In today’s briefing:
- Nikkei 225 Sep25 Rebal: One ADD, One DELETE Probable – Less Interesting Than Before
- Makino Milling Machine (6135 JP): State of Play
- IGI Faces Headwinds: Growth Concerns, Market Risks & Uncertainties
- DN Solutions IPO Might Skip OC—A Unique Trading Opportunity
- LS Corp: Chairman’s Words Have Big Impact on Share Price
- COSCO Shipping Ports (1199 HK): What’s Interesting After the CKH Port Sale?
- Sigenergy Technology Pre-IPO Tearsheet
- What’s News in Amsterdam – 6 March (Intl. Distribution Services / PostNL | Havas | DHL)
- Fluence Corp Ltd – Smoother water ahead
- Clean Harbors Inc.: Can Its Increase In Incineration Capacity Help Alter The Playing Field?
Nikkei 225 Sep25 Rebal: One ADD, One DELETE Probable – Less Interesting Than Before
- The March 2025 Nikkei 225 review came out with a sparse set of changes. That gives us hints for the September 2025 review.
- I see one ADD and one DELETE. Fast Retailing capping is right on the border. BayCurrent will see an upweight.
- The lack of effort to address sector imbalances within the rules suggests the rules are not as hard as people thought. Intra-review changes could be more interesting in years ahead.
Makino Milling Machine (6135 JP): State of Play
- On 27 December, Nidec Corp (6594 JP) announced a hostile preconditional tender offer for Makino Milling Machine Co (6135 JP) at JPY11,000 per share.
- The Board has raised several issues with the Nidec proposal through two questionnaires. Some assertions are valid, while others do not stand up to scrutiny.
- The Board has launched an ambitious MTM plan to thwart the offer and hinted at potential competing offers. Nidec’s offer increasingly needs a bump.
IGI Faces Headwinds: Growth Concerns, Market Risks & Uncertainties
- Steep fall in diamond prices leading to slowdown in demand for certification services since its not viable as much for a consumer as it used to be.
- A leading jeweller in India reiterated that certification demand for diamonds is slowing down due to changing consumer preferences.
- The International Gemmological Institute, the leading certification agency, is now facing headwinds evident from earnings growth slowdown.
DN Solutions IPO Might Skip OC—A Unique Trading Opportunity
- With cautious foreign interest, DN Solutions’ big IPO deal might skip the OC and go full local for bookbuilding, setting a new trend in Korean IPOs.
- If foreign anchor orders drop, local players gain more negotiating power, leading to aggressive bidding and potentially a way more conservative IPO price.
- Offshore funds passing investment review without an OC could grab more volume, benefiting from local-led down-pricing without lock-up restrictions.
LS Corp: Chairman’s Words Have Big Impact on Share Price
- On 6 March, LS Group Chairman Koo Ja-Eun publicly stated “If you think duplicate listings are a problem, then just don’t buy the stocks after the listing.”
- Chairman Koo’s comment was not in the best interest of the major LS Group companies including LS Electric and LS Corp that are publicly traded.
- LS Group is preparing to list at least five unlisted affiliates including LS E-Link, Essex Solutions, LS Cable, LS MnM, and KOC Electric in the next 1-3 years.
COSCO Shipping Ports (1199 HK): What’s Interesting After the CKH Port Sale?
- Following CK Hutchison Holdings (1 HK)‘s port disposal, Cosco Shipping Ports (1199 HK) looks interesting, given its portfolio of port projects, which spans globally.
- Overseas ports accounted for 38.9% of its noncurrent assets. A disposal of half of such portfolio will generate HK$15.2bn of cash flow, equalling almost 89% of its market capitalisation.
- Even without corporate activities, its 6.4x PER, 6.7% dividend yield, and 11.8x EV/EBITDA are inexpensive. The 0.36x P/B for FY25 also deeply undervalued its assets.
Sigenergy Technology Pre-IPO Tearsheet
- Sigenergy (SIG CH) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CITIC and BNP Paribas.
- It provides renewable energy solutions, catering to 1) residential, 2) commercial, and 3) industrial applications.
- The group markets and sells to distributors and primarily serves the European market.
What’s News in Amsterdam – 6 March (Intl. Distribution Services / PostNL | Havas | DHL)
- In this edition: • IDS / PostNL | CAT greenlights GBP 878.5m class action case against Royal Mail • Havas | reiterates guidance; 1 for 10 reverse stock-split; ask for approval share buyback • DHL | better than expected fourth quarter thanks to focus on yield
Fluence Corp Ltd – Smoother water ahead
- Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
- The company has released its FY24 full year result which is in line with previously amended guidance.
- The Q4 cashflow statement and a Q4 financial and operating update was released in January 2025 and included significant detail and guidance for FY25.
Clean Harbors Inc.: Can Its Increase In Incineration Capacity Help Alter The Playing Field?
- Clean Harbors presented both positive and negative elements in its fourth-quarter and full-year 2024 financial results, demonstrating the company’s position in the environmental and industrial services sector.
- The company achieved a strong year with consolidated EBITDA growth of 10%, buoyed by its Environmental Services (ES) segment’s solid performance.
- This segment marked an increase in momentum, leading to a 9% revenue growth with improved adjusted EBITDA margins of over 25%.
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