the FSS—they’re eyeing a shadow listing risk for DN Automotive (007340 KS). If they push for a revision, a 2-week delay busts the 135-day limit.
14x PE looks cheap, but comps are shaky—LS Electric’s AI play, Fanuc’s scale advantage, and DMG MORI’s automation pivot all make direct comparisons a stretch.
DN Solutions is a pure-play machine tool name, making comps shaky. This IPO’s shaping up like an LG CNS rerun—solid numbers, fair valuation, but a weak growth story.

StubWorld: Matheson Looks Stretched

Jardine Matheson Holdings (JM SP) posted a 11% drop in FY24 underlying profit; but has promptly gained 9% since.
Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

SATS: Integrating WFS –Key to Acquisition Success

By Tan Yee Peng

In September 2022, as the world began to rebound from COVID-era travel restrictions, Singapore-listed SATS Ltd. made waves with an audacious move.
With a market cap of SGD 4.5 billion, SATS announced plans to acquire global air cargo giant Worldwide Flight Services (“WFS”) for up to €1.3 billion (S$1.9 billion), valuing the deal at an enterprise value (“EV”) of €2.25 billion (S$3.1 billion).
The market reacted with skepticism, sending SATS’ share price plummeting by 35% as concerns over equity dilution and debt levels unsettled investors accustomed to steady dividends and strong returns.

Tokyo Electron (8035 JP): Buy if You’re Not Afraid of Recession

By Scott Foster

After dropping by half, Tokyo Electron’s share price has bounced. But it is still vulnerable to cutbacks in AI-related investments and tariff-induced recession.
A positive scenario has net profit rising by 8% in FY Mar-26. In a negative scenario, it drops by 25%. We take the positive view.
Innovations in manufacturing point toward a big step up in profit margins by the end of the decade. But watch out for a cyclical downturn between now and then.

Arwana Citramulia (ARNA IJ) – Rectifying and Enlarging

By Angus Mackintosh

A call with Arwana Citramulia cleared up some lingering concerns from 2024, which was a year of reconfiguration of capacity to help differentiate and drive future growth and margins.
The company has now fixed the gas price for its production, which is now set for five years, sustaining its cost advantage over Chinese imports, which now face anti-dumpoing measures.
Arwana Citramulia is rapidly increasing its rectified capacity and increasing exposure to larger-sized tiles as well as raising prices, given that Chinese players face higher tariff-related costs. Valuations remain attractive.

Verisk Analytics: A Value-Driven Pricing Strategy In Play But Is It Working?

Verisk Analytics, a leading data analytics company primarily serving the insurance industry, reported robust financial results for the fourth quarter and full year 2024.
A key highlight of the quarter was an 11% growth in subscription revenues, driven mainly by a surge in demand for their analytics and software services and successful conversion of transactional contracts to subscription-based contracts.
For the fourth quarter, Verisk achieved an 8.6% increase in organic constant currency (OCC) revenue, largely propelled by sales momentum and incidental benefits from storm-related activities, particularly hurricanes Helene and Milton.

CBAT: Reasons for optimism are on the horizon as the company discusses new expansion plans.

By Zacks Small Cap Research

CBAK Energy Technology’s core battery business has performed well during the prolonged industry downturn still generating over $20 million in operating income in 2024.
Capacity expansions discloses were increased on the company’s conference call as the company now anticipates growing from 2.3 GWh of capacity to 7.6 GWh in 2026.
Tariff concerns continue to weigh on the shares and the company’s raw material business remains very weak but for investors seeking exposure to the cylindrical cell market CBAK’s shares could represent a good value if expansion plans are successfully implemented.

Sustainable Investing Surveyor: Focus on Electrovaya, Inc. (ELVA)

By Water Tower Research

The WTR Sustainable Index was down 1.2% W/W versus the S&P 500 Index (down 2.3%), the Russell 2000 Index (down 1.5%), and the Nasdaq Index (down 2.5%).
Energy Technology (12.9% of the index) was down 0.1%, while Industrial Climate and Ag Technology (45.6% of the index) was down 2.2%, ClimateTech Mining was down 1.1%, and Advanced Transportation Solutions (22.1% of the index) was up 0.4%.
Top 10 Performers: PEV, ARVL, JEV, PEGY, ENG, AMMP, GRB, SX, NFI, KULR

