Daily Brief Industrials: Geekplus Technology, Singapore Post, Daiseki Co Ltd, PostNL NV, Soilbuild Construction, Titan International , Tsubakimoto Kogyo and more

• Geekplus Technology (2590 HK) is a leader in the global autonomous mobile robot (AMR) market. It is seeking to raise US$300 million.     
• Geekplus has been the world’s largest warehouse fulfilment AMR solution provider in terms of revenue for the last six consecutive years.
• The investment case is bearish due to declining growth, lower contract liabilities, hints of window dressing relating to reducing losses and ongoing cash burn.  

• Geek+, global technology company and provider of scalable and flexible highly efficient solutions for warehouses, aims to raise ~$300M in Hong Kong IPO.
• The company is expected to IPO next week and offer price of HK$16.80 implies a market cap of HK$22B (~$2.8B). Geek+ is set to start trading on July 9, 2025.
• I believe that Geek+ has a large runway for growth in the global AMR solution market, but valuation keeps me from being positive on the name.

Singapore Post (SingPost) has experienced significant changes over the last six months, and further change is likely as the company searches for a new CEO. We expect a strategy update following the hiring of the new CEO. The timing of an appointment is unknown, as are the identity of the candidate and the strategy itself. Given the potential upheaval, we withdraw our forecasts pending strategic clarity.

• Daiseki’s Q1 FY02/26 sales rose 7.2% YoY to JPY17.9bn, with operating profit declining 1.9% YoY to JPY3.8bn.
• Daiseki Co.’s FY02/25 sales reached JPY38.5bn, driven by increased recycled fuel shipments, despite flat wastewater intake.
• DES’s FY02/25 sales declined 17.4% YoY to JPY19.9bn, with operating profit down 19.3% YoY to JPY2.3bn.

• In this edition: • InPost | Advent sold a further 3.5% interest via accelerated placement • JDE Peet’s | sets accelerating medium-term financial targets • PostNL | unions express concerns about mail market proposals to Economic Affairs Minister

• Soilbuild Construction’s revenue surged 58.4% in FY2024, driven by a S$647.5 million PSA Supply Chain Hub contract.
• The Construction division contributed 81.5% to total revenue, while Precast and Prefabrication grew by 87.1% in FY2024.
• Soilbuild Construction generated S$35.9 million in operating cash flow in FY2024, improving liquidity for ongoing projects.

• Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.
• The company serves the agricultural, earthmoving / construction, and consumer markets.
• Long-term secular tailwinds exist in the global agricultural, infrastructure and construction markets.

• Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) announced its Full-year FY2025/3 results on May 8, 2025.
• The Company achieved record-high orders, sales, and profits across the board, along with a record order backlog.
• Both net sales and all levels of profit exceeded initial forecasts. This is due to conservative assumptions about the pace of reducing its large order backlog.