In today’s briefing:
- Holdco NAV Discount Compression Play on Korea’s Next Policy Narrative: Mandatory Tender Offers
- Vicom : Well Run Company with High ROE
- Hesai Group H Share Listing: The Investment Case
- Vicom Ltd: When Less Is More
- Legence Corp. (LGN): Blackstone Backed Engineering Firm Sets Terms for IPO Seeking $3.0b Valuation
- ISOTeam Ltd – Short-Term Miss, Long-Term Momentum
- Alibaba’s Logistics Arm CaiNiao Relegated To “Others” Status | Implications for Chinese Express?
- What’s New(s) in Amsterdam – 2 September (InPost | TKH Group | Dutch retail sales)
- TWI: We are discontinuing research coverage of TWI.
Holdco NAV Discount Compression Play on Korea’s Next Policy Narrative: Mandatory Tender Offers
- Korean equities are stalled; macro catalysts are absent. Street focus shifts from treasury share cancellations to next year’s mandatory tender offers, now seen as the top policy driver.
- Pre-MTO trades focus on holding companies with wide NAV discounts or low controlling stakes, front-running policy-driven re-ratings before minority shareholders capture control premiums.
- Focus on 32 Korean holding companies >KRW 500B; those with wide NAV discounts and lighter controlling stakes—SK’s holding companies, Samsung C&T, Hanwha, LG, LS—are prime re-rating plays.
Vicom : Well Run Company with High ROE
- Number 1 service provider in inspection and technical testing services in Singapore
- Very high net profit margin of 20% and 20%+ ROE
- Consistently makes free cash flow but earnings growth is limited
Raising Money for Persons with Disabilities in Singapore
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Hesai Group H Share Listing: The Investment Case
- Hesai Group (HSAI US), a global leader in LiDAR solutions, is seeking to raise US$300 million through an H Share listing.
- On 9 February 2023, Hesai listed on the Nasdaq, raising US$190 million at US$19.00 per ADS.
- The investment case is based on a solid competitive positioning, high growth, emerging profitability, declining cash burn, and a reasonable valuation.
Vicom Ltd: When Less Is More
What does a company do when its original business is producing good profitability, strong cashflow and return on equity (“ROE”), but no growth?
VICOM Ltd. (“VICOM”) is one such company.
It is a pioneer in Singapore’s Vehicle Inspection industry and has close to 73% market share, in an industry whose demand is guaranteed by government regulation that all vehicles have to be inspected at regular intervals.
Legence Corp. (LGN): Blackstone Backed Engineering Firm Sets Terms for IPO Seeking $3.0b Valuation
- Legence Corp set terms for its IPO and will offer 26 million shares at $25-$29 and is scheduled to debut on Friday, September 12th.
- The company is private-equity backed by BlackStone and PE-backed deals have struggled, broadly speaking, in 2025.
- From 2021 to 2024, their revenues grew at a CAGR of approximately 39% and as of June 30, 2025, they had $2.8 billion of backlog and awarded contracts.
ISOTeam Ltd – Short-Term Miss, Long-Term Momentum
- ISOTeam’s FY2025 results fell short of our expectations, with revenue declining 8.4% yoy to S$119.2m (11.7% below our forecast) and net profit attributable to shareholders dropping 21.2% yoy to S$5.1m (29.2% below forecast).
- The weaker performance was primarily driven by delayed project commencements in Repairs & Redecoration (–42.9% yoy) and Coating & Painting (–14.4%) segments, partially offset by strong growth in Addition & Alteration (25.0% yoy) and Others (10.4% yoy) segments.
- Gross margin improved modestly on better project mix and pricing, but earnings was further weighed down by lower other income and a higher effective tax rate.
Alibaba’s Logistics Arm CaiNiao Relegated To “Others” Status | Implications for Chinese Express?
- Last week in its June quarter earnings release Alibaba “demoted” CaiNiao’s status
- It’s become clear that boosting eComm logistics simply isn’t a priority for Alibaba
- For firms that took investment from Alibaba & CaiNiao, implications are -Ive
What’s New(s) in Amsterdam – 2 September (InPost | TKH Group | Dutch retail sales)
- In this edition: • InPost | solid set of 1H25 numbers; reiterates FY25 guidance • TKH Group | awarded 140km inter-array cable contract for Gennaker offshore wind farm • Dutch retail sales | up 5% YoY in value terms in July; volume up 3.2%
TWI: We are discontinuing research coverage of TWI.
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