Daily Brief Industrials: Axon Enterprise , Hanwha Ocean , POSCO Holdings, Minebea Mitsumi, Sumitomo Corp, WaterBridge Infrastructure and more

• Axon reported strong Q2 earnings with 30% year-over-year growth and strong performance in both connected devices and software segments
• The company has been exceeding growth expectations, with 14 consecutive quarters of over 25% growth and 6 consecutive quarters of over 30% growth
• Axon has been focusing on leveraging AI technology to improve efficiency for police officers and drive growth in their software and services segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
• Hanwha Ocean’s share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
• We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean’s stock price.

• The biggest potential M&A event right now in Korea is the potential acquisition of HMM Co., Ltd. (011200 KS) by POSCO Holdings (005490 KS).
• Overall, we believe there is a higher probability of POSCO backing out of this potential acquisition of HMM, rather than POSCO completing this M&A deal.
• Although POSCO claims that it spends about 3 trillion won annually on logistics, the actual synergies among these three businesses (steel, rechargeable battery, and logistics) remain murky.

• Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
• Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
• Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.

• Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
• The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
• Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.

• WaterBridge Infrastructure filed for IPO on August 22nd and is to likely debut in late September or Early October.
• Their customers include active and well-capitalized E&P companies in the areas in which they operate, including BPX Energy, Chevron, Devon Energy Corporation, EOG Resources and Permian Resources.
• They had total revenue of 167.8 million and $166.3 million and net loss of $44.5 million and $29.8 million in the first half of 2024 and 2025, respectively.