Industrials

• There are now new changes forecast for the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December for a total of 8 inclusions and 7 deletions.
• Constituent changes along with capping changes will lead to a one-way turnover of 21.8% and in a one-way trade of TWD 75.8bn (US$2.33bn).
• The potential changes had a big one-day move yesterday and we expect similar moves over the next couple of days.

• On 27 November, Ecopro BM (247540 KS) announced that it has filed an application for the transfer of listing from KOSDAQ to KOSPI. 
• Ecopro BM is currently the second largest company in KOSDAQ. At the current market cap, Ecopro BM will be the 34th largest company in KOSPI (in terms of market cap).
• Lofty valuation is one of the main reasons why we continue to be bearish on Ecopro BM which is trading at P/E of 134x and P/B of 9.4x in 2026.

• Carraro India Limited (810618Z IN) is looking to raise about US$216m in its India IPO.
• Carraro India Limited (CIL), is an independent tier 1 solution provider of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in India.
• In this note, we talk about the company’s historical performance.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, Vedanta Resources, Seazen Group
• In the US, October new home sales fell 17.3% m-o-m (-1.8% e / 7.0% revised p) to an annualised 610 k units, the lowest in almost two years, amid rising mortgage rates as well as disruptions caused by hurricanes Helene and Milton. Separately, the Conference Board consumer confidence index increased to 111.7 in November (111.8 e / 109.6 p), the highest since August 2023.
• “November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labour market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years”, according to Dana M. Peterson, Chief Economist at The Conference Board.

• HireQuest is a staffing company, founded in 1991 by Richard Hermanns and Dan McAnnar.
• It started as an on-demand labor provider for daily-paid jobs.
• Over the past 3 decades, HireQuest has added long-term placements and executive recruitment services, operating as a network of different brands.

• Expion360 announced several new OEM relationships that management “expects to generate incremental revenue of $5.0 million in 2025”.
• We are electing to be more conservative with our model for the moment but we are still raising our 2025 revenue estimate from $6 million to $8.9 million.
• Our valuation target also remains unchanged at $4/share as the improving 2025 outlook is tempered by concerns about the company’s financial condition in 2025.

• There are now new changes forecast for the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December for a total of 8 inclusions and 7 deletions.
• Constituent changes along with capping changes will lead to a one-way turnover of 21.8% and in a one-way trade of TWD 75.8bn (US$2.33bn).
• The potential changes had a big one-day move yesterday and we expect similar moves over the next couple of days.

• On 27 November, Ecopro BM (247540 KS) announced that it has filed an application for the transfer of listing from KOSDAQ to KOSPI. 
• Ecopro BM is currently the second largest company in KOSDAQ. At the current market cap, Ecopro BM will be the 34th largest company in KOSPI (in terms of market cap).
• Lofty valuation is one of the main reasons why we continue to be bearish on Ecopro BM which is trading at P/E of 134x and P/B of 9.4x in 2026.

• Carraro India Limited (810618Z IN) is looking to raise about US$216m in its India IPO.
• Carraro India Limited (CIL), is an independent tier 1 solution provider of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in India.
• In this note, we talk about the company’s historical performance.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Ports, Vedanta Resources, Seazen Group
• In the US, October new home sales fell 17.3% m-o-m (-1.8% e / 7.0% revised p) to an annualised 610 k units, the lowest in almost two years, amid rising mortgage rates as well as disruptions caused by hurricanes Helene and Milton. Separately, the Conference Board consumer confidence index increased to 111.7 in November (111.8 e / 109.6 p), the highest since August 2023.
• “November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labour market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years”, according to Dana M. Peterson, Chief Economist at The Conference Board.

• HireQuest is a staffing company, founded in 1991 by Richard Hermanns and Dan McAnnar.
• It started as an on-demand labor provider for daily-paid jobs.
• Over the past 3 decades, HireQuest has added long-term placements and executive recruitment services, operating as a network of different brands.

• Expion360 announced several new OEM relationships that management “expects to generate incremental revenue of $5.0 million in 2025”.
• We are electing to be more conservative with our model for the moment but we are still raising our 2025 revenue estimate from $6 million to $8.9 million.
• Our valuation target also remains unchanged at $4/share as the improving 2025 outlook is tempered by concerns about the company’s financial condition in 2025.

• 13mos ago, activist investor Palliser Capital spoke at a conference about the value offered by Keisei Electric Railway Co (9009 JP) due to its large stake in Oriental Land (4661). 
• Keisei outperformed OLC by 30% over 3.5mos. Then it fell all the way back, and more, over the next five months. Asset sale, buyback, AGM proposals. Meh. 
• Nov 25th, Toyo Keizai wrote activist Murakami-san had acquired stakes of <5% in Keikyu Corp (9006 JP) and <1% in Keisei Electric Railway Co (9009 JP). Shares in both jumped.

