In today’s briefing:
- India: Potential Free Float Changes & Passive Flows in August
- Weekly Deals Digest (03 Aug) – CK Hutchison, Joy City, HKBN, Fujitec, Krosaki Harima, NSDL
- Tokyo Electron (8035 JP): Why the Big Downward Revision?
- [Japan M&A] Fujitec (6406) PE Bid Not Super High But May Be Tough To Beat
- Spindex Potential Privatisation
- Boeing Co: Service Expansion Complexity
- Hubbell Incorporated: Capital Deployment & Strategic Acquisitions to Capture New Growth Opportunities In Rapidly Evolving Sectors!
- Port of Tauranga (POT NZ): High Quality But Fairly Valued
- Carrier Global Corporation: An Insight Into Its Productivity
- Republic Services: Leveraging Free Cash Flow for Strategic Advantages & to Support Long-Term Growth!
India: Potential Free Float Changes & Passive Flows in August
- Companies in India have disclosed their shareholding pattern as of end-June in July. There are companies with significant float changes from end-March and/or end-December.
- The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in flow from passive trackers.
- Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 5 could have passive outflows in August.
Weekly Deals Digest (03 Aug) – CK Hutchison, Joy City, HKBN, Fujitec, Krosaki Harima, NSDL
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: NSDL (NSDL IN) is seeking to raise US$464 million.
- Event-Driven developments: CK Hutchison Holdings (1 HK), Joy City Property (207 HK), HKBN Ltd (1310 HK), Fujitec Co Ltd (6406 JP), Nihon Chouzai (3341 JP), Krosaki Harima (5352 JP).
Tokyo Electron (8035 JP): Why the Big Downward Revision?
- Tokyo Electron’s share price dropped 18% on Friday following the announcement of weak Q1 results and a huge downward revision to H2 FY Mar-26 guidance.
- Push-Outs and/or cancellations of orders due to the uncertainty caused by President Trump apparently caught managment by surprise. Costs also rising as management ramps up capex and R&D.
- Impact of Trump’s yet-to-be-announced tariffs on semiconductors is still unknown, but 15% base rate on Japan already a negative.
[Japan M&A] Fujitec (6406) PE Bid Not Super High But May Be Tough To Beat
- On 30 July, Fujitec Co Ltd (6406 JP) and Swedish PE Firm EQT announced a deal to acquire the company with the Uchiyama family. Two activists signed tender agreements.
- The deal is not expensive IF you underwrite strong profitability growth and assume the large net receivables position can be better addressed.
- But the stock is trading tight to terms and there are 6+ months until you get your money.
Spindex Potential Privatisation
- Spindex has announced that they have been approached by a third party on a possible transaction in relation to shares of the company.
- The discussions are ongoing and transaction may or may not happen
- We have published insight on 22nd April highlighting that the stock trades below 2x EV/EBDITA and has 60% of market cap
Boeing Co: Service Expansion Complexity
- The Boeing Company reported its second-quarter 2025 financial results, showcasing a mixed bag of performance indicators, strategic progress, and notable challenges.
- During this period, Boeing generated total revenue of $22.7 billion, marking a significant increase of 35% from the previous year.
- This uptick was primarily driven by an increase in commercial airplane deliveries.
Hubbell Incorporated: Capital Deployment & Strategic Acquisitions to Capture New Growth Opportunities In Rapidly Evolving Sectors!
- Hubbell Incorporated’s second quarter of 2025 financial results present a mixed picture, emphasizing the company’s strategic adaptability amidst continuing macroeconomic and inflationary pressures.
- The company reported a robust double-digit growth in adjusted earnings per share, driven by strong organic growth in its Grid Infrastructure and Electrical Solutions segments, accompanied by a notable year-over-year adjusted operating margin expansion of 120 basis points.
- Despite inflationary challenges, the company effectively managed costs through strategic price hikes and productivity enhancements, aimed at achieving positive price/cost productivity for the year.
Port of Tauranga (POT NZ): High Quality But Fairly Valued
- We follow our initiations on Westports Holdings (WPRTS MK) and Asian Terminals (ATI PM) with the Port of Tauranga (POT NZ) .
- The company has shown strong pricing power, significantly raising its access charges at MetroPort starting September 1, 2025, to over NZ$130/transaction.
- Despite this, based on our numbers, the stock trades at 26.6x/22x FY25/26 PE (ex-freehold land value). We believe this is expensive and would be neutral on the name.
Carrier Global Corporation: An Insight Into Its Productivity
- Carrier Global Corporation delivered a compelling set of results for the second quarter of 2025, with notable achievements and some challenges reflecting the current market dynamics.
- From a growth perspective, the company posted 6% organic growth, driven primarily by a substantial 45% increase in commercial HVAC sales in the Americas and a 13% rise in aftermarket growth.
- Regions like India, Japan, and the Middle East also contributed significantly to the growth figures, accentuating Carrier’s global operational reach.
Republic Services: Leveraging Free Cash Flow for Strategic Advantages & to Support Long-Term Growth!
- Republic Services Inc. reported its financial performance for the second quarter of 2025, reflecting both strengths and challenges.
- The company achieved a revenue growth of 4.6%, which was attributed primarily to strong pricing strategies, despite facing reduced demand in construction and manufacturing sectors.
- This was translated into an adjusted EBITDA growth of 8%, which in turn expanded the adjusted EBITDA margin by 100 basis points during the quarter.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
