In today’s briefing:
- [Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO
- Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones
- Emergence of North Korea Reconciliation Related Stocks Starting to Outperform
- Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky
- Oswal Pumps IPO – RHP Updates & Thoughts on Peer Comp and Valuation
- GiG Works (2375 JP): 1H FY10/25 flash update
[Japan M&A] Hino & Mitsubishi-Fuso Truck to Join; Bagholding Ugly for Minorities, and a Re-IPO
- On the 10th of June, Toyota Motor (7203 JP) subsidiary Hino Motors Ltd (7205 JP) and Mitsubishi-Fuso Truck & Bus Company announced their long-awaited integration plans. We have a deal.
- An agreement was signed in 2023, but Hino got in big trouble for falsifying testing data on gasoline engine emissions/efficiency. Hino took a hit in 2023, then 2025. Talks advanced.
- The deal announced suggests Toyota has thrown itself and Hino minorities under the proverbial Fuso bus. It’s VERY odd. But… it deserves a look because 2026 will see a re-IPO.
Zhejiang Sanhua Intelligent Controls (2050 HK): Big Raise Supported by Cornerstones
- Zhejiang Sanhua Intellignt Controls Co. (002050 CH)‘s global offering opens today and the raise could reach up to US$1.4bn if the offer-size adjustment option and the overallotment option are exercised.
- There is a large allocation to cornerstone investors. The discount of around 22.7% to the A-shares is attractive given the recent trend for Midea (300 HK) and CATL (3750 HK).
- The H-shares should be added to Southbound Stock Connect in July, to the HSCI in September, and to a global index in December.
Emergence of North Korea Reconciliation Related Stocks Starting to Outperform
- In this insight, we discuss the emergence of the North Korea reconciliation related stocks that are starting to outperform. We have seen this playbook before.
- With the new President Lee Jae-Myung, there is likely to be an outperformance of some of these stocks once again.
- Among the 6 stocks listed above, we believe Hyundai Elevator is one of best stocks to capitalize on the increased reconciliation with North Korea.
Dalrymple Bay Infra Placement – Good Track Record but Might Be Too Chunky
- Brookfield Asset Management Lt (BAM US) aims to raise around US$278m via selling 23.3% of Dalrymple Bay Infrastructure L (DBI AU).
- The shares have performed well over the last year or so, with the company having delivered consistent DPU growth.
- In this note we talk about the deal dynamics and run the deal through our ECM framework.
Oswal Pumps IPO – RHP Updates & Thoughts on Peer Comp and Valuation
- Oswal Pumps (1019841D IN) is looking to raise about US$162m in its upcoming India IPO. The deal has been downsized from an earlier size of around US$250m.
- Oswal Pumps Ltd (OPL) specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.
GiG Works (2375 JP): 1H FY10/25 flash update
- GiG Works reported a recurring loss due to decreased revenue and JPY115mn crypto asset valuation losses, despite higher net income from share sales gains.
- The On-demand Economy business saw a decline in revenue and profit, while the Sharing Economy business experienced growth in both.
- The FY10/25 forecast anticipates revenue growth in System Solutions and Sharing Economy, with a dividend of JPY2 per share.
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