• In October 2023 and then in early 2024, activist Palliser Capital demanded that Keisei Electric Railway Co (9009 JP) sell down its stake in Oriental Land (4661 JP) to sub-15%.
• Keisei in March sold 1% of OLC but in doing so, rejected the concept of removing equity affiliate status. They could go to a level just >15%, or just >20%. 
• Today, OLC announced a ToSTNeT-3 buyback of 18mm shares – the total for the 2yrs to Mar-26 announced (p19) in April. Keisei will sell and will stay above 20%. 

• S.F. Holding (002352 CH), China’s largest express delivery company, raised around US$860m in its H-share listing in Hong Kong.
• SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
• We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.

• MNC Solution (MNC KS) is looking to raise US$200m in its Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In our previous note, we looked at the firm’s past performance and undertook a peer comparison. In this note, we discuss our thoughts on valuation.

• Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise upto US$415m in its upcoming India IPO. The deal will be run by ICICI, IIFL, Jefferies, HDFC and BNP Paribas.
• It is a joint-venture between Aegis Logistics, India’s largest third-party LPG handler and Vopak India BV, part of Royal Vopak, one of world’s leading tank storage companies, according to CRISIL.
• AVTL was the largest Indian third-party owner and operator of tank storage terminals for LPG,  liquid products in terms of storage capacity, as of June 30, 2024, as per CRISIL.

• 13mos ago, activist investor Palliser Capital spoke at a conference about the value offered by Keisei Electric Railway Co (9009 JP) due to its large stake in Oriental Land (4661). 
• Keisei outperformed OLC by 30% over 3.5mos. Then it fell all the way back, and more, over the next five months. Asset sale, buyback, AGM proposals. Meh. 
• Nov 25th, Toyo Keizai wrote activist Murakami-san had acquired stakes of <5% in Keikyu Corp (9006 JP) and <1% in Keisei Electric Railway Co (9009 JP). Shares in both jumped.

• In October 2023 and then in early 2024, activist Palliser Capital demanded that Keisei Electric Railway Co (9009 JP) sell down its stake in Oriental Land (4661 JP) to sub-15%.
• Keisei in March sold 1% of OLC but in doing so, rejected the concept of removing equity affiliate status. They could go to a level just >15%, or just >20%. 
• Today, OLC announced a ToSTNeT-3 buyback of 18mm shares – the total for the 2yrs to Mar-26 announced (p19) in April. Keisei will sell and will stay above 20%. 

• S.F. Holding (002352 CH), China’s largest express delivery company, raised around US$860m in its H-share listing in Hong Kong.
• SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
• We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.

• MNC Solution (MNC KS) is looking to raise US$200m in its Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In our previous note, we looked at the firm’s past performance and undertook a peer comparison. In this note, we discuss our thoughts on valuation.

• Aegis Vopak Terminals Ltd (1902844D IN) is looking to raise upto US$415m in its upcoming India IPO. The deal will be run by ICICI, IIFL, Jefferies, HDFC and BNP Paribas.
• It is a joint-venture between Aegis Logistics, India’s largest third-party LPG handler and Vopak India BV, part of Royal Vopak, one of world’s leading tank storage companies, according to CRISIL.
• AVTL was the largest Indian third-party owner and operator of tank storage terminals for LPG,  liquid products in terms of storage capacity, as of June 30, 2024, as per CRISIL.

• Keisei Electric Railway Co (9009 JP) rose 14% after reports that a fund linked to activist investor Murakami bought a stake, while Oriental Land also gained 2.9% in a volatile market.
• Down 50% since February 2024, Keisei Electric seems to have limited downside risks. We believe its valuation could increase if Murakami’s stake leads to activism.
• The long Keisei Electric, short Oriental Land (4661 JP) trade could work well too, especially if Murakami’s activism and the risks to Oriental Land’s guidance materialize.

• Yang Ming Marine Transport (2609 TT) is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December, replacing Airtac International (1590 TT). 
• Yang Ming Marine Transport (2609 TT) is also expected to be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be buying from multiple trackers.
• Shorts are near their lows in Yang Ming Marine Transport (2609 TT) while there has been covering in Airtac International (1590 TT) after an increase in the last few months.

