Daily Brief Industrials: Lion Rock Group, Mitsui & Co Ltd, AP Moeller – Maersk A/S, Fincantieri SpA, Norwegian Air Shuttle and more

• Lion Rock Group is a global printing services provider with a strong foothold in the international book publishing market, demonstrating consistent revenue growth and robust cash flow generation.
• The company faces headwinds from the secular decline of traditional print media but is actively pursuing growth through strategic acquisitions and operational diversification, particularly in Australia and Southeast Asia.
• Valuation appears attractive, with low earnings multiples and a high dividend yield, suggesting a value proposition for investors, balanced against the inherent risks of the evolving printing industry.

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• 1H FY26 results resilient: LNG and FX offset metals softness; FY26 NI raised 6% to ¥820 bn, ROE ~13%.
• Valuation gap to Itochu closed; Mitsui now trades ~1.4× P/B with superior copper and LNG leverage.
• Sustained buybacks (~5% p.a.) and ≥10% Berkshire anchor ensure 6–9% TSR CAGR, with 10%+ if copper >US$10k/t.

• Core “Ocean” EBITDA fell by 55% Y/Y in Q325 due to lower average freight rates
• Maersk lifted lower end of guidance range, but offered downbeat tone on Q4, 2026
• Shares fell by 5% in response to Thursday’s report; we remain negative on sector

• Fincantieri is a global leader in shipbuilding, specializing in high-value-added segments such as cruise ships, defense vessels, and specialized offshore vessels. The company is well-positioned to benefit from the ongoing recovery in the cruise industry and increasing global defense budgets.
• Recent financial performance has shown significant improvement, with strong revenue and EBITDA growth, driven by a record order intake and a substantial backlog that provides long-term visibility. The company is also strategically expanding into the high-margin underwater and submarine sector.
• Key challenges include managing a high debt load, navigating the cyclicality of the shipbuilding industry, and addressing operational efficiencies to improve profitability margins further. The company’s valuation appears elevated compared to peers, suggesting high growth expectations are priced in.

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• Following a comprehensive restructuring that saw the company exit bankruptcy protection, Norwegian Air Shuttle has successfully pivoted from a struggling long-haul carrier to a focused, profitable Nordic-based low-cost airline.
• The company has demonstrated a significant financial turnaround, with strong revenue growth and a return to profitability, driven by renewed travel demand and a disciplined operational strategy. However, the balance sheet remains leveraged.
• Intense competition from larger European low-cost carriers and volatility in fuel prices and currency exchange rates represent the most significant headwinds to sustained profitability and future growth.

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