Daily Brief Industrials: Kawasaki Heavy Industries, Nissin Corp, Core & Main and more

In today’s briefing:

Kawasaki Heavy Industries (7012 JP): Sell into Strength
(Mostly) Asia-Pac M&A: Talkmed, Jilin Jiutai Bank, Insignia, Silk Logistics, Fengxiang, Nissin, VIOL
Core & Main: Can It Capitalize On The Growing Municipal & Infrastructure Investments?

Kawasaki Heavy Industries (7012 JP): Sell into Strength

KHI has retreated 12% from its June 30 high, but is still 69% above its April low, despite guiding for a decline in orders and weak profits in FY Mar-26.
Orders from Japan’s Ministry of Defense are forecast to drop from ¥772.3 billion to ¥400 billion this fiscal year, while the overall profit of the Aerospace division drops 14%.
The potential impact of U.S. tariffs on Power Sports & Engines is not factored into guidance, offsetting what otherwise seem to be conservative assumptions.

I tally 43 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Two new deal were discussed on Smartkarma this week: Talkmed (TKMED SP)‘s Scheme and Jilin Jiutai Rural Comm Bank (6122 HK)‘s Hobson’s Choice
Key updates/news took place on New World Resources (NWC AU), Insignia (IFL AU), Silk Logistics (SLH AU), Fengxiang (9977 HK),Domain (DHG AU), Nissin (9066 JP) and VIOL (335890 KS).

Core & Main reported strong results for its first fiscal quarter of 2025, with net sales reaching a record $1.9 billion and adjusted EBITDA hitting $224 million.
The company attributed its performance to robust municipal construction activity and funding from government infrastructure initiatives, which continue to create opportunities, particularly in water and wastewater treatment projects.
However, Core & Main did note a softening in the residential market due to economic uncertainties and affordability pressures, impacting future outlooks slightly.

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