In today’s briefing:
- Cathay (293 HK) Takes Out Qatar Airway’s Stake
- Cathay Pacific (293 HK): Buyback of Qatar-Owned Shares Is Positive
- International Container Terminal Services (ICTSI PM) Concall Q3 FY25: Maintaining Steady >20% Growth
- Bloom Energy: An Insight Into Its Regulatory Changes
- Soda Nikka (8158 JP): 1H FY03/26 flash update
- Westports Holdings (WPRTS MK): Solid Q3 FY25 Driven By Tariff Hikes
- Caterpillar Inside: How Data Centers Are Fueling a Power Boom!
- bpost SA – What’s New(s) in Amsterdam
- Armstrong World Industries’ Bold Acquisition Play: What Geometrik Means for Investors!
- Daiichi Jitsugyo (8059 JP): 1H FY03/26 flash update
Cathay (293 HK) Takes Out Qatar Airway’s Stake
- Cathay Pacific Airways (293 HK) has announced plans to acquire Qatar Airways’ 9.57% stake at HK$10.8374/share, or an outlay of HK$6.96bn (~US$890mn).
- Qatar Airways acquired this stake in November 2017 at HK$13.65/share.
- Upon approval from the SFC (mainly granting a MGO waiver), Swire Pacific (19 HK)‘s stake in Cathay increases to 47.69% (from 43.12%); and Air China’s stake to 31.78% (from 28.74%).
Cathay Pacific (293 HK): Buyback of Qatar-Owned Shares Is Positive
- Cathay Pacific Airways (293 HK)‘s buyback of Qatar Airways’ 9.57% stake should enhance its FY26F EPS and ROE by 4.6% and 0.36pp, respectively.
- With passenger traffic and load factor continuing to recover, the consensus forecast of a 24.2% YoY earnings decline in 2H25 is too conservative, suggesting upside surprise.
- Its FY25-27F ROE is a record since 2013, with potential to trade up to 1.65x P/B (30%+ upside). It is also possible to be included in the HSI again.
International Container Terminal Services (ICTSI PM) Concall Q3 FY25: Maintaining Steady >20% Growth
- ICTSI (ICT PM) continued to maintain steady growth, with revenue/profit up 19%/26%YoY, led by TEU yields at 219 USD/TEU, up 6.5 %YoY, and volume growth of 12.3%YoY.
- The company recently highlighted that the Durban High Court dismissed APM’s legal challenge to ICT’s bid for the Durban Container Terminal, paving the way for a significant acquisition by FY26.
- Trading at 18.1x FY25e PE, 9.7x EV-EBITDA, and 3% dividend yield, a ~20% CAGR growth profile with a ~20% ROCE, this is a name to explore.
Bloom Energy: An Insight Into Its Regulatory Changes
- Bloom Energy’s recent quarterly earnings call highlighted both strong achievements and ongoing challenges.
- The company reported its fourth consecutive quarter of record revenue, driven largely by significant demand for its on-site power generation solutions, particularly in AI and data center markets.
- Bloom Energy has positioned itself as a key player in this industry by leveraging its innovative fuel cell technology.
Soda Nikka (8158 JP): 1H FY03/26 flash update
- Revenue increased by 3.7% YoY to JPY32.9bn, while operating profit rose 4.7% YoY to JPY1.2bn.
- Gross profit reached JPY4.7bn (+6.7% YoY) with a gross profit margin of 14.3% (+0.4pp YoY).
- Segment profit for packaging-related products grew 2.2% YoY to JPY410mn, despite a 2.4% YoY revenue decrease.
Westports Holdings (WPRTS MK): Solid Q3 FY25 Driven By Tariff Hikes
- Westports Holdings (WPRTS MK) reported a solid Q3 FY25, with both operational revenue/profits up 16% YoY, driven by improving TEU Yields due to recent tariff hikes.
- Volumes were up only 4% YTD (6.3% in Q3FY25), but container rates are set to increase by 30% in a phased manner through Jan 2027, leading to margin expansion/profitability.
- With the recent pullback, the stock trades at 17.3x/14x FY25e/26e and a 4% dividend yield. This is another solid name to explore in our container port terminal coverage.
Caterpillar Inside: How Data Centers Are Fueling a Power Boom!
- Caterpillar Inc. reported its third quarter 2025 results, highlighting robust financial performance attributed to resilient demand across its primary business segments: Construction Industries, Resource Industries, and Energy & Transportation.
- Sales and revenues for the quarter reached an all-time record of $17.6 billion, a year-over-year increase of 10%.
- This growth was primarily fueled by higher sales volume, particularly in Energy & Transportation, which saw a 25% rise largely driven by demand in power generation and oil and gas sectors.
bpost SA – What’s New(s) in Amsterdam
- In today’s edition: • Ahold Delhaize | holding on to our neutral stance despite solid 3Q25 results • KPN | post investor update event comment • Unilever/The MICC | conflict with Ben & Jerry’s flares up ahead of IPO • Wolters Kluwer | good growth acceleration in 3Q25; new buyback announced • AMG Critical Materials | upward revision of FY25 adjusted EBITDA outlook solely due to antimony (and not lithium) • BAM Group | reiterates to deliver adjusted EBITDA margin of at least 5% • CM.com | receives offer of EUR 5.16 per share from Bird • ForFarmers | 3Q25: impressive example of cost management (and more) • DHL | 3Q25: clear beat of consensus; reiterates FY25 guidance • bpostgroup | post earnings call comment • E-commerce & Logistics | French authorities attempting to block Shein website in France
Armstrong World Industries’ Bold Acquisition Play: What Geometrik Means for Investors!
- Armstrong World Industries, Inc. reported its third quarter 2025 earnings, revealing record-setting net sales and earnings, supported by strong performance in both its Mineral Fiber and Architectural Specialties segments.
- The company observed a 10% year-over-year increase in consolidated net sales, translating into robust quarterly results amidst a backdrop of market challenges.
- Positively, Armstrong World Industries’ Mineral Fiber segment recorded a 6% rise in net sales, driven by strong average unit value (AUV) growth and a slight increase in volumes.
Daiichi Jitsugyo (8059 JP): 1H FY03/26 flash update
- In 1H FY03/26, orders were JPY86.2bn (-16.3% YoY), revenue JPY107.3bn (+6.0% YoY), net income JPY5.0bn (+15.8% YoY).
- The company forecasts FY03/26 orders JPY230.0bn (+11.5% YoY), revenue JPY225.0bn (+1.5% YoY), net income JPY9.6bn (+8.6% YoY).
- Revenue and operating profit increased YoY in segments like automotive and healthcare, despite declines in other segments.
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