In today’s briefing:
- KOSPI Size Indices: Lots of Change as Averaging Starts
- Front-Running the Dec KOSPI 200: Heavy Industries Names Set Up the Real Flow Trade
- Can Nidec (6594) Ever Wake Up from Its Compliance Nightmare?
- Ohba (9765 Jp) – November 5, 2025
- Begbies Traynor Group – Complementary acquisitions add to growth thesis
- Hybridan Research: Northern Bear plc
KOSPI Size Indices: Lots of Change as Averaging Starts
- The review period for the March rebalance of the KOSPI Size Indices will commence on 1 December and will end on 28 February.
- Nearing the start of the averaging period, we forecast 34 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 2 to MidCap and 2 to SmallCap.
- The upward migrations have outperformed the downward migrations by a lot over the last 3 months. The gap in returns versus the KOSPI2 INDEX is a lot smaller.
Front-Running the Dec KOSPI 200: Heavy Industries Names Set Up the Real Flow Trade
- IT adds barely move (~0.1x DTV), but Heavy Industries pops: Sanil/Hanwha Engine draw ~0.4x DTV inflows, while Hanwha Vision faces ~0.6x DTV passive outflow.
- June precedent: HD Marine Solution grabbed ~0.3x DTV extra inflow and ripped ~12% pre-rebalance, handily outperforming the tape and other KOSPI 200 adds.
- Play the same setup: focus on Heavy Industries flow pockets—Sanil, Hanwha Engine, Hanwha Vision out—and eye entries starting Monday ahead of the Dec 8 go-live.
Can Nidec (6594) Ever Wake Up from Its Compliance Nightmare?
- Until the latest accounting scandal, Nidec was just another stupidly over-valued company that chased too many rainbows and missed too many targets.
- Now, finally, it has fallen to interesting valuations and there is a real incentive to fix the things that need fixing.
- Nidec is a governance nightmare with poor oversight, a history of bad strategic decisions, and shoddy execution. If these are fixed, though, the upside is enormous.
Ohba (9765 Jp) – November 5, 2025
- OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning.
- In the construction consulting industry, there were 56 companies with annual sales of JPY 5 bn or more and 106 companies with JPY 2 bn or more in the 12 months from January to December 2024.
- The Company ranks 24th, positioning it as a mid-tier player. Over its century-long history, however, the Company has specialized in urban development fields such as city planning, and in this domain, it holds the top domestic market share, ahead of the runner-up, Nippon Koei Urban Space, by just under JPY 1 bn in annual sales.
Begbies Traynor Group – Complementary acquisitions add to growth thesis
- Begbies has announced two acquisitions this week for a maximum consideration of £9.25m, adding to its property advisory and transactional services division, Eddisons.
- In keeping with Begbies’ strategy for value-accretive acquisitions that add services or geographies, Begbies is paying c.1.0x EV/Sales for an additional c.4% of sales.
- The £8.25m acquisition of Kirkby Diamond LLP and Kirkby Diamond Property Management, (together adds five, complementary, office locations along the M1 corridor and all 62 staff will join Begbies Traynor.
Hybridan Research: Northern Bear plc
- The Interims to September 2025 exceeded expectations with a resilient underlying trading performance across all divisions helped by the ongoing strategic operational investments.
- This performance was further amplified by a £1.3m non-recurring profit (N-RP) accounted for in H126.
- This N-RP is included with operating profits; earnings comparisons are therefore extra-ordinary.
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