Industrials

• 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.

• Lion Rock Group is a global printing services provider with a strong foothold in the international book publishing market, demonstrating consistent revenue growth and robust cash flow generation.
• The company faces headwinds from the secular decline of traditional print media but is actively pursuing growth through strategic acquisitions and operational diversification, particularly in Australia and Southeast Asia.
• Valuation appears attractive, with low earnings multiples and a high dividend yield, suggesting a value proposition for investors, balanced against the inherent risks of the evolving printing industry.

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

• 1H FY26 results resilient: LNG and FX offset metals softness; FY26 NI raised 6% to ¥820 bn, ROE ~13%.
• Valuation gap to Itochu closed; Mitsui now trades ~1.4× P/B with superior copper and LNG leverage.
• Sustained buybacks (~5% p.a.) and ≥10% Berkshire anchor ensure 6–9% TSR CAGR, with 10%+ if copper >US$10k/t.

• Core “Ocean” EBITDA fell by 55% Y/Y in Q325 due to lower average freight rates
• Maersk lifted lower end of guidance range, but offered downbeat tone on Q4, 2026
• Shares fell by 5% in response to Thursday’s report; we remain negative on sector

• Fincantieri is a global leader in shipbuilding, specializing in high-value-added segments such as cruise ships, defense vessels, and specialized offshore vessels. The company is well-positioned to benefit from the ongoing recovery in the cruise industry and increasing global defense budgets.
• Recent financial performance has shown significant improvement, with strong revenue and EBITDA growth, driven by a record order intake and a substantial backlog that provides long-term visibility. The company is also strategically expanding into the high-margin underwater and submarine sector.
• Key challenges include managing a high debt load, navigating the cyclicality of the shipbuilding industry, and addressing operational efficiencies to improve profitability margins further. The company’s valuation appears elevated compared to peers, suggesting high growth expectations are priced in.

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

• Following a comprehensive restructuring that saw the company exit bankruptcy protection, Norwegian Air Shuttle has successfully pivoted from a struggling long-haul carrier to a focused, profitable Nordic-based low-cost airline.
• The company has demonstrated a significant financial turnaround, with strong revenue growth and a return to profitability, driven by renewed travel demand and a disciplined operational strategy. However, the balance sheet remains leveraged.
• Intense competition from larger European low-cost carriers and volatility in fuel prices and currency exchange rates represent the most significant headwinds to sustained profitability and future growth.

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

• Lion Rock Group is a global printing services provider with a strong foothold in the international book publishing market, demonstrating consistent revenue growth and robust cash flow generation.
• The company faces headwinds from the secular decline of traditional print media but is actively pursuing growth through strategic acquisitions and operational diversification, particularly in Australia and Southeast Asia.
• Valuation appears attractive, with low earnings multiples and a high dividend yield, suggesting a value proposition for investors, balanced against the inherent risks of the evolving printing industry.

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

• 1H FY26 results resilient: LNG and FX offset metals softness; FY26 NI raised 6% to ¥820 bn, ROE ~13%.
• Valuation gap to Itochu closed; Mitsui now trades ~1.4× P/B with superior copper and LNG leverage.
• Sustained buybacks (~5% p.a.) and ≥10% Berkshire anchor ensure 6–9% TSR CAGR, with 10%+ if copper >US$10k/t.

• Core “Ocean” EBITDA fell by 55% Y/Y in Q325 due to lower average freight rates
• Maersk lifted lower end of guidance range, but offered downbeat tone on Q4, 2026
• Shares fell by 5% in response to Thursday’s report; we remain negative on sector

• Fincantieri is a global leader in shipbuilding, specializing in high-value-added segments such as cruise ships, defense vessels, and specialized offshore vessels. The company is well-positioned to benefit from the ongoing recovery in the cruise industry and increasing global defense budgets.
• Recent financial performance has shown significant improvement, with strong revenue and EBITDA growth, driven by a record order intake and a substantial backlog that provides long-term visibility. The company is also strategically expanding into the high-margin underwater and submarine sector.
• Key challenges include managing a high debt load, navigating the cyclicality of the shipbuilding industry, and addressing operational efficiencies to improve profitability margins further. The company’s valuation appears elevated compared to peers, suggesting high growth expectations are priced in.

