In today’s briefing:
- Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds
- Doosan Enerbility (034020.KQ) – Nuclear-Led Transition with Strong Visibility, But Valuation Full
- Japan Steel Works (5631 JP) – Steady Profit Growth, Nuclear Edge, and Premium Justified
- Caterpillar’s Data Center Pivot May Be Its Smartest Move Yet: The Most Underrated AI Infrastructure Stock?
- Equifax: Powering Ahead in the Government Sector with $50 Million Contracts and Strategic Data Deals!
- Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating
- Rheinmetall AG: Initiation of Coverage- Game-Changing Lockheed Partnership Unlocks €5 Billion Opportunity!
- Singapore Airlines (SIA): Losing from Higher Crude Oil Price
- Siemens AG: Initiation of Coverage- High-Impact Automation Surge Powers Market Dominance!
- GMS Just Became the $5 Billion Battleground Between Home Depot and QXO — Here’s Why!
Virgin Australia IPO Trading – Flying into Oil and Recent Air Crash Headwinds
- Bain Capital raised around US$440m via selling some of its stake in Virgin Australia Holdings (VAH AU).
- Virgin Australia is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
- We have looked at the company’s past performance and provided our thoughts on valuations in our previous note. In this note, we talk about the trading dynamics.
Doosan Enerbility (034020.KQ) – Nuclear-Led Transition with Strong Visibility, But Valuation Full
- Margins have improved steadily since FY2020, but bottom-line gains remain volatile due to non-operating drags.
- Backlog at Record Highs; Nuclear a Key Differentiator: ₩20.1 tn order book, rising SMR traction, and global nuclear wins position Doosan as a strategic supplier.
- Structural Tailwinds Priced In: While medium-term growth looks strong, premium multiples (~28x EV/EBITDA) suggest limited room for execution missteps.
Japan Steel Works (5631 JP) – Steady Profit Growth, Nuclear Edge, and Premium Justified
- Strong earnings momentum with revenue, margins, and EPS consistently improving over FY21–FY25, driven by a shift toward high-margin industrial machinery.
- Strategic monopoly in ultra-large nuclear forgings, supported by global SMR tailwinds, capacity expansion plans, and a record order backlog across nuclear and defense.
- Valuations remain elevated, but are backed by strong visibility, margin expansion, and structurally advantaged positioning in a tightening global supply chain.
Caterpillar’s Data Center Pivot May Be Its Smartest Move Yet: The Most Underrated AI Infrastructure Stock?
- Caterpillar, long known for bulldozers and mining trucks, is now emerging as a quiet force behind the AI revolution—not through chips or software, but by powering the infrastructure that supports it.
- At the heart of this shift is Caterpillar’s large-engine manufacturing facility in Lafayette, Indiana, where engines ranging from 1,000 to 6,000 horsepower are built to meet the soaring electricity demands of AI-powered data centers.
- The facility, which currently employs over 2,000 people, is expected to double its capacity over the next three years.
Equifax: Powering Ahead in the Government Sector with $50 Million Contracts and Strategic Data Deals!
- Equifax Inc. has provided a comprehensive overview of its Q1 2025 financial performance and outlook in its recent earnings, revealing both strengths and challenges in the company’s operational landscape.
- Starting with the positives, Equifax reported a strong beginning to 2025 with revenue reaching $1.442 billion, marking a 4% growth on a reported basis and 5% in constant currency.
- Notably, this was $37 million above the midpoint of the company’s previous guidance offered in February.
Beijing Geekplus Pre-IPO: PHIP Updates – Losses Continue to Narrow but Growth Decelerating
- Geek+ (1678559D CH) is looking to raise up to US$200m in its upcoming Hong Kong IPO.
- It is the leader in the global autonomous mobile robots (AMR) market.
- In this note, we provide updates on the firm’s past performance.
Rheinmetall AG: Initiation of Coverage- Game-Changing Lockheed Partnership Unlocks €5 Billion Opportunity!
- Rheinmetall AG’s latest quarterly performance presents a dynamic portrait of both progress and challenges.
- The company reported substantial growth primarily in the defense sector, with sales increasing by 33% to EUR 1.795 billion, leading to an impressive operational margin of 11.5%.
- However, Rheinmetall’s civilian business remains stagnant, failing to reach similar profitability levels.
Singapore Airlines (SIA): Losing from Higher Crude Oil Price
- Singapore Airlines (SIA SP) may be losing some of its earnings from the continuing crisis in the Middle East.
- Its rather high dividend yield may provide support in the near term
- But a higher crude oil price may send its earnings downhill as it counts up to 30% of the total cost.
Siemens AG: Initiation of Coverage- High-Impact Automation Surge Powers Market Dominance!
- Siemens AG has presented its financial performance for the second quarter of fiscal 2025, showing a mixture of growth and adaptability amidst global economic fluctuations.
- The company’s results reflect robust progress in orders and revenue and an emphasis on adapting to rapid technological change.
- From a positive perspective, Siemens achieved a book-to-bill ratio of 1.1 and maintained a high-quality order backlog of EUR 117 billion, indicating strong future growth potential.
GMS Just Became the $5 Billion Battleground Between Home Depot and QXO — Here’s Why!
- In a dramatic turn of events in June 2025, GMS Inc., a major distributor of construction materials like wallboard, ceilings, and steel framing, has emerged as the center of a high-stakes takeover battle.
- First, QXO Inc., led by serial acquirer Brad Jacobs, made an unsolicited all-cash bid of $95.20 per share, valuing GMS at $5 billion.
- Just days later, reports surfaced that Home Depot, the $345 billion retail giant, also submitted its own private bid, though without disclosing a price.
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