In today’s briefing:
- [Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs
- LG Chem: To Issue Exchangeable Bond Worth US$1 Billion
- New Horizon Aircraft Ltd (HOVR) – Targeting Regional Air Mobility Market, PT at US$2
- Kyodo Printing (7914 JP): Full-year FY03/25 flash update
- IDEC Corp (6652 JP): Full-year FY03/25 flash update
- What’s New(s) in Amsterdam – 16 May (IMCD)
- Bando Chemical Industries (5195 JP): Full-year FY03/25 flash update
- MHH: Mastech Digital’s New Management Focuses on AI and Cost-Cutting and Reports a Solid Q1
- Nomura Micro Science (6254 JP): Full-year FY03/25 flash update
- IPower, Inc: 3QFY25 Review; Super Sizes SuperSuite With “Made in USA”
[Japan M&A] TechnoPro Holdings (6028) May Be Up For Grabs
- Technopro Holdings (6028 JP) is a temp/contract staffing platform which specialises in engineering staff (IT engineers far more than machinery, construction, chemicals). The company has been growing.
- Overnight, an article appeared in MergerMarket – a high-dollar M&A-related news service – saying the company was going through a sale process. The company confirmed it was one possibility.
- The stock went limit up. This quick writeup looks at the framework of the idea, and possibilities.
LG Chem: To Issue Exchangeable Bond Worth US$1 Billion
- On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
- The purpose of this EB issue is to repay the amount of EB issued two years ago.
- The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.
New Horizon Aircraft Ltd (HOVR) – Targeting Regional Air Mobility Market, PT at US$2
- New Horizon Aircraft is a Canada-based aviation company specializing in the development of hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft
- HOVR’s flagship aircraft, the Cavorite X7 is likely to be commercially available in the next 24 to 36 months. HOVR has already completed the development of a 50%-scale prototype.
- The timeline looks achievable, and the Company has already committed to supplying five Cavorite X7 to Air Chile Ltd by the end of 2028.
Kyodo Printing (7914 JP): Full-year FY03/25 flash update
- Revenue reached JPY100.0bn (+3.1% YoY) with operating profit at JPY2.3bn (+47.8% YoY) and net income JPY3.3bn (+121.4% YoY).
- Information-related segment saw increased revenue from transportation tickets, IC cards, and digital transformation services, despite promotional material order declines.
- Living and Industrial Materials segment focused on packaging solutions, addressing raw material costs, and expanding high-value-added product offerings.
IDEC Corp (6652 JP): Full-year FY03/25 flash update
- FY03/25 revenue was JPY67.4bn (-7.3% YoY), with operating profit at JPY3.7bn (-41.8% YoY) and net income JPY1.8bn (-59.7% YoY).
- FY03/26 forecast: Revenue JPY68.7bn (+2.0% YoY), operating profit JPY4.8bn (+30.1% YoY), net income JPY3.5bn (+94.0% YoY).
- Medium-term plan targets FY03/28 revenue over JPY77.0bn, OPM of at least 13%, and ROIC of 7%+.
What’s New(s) in Amsterdam – 16 May (IMCD)
- In this edition: • IMCD | acquires TECOM Ingredients in Spain
Bando Chemical Industries (5195 JP): Full-year FY03/25 flash update
- FY03/25 revenue reached JPY115.6bn, a 6.8% YoY increase, with Automotive Parts segment revenue growing 9.0% YoY.
- Operating profit declined 55.2% YoY to JPY3.5bn due to JPY5.9bn impairment losses, affecting bottom-line profit.
- FY03/26 forecast: revenue JPY115.0bn, core operating profit JPY8.2bn, operating profit JPY9.5bn, profit attributable JPY6.7bn.
MHH: Mastech Digital’s New Management Focuses on AI and Cost-Cutting and Reports a Solid Q1
- Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
- The company trades below its peers and we expect stock price appreciation now that the company has returned to growth.
- New management has implemented a new focus on AI and hopes to profit by aiding clients in its implementation.
Nomura Micro Science (6254 JP): Full-year FY03/25 flash update
- Nomura Micro Science reported FY03/25 orders of JPY94.5bn, revenue of JPY96.4bn, and net income of JPY10.2bn.
- Revenue from water treatment systems increased 36.7% YoY, while maintenance and consumables rose 19.9% YoY.
- FY03/26 projections include a 24.0% YoY order increase, but a 37.7% YoY revenue decline due to project completions.
IPower, Inc: 3QFY25 Review; Super Sizes SuperSuite With “Made in USA”
- IPW reported revenue of $16.6 million in 3QFY25 (quarter ended March 31, 2025), down from $23.3 million in the year- ago period, with the decline primarily due to (1) a cautious consumer demand environment,
- (2) market uncertainty leading to slower order flow from retail partners such as Amazon, and
- (3) elevated purchasing volumes from IPW’s largest channel partner, Amazon, in the year-ago period, which presented a tough comp.
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