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

• Following a comprehensive restructuring that saw the company exit bankruptcy protection, Norwegian Air Shuttle has successfully pivoted from a struggling long-haul carrier to a focused, profitable Nordic-based low-cost airline.
• The company has demonstrated a significant financial turnaround, with strong revenue growth and a return to profitability, driven by renewed travel demand and a disciplined operational strategy. However, the balance sheet remains leveraged.
• Intense competition from larger European low-cost carriers and volatility in fuel prices and currency exchange rates represent the most significant headwinds to sustained profitability and future growth.

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

• Back on the 30th April 2025, Hainan Meilan International Airport (357 HK) (“Meilan Airport”) announced a potential change of control, via its domestic shares.
• In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. 
• Yesterday, H-class shareholders approved a “Special Deal” at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps …

• Rollins, Inc. has reported its third-quarter results for 2025, highlighting several key areas of growth and operational efficiency.
• The company experienced a total revenue growth of 12%, driven by organic growth of 7.2%.
• Acquisitions, including Saela, further contributed to these results.

• The latest earnings call for Otis Worldwide Corporation reveals a mixture of positive growth metrics and ongoing challenges, providing a comprehensive overview for potential investors.
• On the positive side, Otis reported a return to growth, with organic sales increasing by 2% in the third quarter, driven primarily by the Service segment, which increased by 6%.
• Modernization sales showed a significant jump, with organic sales climbing 14%, reflecting a robust demand and effective order backlog conversion.

• Old Dominion Freight Line’s (ODFL) third quarter of 2025 results show mixed performance amid a challenging domestic economic environment.
• The company reported a 4.3% decline in revenue compared with the same period in 2024.
• This decrease was primarily driven by a 9% drop in Less-Than-Truckload (LTL) tons per day, which was only partially offset by a 4.7% increase in LTL revenue per hundredweight.

• Verisk Analytics, Inc.’s third quarter of 2025 performance presents a mixed picture with certain standout positives amid identifiable challenges.
• The company’s organic constant currency (OCC) revenue grew by 5.5% driven by an 8.7% rise in subscription revenue.
• This growth is indicative of Verisk’s strategic engagement with clients and the tailored solutions it offers, such as expanded data integration and upgraded AI enhancements.

• Fortive Corporation’s third-quarter 2025 earnings mark its first set of results following the spin-off of its Precision Technology segment, now Ralliant.
• The new structure aims to create a more focused company with a strategy centered on driving profitable organic growth, effective capital allocation, and boosting shareholder returns.
• During the quarter, Fortive executed well, achieving core growth of 2%, adjusted EBITDA growth of 10%, and a 15% increase in adjusted EPS year-over-year.

• Flowserve Corporation’s latest quarterly financial results and accompanying management commentary offer insights into the company’s current positioning and future prospects.
• The company reported a quarter characterized by strong performance indicators across several fronts, including a bookings surge, significant margin expansion, and improved earnings per share.
• These results are underpinning a more optimistic full-year guidance revision.

• CXW’s 3Q25 results beat our / consensus projections.
• Total revenue of $580.4m was well ahead of our $551m forecast and adjusted EPS excluding costs to reactivate idled facilities exceeded our/consensus EPS forecasts.
• Detention populations and revenue have not been impacted by the government shutdown.

• Enphase Energy recently released its Q3 2025 financial results, revealing a blend of promising advancements and emerging challenges.
• The company showcased robust revenue growth, reaching $410.4 million, marking the highest level in two years.
• This was driven by the shipment of 1.77 million microinverters and a record 195 megawatt-hours of batteries.

• Grupo Aeroméxico priced at $19.00 and closed at $20.35 (+7.1%), marking a solid first-day gain amid strong institutional demand.
• IPO reportedly 10x oversubscribed, driven by long-only and international accounts, signaling strong conviction in Aeroméxico’s turnaround and balance sheet discipline.
• With Apollo and Delta as backers, improving margins, and regional airline momentum, Aeroméxico’s IPO positions it for sustained flight in a recovering market.

• Back on the 30th April 2025, Hainan Meilan International Airport (357 HK) (“Meilan Airport”) announced a potential change of control, via its domestic shares.
• In principle, this situation involves the re-arrangement of Meilan Airport shares under the same ultimate beneficiary. Nevertheless, the share transfer will trigger an unconditional MGO at HK$10.62/share. 
• Yesterday, H-class shareholders approved a “Special Deal” at an EGM. And the share price closed above terms. That vote has nothing to do with the share transfer. Perhaps …

• Rollins, Inc. has reported its third-quarter results for 2025, highlighting several key areas of growth and operational efficiency.
• The company experienced a total revenue growth of 12%, driven by organic growth of 7.2%.
• Acquisitions, including Saela, further contributed to these results.

