In today’s briefing:
- The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra
- Buybacks, Dividends Define Telstra’s Future
- Mercari (4385 JP): Japan’s Leading C2C Trading App at 14x P/E with Margin Uplift Potential
- Aurora World – Palm Pals and YooHoo or Chairman’s Love of Golf?
- Metaplanet (3350) | The Slowing Flywheel: Can Metaplanet Sustain Its Bitcoin Ambition?
- Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?
- Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!
- BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?
- Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
- Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?
The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra
- EIEL is strategically expanding into high-margin Zero Liquid Discharge (ZLD) projects and the renewable energy sector, diversifying its business beyond its traditional water and wastewater treatment core.
- This strategic shift is crucial as it addresses critical national challenges like water scarcity and sustainable energy, aligning the company with major government initiatives and creating new, high-growth revenue streams.
- By entering these technically complex and margin-accretive segments, the company is changing its business model to a diversified infrastructure player with enhanced long-term growth and profitability potential.
Buybacks, Dividends Define Telstra’s Future
- Telstra is guiding to subdued mobile growth in FY26 as the cost of living bites.
- Earnings growth relies on cost cutting and satellite development.
- -Telstra’s FY25 in line, FY26 prognosis subdued -Cost of living driving customers to cheaper options -Major staff reductions to drive cost-outs -Satellite service critical to maintaining dominance
Mercari (4385 JP): Japan’s Leading C2C Trading App at 14x P/E with Margin Uplift Potential
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Aurora World – Palm Pals and YooHoo or Chairman’s Love of Golf?
- Aurora World reported excellent results in 2Q 2025. It had sales of 77.1 billion won (up 26.5% YoY) and operating profit of 8.8 billion won (up 86.7% YoY).
- The company’s excellent results in 2Q 2025 was driven by the continued strong demand for its character toys (Palm Pals, YooHoo & Friends, and Rolly Pets) in key overseas markets.
- If we attach a 10x P/E on estimated net profit of 30.1 billion won, it would suggest a market cap of 301 billion won (2026E) (37% upside from current levels).
Metaplanet (3350) | The Slowing Flywheel: Can Metaplanet Sustain Its Bitcoin Ambition?
- Metaplanet’s equity halved since June, slowing its bitcoin accumulation flywheel as mNAV collapsed from 8x to 2.1x, straining progress toward the 30,000 BTC target.
- Despite headwinds, ¥154b raised via SAR and new perpetual preferred shares expand funding capacity, though near-term headroom of ¥80b remains modest relative to ambitions.
- September’s EGM may prove pivotal; beyond share amendments, a potential U.S. listing via Metaplanet Treasury Corp could signal intent to access deeper capital markets.
Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?
- Kyndryl, a prominent player in mission-critical enterprise technology services, presented its earnings results for the first fiscal quarter ending June 30, 2025.
- The company’s financial performance showcased notable progress alongside certain challenges, reflecting the ongoing transformation and strategic initiatives implemented since the spin-off from IBM.
- The company reported revenue of $3.7 billion for the quarter, an increase on a reported basis but a decline of 2.6% in constant currency.
Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!
- Allison Transmission’s recent earnings call highlighted a mix of strategic initiatives, industry achievements, and both financial performance and adjustments that are significant to potential investors.
- The acquisition of Dana Incorporated’s Off-Highway business reflects a key strategic move to broaden the company’s global reach, diversify its markets, and optimize its operational efficiencies.
- This transaction, which carries a purchase price of approximately $2.7 billion, is expected to extend Allison Transmission’s capabilities into additional markets, such as agriculture and construction, while promising significant synergy benefits of up to $120 million annually.
BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?
- BWX Technologies, Inc., presented robust financial results for the second quarter of 2025, showcasing a strong operational performance that exceeded expectations.
- The key highlights of the quarter include double-digit growth in adjusted EBITDA and earnings per share, alongside substantial free cash flow.
- A significant contributor to the company’s promising outlook is the recently closed acquisition of Kinectrics, expanding BWXT’s capabilities in the nuclear power and energy infrastructure markets.
Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
- Sterling Infrastructure delivered an impressive performance in the second quarter of 2025, showing significant growth in revenue, earnings, and margins, while also enhancing its financial outlook for the remainder of the year.
- The company reported a 21% increase in overall revenue, driven largely by its E-Infrastructure and Transportation Solutions segments, which grew by 29% and 24% respectively.
- Sterling’s strategic emphasis on scaling high-margin businesses, particularly in the data center market, stands out as a catalyst for its robust financial results.
Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?
- AECOM’s third-quarter performance for fiscal 2025 highlighted several key accomplishments, challenges, and strategic insights that are crucial in evaluating the company’s investment profile.
- As disclosed in their earnings call, AECOM achieved record results across multiple financial metrics, including a 6% year-over-year increase in organic net service revenue (NSR) with an 8% increase in the Americas segment alone, indicating robust fundamentals in its core markets.
- 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.
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