• On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
• We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. 
• Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.

• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the peer comparison and IPO valuations.

• Atlanta is the third largest manufcaturer of transformers in India. With recent capex coming online, it boasts of capacity and product offering in line with the market leaders.
• The company has a strong order book of 1,600cr and given the fairly short execution timeline is positioned to deliver 25-30% growth in FY26.
• We believe IPO is being fairly valued at 20-24 times FY26 EBITDA, implying a 30-35% discount vs market leader Transformers & Rectifiers (India) Ltd (TRIL IN) 

• Rolls-Royce is undergoing a significant transformation under new leadership, resulting in a sharp recovery in profitability and cash flow. This turnaround is driven by a rebound in Civil Aerospace aftermarket services and strong performance in its Defence and Power Systems divisions.
• The company operates in markets with high barriers to entry, particularly in the wide-body aircraft engine sector, affording it a strong competitive position. Long-term service agreements provide a resilient and recurring revenue stream tied to engine flying hours.
• While the outlook is positive, supported by a strong order book and strategic cost-cutting initiatives, the company’s valuation appears elevated relative to historical levels. Key risks include execution of the ongoing transformation, cyclicality of the commercial aviation market, and persistent supply chain pressures.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Joby Aviation is a pre-revenue company at the forefront of the emerging electric vertical takeoff and landing (eVTOL) aircraft market, aiming to revolutionize urban transportation with an on-demand aerial ridesharing service.
• The company has made significant progress towards Federal Aviation Administration (FAA) certification for its aircraft, placing it ahead of many competitors. Strategic partnerships with major players like Toyota and Delta Air Lines, along with a strong financial position, are key enablers of its growth strategy.
• However, the company faces substantial risks, including a capital-intensive business model with a long road to profitability, intense competition from both startups and established aerospace giants, and significant regulatory and technological hurdles to overcome before commercial operations can commence.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Technopro Holdings is the subject of a tender offer from private equity firm Blackstone at ¥4,870/share, which represents a significant premium but is considered potentially undervalued by some market observers.
• As a leading technology-focused staffing firm in Japan, the company is well-positioned to benefit from the country’s structural shortage of skilled engineers and increasing demand for digital transformation.
• Significant uncertainty surrounds the success of the Blackstone acquisition due to a high tender threshold of 66.67% and a large passive shareholder base, creating a key risk for investors at the current price.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Leading Market Position with Diversified Operations: Kajima is one of Japan’s ‘Big Five’ general contractors, possessing a dominant position in the domestic construction market. The company is well-diversified across civil engineering, building construction, and a growing real estate development business, which provides a buffer against the cyclicality of the construction sector.
• Favorable Industry Tailwinds: The Japanese construction market is supported by robust public and private investment. Key drivers include large-scale urban redevelopment projects, government spending on national resilience and infrastructure renewal, and growing demand for advanced facilities like data centers and logistics centers.
• Shareholder-Focused Capital Allocation: Kajima has demonstrated a strong commitment to shareholder returns, evidenced by a 3-year dividend CAGR of over 21%. This is supported by a strategy to enhance profitability by focusing on high-margin projects and improving investment efficiency in its real estate development arm.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Privatization Marks New Chapter: After 74 years as a publicly traded entity, Toshiba was delisted in December 2023 following a successful $13.5 billion buyout by a consortium led by Japan Industrial Partners (JIP). This move ends a tumultuous period marked by accounting scandals, corporate governance crises, and battles with activist investors, allowing management to focus on a long-term revitalization strategy away from public market pressures.
• Strategic Refocus on Core Operations: Having divested numerous non-core businesses such as laptops, medical equipment, and home appliances, the new strategy centers on higher-margin and critical technology sectors. Key focus areas include energy systems, infrastructure, power semiconductors, and data-driven digital solutions, aiming to leverage the company’s technological strengths in areas critical to national security and global trends like decarbonization and digitalization.
• Path to Recovery Fraught with Challenges: Despite the potential benefits of privatization, Toshiba faces significant hurdles. The company is still recovering from a legacy of financial mismanagement and reputational damage. It operates in highly competitive global markets and must execute a complex turnaround plan to streamline operations, manage its debt, and regain its position as an innovative leader.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Monopoly Position with Guaranteed Returns: SGP’s sole operating asset, the National Grid Corporation of the Philippines (NGCP), holds an exclusive 25-year concession to operate the entire Philippine power transmission network, creating a natural monopoly with significant barriers to entry. This structure provides a stable and predictable revenue stream based on a regulated asset base.
• Growth Driven by National Economic Expansion: The company is poised to benefit from the Philippines’ robust economic growth, which directly translates to increasing electricity demand. This necessitates significant capital expenditures for grid expansion and modernization, particularly to integrate renewable energy sources, thereby growing SGP’s asset base and future earnings potential.
• Significant Regulatory and Political Risks: As a regulated entity, SGP’s financial performance is highly susceptible to the decisions of the Energy Regulatory Commission (ERC), particularly concerning tariff setting and allowable returns. The strategic importance of the national grid also exposes the company to political scrutiny and potential government intervention, which can create uncertainty.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Carlisle is a market-leading manufacturer of highly engineered building envelope products, with a dominant position in the North American commercial roofing market.
• The company is strategically focused on higher-growth, higher-margin businesses, having recently divested non-core assets. This aligns with their ‘Vision 2030’ plan, which targets significant earnings per share growth.
• While facing near-term headwinds from a softer construction market and destocking, Carlisle’s long-term outlook is supported by favorable trends in energy efficiency, re-roofing, and a strong track record of operational excellence through the Carlisle Operating System (COS).