• Sg Fleet (SGF AU) confirmed it received a non-binding indicative proposal from Pacific Equity Partners at A$3.50 per share, a 31.1% premium to the undisturbed price. 
• In consultation with Bluefin Investments, the largest shareholder, PEP has been granted exclusive due diligence access, which ends on November 29.
• The offer is attractive compared to peer multiples and represents an all-time high. The talks are in the final stages, as due diligence ends at the end of the week.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• Today is the base date for the final ranks for the December 2024 index rebal event.
• In this insight, we take a look at our final expectations for ADDs/DELs and their flow implications for the TDIV index which will also have a rebalance event in December.

• SG Fleet (SGF AU), an Aussie provider of fleet leasing services, has announced a A$3.50/share non-binding and indicative proposal from Sydney PE outfit Pacific Equity Partners (PEP). 
• SGF’s board, in consultation with South Africa’s Super Group (SPG SJ), its largest shareholder, has granted PEP exclusive due diligence. 
• A$3.50/Share is a 31% premium to undisturbed. The exclusivity period expires on the 29th November 2024. That short timeframe suggests a firm Offer is imminent. 

• Keisei Electric Railway Co (9009 JP) gained 13.8% yesterday on news that activist investor Murakami-san had acquired a stake.
• Preceding my comments on Keisei Electric are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• This is the third report issued by CML on Keppel’s transformation to a global asset manager per its Vision 2030.
• CML has earlier issued two reports on this subject. The first examines the lack of disclosure by Keppel on critical information and data pertaining to its asset management business.
• This is disappointing as Keppel is almost halfway to its fund under management (‘FUM”) target of S$200bn, and we include peers which are similar in size.

• Polymatech Electronics (POLM IN) revenues have skyrocketed by 27x in the last three years, but the balance sheet is filled with several red herrings. 
• Topline looks out of sync with production and have been largely aided by receivables. Being an R&D oriented company, the R&D expense only appeared in FY24, when sales were INR6bn
• Mis-Classification of cash flows, questionable RPT with promoters, dubious transition towards IND AS, absurd nature of some key expenses, also warrant attention

In one of my articles published earlier this year, I explored three key advantages that investors can use to outperform the market.

While the first two—better information and superior analysis—tend to favor institutional investors, even they often struggle to maintain these edges over extended periods. The third edge, however, is behavior.

Unlike the others, this is an advantage that individual investors can cultivate and sustain over time, as human behavior has remained fundamentally unchanged since the Stone Age.

• MNC Solution (MNC KS) is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In our previous note, we looked at the firm’s past performance. In this note, we undertake a peer comparison.

• Keisei Electric Railway Co (9009 JP) rose 14% after reports that a fund linked to activist investor Murakami bought a stake, while Oriental Land also gained 2.9% in a volatile market.
• Down 50% since February 2024, Keisei Electric seems to have limited downside risks. We believe its valuation could increase if Murakami’s stake leads to activism.
• The long Keisei Electric, short Oriental Land (4661 JP) trade could work well too, especially if Murakami’s activism and the risks to Oriental Land’s guidance materialize.

• Yang Ming Marine Transport (2609 TT) is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in December, replacing Airtac International (1590 TT). 
• Yang Ming Marine Transport (2609 TT) is also expected to be added to the Yuanta/P-shares Dividend Plus ETF in December, so there will be buying from multiple trackers.
• Shorts are near their lows in Yang Ming Marine Transport (2609 TT) while there has been covering in Airtac International (1590 TT) after an increase in the last few months.

• Sg Fleet (SGF AU) confirmed it received a non-binding indicative proposal from Pacific Equity Partners at A$3.50 per share, a 31.1% premium to the undisturbed price. 
• In consultation with Bluefin Investments, the largest shareholder, PEP has been granted exclusive due diligence access, which ends on November 29.
• The offer is attractive compared to peer multiples and represents an all-time high. The talks are in the final stages, as due diligence ends at the end of the week.

• The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
• Today is the base date for the final ranks for the December 2024 index rebal event.
• In this insight, we take a look at our final expectations for ADDs/DELs and their flow implications for the TDIV index which will also have a rebalance event in December.

• SG Fleet (SGF AU), an Aussie provider of fleet leasing services, has announced a A$3.50/share non-binding and indicative proposal from Sydney PE outfit Pacific Equity Partners (PEP). 
• SGF’s board, in consultation with South Africa’s Super Group (SPG SJ), its largest shareholder, has granted PEP exclusive due diligence. 
• A$3.50/Share is a 31% premium to undisturbed. The exclusivity period expires on the 29th November 2024. That short timeframe suggests a firm Offer is imminent. 

