Daily Brief Industrials: Jardine Matheson Holdings, SK Square , LG Corp, Hamamatsu Photonics Kk, International Consolidated Air, BETA Technologies, Mitsuboshi Belting, R R Kabel, Tokai Holdings, Anest Iwata and more

• On the 27th October, Jardine Matheson Holdings (JM SP) announced an Offer for 88.04%-held Mandarin Oriental International (MAND SP), after MAND concurrently announced the partial sale of OCB to Alibaba.  
• MAND will pocket US$925mn from the sale. The privatisation will set Matheson back ~US$500mn. Alibaba is ostensibly funding MAND’s privatisation. And then some.  
• Last week Matheson announced it will undertake a US$250mn buyback, which is expected to  complete in 2026.

• Square closed ₩290,000, missing all criteria; Level 2 removal effectively confirmed, with KRX disclosure expected ~8 p.m. Seoul, effective from tomorrow’s open.
• Square vs Hynix hinges on retail chase structurally, but near‑term Square’s underperformance worsened by asymmetric leverage shackles.
• Square’s Level 2 setup ends tomorrow; flows normalize, likely giving Square more juice vs Hynix. Key spot to watch from tomorrow’s open.

• Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.
• LG Corp’s investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp’s entire market cap.
• Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.

• Announced last Friday, FY Sep-25 sales and net profit were in line with guidance, but operating profit fell short. On Monday, the shares dropped 4.5%, wiping out a month’s gains.
• Looking ahead, management expects three years of sales and profit growth as capex declines, depreciation and R&D level off, and the NKT Photonics acquisition approaches breakeven.
• In this scenario, semiconductor, bio-medical, defense and quantum computing applications should drive 3-year sales growth of 24% and a 71% increase in net profit, bringing the P/E down to 20X.

International Airlines Group’s (IAG’s) Q325 results show the company is executing effectively its strategy of delivering peer-leading profitability through a focus on customer experience and operational transformation, while returning substantial capital to shareholders. With a favourable demand outlook, likely lower cost pressures and a strong balance sheet, management intends to announce further returns with the publication of FY25 results in February 2026, and has optionality to undertake M&A.

• Electric aircraft company BETA Technologies (BETA US) went public on 4 November 2025 on NYSE and has a current market cap of over $7.5bn.
• Inclusion in US indices is expected in December 2025 and March 2026, as the security meets US eligibility criteria before the lock-up expiry.
• Earliest inclusion in Global indices is expected in February and June 2026, with potential delay due to free float and float cap constraints during the lock-up period.

• Mitsuboshi’s revenue rose 0.9% YoY, with Belts segments offsetting lower Building & Construction Materials revenue.
• The company plans to pay an annual dividend of JPY186 per share in FY03/26, unchanged from FY03/25.
• Mitsuboshi announced a resolution to repurchase 350,000 shares, valued at JPY1.0bn, via market purchases on the Tokyo Stock Exchange.

• RR Kabel delivered a strong Q2FY26 with 19.5% YoY revenue growth and EBITDA doubling, driven by robust volume expansion in its high-margin Cables & Wires segment.
• Solid core performance, backed by aggressive capex and margin expansion targets, positions RR Kabel as a key beneficiary of India’s accelerating infrastructure and industrial growth cycle.
• RR Kabel remains structurally well-placed for growth, though long-term margin gains depend on timely capex execution and a successful turnaround of its FMEG business.

• FY03/26 sales were JPY114.5bn (+3.0% YoY), operating profit JPY6.2bn (+34.1% YoY), net income JPY3.6bn (+51.1% YoY).
• Information and Communications sales to corporate clients rose 12.0% YoY, driven by carrier and cloud services growth.
• Aqua services customer count increased by 16,000, surpassing 200,000, with sales JPY5.3bn (+9.9% YoY), operating profit JPY244mn (+82.9% YoY).

• 1H FY03/26 results showed a decline in sales, operating profit, recurring profit, and net income YoY.
• The company maintained its full-year earnings forecast, expecting higher costs and excluding foreign exchange gains/losses.
• Capital expenditures planned at JPY3.5bn, with significant spending on digital upgrades and new prototype building.