In today’s briefing:
- Jardine Matheson’s Underperformance Post Mandarin Offer
- [Japan M&A] Daiwa House Buyout of Sumitomo Densetsu (1949 JP) At ¥9,760 – A Good Exit
- Hyosung Heavy — Ceiling Reversion Setup, ~0.7x DTV Outflow. Totally off the Market’s Radar
- [Quiddity Index] KOSPI 200 Leaderboard for Dec25 Rebal: Final Predictions; 5 ADDs, 6 DELs, 1 IR Chg
- Sumitomo Densetsu (1949 JP): Daiwa House Industry (1925 JP)’s Attractive Tender Offer at JPY9,760
- Quiddity JPX-Nikkei 400 Rebal 2026: End-Oct 2025 Ranks
- Sany Heavy Industry (6031 HK): What to Do Now After the IPO?
- General Dynamics’ Cash Flow Surges 179% of Net Income—What’s Powering This Boom?
- Legence (LGN US): Post-IPO Index Inclusion; US in 2025 & Global in 2026
- Indo-MIM Ltd Pre-IPO Tearsheet
Jardine Matheson’s Underperformance Post Mandarin Offer
- Concurrent with the sale of 13 floors of OCB to Alibaba, Jardine Matheson (JM SP) announced on the 17th October an Offer for Mandarin Oriental (MAND SP)‘s minorities at US$3.35/share.
- This is a clean, full, “dull” Offer. And MAND is trading super tight to terms at ~2.1% gross, with possible payment (my estimate) late Feb 2026.
- Proceeds from the OCB sale will be US$925mn. And taking out MAND’s minorities will set Matheson back ~US$1bn. Yet the market is now assigning US$2.1bn less for Matheson’s stub ops.
[Japan M&A] Daiwa House Buyout of Sumitomo Densetsu (1949 JP) At ¥9,760 – A Good Exit
- Today partway through the day, Daiwa House Industry (1925 JP), Sumitomo Electric Industries (5802 JP), and Sumitomo Densetsu (1949 JP) announced Daiwa House would buy out Sumitomo Densetsu for ¥9,760/share.
- Sumitomo Electric will sell its stake to the company ¥6,877/share. Minorities get 11.9x Mar26 EBITDA. The Bidder is buying at 9.9x.
- At an ATH, and a nice premium, and 3x book, this looks like a pretty good takeout price. Daiwa House has plans for it.
Hyosung Heavy — Ceiling Reversion Setup, ~0.7x DTV Outflow. Totally off the Market’s Radar
- Hyosung Heavy (298040 KS) near 29% weight; 10ppt ceiling cut = ~0.6–0.7x DTV outflow. Unlike other ETF heavies, flows here bite — real tradeable setup.
- Hyosung Heavy ceiling cut hits Dec 12 rebalance unless >30% earlier; iSelect enforces next‑day, as seen with Isupetasys (right today) breach in KODEX AI Semicon ETF clipped to 20%.
- Hyosung Heavy again ripping today; watch 30% breach — triggers next‑day ceiling cut. Play the reversion, hedge with other hot AI power basket names.
[Quiddity Index] KOSPI 200 Leaderboard for Dec25 Rebal: Final Predictions; 5 ADDs, 6 DELs, 1 IR Chg
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
- In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual review in December 2025.
- We expect up to 5 ADDs and 6 DELs for the KOSPI 200 index during this index rebal event based on the latest available data.
Sumitomo Densetsu (1949 JP): Daiwa House Industry (1925 JP)’s Attractive Tender Offer at JPY9,760
- Sumitomo Densetsu (1949 JP) has recommended a tender offer from Daiwa House Industry (1925 JP) at JPY9,760, a 28.1% premium to the undisturbed price.
- The process is deficient due to the lack of an auction and the offeror’s reliance on less than 100% voter turnout to pass the EGM share consolidation vote.
- Nevertheless, the offer is attractive, as it represents an all-time high and is above the high end of the IFA DCF valuation range.
Quiddity JPX-Nikkei 400 Rebal 2026: End-Oct 2025 Ranks
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
- Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-October 2025.
Sany Heavy Industry (6031 HK): What to Do Now After the IPO?
- Sany Heavy Industry (6031 HK) has rallied 15.3% after its IPO, and 3Q25 earnings are in a consistent trend. We do not expect a significant change in earnings forecasts.
- The mere 0.1% discount to its A-share looks rich. The FY26F PER of 17.7x is also significantly higher than its peers, reflecting most of its strengths.
- Even if it re-rates to a similar premium as Jiangsu Hengrui Pharmaceuticals (1276 HK), the upside is only 5.8%. The risks clearly outweigh the return.
General Dynamics’ Cash Flow Surges 179% of Net Income—What’s Powering This Boom?
- General Dynamics Corporation (GD) reported a strong financial performance for the third quarter of 2025, demonstrating significant growth across its various business segments.
- The aerospace and marine systems divisions were the primary contributors to this growth, showcasing substantial revenue increases and improved operating margins.
- The aerospace segment exhibited an impressive 30.3% year-over-year revenue growth, generating $3.2 billion, primarily driven by new aircraft deliveries and increased special mission volume.
Legence (LGN US): Post-IPO Index Inclusion; US in 2025 & Global in 2026
- Legence (LGN US) went public on 12 September 2025 on Nasdaq and has a current market cap of more than $4bn.
- Inclusion in US indices is expected in December 2025, as the security meets US eligibility criteria.
- Inclusion in Global indices is expected in February 2026 and March 2026, with potential exclusion from one index due to insufficient float cap.
Indo-MIM Ltd Pre-IPO Tearsheet
- Indo-MIM Ltd (1666551D IN) (IML) is looking to raise about US$112m in its upcoming India IPO. The deal will be run by Axis, ICICI, HDFC, Kotak and SBI Caps.
- IML provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding (MIM) technology. Its capabilities include mold designing and tooling, coupled with finishing and assembly operations.
- According to Frost & Sullivan,IML was the largest manufacturer globally of precision engineering components using MIM technology, with a 7% market share in terms of revenue from MIM in FY25.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