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 18

Daily Brief Industrials: Canvest Environmental Protection Group, DN Solutions, Jardine Matheson Holdings, SATS, Tokyo Electron, Arwana Citramulia, Verisk Analytics, CBAK Energy Technology , Electrovaya and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Canvest (1381 HK): Precondition Satisfied
DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule
DN Solutions IPO: OC’s Out, but the Hit-And-Run Setup Post-Listing Is Still in Play
StubWorld: Matheson Looks Stretched
SATS: Integrating WFS –Key to Acquisition Success
Tokyo Electron (8035 JP): Buy if You’re Not Afraid of Recession
Arwana Citramulia (ARNA IJ) – Rectifying and Enlarging
Verisk Analytics: A Value-Driven Pricing Strategy In Play But Is It Working?
CBAT: Reasons for optimism are on the horizon as the company discusses new expansion plans.
Sustainable Investing Surveyor: Focus on Electrovaya, Inc. (ELVA)

Canvest (1381 HK): Precondition Satisfied

Grandblue Environment Co A (600323 CH) has satisfied the precondition related to its privatisation offer for Canvest Environmental Protection Group (1381 HK).
The offer remains attractive despite the re-rating of peers since announcing the deal. The vote risk is low as the two shareholders holding blocking stakes will be supportive.
This is a done deal. At the last close, the gross/annualised spread for a mid-June payment is 3.8%/13.0%.

DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule

By Brian Freitas

DN Solutions (298440 KS) is looking to raise up to KRW 1,573bn (US$1.08bn), valuing the company at KRW 5.66 trillion (US$3.9bn) at the top end of the IPO price range.
The highest probability of DN Solutions being added to the KOSPI200 Index is at the June 2026 rebalance. The stock needs to move 60% higher to be added in December 2025.
Inclusion in global indices could commence in August/November and will depend on institutional investor lock-up schedules. Flows are small unless the stock moves higher and is included in bigger indices.

DN Solutions IPO: OC’s Out, but the Hit-And-Run Setup Post-Listing Is Still in Play

Wild card here is the FSS—they’re eyeing a shadow listing risk for DN Automotive (007340 KS). If they push for a revision, a 2-week delay busts the 135-day limit.
14x PE looks cheap, but comps are shaky—LS Electric’s AI play, Fanuc’s scale advantage, and DMG MORI’s automation pivot all make direct comparisons a stretch.
DN Solutions is a pure-play machine tool name, making comps shaky. This IPO’s shaping up like an LG CNS rerun—solid numbers, fair valuation, but a weak growth story.

StubWorld: Matheson Looks Stretched

Jardine Matheson Holdings (JM SP) posted a 11% drop in FY24 underlying profit; but has promptly gained 9% since.
Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

SATS: Integrating WFS –Key to Acquisition Success

By Tan Yee Peng

In September 2022, as the world began to rebound from COVID-era travel restrictions, Singapore-listed SATS Ltd. made waves with an audacious move.
With a market cap of SGD 4.5 billion, SATS announced plans to acquire global air cargo giant Worldwide Flight Services (“WFS”) for up to €1.3 billion (S$1.9 billion), valuing the deal at an enterprise value (“EV”) of €2.25 billion (S$3.1 billion).
The market reacted with skepticism, sending SATS’ share price plummeting by 35% as concerns over equity dilution and debt levels unsettled investors accustomed to steady dividends and strong returns.

Tokyo Electron (8035 JP): Buy if You’re Not Afraid of Recession

By Scott Foster

After dropping by half, Tokyo Electron’s share price has bounced. But it is still vulnerable to cutbacks in AI-related investments and tariff-induced recession.
A positive scenario has net profit rising by 8% in FY Mar-26. In a negative scenario, it drops by 25%. We take the positive view.
Innovations in manufacturing point toward a big step up in profit margins by the end of the decade. But watch out for a cyclical downturn between now and then.

Arwana Citramulia (ARNA IJ) – Rectifying and Enlarging

By Angus Mackintosh

A call with Arwana Citramulia cleared up some lingering concerns from 2024, which was a year of reconfiguration of capacity to help differentiate and drive future growth and margins.
The company has now fixed the gas price for its production, which is now set for five years, sustaining its cost advantage over Chinese imports, which now face anti-dumpoing measures.
Arwana Citramulia is rapidly increasing its rectified capacity and increasing exposure to larger-sized tiles as well as raising prices, given that Chinese players face higher tariff-related costs. Valuations remain attractive.

