In today’s briefing:
- StubWorld: AviChina (2357 HK) Coming Up “Cheap”
- Dongfang Electric Placement: Second Primary Raise of the Year
- HMM: Results of the Tender Offer
- The Beat Ideas- SRM Contractors: A Niche Play in India’s Infrastructure Push
- Buyback Consideration Surges 80% in 2025 to S$1.65B
- Samsung Heavy Industries – Premium Sustained, Delivery the Key
- Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists
- What’s New(s) in Amsterdam – 17 September (InPost | PostNL)
- [research alert] TKH Group | besides a set of attractive financial targets
- WaterBridge Infrastructure LLC (WBI): High-End Pricing Leads to Solid IPO Debut
StubWorld: AviChina (2357 HK) Coming Up “Cheap”
- Down 18% in the past month, fundamentals for AviChina Industry & Technology H (2357 HK), one of China’s leading aviation/defense plays, still appear demanding.
- Preceding my comments on AviChina are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Dongfang Electric Placement: Second Primary Raise of the Year
- Dongfang Electric (1072 HK) is looking to raise around US$141m from a primary placement.
- The deal is a small one, representing 3.2 days of the stock’s three month ADV, and 1.5% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework
HMM: Results of the Tender Offer
- On 17 September, HMM Co., Ltd. (011200 KS) announced the results of the tender offer.
- Its two largest shareholders (Korea Development Bank – KDB and Korea Ocean Business Corp – KOBC) both participated in the tender offer.
- With end of the tender offer, we believe there could be a renewed focus on the continued decline in the global shipping rates which is negative on HMM.
The Beat Ideas- SRM Contractors: A Niche Play in India’s Infrastructure Push
- SRM Contractors (SRM IN)‘s strategic focus on high-margin projects like tunnels and slope stabilization, positions it to benefit from the government’s infrastructure push.
- Company has given guidance of INR 900Cr of revenue and 500bps margin improvement in the coming year.
- Order book reached a record INR 1,476 crore as of Aug-25, giving strong revenue visibility for the next two to three years, equivalent to approximately 2.8 times its FY25 revenue.
Buyback Consideration Surges 80% in 2025 to S$1.65B
- In 2025, 76 primary-listed companies in Singapore executed share buybacks totaling S$1.65 billion, an 80% increase from 2024.
- UOB, DBS, and OCBC led buybacks with a combined S$1.28 billion, driven by capital management initiatives and dividends.
- Secondary-listed Hongkong Land repurchased US$176 million shares, while City Developments completed an off-market buyback of preference shares.
Samsung Heavy Industries – Premium Sustained, Delivery the Key
- Backlog nudged up to ~US$33.4B (~3.2× revenues) with August LNGC wins and offshore pre-work added since May; further upside hinges on large offshore FIDs.
- Q1 FY2025 showed solid YoY operating growth (+58%) but a seasonal QoQ dip; EPS conversion remains diluted by financing and FX costs.
- FY25 P/E (~45×) appears elevated, EPS growth and offshore execution are expected to compress multiples into the mid-20s by FY27, aligning with peers.
Sojitz – Non-Resource Pivot in Motion, Valuation Discount Persists
- Sojitz is a mid-tier sōgō shōsha with, shifting its earnings base from coal and resources toward Chemicals, Energy Solutions, and Healthcare.
- FY25 profit is guided flat at ¥115bn, with Metals weakness offset by non-resource growth; by FY27, ~80% of profits are expected from non-resource segments.
- Shares trade at 7.8x P/E (30–40% discount to peers) with a 4.2% yield, but cash flow volatility, coal exposure, and smaller scale remain key overhangs.
What’s New(s) in Amsterdam – 17 September (InPost | PostNL)
- In this edition: • InPost | Allegro teams up with DPD on delivery program • PostNL | to present 2028 strategy and targets today
[research alert] TKH Group | besides a set of attractive financial targets
- On September 25, TKH will host its Capital Market Day to update its strategy and financial targets.
- Regarding its strategy, the company gave a sneak preview when presenting its FY24 results.
- It stated that in the upcoming strategic phase, the company will focus on Automation and Electrification.
WaterBridge Infrastructure LLC (WBI): High-End Pricing Leads to Solid IPO Debut
- The Delaware Basin-focused water infrastructure provider priced 31.7 million shares at $20.00, the high end of its $17–$20 range, after upsizing from 27.0 million shares on robust demand.
- Shares opened at $25.00, giving early investors a 25% premium, before selling off into the close at $22.83.
- With Five Point’s backing, a growing project pipeline, and favorable positioning in the Delaware Basin, the company enters public markets on solid footing.
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