In today’s briefing:
- Value Unlock SG: Value Creation Via Corporate Action. May the Wind Carry Many More Sails
- HMM KRW 2T Tender: Full Pro-Rata Risk Assessment
- Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide
- HMM: Tender Offer of 8% of Outstanding Shares and Cancellation
- Business Breakdown: CFF Fluid Control – In the Middle of India’s Naval Indigenization Drive
- JSW Cement IPO Trading – Overall Demand Lags Recent Listings
- PG Electroplast: Guidance Cut Tempers Near-Term Outlook, Valuation Back in Check?
- WESCO Accelerates Momentum Across UBS, EES, & AI-Driven Data Centers; What Lies Ahead?
- AGCO Corporation: Precision Agriculture, Technological Advancements & Other Major Drivers!
- W.W. Grainger’s Zoro Growth Engine – Can It Defy Market Challenges?
Value Unlock SG: Value Creation Via Corporate Action. May the Wind Carry Many More Sails
- A wave of corporate actions by SGX-listed companies has unlocked substantial shareholder value and re-rated select stocks in recent months. In this note, we spotlight five standout cases.
- Our top picks with the strongest catalysts for further upside after delivering significant shareholder returns over the past year are – Keppel Corp (KEP SP) and Yangzijiang Financial (YZJFH SP).
- The outsized value creation delivered by these companies should serve as a wake-up call for other managements to follow suit and initiate actions to boost returns and unlock shareholder value.
HMM KRW 2T Tender: Full Pro-Rata Risk Assessment
- Watch next Monday’s premium and the share slice we can grab—these will drive hedge sizing with futures or other plays.
- Premium sits in the late 10% range, above expectations; HMM’s float is tight, with 80%+ effectively locked by KDB, KOBC, NPS, and passive holders.
- The tender pool is capped at ~15% of shares; with KDB taking 3–3.5%, about 4.5–5% remains available for the market.
Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide
- There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in September – one is high probability and the other is right at the cusp.
- King Slide Works (2059 TT) is being added to a global index this month, so the ETF inclusion will come hot on the heels of that.
- The impact on the stocks is pretty big with passive trackers needing to buy between 1.3-5.5x ADV in the adds and sell between 3.4-6.4x ADV in the deletes.
HMM: Tender Offer of 8% of Outstanding Shares and Cancellation
- After the market close on 14 August, HMM Co., Ltd. (011200 KS) announced a tender offer of 81.8 million treasury shares (8% of outstanding shares).
- An even bigger factor on HMM’s share price than this tender offer could be the continued decline in the global shipping rates which is negative on the company.
- Overall, we would be cautious on HMM over the next one year. HMM also reported worse than expected operating profit in 2Q 2025 due to weaker global shipping rates.
Business Breakdown: CFF Fluid Control – In the Middle of India’s Naval Indigenization Drive
- CFF Fluid Control enters FY25 with a INR 500+ crore order book and expanded manufacturing capacity at Khopoli and upcoming Chakan facility.
- Strategic partnerships, high entry barriers, and preferred supplier status strengthen revenue visibility amid India’s naval indigenization push.
- Robust growth prospects and contract pipeline outweigh concentration risks, reinforcing a positive long-term outlook.
JSW Cement IPO Trading – Overall Demand Lags Recent Listings
- JSW Cement Limited (9858514Z IN) raised about US$410m in its India IPO.
- JSW Cement (JSWC) is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement, ordinary portland cement, ground granulated blast furnace slag, among other products.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
PG Electroplast: Guidance Cut Tempers Near-Term Outlook, Valuation Back in Check?
- PGEL cut FY26 guidance sharply, triggering ~30% share price fall. Valuations now near long-term medians, with EV/EBITDA at 26.8x and P/E at 54x.
- Near-Term growth headwinds emerge, but Indian RAC market’s 18% CAGR outlook remains intact, supported by low penetration, rising incomes, and PLI-led domestic manufacturing push.
- Correction offers fair-value entry. Long-term thesis intact with PGEL’s EMS leadership, backward integration, and exposure to fast-growing consumer durable categories.
WESCO Accelerates Momentum Across UBS, EES, & AI-Driven Data Centers; What Lies Ahead?
- WESCO International, Inc. delivered a mixed financial performance for the second quarter of 2025, indicating both challenges and significant growth opportunities.
- Positives were apparent in the company’s organic sales growth, which was reported at 7% year-over-year, highlighted by a 17% increase in Communications & Security Solutions (CSS) and a 6% increase in Electrical & Electronic Solutions (EES).
- The company also reached a milestone as its data center sales surpassed $1 billion, reflecting a 65% growth compared to the previous year.
AGCO Corporation: Precision Agriculture, Technological Advancements & Other Major Drivers!
- AGCO Corporation reported its second quarter 2025 financial results under challenging conditions in the agricultural sector.
- The company’s net sales fell to $2.6 billion, representing a 19% decline from the previous year or 11% when adjusted for the divestiture of its Grain & Protein business.
- This reduction reflects persisting softness in key regions, including North America and Western Europe, compounded by reduced dealer inventory levels.
W.W. Grainger’s Zoro Growth Engine – Can It Defy Market Challenges?
- W.W. Grainger’s second-quarter financial performance in 2025 depicted a mixed yet stable operational stance amidst ongoing market uncertainties.
- The company reported sales of nearly $4.6 billion, up 5.6% year-over-year, or 5.1% on a constant currency basis, which suggests a steady demand in its broad industrial customer base despite macroeconomic uncertainties.
- Operating margins were recorded at 14.9%, with diluted EPS increasing by $0.21 to $9.97.
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