In today’s briefing:
- StubWorld: Japan Post Holdings (6178 JP) Is “Cheap”
- Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade
- CK Hutchison (1 HK): State of Limbo as Exclusivity Deadline Approaches
- Korea Small Cap Gem #41: Korea Fuel Tech (FT) Corp
- GE Aerospace’s New Focus: How LEAP Engine Retrofits & $4B in Services Could Up Their Game!
- 3M’s Power Moves Against Tariffs & FX Shocks: What Is Its Survival Strategy!
- Fastenal Company: Will Its Expansion Of E-commerce Capabilities Help Them Up The Ante?
- Can Virgin Succeed This Time?
- A/H Premiums & Recent Listings Performance-Changing Trends but Quality Matters More than the Premium
- Vestas Wind Systems: Initiation Of Coverage- An Insight Into Offshore Wind Market Dynamics & Key Growth Levers!
StubWorld: Japan Post Holdings (6178 JP) Is “Cheap”
- As short-term rates rise, Japan Post Bank (7182 JP)‘s perceived superior fundamentals may be leading to a short squeeze on the stock versus Japan Post Holdings (6178 JP).
- Preceding my comments on Japan Post – and Silicon Integrated Systems (2363 TT) – 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%.
Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade
- A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
- Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
- The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.
CK Hutchison (1 HK): State of Limbo as Exclusivity Deadline Approaches
- The 145-day exclusivity period between CK Hutchison Holdings (1 HK) and the BlackRock-TiL consortium for the politically charged ports deal ends on July 27.
- The transaction is in limbo as China’s preferred pathway for approval (COSCO is included in the consortium as an equal partner) has several issues.
- It is equally probable that the deal will be finalised in some shape or form or fall apart. With shares up 31% and nearing a five-year high, take profits.
Korea Small Cap Gem #41: Korea Fuel Tech (FT) Corp
- Korea Fuel Tech (123410 KS) is the 41st company in our Korea Small Cap Gem Series.
- Korea Fuel Tech (FT) Corp is a Korean automotive components manufacturer specializing in emissions control systems, fuel system parts, and other auto plastic parts.
- Three key investment highlights include key beneficiary of growing demand for carbon canisters used in hybrid vehicles, compelling valuations, and sharp increase in operating margins/ROE.
GE Aerospace’s New Focus: How LEAP Engine Retrofits & $4B in Services Could Up Their Game!
- General Electric Company (GE) Aerospace’s second quarter of 2025 earnings report reflects a robust performance and a constructive outlook characterized by growth in revenue, profits, and operational efficiencies.
- The company continues to leverage its strong position within the aerospace industry, both in commercial and defense sectors, to sustain and enhance its performance metrics.
- In the reported quarter, GE Aerospace exhibited solid growth across several financial parameters.
3M’s Power Moves Against Tariffs & FX Shocks: What Is Its Survival Strategy!
- 3M Company’s recent earnings presentation highlighted a mixed performance across different metrics, reflecting both strides in operational efficiency and challenges from macroeconomic factors.
- With an adjusted earnings per share of $2.16, up 12% year-over-year and surpassing expectations, 3M reported a solid quarter.
- Organic sales growth of 1.5% showed a third consecutive quarter of growth across all business groups, demonstrating some resilience despite external challenges.
Fastenal Company: Will Its Expansion Of E-commerce Capabilities Help Them Up The Ante?
- Fastenal Company’s Q2 2025 results demonstrated a notable blend of achievements and challenges.
- The quarter marked a milestone with sales exceeding $2 billion for the first time, reflecting an 8.6% year-over-year increase.
- This growth, the strongest since early 2023, primarily stemmed from strategic market share gains, effective execution of the company’s strategic plan, and incremental pricing actions aimed at countering supply chain cost pressures.
Can Virgin Succeed This Time?
- Virgin Australia ((VGN)) is back for another go (which brings the name into question), having entered administration as a result of covid before being revived under private equity ownership.
- Australia’s second airline has returned to listed life with a simplified portfolio and strategy that, Ord Minnett believes, should resonate well with investors attracted to the relatively high quality/low risk Australian domestic aviation market.
- The broker sees a compelling earnings outlook into FY26, with relatively stable fares, falling fuel expenses, and transformation benefits.
A/H Premiums & Recent Listings Performance-Changing Trends but Quality Matters More than the Premium
- With a spate of A/H listings already done in the first half and a lot more in the pipeline, we look at some of the trends from the recent listings.
- In this note, we will also talk about how the A/H premiums have moved since our last note in March 2025.
- Overall, recent A/H listings have somewhat reversed the trend of past A/H listings not doing much in the near term, with a few exceptions.
Vestas Wind Systems: Initiation Of Coverage- An Insight Into Offshore Wind Market Dynamics & Key Growth Levers!
- Vestas Wind Systems A/S has presented its Q1 2025 financial results, showcasing substantial growth and areas of concern.
- The company’s revenue for the quarter was 3.5 billion EUR, representing a 29% increase year-onyear, fueled by increased activity and higher average pricing in Power Solutions.
- The EBIT margin was marginally positive at 0.4%, attributed to revenue growth and improved project profitability despite typical low seasonal activity.
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