In today’s briefing:
- Fujitec (6406 JP): EQT’s Takeunder Likely a Done Deal
- Initiation of A Container Port Terminal Product
- Asian Equity: Changes to Model Portfolio: Korea, HK/CN Overweight. India Neutral; ASEAN Underweight
- Daehan Shipbuilding Pre-IPO: Decent Subscription Rates
- Otis Worldwide Just Unlocked a $40M Transformation Plan in China—How It’s Fighting Price Pressure!
- Graco Inc.: Initiation of Coverage- Setting Its Sights on Housing Boom with High-Stakes Growth Bet!
- Kokuyo Co Ltd (7984 JP): 1H FY12/25 report update
- Waste Connections Inc. Accelerates $200 Million M&A Blitz: Can It Dominate U.S. Waste Markets?
- Lennox International: Initiation of Coverage- Turbocharging Growth with Smart Inventory & R-454B Rollout!
- Rollins Inc.: Reinventing Its Strategy with AI, Brand Diversification, & Market Expansion Plans!
Fujitec (6406 JP): EQT’s Takeunder Likely a Done Deal
- Fujitec Co Ltd (6406 JP) has recommended a preconditional tender offer from EQT (EQT SS) at JPY5,700, an 8.1% discount to the last close price of JPY6,205.
- The precondition relates to regulatory approvals in several countries. The tender offer is expected to commence in late January 2026.
- Although the offer is light, it is likely to succeed, as it resulted from an auction process and was supported by irrevocables from the two prominent activists on the register.
Initiation of A Container Port Terminal Product
- This is a short insight, informing readers that we intend to initiate a container port terminal product, following our recent initiation on Asian Terminals (ATI PM)
- This product will be followed by initiations on high-quality companies like Westports Holdings (WPRTS MK) / ICTSI (ICT PM) / Port of Tauranga (POT NZ), etc, and a monthly screen.
- In this insight, we will highlight our rationale for introducing this product and outline the screening metrics for companies.
Asian Equity: Changes to Model Portfolio: Korea, HK/CN Overweight. India Neutral; ASEAN Underweight
- Since inception on May 15, our Model Portfolio (up 6.2%) underperformed the MSCI Asia-ex-Japan index (up 7.87%) due to underperforming stock picks in India, ASEAN and China consumer proxies.
- The main themes: China’s changing consumption and investment patterns, Korea’s improving corporate governance, continuing global infrastructure investments and India’s earnings disappointment. Korea, HK/China remain overweight; India is downgraded to Neutral.
- We exclude Meituan, Titan, Infosys, Bharat Dynamics, Krafton. We include Laopu Gold, Lonking Holdings, China Hongqiao, AIA and Hyundai Engineering and Construction. We are now Neutral Industrials and Underweight Technology.
Daehan Shipbuilding Pre-IPO: Decent Subscription Rates
- Daehan Shipbuilding (439260 KS) raised US$370m in its upcoming Korean IPO.
- It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Otis Worldwide Just Unlocked a $40M Transformation Plan in China—How It’s Fighting Price Pressure!
- Otis Worldwide Corporation’s second-quarter 2025 earnings report presents both strengths and challenges impacting its investment potential.
- A key positive for Otis is its Service segment, which continues to drive significant performance improvements.
- Service sales were up 4% organically, with all business lines and regions contributing to growth.
Graco Inc.: Initiation of Coverage- Setting Its Sights on Housing Boom with High-Stakes Growth Bet!
- Graco Inc.’s latest financial results outline a multifaceted performance with a mix of positive and challenging developments.
- In the second quarter, Graco reported sales of $572 million, marking a 3% increase from the same period last year.
- However, this growth was driven by acquisitions contributing 6%, while organic sales declined by 3%.
Kokuyo Co Ltd (7984 JP): 1H FY12/25 report update
- KOKUYO’s revenue increased by 3.5% YoY, driven by strong demand in the Furniture business for office relocations and renovations.
- Operating profit rose by 11.1% YoY due to price revisions, while recurring profit declined by 3.0% YoY from foreign exchange losses.
- The full-year forecast for FY12/25 was revised, projecting revenue of JPY357.0bn and operating profit of JPY25.0bn.
Waste Connections Inc. Accelerates $200 Million M&A Blitz: Can It Dominate U.S. Waste Markets?
- Waste Connections, Inc. reported its second-quarter 2025 results, which exceeded the high end of their earlier outlook despite several challenges, such as lower-than-expected contributions from commodity-related activities and broader economic sluggishness.
- The company achieved a 7.1% increase in revenue, driven primarily by a core pricing gain of 6.6% in solid waste operations.
- This strong performance highlights the resilience of Waste Connections’ solid waste business against a backdrop of economic volatility.
Lennox International: Initiation of Coverage- Turbocharging Growth with Smart Inventory & R-454B Rollout!
- Lennox International Inc.’s second quarter results provide a comprehensive view into the company’s operational dynamics amidst current market challenges.
- The firm’s achievement of a 3% revenue growth and margin expansion to 23.6% indicates a robust performance driven by strategic product offerings, particularly the transition to low global warming potential (GWP) R-454B products.
- This transition seems to have been majorly successful, with approximately 90% of Lennox’s sales now comprising R-454B refrigerant, enhancing product mix and overall profitability.
Rollins Inc.: Reinventing Its Strategy with AI, Brand Diversification, & Market Expansion Plans!
- Rollins, Inc.’s second-quarter 2025 performance demonstrates a combination of strategic growth and some operational challenges.
- The company reported notable revenue growth, with total revenue increasing by 12.1% compared to the previous year, and organic growth marking a 7.3% rise.
- This expansion was driven by solid performances across all major service lines, including residential, commercial pest control, and termite and ancillary services.
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