• The latest earnings call for Otis Worldwide Corporation reveals a mixture of positive growth metrics and ongoing challenges, providing a comprehensive overview for potential investors.
• On the positive side, Otis reported a return to growth, with organic sales increasing by 2% in the third quarter, driven primarily by the Service segment, which increased by 6%.
• Modernization sales showed a significant jump, with organic sales climbing 14%, reflecting a robust demand and effective order backlog conversion.

• Old Dominion Freight Line’s (ODFL) third quarter of 2025 results show mixed performance amid a challenging domestic economic environment.
• The company reported a 4.3% decline in revenue compared with the same period in 2024.
• This decrease was primarily driven by a 9% drop in Less-Than-Truckload (LTL) tons per day, which was only partially offset by a 4.7% increase in LTL revenue per hundredweight.

• Verisk Analytics, Inc.’s third quarter of 2025 performance presents a mixed picture with certain standout positives amid identifiable challenges.
• The company’s organic constant currency (OCC) revenue grew by 5.5% driven by an 8.7% rise in subscription revenue.
• This growth is indicative of Verisk’s strategic engagement with clients and the tailored solutions it offers, such as expanded data integration and upgraded AI enhancements.

• Fortive Corporation’s third-quarter 2025 earnings mark its first set of results following the spin-off of its Precision Technology segment, now Ralliant.
• The new structure aims to create a more focused company with a strategy centered on driving profitable organic growth, effective capital allocation, and boosting shareholder returns.
• During the quarter, Fortive executed well, achieving core growth of 2%, adjusted EBITDA growth of 10%, and a 15% increase in adjusted EPS year-over-year.

• Flowserve Corporation’s latest quarterly financial results and accompanying management commentary offer insights into the company’s current positioning and future prospects.
• The company reported a quarter characterized by strong performance indicators across several fronts, including a bookings surge, significant margin expansion, and improved earnings per share.
• These results are underpinning a more optimistic full-year guidance revision.

• CXW’s 3Q25 results beat our / consensus projections.
• Total revenue of $580.4m was well ahead of our $551m forecast and adjusted EPS excluding costs to reactivate idled facilities exceeded our/consensus EPS forecasts.
• Detention populations and revenue have not been impacted by the government shutdown.

• Enphase Energy recently released its Q3 2025 financial results, revealing a blend of promising advancements and emerging challenges.
• The company showcased robust revenue growth, reaching $410.4 million, marking the highest level in two years.
• This was driven by the shipment of 1.77 million microinverters and a record 195 megawatt-hours of batteries.

• Grupo Aeroméxico priced at $19.00 and closed at $20.35 (+7.1%), marking a solid first-day gain amid strong institutional demand.
• IPO reportedly 10x oversubscribed, driven by long-only and international accounts, signaling strong conviction in Aeroméxico’s turnaround and balance sheet discipline.
• With Apollo and Delta as backers, improving margins, and regional airline momentum, Aeroméxico’s IPO positions it for sustained flight in a recovering market.

• Cathay Pacific Airways (293 HK) has announced plans to acquire Qatar Airways’ 9.57% stake at HK$10.8374/share, or an outlay of HK$6.96bn (~US$890mn).
• Qatar Airways acquired this stake in November 2017 at HK$13.65/share. 
• Upon approval from the SFC (mainly granting a MGO waiver), Swire Pacific (19 HK)‘s stake in Cathay increases to 47.69% (from 43.12%); and Air China’s stake to 31.78% (from 28.74%).

• Cathay Pacific Airways (293 HK)‘s buyback of Qatar Airways’ 9.57% stake should enhance its FY26F EPS and ROE by 4.6% and 0.36pp, respectively. 
• With passenger traffic and load factor continuing to recover, the consensus forecast of a 24.2% YoY earnings decline in 2H25 is too conservative, suggesting upside surprise. 
• Its FY25-27F ROE is a record since 2013, with potential to trade up to 1.65x P/B (30%+ upside). It is also possible to be included in the HSI again.

