INDUSTRIALS Archives | Page 22 of 295 | Smartkarma

• “Beautiful Skew” came back slightly. Not huge, but OK. On average, liquid Hs outperformed their As by 0.8%.
• Last week’s short reco on Remegen (9995 HK) gained 8.3% on the week in Hs and the H underperformed the A by 7% Friday to Friday, 4.5% if VWAPed Monday.
• AH premia are likely still in a widening phase but weakness in speculative A-shares may dampen overall moves even if pairs are volatile. New reco this week.

• Hesai Group (HSAI US) plans to raise around US$450m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note. 
• In this note, we talk about the deal structure and updates since then.

• Urgent Regulatory Deadline: Nidec faces a critical deadline of September 26, 2025. Meeting this deadline is crucial to avoid regulatory consequences, including potential “Security on Alert” designation or stock suspension.
• Underlying Strength Amidst Issues: Despite recent compliance issues that have impacted its stock, Nidec maintains a strong position as a global leader in electric motors with diversified revenue, projected growth.
• Potential for Rebound: The current low valuation, may present a buying opportunity for long-term investors if the company successfully addresses its governance issues and restores investor confidence.

• In Q225, Evergreen Marine reported a -56% Y/Y decline in Operating Profit
• That’s bad, but our initial read indicates Q325 will likely be far worse
• Y/Y, shares still up slightly; we see lots of downside for container carriers

• “Beautiful Skew” came back slightly. Not huge, but OK. On average, liquid Hs outperformed their As by 0.8%.
• Last week’s short reco on Remegen (9995 HK) gained 8.3% on the week in Hs and the H underperformed the A by 7% Friday to Friday, 4.5% if VWAPed Monday.
• AH premia are likely still in a widening phase but weakness in speculative A-shares may dampen overall moves even if pairs are volatile. New reco this week.

• Hesai Group (HSAI US) plans to raise around US$450m in its secondary listing in Hong Kong.
• We have looked at the deal dynamics in our previous note. 
• In this note, we talk about the deal structure and updates since then.

• Urgent Regulatory Deadline: Nidec faces a critical deadline of September 26, 2025. Meeting this deadline is crucial to avoid regulatory consequences, including potential “Security on Alert” designation or stock suspension.
• Underlying Strength Amidst Issues: Despite recent compliance issues that have impacted its stock, Nidec maintains a strong position as a global leader in electric motors with diversified revenue, projected growth.
• Potential for Rebound: The current low valuation, may present a buying opportunity for long-term investors if the company successfully addresses its governance issues and restores investor confidence.

• In Q225, Evergreen Marine reported a -56% Y/Y decline in Operating Profit
• That’s bad, but our initial read indicates Q325 will likely be far worse
• Y/Y, shares still up slightly; we see lots of downside for container carriers

• Six names stood out with simultaneous volume spikes and sharp pops last Friday; all Semis and Autos additions with big passive impact, while all others showed no tape action.
• Results likely leaked early, prompting front-running on Semis and Autos adds—high passive impact names—causing Friday’s sharp volume and price spikes.
• Early movers are mostly priced in; Thursday momentum plays still work, but Monday–Thursday morning requires caution. Focus on volume-driven flows before loading positions, long-short basket viable for other passive-impact names.

• Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals.
• Management is deploying ~¥1.2tn capex through FY30, tilted toward copper expansion in Chile and renewables growth.
• Shares trade at ~11x P/E and 7–8% FCF yield with ~5% cash return yield, offering value on dips below ¥3,000.

• Six names stood out with simultaneous volume spikes and sharp pops last Friday; all Semis and Autos additions with big passive impact, while all others showed no tape action.
• Results likely leaked early, prompting front-running on Semis and Autos adds—high passive impact names—causing Friday’s sharp volume and price spikes.
• Early movers are mostly priced in; Thursday momentum plays still work, but Monday–Thursday morning requires caution. Focus on volume-driven flows before loading positions, long-short basket viable for other passive-impact names.

• Marubeni is a top-five Japanese trading house, diversified across resources, food, leasing, power, and chemicals.
• Management is deploying ~¥1.2tn capex through FY30, tilted toward copper expansion in Chile and renewables growth.
• Shares trade at ~11x P/E and 7–8% FCF yield with ~5% cash return yield, offering value on dips below ¥3,000.