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
• We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. 
• Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.

• Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• In this note, we take a quick look at the peer comparison and IPO valuations.

• Atlanta is the third largest manufcaturer of transformers in India. With recent capex coming online, it boasts of capacity and product offering in line with the market leaders.
• The company has a strong order book of 1,600cr and given the fairly short execution timeline is positioned to deliver 25-30% growth in FY26.
• We believe IPO is being fairly valued at 20-24 times FY26 EBITDA, implying a 30-35% discount vs market leader Transformers & Rectifiers (India) Ltd (TRIL IN) 

• Rolls-Royce is undergoing a significant transformation under new leadership, resulting in a sharp recovery in profitability and cash flow. This turnaround is driven by a rebound in Civil Aerospace aftermarket services and strong performance in its Defence and Power Systems divisions.
• The company operates in markets with high barriers to entry, particularly in the wide-body aircraft engine sector, affording it a strong competitive position. Long-term service agreements provide a resilient and recurring revenue stream tied to engine flying hours.
• While the outlook is positive, supported by a strong order book and strategic cost-cutting initiatives, the company’s valuation appears elevated relative to historical levels. Key risks include execution of the ongoing transformation, cyclicality of the commercial aviation market, and persistent supply chain pressures.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Joby Aviation is a pre-revenue company at the forefront of the emerging electric vertical takeoff and landing (eVTOL) aircraft market, aiming to revolutionize urban transportation with an on-demand aerial ridesharing service.
• The company has made significant progress towards Federal Aviation Administration (FAA) certification for its aircraft, placing it ahead of many competitors. Strategic partnerships with major players like Toyota and Delta Air Lines, along with a strong financial position, are key enablers of its growth strategy.
• However, the company faces substantial risks, including a capital-intensive business model with a long road to profitability, intense competition from both startups and established aerospace giants, and significant regulatory and technological hurdles to overcome before commercial operations can commence.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Technopro Holdings is the subject of a tender offer from private equity firm Blackstone at ¥4,870/share, which represents a significant premium but is considered potentially undervalued by some market observers.
• As a leading technology-focused staffing firm in Japan, the company is well-positioned to benefit from the country’s structural shortage of skilled engineers and increasing demand for digital transformation.
• Significant uncertainty surrounds the success of the Blackstone acquisition due to a high tender threshold of 66.67% and a large passive shareholder base, creating a key risk for investors at the current price.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Leading Market Position with Diversified Operations: Kajima is one of Japan’s ‘Big Five’ general contractors, possessing a dominant position in the domestic construction market. The company is well-diversified across civil engineering, building construction, and a growing real estate development business, which provides a buffer against the cyclicality of the construction sector.
• Favorable Industry Tailwinds: The Japanese construction market is supported by robust public and private investment. Key drivers include large-scale urban redevelopment projects, government spending on national resilience and infrastructure renewal, and growing demand for advanced facilities like data centers and logistics centers.
• Shareholder-Focused Capital Allocation: Kajima has demonstrated a strong commitment to shareholder returns, evidenced by a 3-year dividend CAGR of over 21%. This is supported by a strategy to enhance profitability by focusing on high-margin projects and improving investment efficiency in its real estate development arm.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Privatization Marks New Chapter: After 74 years as a publicly traded entity, Toshiba was delisted in December 2023 following a successful $13.5 billion buyout by a consortium led by Japan Industrial Partners (JIP). This move ends a tumultuous period marked by accounting scandals, corporate governance crises, and battles with activist investors, allowing management to focus on a long-term revitalization strategy away from public market pressures.
• Strategic Refocus on Core Operations: Having divested numerous non-core businesses such as laptops, medical equipment, and home appliances, the new strategy centers on higher-margin and critical technology sectors. Key focus areas include energy systems, infrastructure, power semiconductors, and data-driven digital solutions, aiming to leverage the company’s technological strengths in areas critical to national security and global trends like decarbonization and digitalization.
• Path to Recovery Fraught with Challenges: Despite the potential benefits of privatization, Toshiba faces significant hurdles. The company is still recovering from a legacy of financial mismanagement and reputational damage. It operates in highly competitive global markets and must execute a complex turnaround plan to streamline operations, manage its debt, and regain its position as an innovative leader.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Monopoly Position with Guaranteed Returns: SGP’s sole operating asset, the National Grid Corporation of the Philippines (NGCP), holds an exclusive 25-year concession to operate the entire Philippine power transmission network, creating a natural monopoly with significant barriers to entry. This structure provides a stable and predictable revenue stream based on a regulated asset base.
• Growth Driven by National Economic Expansion: The company is poised to benefit from the Philippines’ robust economic growth, which directly translates to increasing electricity demand. This necessitates significant capital expenditures for grid expansion and modernization, particularly to integrate renewable energy sources, thereby growing SGP’s asset base and future earnings potential.
• Significant Regulatory and Political Risks: As a regulated entity, SGP’s financial performance is highly susceptible to the decisions of the Energy Regulatory Commission (ERC), particularly concerning tariff setting and allowable returns. The strategic importance of the national grid also exposes the company to political scrutiny and potential government intervention, which can create uncertainty.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Carlisle is a market-leading manufacturer of highly engineered building envelope products, with a dominant position in the North American commercial roofing market.
• The company is strategically focused on higher-growth, higher-margin businesses, having recently divested non-core assets. This aligns with their ‘Vision 2030’ plan, which targets significant earnings per share growth.
• While facing near-term headwinds from a softer construction market and destocking, Carlisle’s long-term outlook is supported by favorable trends in energy efficiency, re-roofing, and a strong track record of operational excellence through the Carlisle Operating System (COS).

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.