• ICTSI (ICT PM) continued to maintain steady growth, with revenue/profit up 19%/26%YoY, led by TEU yields at 219 USD/TEU, up 6.5 %YoY, and volume growth of 12.3%YoY.
• The company recently highlighted that the Durban High Court dismissed APM’s legal challenge to ICT’s bid for the Durban Container Terminal, paving the way for a significant acquisition by FY26.
• Trading at 18.1x FY25e PE, 9.7x EV-EBITDA, and 3% dividend yield, a ~20% CAGR growth profile with a ~20% ROCE, this is a name to explore. 

• Bloom Energy’s recent quarterly earnings call highlighted both strong achievements and ongoing challenges.
• The company reported its fourth consecutive quarter of record revenue, driven largely by significant demand for its on-site power generation solutions, particularly in AI and data center markets.
• Bloom Energy has positioned itself as a key player in this industry by leveraging its innovative fuel cell technology.

• Revenue increased by 3.7% YoY to JPY32.9bn, while operating profit rose 4.7% YoY to JPY1.2bn.
• Gross profit reached JPY4.7bn (+6.7% YoY) with a gross profit margin of 14.3% (+0.4pp YoY).
• Segment profit for packaging-related products grew 2.2% YoY to JPY410mn, despite a 2.4% YoY revenue decrease.

• Westports Holdings (WPRTS MK) reported a solid Q3 FY25, with both operational revenue/profits up 16% YoY, driven by improving TEU Yields due to recent tariff hikes.
• Volumes were up only 4% YTD (6.3% in Q3FY25), but container rates are set to increase by 30% in a phased manner through Jan 2027, leading to margin expansion/profitability. 
• With the recent pullback, the stock trades at 17.3x/14x FY25e/26e and a 4% dividend yield. This is another solid name to explore in our container port terminal coverage. 

• Caterpillar Inc. reported its third quarter 2025 results, highlighting robust financial performance attributed to resilient demand across its primary business segments: Construction Industries, Resource Industries, and Energy & Transportation.
• Sales and revenues for the quarter reached an all-time record of $17.6 billion, a year-over-year increase of 10%.
• This growth was primarily fueled by higher sales volume, particularly in Energy & Transportation, which saw a 25% rise largely driven by demand in power generation and oil and gas sectors.

• In today’s edition: • Ahold Delhaize | holding on to our neutral stance despite solid 3Q25 results • KPN | post investor update event comment • Unilever/The MICC | conflict with Ben & Jerry’s flares up ahead of IPO • Wolters Kluwer | good growth acceleration in 3Q25; new buyback announced • AMG Critical Materials | upward revision of FY25 adjusted EBITDA outlook solely due to antimony (and not lithium) • BAM Group | reiterates to deliver adjusted EBITDA margin of at least 5% • CM.com | receives offer of EUR 5.16 per share from Bird • ForFarmers | 3Q25: impressive example of cost management (and more) • DHL | 3Q25: clear beat of consensus; reiterates FY25 guidance • bpostgroup | post earnings call comment • E-commerce & Logistics | French authorities attempting to block Shein website in France

• Armstrong World Industries, Inc. reported its third quarter 2025 earnings, revealing record-setting net sales and earnings, supported by strong performance in both its Mineral Fiber and Architectural Specialties segments.
• The company observed a 10% year-over-year increase in consolidated net sales, translating into robust quarterly results amidst a backdrop of market challenges.
• Positively, Armstrong World Industries’ Mineral Fiber segment recorded a 6% rise in net sales, driven by strong average unit value (AUV) growth and a slight increase in volumes.

• In 1H FY03/26, orders were JPY86.2bn (-16.3% YoY), revenue JPY107.3bn (+6.0% YoY), net income JPY5.0bn (+15.8% YoY).
• The company forecasts FY03/26 orders JPY230.0bn (+11.5% YoY), revenue JPY225.0bn (+1.5% YoY), net income JPY9.6bn (+8.6% YoY).
• Revenue and operating profit increased YoY in segments like automotive and healthcare, despite declines in other segments.

• Cathay Pacific Airways (293 HK) has announced plans to acquire Qatar Airways’ 9.57% stake at HK$10.8374/share, or an outlay of HK$6.96bn (~US$890mn).
• Qatar Airways acquired this stake in November 2017 at HK$13.65/share. 
• Upon approval from the SFC (mainly granting a MGO waiver), Swire Pacific (19 HK)‘s stake in Cathay increases to 47.69% (from 43.12%); and Air China’s stake to 31.78% (from 28.74%).