Verisk Analytics: A Value-Driven Pricing Strategy In Play But Is It Working?

Verisk Analytics, a leading data analytics company primarily serving the insurance industry, reported robust financial results for the fourth quarter and full year 2024.
A key highlight of the quarter was an 11% growth in subscription revenues, driven mainly by a surge in demand for their analytics and software services and successful conversion of transactional contracts to subscription-based contracts.
For the fourth quarter, Verisk achieved an 8.6% increase in organic constant currency (OCC) revenue, largely propelled by sales momentum and incidental benefits from storm-related activities, particularly hurricanes Helene and Milton.

CBAT: Reasons for optimism are on the horizon as the company discusses new expansion plans.

By Zacks Small Cap Research

CBAK Energy Technology’s core battery business has performed well during the prolonged industry downturn still generating over $20 million in operating income in 2024.
Capacity expansions discloses were increased on the company’s conference call as the company now anticipates growing from 2.3 GWh of capacity to 7.6 GWh in 2026.
Tariff concerns continue to weigh on the shares and the company’s raw material business remains very weak but for investors seeking exposure to the cylindrical cell market CBAK’s shares could represent a good value if expansion plans are successfully implemented.

Sustainable Investing Surveyor: Focus on Electrovaya, Inc. (ELVA)

By Water Tower Research

The WTR Sustainable Index was down 1.2% W/W versus the S&P 500 Index (down 2.3%), the Russell 2000 Index (down 1.5%), and the Nasdaq Index (down 2.5%).
Energy Technology (12.9% of the index) was down 0.1%, while Industrial Climate and Ag Technology (45.6% of the index) was down 2.2%, ClimateTech Mining was down 1.1%, and Advanced Transportation Solutions (22.1% of the index) was up 0.4%.
Top 10 Performers: PEV, ARVL, JEV, PEGY, ENG, AMMP, GRB, SX, NFI, KULR

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 17

Daily Brief Industrials: CK Hutchison Holdings, Rheinmetall AG, Honeywell International and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CK Hutchison (1 HK): Political Turbulence
EURO STOXX50: Fast-Entry In June Or Inclusion In September 2025 For Rheinmetall AG (RHM GR)
Upcoming Spin-Offs: Key Details

CK Hutchison (1 HK): Political Turbulence

On 13 March, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government and Communist Party, denounced CK Hutchison Holdings (1 HK)’s planned port transaction.
The opinion piece is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns expressed in the article.
In the near term, the shares will likely be under pressure from a nationalistic backlash. Nevertheless, deal or no deal, the valuation remains undemanding.

EURO STOXX50: Fast-Entry In June Or Inclusion In September 2025 For Rheinmetall AG (RHM GR)

By Dimitris Ioannidis

Rheinmetall AG (RHM GR) surged ~65% over the last month and is now passing the sector coverage threshold resulting in its selection list qualification and rank of ~26.
Fast-Entry inclusion to Euro STOXX50 can be triggered at the June 2025 quarterly review if RHM’s price increases by ~4% to reach the fast-entry rank of 25.
RHM’s inclusion at the September 2025 annual review has a high probability given a failed fast-entry in June. Kering (KER FP) is the main deletion candidate.

Upcoming Spin-Offs: Key Details

By Richard Howe

So far in 2025, there have been 5 new US spin-off announcements. Meanwhile 3 new spin-offs have started trading.
Spin-off stock performance was strong in 2024, but performance has turned over a bit in the last month.
On February 6, 2025, Honeywell International (HON) announced its plans to separate into three independent public entities:

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 17

Daily Brief Industrials: CK Hutchison Holdings, Rheinmetall AG, Honeywell International and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CK Hutchison (1 HK): Political Turbulence
EURO STOXX50: Fast-Entry In June Or Inclusion In September 2025 For Rheinmetall AG (RHM GR)
Upcoming Spin-Offs: Key Details

CK Hutchison (1 HK): Political Turbulence

On 13 March, Ta Kung Pao, a Hong Kong newspaper owned by the Chinese government and Communist Party, denounced CK Hutchison Holdings (1 HK)’s planned port transaction.
The opinion piece is mainly political rhetoric, as even if China managed to block the deal, it would still not address the underlying concerns expressed in the article.
In the near term, the shares will likely be under pressure from a nationalistic backlash. Nevertheless, deal or no deal, the valuation remains undemanding.