• Keisei Electric Railway Co (9009 JP) gained 13.8% yesterday on news that activist investor Murakami-san had acquired a stake.
• Preceding my comments on Keisei Electric are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• This is the third report issued by CML on Keppel’s transformation to a global asset manager per its Vision 2030.
• CML has earlier issued two reports on this subject. The first examines the lack of disclosure by Keppel on critical information and data pertaining to its asset management business.
• This is disappointing as Keppel is almost halfway to its fund under management (‘FUM”) target of S$200bn, and we include peers which are similar in size.

• Polymatech Electronics (POLM IN) revenues have skyrocketed by 27x in the last three years, but the balance sheet is filled with several red herrings. 
• Topline looks out of sync with production and have been largely aided by receivables. Being an R&D oriented company, the R&D expense only appeared in FY24, when sales were INR6bn
• Mis-Classification of cash flows, questionable RPT with promoters, dubious transition towards IND AS, absurd nature of some key expenses, also warrant attention

In one of my articles published earlier this year, I explored three key advantages that investors can use to outperform the market.

While the first two—better information and superior analysis—tend to favor institutional investors, even they often struggle to maintain these edges over extended periods. The third edge, however, is behavior.

Unlike the others, this is an advantage that individual investors can cultivate and sustain over time, as human behavior has remained fundamentally unchanged since the Stone Age.

• MNC Solution (MNC KS) is looking to raise US$200m in its upcoming Korea IPO.
• MNC Solutions (MNC) supplies high-precision control components for maritime and aviation weaponry, and travel devices for stabilization to the defense industry.
• In our previous note, we looked at the firm’s past performance. In this note, we undertake a peer comparison.

• Huge volumes continue to be traded on the mainland share markets. SOUTHBOUND volumes dropped sharply but net buying continued strongly.
• Stocks in HK and mainland markets fell heavily with HK’s main indices down 6-7% and China’s blue chip indices down 3.3-3.6% (CSI 500 – 4.8%).
• Within H/A Pairs, after outperforming the HK/mainland spread for weeks, spreads got shellacked. Worst week in a long time (-3.7%), perhaps on the back of “disappointing” lack of stimulus measures.

• Takasago Thermal Engineering (1969 JP) is one of the top 10 players in Japan for energy efficiency players for industrial clients, especially semiconductors. 
• Japan Metropolitan Govt bought stake in Rapidus, signifying a potential long-term business potential for Takasago Thermal Engineering. 
• Valuation is no longer dirt cheap but still at a favorable level given its potential enlarged revenue growth. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Bharti Airtel

• China State Construction Int’l (3311 HK)‘s backlog of HK$418.26bn is enough to cover 3x consensus forecast revenue of FY25, providing comfort for secured earnings outlook. 
• The focus on public housing and municipal projects limits its exposure to the real estate market. Its consecutive earnings growth in last five years demonstrated its resilience.
• With ROE of 15-16%, its P/B of 0.8x is cheap. The reduction in operating cash outflow supports higher payout ratio, and its dividend yield of 5.6-6.3% is healthy. 

• HUTCHMED will receive a US$20 million milestone payment from its partner Takeda. In our view, peak sales of fruquintinib is expected to reach about US$700 million in overseas markets.
• After the Head of AstraZeneca China has been detained by authorities, AstraZeneca’s future commercialization would be affected, which will have a negative impact on savolitinib and HUTCHMED in short term.
• Reasonable market value of HUTCHMED based on the three major products is about US$2.7-3.3 billion assuming P/S of 4. If market value is below US$2.5 billion, HUTCHMED is undervalued.

• October volume firmed, but price data is mixed; X-border activity trended stronger
• ZTO’s shares sagged after it reported weaker Q324 margins & lowered FY24 guidance
• Market leader SF Holding’s long-awaited HK IPO should price & begin trading this week

• Huge volumes continue to be traded on the mainland share markets. SOUTHBOUND volumes dropped sharply but net buying continued strongly.
• Stocks in HK and mainland markets fell heavily with HK’s main indices down 6-7% and China’s blue chip indices down 3.3-3.6% (CSI 500 – 4.8%).
• Within H/A Pairs, after outperforming the HK/mainland spread for weeks, spreads got shellacked. Worst week in a long time (-3.7%), perhaps on the back of “disappointing” lack of stimulus measures.