• Cathay Pacific Airways (293 HK)‘s buyback of Qatar Airways’ 9.57% stake should enhance its FY26F EPS and ROE by 4.6% and 0.36pp, respectively. 
• With passenger traffic and load factor continuing to recover, the consensus forecast of a 24.2% YoY earnings decline in 2H25 is too conservative, suggesting upside surprise. 
• Its FY25-27F ROE is a record since 2013, with potential to trade up to 1.65x P/B (30%+ upside). It is also possible to be included in the HSI again.

• ICTSI (ICT PM) continued to maintain steady growth, with revenue/profit up 19%/26%YoY, led by TEU yields at 219 USD/TEU, up 6.5 %YoY, and volume growth of 12.3%YoY.
• The company recently highlighted that the Durban High Court dismissed APM’s legal challenge to ICT’s bid for the Durban Container Terminal, paving the way for a significant acquisition by FY26.
• Trading at 18.1x FY25e PE, 9.7x EV-EBITDA, and 3% dividend yield, a ~20% CAGR growth profile with a ~20% ROCE, this is a name to explore. 

• Bloom Energy’s recent quarterly earnings call highlighted both strong achievements and ongoing challenges.
• The company reported its fourth consecutive quarter of record revenue, driven largely by significant demand for its on-site power generation solutions, particularly in AI and data center markets.
• Bloom Energy has positioned itself as a key player in this industry by leveraging its innovative fuel cell technology.

• Revenue increased by 3.7% YoY to JPY32.9bn, while operating profit rose 4.7% YoY to JPY1.2bn.
• Gross profit reached JPY4.7bn (+6.7% YoY) with a gross profit margin of 14.3% (+0.4pp YoY).
• Segment profit for packaging-related products grew 2.2% YoY to JPY410mn, despite a 2.4% YoY revenue decrease.

• Westports Holdings (WPRTS MK) reported a solid Q3 FY25, with both operational revenue/profits up 16% YoY, driven by improving TEU Yields due to recent tariff hikes.
• Volumes were up only 4% YTD (6.3% in Q3FY25), but container rates are set to increase by 30% in a phased manner through Jan 2027, leading to margin expansion/profitability. 
• With the recent pullback, the stock trades at 17.3x/14x FY25e/26e and a 4% dividend yield. This is another solid name to explore in our container port terminal coverage. 

• Caterpillar Inc. reported its third quarter 2025 results, highlighting robust financial performance attributed to resilient demand across its primary business segments: Construction Industries, Resource Industries, and Energy & Transportation.
• Sales and revenues for the quarter reached an all-time record of $17.6 billion, a year-over-year increase of 10%.
• This growth was primarily fueled by higher sales volume, particularly in Energy & Transportation, which saw a 25% rise largely driven by demand in power generation and oil and gas sectors.

• In today’s edition: • Ahold Delhaize | holding on to our neutral stance despite solid 3Q25 results • KPN | post investor update event comment • Unilever/The MICC | conflict with Ben & Jerry’s flares up ahead of IPO • Wolters Kluwer | good growth acceleration in 3Q25; new buyback announced • AMG Critical Materials | upward revision of FY25 adjusted EBITDA outlook solely due to antimony (and not lithium) • BAM Group | reiterates to deliver adjusted EBITDA margin of at least 5% • CM.com | receives offer of EUR 5.16 per share from Bird • ForFarmers | 3Q25: impressive example of cost management (and more) • DHL | 3Q25: clear beat of consensus; reiterates FY25 guidance • bpostgroup | post earnings call comment • E-commerce & Logistics | French authorities attempting to block Shein website in France

• Armstrong World Industries, Inc. reported its third quarter 2025 earnings, revealing record-setting net sales and earnings, supported by strong performance in both its Mineral Fiber and Architectural Specialties segments.
• The company observed a 10% year-over-year increase in consolidated net sales, translating into robust quarterly results amidst a backdrop of market challenges.
• Positively, Armstrong World Industries’ Mineral Fiber segment recorded a 6% rise in net sales, driven by strong average unit value (AUV) growth and a slight increase in volumes.

• In 1H FY03/26, orders were JPY86.2bn (-16.3% YoY), revenue JPY107.3bn (+6.0% YoY), net income JPY5.0bn (+15.8% YoY).
• The company forecasts FY03/26 orders JPY230.0bn (+11.5% YoY), revenue JPY225.0bn (+1.5% YoY), net income JPY9.6bn (+8.6% YoY).
• Revenue and operating profit increased YoY in segments like automotive and healthcare, despite declines in other segments.