• Nidec dropped 22% on Thursday following management’s decision to establish an independent committee to investigate accounting irregularities. It bounced back nearly 5% on Friday, but finished the week down 20%.
• In June, the Company received approval to postpone submitting its FY Mar-25 securities report until September 26. In July, it released incomplete 1Q results while postponing full disclosure.
• Without correct numbers, we can only guess at the full impact of the accounting irregularities and their effect on management. 

• With the exception of SF Holding, all listed express firms reported lower H1 OP%
• SF’s independence and unique product mix protected profits as volume surged
• We suggest going Long SF Hldg against Short positions in ZTO & J&T

• GMS Inc.’s latest earnings for the fourth quarter of fiscal year 2025 reflects a mixed performance amidst a challenging macroeconomic environment.
• On the positive side, the company reported net sales of $1.3 billion for the quarter, which aligns with the high end of their expectations provided earlier in the year.
• The sales were bolstered by recent acquisitions, including Kamco, Yvon Building Supply, R.S. Elliott, and Howard & Sons Building Materials, which contributed positively to their revenue.

• Robert Half’s latest earnings for Q2 2025 presents a mixed picture with some notable challenges and opportunities for its business units.
• The company’s global revenues were reported at $1.37 billion, reflecting a 7% year-over-year decline.
• This decline was in line with the midpoint of the company’s previous guidance.

• Valmont Industries, Inc.’s second quarter 2025 results reveal a complex picture of achievements and strategic recalibrations aimed at positioning the company for future growth while addressing current market conditions.
• The company’s revenue for the quarter reached $1.05 billion, marking a slight increase from the previous year, primarily driven by strong performance in the Utility, Telecommunications, and International Agriculture sectors.
• However, this modest growth is offset by challenges faced in other segments, such as Lighting & Transportation and the Solar business.

• Nidec dropped 22% on Thursday following management’s decision to establish an independent committee to investigate accounting irregularities. It bounced back nearly 5% on Friday, but finished the week down 20%.
• In June, the Company received approval to postpone submitting its FY Mar-25 securities report until September 26. In July, it released incomplete 1Q results while postponing full disclosure.
• Without correct numbers, we can only guess at the full impact of the accounting irregularities and their effect on management. 

• With the exception of SF Holding, all listed express firms reported lower H1 OP%
• SF’s independence and unique product mix protected profits as volume surged
• We suggest going Long SF Hldg against Short positions in ZTO & J&T

• GMS Inc.’s latest earnings for the fourth quarter of fiscal year 2025 reflects a mixed performance amidst a challenging macroeconomic environment.
• On the positive side, the company reported net sales of $1.3 billion for the quarter, which aligns with the high end of their expectations provided earlier in the year.
• The sales were bolstered by recent acquisitions, including Kamco, Yvon Building Supply, R.S. Elliott, and Howard & Sons Building Materials, which contributed positively to their revenue.

• Robert Half’s latest earnings for Q2 2025 presents a mixed picture with some notable challenges and opportunities for its business units.
• The company’s global revenues were reported at $1.37 billion, reflecting a 7% year-over-year decline.
• This decline was in line with the midpoint of the company’s previous guidance.

• Valmont Industries, Inc.’s second quarter 2025 results reveal a complex picture of achievements and strategic recalibrations aimed at positioning the company for future growth while addressing current market conditions.
• The company’s revenue for the quarter reached $1.05 billion, marking a slight increase from the previous year, primarily driven by strong performance in the Utility, Telecommunications, and International Agriculture sectors.
• However, this modest growth is offset by challenges faced in other segments, such as Lighting & Transportation and the Solar business.

• Axon reported strong Q2 earnings with 30% year-over-year growth and strong performance in both connected devices and software segments
• The company has been exceeding growth expectations, with 14 consecutive quarters of over 25% growth and 6 consecutive quarters of over 30% growth
• Axon has been focusing on leveraging AI technology to improve efficiency for police officers and drive growth in their software and services segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
• Hanwha Ocean’s share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
• We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean’s stock price.

