In today’s briefing:
- StubWorld: CKH (1 HK) – Expect Near-Term Weakness If Exclusivity Ends Without Resolution
- Deere & Co Is Quietly Dominating the AI Farming Revolution—Here’s Why It Could Be The TESLA Of Agriculture!
- Aux Electric Co Ltd Pre-IPO Tearsheet
- Dongfang Electric (1072 HK): Is There Any Room Left After the Rally?
- What’s New(s) in Amsterdam – 23 July (AkzoNobel | ASM Int’l | KPN | Randstad Holding | PostNL)
StubWorld: CKH (1 HK) – Expect Near-Term Weakness If Exclusivity Ends Without Resolution
- CK Hutchison Holdings (1 HK)‘s delicate dance continues as it juggles U.S and Beijing politics; and its fiduciary duty to shareholders, as the Blackrock exclusivity long stop date looms.
- In a double dose of StubWorld this week, preceding my comments on CKH – and CK Infrastructure Holdings (1038 HK) – 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%.
Deere & Co Is Quietly Dominating the AI Farming Revolution—Here’s Why It Could Be The TESLA Of Agriculture!
- Deere & Co is no longer just a symbol of tractors and green machines — it has quietly transformed into one of the most dominant forces in agricultural technology.
- At the intersection of artificial intelligence and farming, Deere is building a future where its equipment not only performs fieldwork but also interprets real-time data, automates decision-making, and boosts crop yields through precision.
- The company’s recent developments, including strong second-quarter financials for fiscal 2025 and an impressive Investor Day presentation in Brazil, reveal a clear trajectory: Deere is shifting from traditional machinery to becoming a full-scale agri-tech platform.
Aux Electric Co Ltd Pre-IPO Tearsheet
- Aux Electric Co Ltd (0917839D HK) (AECL) is looking to raise about US$100m in its upcoming Hong Kong IPO. The bookrunners for the deal are CICC and Oriental Securities.
- AECL is engaged in the design, R&D, manufacturing, sales, and after-sales services of both household and central air conditioners, with operations spanning over 150 countries and regions.
- According to F&S Report, AECL was among the top five global air conditioner providers by sales volume in 2024, with a market share of 7.1%.
Dongfang Electric (1072 HK): Is There Any Room Left After the Rally?
- Dongfang Electric (1072 HK)‘s recent rally following the Yarlung Zangbo hydropower project announcement appears overdone, as it now trades more than 3SD above average.
- We estimate that, even with generous assumptions, the project will add 11.5% of revenue of its annual revenue. This seems unmatched with the 52.7% share price jump.
- 1Q25 has performed well and deserves a re-rating, but the current extent is excessive. Fair value for the next three years is HK$18-22.8, at best.
What’s New(s) in Amsterdam – 23 July (AkzoNobel | ASM Int’l | KPN | Randstad Holding | PostNL)
- In this edition: • AkzoNobel | no appetite for BASF Coatings • ASM International | reiterates FY25 outlook – order intake only outlier • KPN | beats 2Q25 consensus; raises FY25 guidance • Randstad | results fairly much in line with consensus – organic growth improves but still negative • PostNL | to deploy APMs in all Hoogvliet stores
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