EURO STOXX50: Fast-Entry In June Or Inclusion In September 2025 For Rheinmetall AG (RHM GR)

By Dimitris Ioannidis

Rheinmetall AG (RHM GR) surged ~65% over the last month and is now passing the sector coverage threshold resulting in its selection list qualification and rank of ~26.
Fast-Entry inclusion to Euro STOXX50 can be triggered at the June 2025 quarterly review if RHM’s price increases by ~4% to reach the fast-entry rank of 25.
RHM’s inclusion at the September 2025 annual review has a high probability given a failed fast-entry in June. Kering (KER FP) is the main deletion candidate.

Upcoming Spin-Offs: Key Details

By Richard Howe

So far in 2025, there have been 5 new US spin-off announcements. Meanwhile 3 new spin-offs have started trading.
Spin-off stock performance was strong in 2024, but performance has turned over a bit in the last month.
On February 6, 2025, Honeywell International (HON) announced its plans to separate into three independent public entities:

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 16

Daily Brief Industrials: Kepco Plant Service & Engineering, ZIM Integrated Shipping Services and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)
ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility.
The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.

ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

By Daniel Hellberg

Rates fell by -24% Q/Q in Q424, but ZIM exceeded consensus Q4 revenue & earnings targets
Management guidance & commentary regarding 2025 profitability paints a bleak picture
In our view, investors in container carriers would do well to heed these clear warnings

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 16

Daily Brief Industrials: Kepco Plant Service & Engineering, ZIM Integrated Shipping Services and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)
ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility.
The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.

ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

By Daniel Hellberg

Rates fell by -24% Q/Q in Q424, but ZIM exceeded consensus Q4 revenue & earnings targets
Management guidance & commentary regarding 2025 profitability paints a bleak picture
In our view, investors in container carriers would do well to heed these clear warnings

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 15

Daily Brief Industrials: Keisei Electric Railway Co, Salzer Electronics, DN Solutions, Trex Company, Kbr Inc, Gattaca PLC, Inpost and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Keisei Electric (9009): Buyback
The Beat Ideas: Salzer Electronics: Smart Meter Play, A Proxy to India’s Electrification Story
DN Solutions IPO Preview
TREX Company Inc.: Pursuing Digital Transformation & Operational Efficiencies To Better Capture Market Opportunities!
KBR Inc.: Growth in International Government Markets Fueling Our Bullishness!
Gattaca PLC – Friday Take Away: 6 March 2025
What’s News in Amsterdam – 14 March 2025 (InPost)

Keisei Electric (9009): Buyback

By Henry Soediarko

Post COVID investors have been monitoring Keisei Electric Railway Co (9009 JP) as part of the shareholder activism program.
Recently, the management has announced a share buyback of up to 8 million shares. In 2022, they bought back 5 million shares, and the share price rallied 21% that year.
It currently trades at 6x PER while Topix trades at 14x PER.

The Beat Ideas: Salzer Electronics: Smart Meter Play, A Proxy to India’s Electrification Story

By Sudarshan Bhandari

Salzer Electronics (SZE IN) is aggressively scaling its smart meter business with INR 600–700 crore revenue targeted in FY26, aiming to sell up to 8 lakh units annually.
This diversification into B2B smart metering could double revenues, boost margins, and improve ROCE, transforming Salzer from a niche switchgear player to a full-stack energy solutions provider.
Salzer is no longer a slow-growing industrial supplier: it’s evolving into a high-growth, government-aligned, tech-driven player with strong export and R&D-led optionality.

DN Solutions IPO Preview

DN Solutions is getting ready to complete its IPO in Korea in May 2025. The IPO price range is from 65,000 won to 89,700 won.
The book building for the institutional investors will last from 22 to 28 April. The expected IPO offering amount is from 1.14 trillion won to 1.57 trillion won.
The IPO price range is based on DN Solutions’ net profit of 317.4 billion won, P/E of 25.2x, and IPO discount rates of 29.1% to 48.6%.

TREX Company Inc.: Pursuing Digital Transformation & Operational Efficiencies To Better Capture Market Opportunities!

Trex Company has reported its fourth-quarter and full-year 2024 financial results, showcasing a mix of strategic successes and ongoing challenges.
The company exceeded revenue expectations, driven by strong demand for premium decking products and a nascent recovery in value-priced offerings.
This performance reflects effective operating leverage from higher utilization rates and successful cost-reduction measures.

KBR Inc.: Growth in International Government Markets Fueling Our Bullishness!