Daily Brief Industrials: ANE Cayman Inc, Adani Ports & Special Economic Zone, Spindex Industries, Tuhu Car , Legalzoom.com , Itoki Corp, Guangdong Tianyu Semiconductor, Tsubakimoto Kogyo, AF Legal Group Ltd and more

• The consortium has decided NOT to exercise its right to increase the ANE Cayman Inc (9956 HK) share alternative cap from 5.00% to 7.50% of outstanding shares. 
• The positive read-across is that it signals the consortium’s confidence that the vote will pass, as reflected in the quick decision not to lift the cap (deadline was 12 December). 
• The negative readacross is that shareholders requesting the scrip option likely exceeded the 7.5% upper threshold, and the consortium is hoping that these shareholders will instead take the mix option.

• Since inception (May 15th), our Model Portfolio has appreciated 17.0% – same as MSCI Asia-ex Japan.  Since the last rebalancing (7th November) our Portfolio declined 2.5% vs MXASJ’s 1.3% drop.
• The recent underperformance came from drawdowns in Tencent Music, Tencent, Alibaba, Hynix, Hyundai Rotem, TSMC. We reduce the first two slightly, exclude BBCA, include Adani Ports, SCB, MAPI, HK Land.
• We remain Overweight HK/China and Korea. We upgrade India to Overweight from Neutral, Thailand from Underweight to Neutral, and downgrade Indonesia to Underweight from Neutral. Stay Underweight Taiwan, Neutral Singapore.

• On the 26th September, precision parts manufacturer Spindex Industries (SPE SP) announced an Offer, by way of a Scheme, from the Tan Family, Spindex’s controlling shareholder, with 74.95%.
• The Tan’s offered S$1.43/share, an okay 27.7% premium to undisturbed; but a decade-high price. A A$0.02/share was also bolted on (& now paid). No competing Offer will emerge.
• The Scheme Booklet is now out, with a Scheme Meeting on the 18th December, and expected payment on the 11th Feb 2026. The IFA (Evolve Capital) says “fair & reasonable“.

• The Spindex Industries (SPE SP) IFA has opined that the Chairman and PrimeMovers Equity’s scheme offer of S$1.43 is fair and reasonable.
• The offer is at the upper end of the IFA valuation range of S$0.71 and S$1.44. The offer is at adjusted NAV and is attractive compared to historical trading ranges.
• The absence of a disinterested shareholder holding a blocking stake and moderate retail ownership reduces voting risk. This is a done deal.

• Tuhu sets up operations in Malaysia, its first overseas expansion outside of Greater China.
• We think Tuhu can dominate the market within 3-4 years, as there are no local establishments that can match its infrastructure, know-how, and capital base. 
• Fair value of HKD23 implies 22x FY26 PE – average for US peers. A bargain with 3-year CAGR of 30%, net cash, and churns high free cash flow.

• LegalZoom is the market leader in the online legal services industry, benefiting from strong brand recognition and a large customer base. The company is strategically shifting its focus towards higher-margin subscription services to create a more predictable, recurring revenue stream.
• The company exhibits a strong financial profile with consistent revenue growth, expanding EBITDA margins, and a debt-free balance sheet. This financial stability supports investments in technology, strategic acquisitions, and share repurchase programs.
• Key risks to the outlook include intense competition from both established players and new entrants, potential regulatory changes concerning the unauthorized practice of law, and a high dependency on the macroeconomic environment which influences the rate of new business formations.

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• Structural demand meets sustained value creation – The role of the office is undergoing a structural shift—driven by talent attraction, hybrid work, wellness, and technology.
• As a key domestic player in office design and furniture, we believe Itoki is well-positioned to benefit from this structural theme.
• Post-COVID demand momentum remains steady, supported by rising investment in human capital, persistent labour shortages, and limited new office supply. 

• Guangdong Tianyu Semiconductor (2223725D CH) raised around US$224m in its HK IPO.
• It was founded in 2009, and is the largest domestic PRC SiC epitaxal wafer manufacturer both in terms of revenue and sales volume, as of 2024.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Tsubakimoto Kogyo Co., Ltd. (hereafter, the Company) announced H1 FY2026/3 results on October 31, 2025.
• The Company worked through its large order backlog and delivered results in line with its plan, recording double-digit growth in both net sales and profit.
• Although orders for China declined due to the absence of large projects and Nissan Motor’s production restructuring, this was offset by stronger demand for labor- saving equipment and other equipment-related products, allowing the Company to maintain order levels roughly the same level as the previous year, which SIR views positively.

• AFL is executing a roll-up strategy in the highly fragmented Australian family law market, driving strong revenue growth through acquisitions.
• Significant profitability challenges persist, evidenced by a statutory net loss in 2023 and razor-thin margins in 2025, raising concerns about the sustainability of its acquisition-led model.
• The company’s valuation appears stretched, with a P/E ratio of 100, which seems disconnected from its volatile earnings and the inherent risks of integrating numerous small law practices.

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