• Takasago Thermal Engineering (1969 JP) is one of the top 10 players in Japan for energy efficiency players for industrial clients, especially semiconductors. 
• Japan Metropolitan Govt bought stake in Rapidus, signifying a potential long-term business potential for Takasago Thermal Engineering. 
• Valuation is no longer dirt cheap but still at a favorable level given its potential enlarged revenue growth. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Adani Ports & Special Economic Zone
• Bharti Airtel

• China State Construction Int’l (3311 HK)‘s backlog of HK$418.26bn is enough to cover 3x consensus forecast revenue of FY25, providing comfort for secured earnings outlook. 
• The focus on public housing and municipal projects limits its exposure to the real estate market. Its consecutive earnings growth in last five years demonstrated its resilience.
• With ROE of 15-16%, its P/B of 0.8x is cheap. The reduction in operating cash outflow supports higher payout ratio, and its dividend yield of 5.6-6.3% is healthy. 

• HUTCHMED will receive a US$20 million milestone payment from its partner Takeda. In our view, peak sales of fruquintinib is expected to reach about US$700 million in overseas markets.
• After the Head of AstraZeneca China has been detained by authorities, AstraZeneca’s future commercialization would be affected, which will have a negative impact on savolitinib and HUTCHMED in short term.
• Reasonable market value of HUTCHMED based on the three major products is about US$2.7-3.3 billion assuming P/S of 4. If market value is below US$2.5 billion, HUTCHMED is undervalued.

• October volume firmed, but price data is mixed; X-border activity trended stronger
• ZTO’s shares sagged after it reported weaker Q324 margins & lowered FY24 guidance
• Market leader SF Holding’s long-awaited HK IPO should price & begin trading this week

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: S.F. Holding (6936 HK) H Share listing,FineToday Holdings Co Ltd (289A JP) IPO, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
• Event-Driven developments: Seven & I Holdings (3382 JP), Kadokawa Dwango (9468 JP), Integrated Design & Engineering Holdings (9161 JP), HKBN Ltd (1310 HK), Arcadium Lithium (LTM AU).

Avon Technologies’ FY24 results show the continued momentum seen throughout the year, with revenue growth of 12.2% y-o-y ($275m), adjusted operating profit growth of 53.4% y-o-y ($31.6m) and a record closing order book value of $225m, up 64.3% y-o-y. Return on invested capital (ROIC) grew 500bp y-o-y to 13.7%. Given Avon’s record order pipeline, disciplined capital allocation and strong cash generation, management expects the company to achieve both its medium-term operating margin (14–16%) and ROIC (>17%) targets a year ahead of schedule in FY26.

• Oneteam, a Singapore-based startup focused on transforming succession at small and medium-sized enterprises (SMEs) through employee ownership, has raised SGD 3.5 million (US$2.6 million) in seed funding.
• Wavemaker Ventures, the early-stage fund of Wavemaker Partners, led the round.
• About 70 per cent of the funding will be used to acquire small businesses, while the remaining funds will be used to build a strong core team and infrastructure to provide shared services for its portfolio.

• Price momentum softened dramatically in October, mirroring steep declines in H221, FY22
• We believe price momentum, rather than earnings, drives medium-term share performance
• Reaction to ZIM’s stellar Q324 results & guidance raise suggests more downside ahead

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: S.F. Holding (6936 HK) H Share listing,FineToday Holdings Co Ltd (289A JP) IPO, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
• Event-Driven developments: Seven & I Holdings (3382 JP), Kadokawa Dwango (9468 JP), Integrated Design & Engineering Holdings (9161 JP), HKBN Ltd (1310 HK), Arcadium Lithium (LTM AU).

Avon Technologies’ FY24 results show the continued momentum seen throughout the year, with revenue growth of 12.2% y-o-y ($275m), adjusted operating profit growth of 53.4% y-o-y ($31.6m) and a record closing order book value of $225m, up 64.3% y-o-y. Return on invested capital (ROIC) grew 500bp y-o-y to 13.7%. Given Avon’s record order pipeline, disciplined capital allocation and strong cash generation, management expects the company to achieve both its medium-term operating margin (14–16%) and ROIC (>17%) targets a year ahead of schedule in FY26.

• Oneteam, a Singapore-based startup focused on transforming succession at small and medium-sized enterprises (SMEs) through employee ownership, has raised SGD 3.5 million (US$2.6 million) in seed funding.
• Wavemaker Ventures, the early-stage fund of Wavemaker Partners, led the round.
• About 70 per cent of the funding will be used to acquire small businesses, while the remaining funds will be used to build a strong core team and infrastructure to provide shared services for its portfolio.

• Price momentum softened dramatically in October, mirroring steep declines in H221, FY22
• We believe price momentum, rather than earnings, drives medium-term share performance
• Reaction to ZIM’s stellar Q324 results & guidance raise suggests more downside ahead