• The biggest potential M&A event right now in Korea is the potential acquisition of HMM Co., Ltd. (011200 KS) by POSCO Holdings (005490 KS).
• Overall, we believe there is a higher probability of POSCO backing out of this potential acquisition of HMM, rather than POSCO completing this M&A deal.
• Although POSCO claims that it spends about 3 trillion won annually on logistics, the actual synergies among these three businesses (steel, rechargeable battery, and logistics) remain murky.

• Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
• Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
• Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.

• Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
• The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
• Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.

• WaterBridge Infrastructure filed for IPO on August 22nd and is to likely debut in late September or Early October.
• Their customers include active and well-capitalized E&P companies in the areas in which they operate, including BPX Energy, Chevron, Devon Energy Corporation, EOG Resources and Permian Resources.
• They had total revenue of 167.8 million and $166.3 million and net loss of $44.5 million and $29.8 million in the first half of 2024 and 2025, respectively.

• Axon reported strong Q2 earnings with 30% year-over-year growth and strong performance in both connected devices and software segments
• The company has been exceeding growth expectations, with 14 consecutive quarters of over 25% growth and 6 consecutive quarters of over 30% growth
• Axon has been focusing on leveraging AI technology to improve efficiency for police officers and drive growth in their software and services segment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
• Hanwha Ocean’s share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
• We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean’s stock price.

• The biggest potential M&A event right now in Korea is the potential acquisition of HMM Co., Ltd. (011200 KS) by POSCO Holdings (005490 KS).
• Overall, we believe there is a higher probability of POSCO backing out of this potential acquisition of HMM, rather than POSCO completing this M&A deal.
• Although POSCO claims that it spends about 3 trillion won annually on logistics, the actual synergies among these three businesses (steel, rechargeable battery, and logistics) remain murky.

• Minebea bid ¥6,200/share for Shibaura, but Yageo countered at ¥7,130/share (~¥90–95bn), now cleared by regulators.
• Yageo’s FEFTA approval removes Minebea’s “certainty” advantage, leaving its lower bid exposed.
• Unless Minebea revises above its self-declared ceiling, Shibaura’s ~13% global thermistor share likely shifts to Yageo.

• Sumitomo Corporation will acquire Air Lease Corporation for US $7.4B (EV US $28.2B), creating Sumisho Air Lease, the world’s second-largest lessor.
• The deal strengthens Sumitomo’s Transportation & Construction Systems unit, boosting scale and recurring revenues.
• Longer term, it positions Sumitomo to capture growth in the US $200+ billion aircraft leasing market, diversifying away from resource dependence.

• WaterBridge Infrastructure filed for IPO on August 22nd and is to likely debut in late September or Early October.
• Their customers include active and well-capitalized E&P companies in the areas in which they operate, including BPX Energy, Chevron, Devon Energy Corporation, EOG Resources and Permian Resources.
• They had total revenue of 167.8 million and $166.3 million and net loss of $44.5 million and $29.8 million in the first half of 2024 and 2025, respectively.

• Nidec Corp (6594 JP) announced in June they were extending the release of their yuho for three months because of an internal investigation into NIDEC FIR INTERNATIONAL (Italy).
• Yesterday, the company announced it would establish a Third-Party Investigative Committee based on suspected improper accounting at the sub of a Chinese sub 1yr ago and parent management knowledge. 
• There’s been a lot of work done. Now the committee digs in. The announcement smacks of IMS issues. Today the marketcap fell 22% or nearly ¥800bn on ¥200mm of accounting.

• Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
• The company has released its H1 FY25 full year result (December year-end) which is in-line with pre-released data points and commentary.
• The Q2 cashflow statement and financial and operating update was released in July 2025 and included significant detail on group and divisional performance and guidance for the FY25 year.

• Nidec Corp (6594 JP) announced in June they were extending the release of their yuho for three months because of an internal investigation into NIDEC FIR INTERNATIONAL (Italy).
• Yesterday, the company announced it would establish a Third-Party Investigative Committee based on suspected improper accounting at the sub of a Chinese sub 1yr ago and parent management knowledge. 
• There’s been a lot of work done. Now the committee digs in. The announcement smacks of IMS issues. Today the marketcap fell 22% or nearly ¥800bn on ¥200mm of accounting.

• Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
• The company has released its H1 FY25 full year result (December year-end) which is in-line with pre-released data points and commentary.
• The Q2 cashflow statement and financial and operating update was released in July 2025 and included significant detail on group and divisional performance and guidance for the FY25 year.