In today’s briefing:
- Aux Electric IPO (2580 HK): Valuation Insights
- Quiddity Leaderboard T50/100 Sep25: Final Expectations; Tung Ho Steel Safe from TDIV Deletion
- Owens Corning: Initiation of Coverage- Unlocking $125 Million in Doors Synergies—Will Integration Drive a Margin Breakthrough?
- A New Era for Jardine Matheson: An Under-The-Radar Transformation.
- AUX Electric IPO: Low-Price AC Strategy Drives Top Line Growth; Limited Upside to Margins
- Shuangdeng Group IPO Trading: Strong Retail and Insti Demand
- ZTO Express Q225 Results: No ‘Good’, Just the ‘Bad’ and the ‘Ugly’
- MHI (7011 JP) Q1 Beat: Record Backlog & Policy Tailwinds Support Premium Valuation
- Wave Of Director Acquisitions as Local Rally Takes a Breather
- Legence Corp. (LGN): Peeking at the IPO Prosepctus of Blackstone Backed Engineering Firm
Aux Electric IPO (2580 HK): Valuation Insights
- Aux Electric (2580 HK) is the fifth-largest air conditioner provider globally as measured by volume. It has launched an HKEx IPO to raise up to US$462 million.
- I discussed the investment case in Aux Electric IPO: The Investment Case.
- In this note, I present my forecasts and valuation. My analysis suggests that the IPO price is attractive.
Quiddity Leaderboard T50/100 Sep25: Final Expectations; Tung Ho Steel Safe from TDIV Deletion
- The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
- Today is the base date for the September 2025 index rebal event and the expected ADDs/DELs discussed in this insight are our final index change expectations.
- We expect two changes for T50 and five changes for the T100 index for the September 2025 rebal.
Owens Corning: Initiation of Coverage- Unlocking $125 Million in Doors Synergies—Will Integration Drive a Margin Breakthrough?
- Owens Corning’s second quarter of 2025 demonstrated a blend of strategic advancement and lingering market challenges.
- The company reported a 10% revenue increase compared to the prior year, with revenues reaching notable highs due partly to the addition of its Doors business in May of the previous year.
- This addition reflects strategic diversification efforts to capture a larger share of the building products market in North America and Europe despite a softening market environment.
A New Era for Jardine Matheson: An Under-The-Radar Transformation.
After Ben Keswick took over Jardine Matheson, the company has slowly transitioned away from being an owner-operator to more of a portfolio manager.
The privatization of Jardine Strategic was under-priced, but it also simplified the corporate structure. That should be positive for minorities in the long term.
Jardine Matheson’s own board has now been stacked with private equity professionals. And new CEO Lincoln Pan comes from private equity firm PAG, where he built up its non-China business.
AUX Electric IPO: Low-Price AC Strategy Drives Top Line Growth; Limited Upside to Margins
- AUX Electric is one of the top 5 air conditioner providers globally whose low-price strategy has helped expand its top line and market share in a short span of time.
- Aux Electric (2580 HK) has filed for an IPO on HKEx and plans to raise proceeds of around US$460m through the issuance of 207m shares.
- AUX’s low-price strategy and higher share of ODM brands have led to margins that are lower than domestic AC peers Gree Electric Appliances (000651 CH) and Midea Group (300 HK) .
Shuangdeng Group IPO Trading: Strong Retail and Insti Demand
- Shuangdeng Group Co Ltd (JISHUZ CH) raised around US$109m in its Hong Kong IPO.
- It is a global leader in the energy storage business.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
ZTO Express Q225 Results: No ‘Good’, Just the ‘Bad’ and the ‘Ugly’
- The Bad: Margins & cash flow both declined sharply compared to Q224
- The Ugly: ZTO cut FY25 parcel volume growth target after a sluggish H1
- With no signs of a turnaround in sight, we retain our negative view of ZTO
MHI (7011 JP) Q1 Beat: Record Backlog & Policy Tailwinds Support Premium Valuation
- MHI posted Q1 FY25 revenue +7% and business profit +25% with resilient Energy/Aero margins.
- Orders/Backlog/Guidance: Order intake fell 4% on tough comps, but backlog hit a record ¥10.8 tn (2.1× cover); FY25 guidance of ¥4.95 tn revenue and ¥380 bn profit maintained.
- Valuation/Growth: Shares trade at ~19× FY27E EV/EBITDA vs peers at 10–15×, supported by 5–6% revenue CAGR and ~9–10% EPS CAGR through FY28.
Wave Of Director Acquisitions as Local Rally Takes a Breather
- Institutions were net sellers of Singapore stocks with a net outflow of S$53 million from August 15-21.
- ISOTeam secured S$22.5 million in new contracts, boosting its order book to S$181.1 million for 24 months.
- Q & M Dental Group raised S$130 million from a Multicurrency Debt Issuance Programme for organic expansion and M&A.
Legence Corp. (LGN): Peeking at the IPO Prosepctus of Blackstone Backed Engineering Firm
- Private equity giant Blackstone is bringing a system services company public in September.
- Revenue increased $78.1 million, or 15%, during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
- As of June 30, 2025, they had $2.8 billion of backlog and awarded contracts, representing an increase of 29% over the same date last year.
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