Daily Briefs

• KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
• The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
• If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.

• MHI has delivered a strong turnaround over the past four years, with revenue up 26% and business profit expanding nearly 10x from FY22 to FY25
• The consolidated order backlog crossed ¥10.2 trillion in FY25, up ~22% YoY, offering ~2 years of forward revenue visibility and skewed toward high-margin Energy and Defense segments.
• While the stock has rallied sharply, management’s solid FY25–30 guidance, along with structural tailwinds from energy transition and defense spending, continue to underpin the long-term thesis.

• MHI is up nearly 60% year-to-date to 46x management’s EPS guidance for FY Mar-26 and 27x our EPS estimate for FY Mar-30.
• By then, we expect Air, Defense & Space revenues to double and the division’s operating margin to rise from 10% to 15%, which is the likely cap on profitability. 
• Given Japan’s uncertain finances and the long time horizon that should already be discounted, we recommend profit taking. 

• KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities. 
• Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC. 
• While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

• Unlocking improved earnings potential – By prioritizing high-quality business opportunities, INTLOOP continues to improve OPM YoY, reflecting stronger operating efficiency.
• Q1-3 FY7/25 results were ahead of unchanged FY guidance, with the company continuing to invest in scaling capacity with new senior mid-career hires as well as graduates.
• Management believes there is further upside to margin expansion through profit-focused sales activities and price revisions. 

• Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing.
• Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost & Sullivan.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• The Interims to March 2025 were reported on 3rd of June from the re-named designer and manufacturer of high-pressure containment products and services serving the global energy, defence, and industrial gases market.
• Disappointingly, revenues of £5.4m were 16.9% lower causing the gross profit margin to decline to 18.5% from 23.1%, with an EBITDA loss of £1.3m compared to an EBITDA loss of £0.7m in FY H1 2024.
• The lower revenue reflects the phasing of contracts weighted heavily to H2 and thereby also affecting the margins due to the business’ fixed costs. 

• COPRO-HOLDINGS. Co., Ltd., (hereafter, the Company) announced the full year results for FY2025/3 after the market close on Thursday, May 15, 2025.
• The key consolidated figures are net sales of JPY 30,015 mn (+24.6% YoY), gross profit of JPY 8,308 mn (+22.6% YoY), operating profit of JPY 2,763 mn (+29.1% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,820 mn (+24.4% YoY).
• COPRO Construction. Co., Ltd. (hereafter, COPRO CN), which operates the Company‘s core business of construction technician dispatching contributed significantly to results of strong growth due to record recruiting.

• FY2025/5 Q3 Results｜On April 10, 2025, OHBA (hereafter, the Company) announced its Q3 FY2025/5 results.
• Due to the seasonal nature of its business, which tends to concentrate earnings in Q4, progress rates toward the full-year plan appear low at first glance, with net sales at 68.6% and operating profit at 62.3%.
• However, SIR believes the Company is steadily progressing toward achieving its full-year targets of 6.1% YoY sales growth and 5.8% YoY operating profit growth. 

Following the disposal of its Precision Machined Components (PMC) division, Chesterfield Special Cylinders (CSC) is moving forward as a focused, specialist high-pressure cylinder business, as reflected in the recent change of name (formerly Pressure Technologies). As part of this strategy, management has set out ambitious targets for 30% sales growth and EBITDA margins of >12% by 2028. H125 results are unexciting but the strong order book supports management confidence for positive EBITDA in FY25, putting CSC firmly on the right trajectory. Key will be the speed at which the defence (75% of FY24 sales) and hydrogen (11%) activities, both expected to be supported by positive fundamentals, can grow.