In today’s briefing:
- The Mosaic Company: Riding The Fertilizer Boom With Pricing Power & Market Edge!
- Jiaxin International Resources Investment IPO – No Track Record, Government Supported
- The Beat Ideas: Lumax Auto Technologies – Accelerating Ahead with the 20.20.20.20 Strategy
- [IO Technicals 2025/34] Iron Ore Braces for Bullish Shift After Six-Day Slide
- The Equity Dispatch #48: SLB: Papering Over the Problems Is Making Them Worse
- JFE Holdings (5411 JP) – Soft Q1 Priced In; Compelling Upside from Lowest EV/Ton in Peers
- Westlake Corporation Is Riding The Infrastructure Boom — Can Water Products Secure Long-Term Growth?
- Panoro Energy ASA (OSE: PEN): Large cash build-up expected in 2H25
- SCZ: Another Quarter of Strong Cashflow & Lower Costs
- Deals, Recycling, Research And AI Power Thailand’s Rubber Shift
The Mosaic Company: Riding The Fertilizer Boom With Pricing Power & Market Edge!
- The Mosaic Company recently shared its financial results for the second quarter of 2025, showcasing a mixed performance largely characterized by operational challenges but an optimistic future outlook.
- The company’s efforts to enhance operating efficiencies and asset reliability are starting to bear fruit, though certain operational interruptions have impacted short-term outcomes, particularly in the phosphates segment.
- For the quarter, The Mosaic Company reported net income of $411 million, a significant turnaround from last year’s net loss of $162 million.
Jiaxin International Resources Investment IPO – No Track Record, Government Supported
- Jiaxin International Resources Investment Limited (JIRI) is looking to raise around US$153m in its upcoming Hong Kong IPO.
- Jiaxin International owns exclusive rights to a globally significant tungsten asset, supported by Jiangxi Copper. Commercial production began in April 2025, with full ramp-up expected by 2027.
- We have looked at the company’s background in our earlier note, in this note we talk about the deal pricing.
The Beat Ideas: Lumax Auto Technologies – Accelerating Ahead with the 20.20.20.20 Strategy
- Lumax’s strong product portfolio, global partnerships, and 80% market share in key segments position it as a dominant player in India’s automotive component industry.
- Lumax’s strategic acquisitions, including IAC India and GreenFuel Mobility, and the “NorthStar Strategy” aim to drive revenue growth, operating margins, and leadership in clean mobility solutions.
- Lumax’s SHIFT project enable technological integration, enhancing product offerings and content per vehicle, positioning LATL for long-term growth in the automotive market.
[IO Technicals 2025/34] Iron Ore Braces for Bullish Shift After Six-Day Slide
- Iron ore drops on Tangshan curbs, but stable hot metal output underpins near-term price support.
- Managed money participants remain net long in iron ore, but softer buying momentum signalled profit-taking.
- Mean reversion and bullish MA crossover signal upside potential for the 62%/65% spread.
The Equity Dispatch #48: SLB: Papering Over the Problems Is Making Them Worse
- Since our last newsletter addressing concerns about Schlumberger NV (SLB) dated in October of 2023, the company’s share price has fallen by 41% on an absolute basis, while the S&P 500 is up 50.4% over the same period.
- For a company with a market capitalization of $49.2 bln, this is significant.
- Our primary concerns were that SLB had potential write offs related to outstanding receivables from its Mexican PEMEX customer as well as continued exposure to Russia.
JFE Holdings (5411 JP) – Soft Q1 Priced In; Compelling Upside from Lowest EV/Ton in Peers
- Q1 FY2025 was weak with Steel swinging to losses (–¥2,300/t) on spreads, FX, and inventory drag, leaving recovery hinging on H2.
- We retain our FY25–28 earnings estimates, assuming stable ~15–16% EBITDA margins and volume growth to 31.6 Mt by FY28.
- At ~US$525/t EV/t (adj.), JFE trades at a deep discount to Nippon Steel, but upside depends on spreads stabilizing and tariff risks not worsening.
Westlake Corporation Is Riding The Infrastructure Boom — Can Water Products Secure Long-Term Growth?
- Westlake Corporation’s second-quarter 2025 performance reveals a complex interplay of factors impacting its two primary segments: Housing and Infrastructure Products (HIP) and Performance and Essential Materials (PEM).
- In the HIP segment, Westlake experienced an uptick in performance, reflecting solid EBITDA of $275 million on sales of $1.2 billion, which translates to a strong margin of 24%.
- This was fueled by increased demand for pipe and fittings, particularly in municipal water infrastructure, supported partly by the 2021 Infrastructure Act.
Panoro Energy ASA (OSE: PEN): Large cash build-up expected in 2H25
- • 2Q25 production of 11,064 bbl/d had already been reported.
- The production was impacted by unplanned downtime at Ceiba (~5,000 bbl/d gross or ~700 bbl/d net to Panoro’s 14.25% WI).
- Remedial works are expected to restore production in 4Q25.
SCZ: Another Quarter of Strong Cashflow & Lower Costs
- What you need to know: • Santacruz reported Q2 revenue of $73.3M (+4% YoY) vs. our estimate of $72.1M on a 15% decline in produced ounces.
- • However, cost reduction was a theme for the quarter, with cash costs coming in at $19.48/oz vs. our estimate of $22.6/oz.
- This led to adjusted EBITDA of $26.8M compared to our estimate of $21.0M and $16.0M reported in Q2/24.
Deals, Recycling, Research And AI Power Thailand’s Rubber Shift
- Bridgestone reshapes carbon black strategy with Tokai Carbon
- Hanwa invests in Thai tyre pyrolysis venture
- Sri Trang bets on AI and workforce upskilling
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