In today’s briefing:
- SM Investments Placement: Large Deal to Digest
- Keisei Electric Railway: Oversold on Caution, Not on Fundamentals
- Sumitomo Corp (8053 JP): £7.5B UK Clean Energy Pivot to Boost Infra Exposure and Earnings Quality
- Upslope’s Quarterly Investor Letter: 2025-Q2 Update
- EJ Holdings Inc (2153 JP): Full-year FY05/25 flash update
- TOMRA Systems: Initiation of Coverage- Is The Growth In The Recycling Here To Stay?
- Wallenius Wilhelmsen – Can Tariff Turbulence Derail This Shipping Giant?
SM Investments Placement: Large Deal to Digest
- An undisclosed seller is looking to raise US$142m via selling some/all of their stake in SM Investments (SM PM).
- The deal is a large one to digest, representing 33.1 days of the stock’s three month ADV, and 0.7% of total shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Keisei Electric Railway: Oversold on Caution, Not on Fundamentals
- Keisei Electric Railway Co (9009 JP) shares fell 52% from February 2024 peak, with losses deepening after its conservative mid-term plan and the failed activist board proposal in June 2025.
- However, we believe the company’s mid-term guidance is overly conservative and underestimates the company’s underlying earnings potential
- With depressed valuation, fare-driven revenue growth, and volume recovery potential, we see limited downside and an appealing opportunity for medium-term price appreciation.
Sumitomo Corp (8053 JP): £7.5B UK Clean Energy Pivot to Boost Infra Exposure and Earnings Quality
- Sumitomo’s £7.5B (~¥1.46T) UK clean energy investment marks a pivot from trading and resource-linked businesses to long-duration, regulated infrastructure—anchoring its Energy Transformation strategy.
- Annual deployment (~¥146B) is ~24% of operating cash flow; funded via SPVs, project finance, and equity partners. Majority of spend is front-weighted through FY2031, earnings back-loaded.
- Currently trading at ~5.7x EV/EBITDA, a successful infra scale-up could justify a multiple closer to 6.5–7.0x—in line with peers like Marubeni or Mitsui. ROE uplift is likely beyond FY2028.
Upslope’s Quarterly Investor Letter: 2025-Q2 Update
- Q2 saw markets whipsawed in an unprecedentedly deliberate fashion. Markets got slammed when aggressive tariffs were announced.
- They quickly rebounded when relief extensions were granted and “deals” announced. Then they rebounded some more.
- Where does that leave us? No one believes harsh tariffs will be widely implemented. This (lack of tariffs) is a good thing, and it is well reflected in markets and valuations. But markets are now extremely frothy.
EJ Holdings Inc (2153 JP): Full-year FY05/25 flash update
- In FY05/25, E-J Holdings reported revenue of JPY42.7bn, operating profit of JPY4.5bn, and net income of JPY3.2bn.
- For FY05/26, E-J Holdings forecasts revenue of JPY47.0bn, operating profit of JPY5.0bn, and net income of JPY3.4bn.
- E-J Holdings formulated E-J-Vision2030 and E-J-Plan2027 to enhance business foundation and corporate value.
TOMRA Systems: Initiation of Coverage- Is The Growth In The Recycling Here To Stay?
- Tomra Systems ASA has reported its first-quarter results for 2025, showing a performance that aligns closely with expectations both in revenue and profit terms.
- The company, which operates mainly in the Collection, Recycling, and Food sectors, delivered a total revenue of EUR 306 million for the quarter, a 5% increase compared to the previous year.
- The Food sector was particularly strong, benefiting from a successful turnaround that led to record EBITA and double-digit growth in both revenues and order intake.
Wallenius Wilhelmsen – Can Tariff Turbulence Derail This Shipping Giant?
- Wallenius Wilhelmsen has reported solid performance for the first quarter of 2023, despite facing significant market uncertainties primarily driven by U.S. tariffs and changing regulatory environments.
- The company posted a robust adjusted EBITDA of $462 million, up 5% from the same quarter last year, indicating stable performance in its core segments.
- A notable event during the quarter was the completion of the MIRRAT transaction, marking Wallenius Wilhelmsen’s withdrawal from operations in Australia, with the proceeds already accounted for.
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