October 7, 2025 09:00 PM GMT Asia Thematics | Asia Pacific M Foundation Theme Spotting: Asia's Emerging Alpha From a thematic perspective, we present some of the most compelling alpha-generating opportunities identified by our Asian research department in 3Q25. Key Takeaways Exhibit 1: Overview of Morgan Stanley Asia's Thematic Opportunities (3Q25) | Near-term (2025–27) | | | | --- | --- | --- | | Future of Energy | Global Solar | Gross margin of integrated module players to turn positive by 2026–27 after | ...

BEIJING (Reuters) -China tightened its rare earth export controls on Thursday, expanding restrictions on processing technology, unauthorised overseas cooperation and spelling out its intention to limit exports to overseas defence and semiconductor users. Exports of technology used to mine and process rare earths or make the associated magnets is barred without permission, the Ministry of Commerce said in a statement. Many of these technologies are already restricted and it was not immediately clear what t ...

Thyssenkrupp is aiming for October 20 for the spin-off of its defence division TKMS, two people familiar with the matter said, in a deal that analysts say could value the warship builder at up to 2.7 ... ...

OXFORD, United Kingdom, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Unipart, the supply chain performance improvement partner, and KBR announced a new strategic partnership bringing together the two businesses’ world-class capabilities to deliver innovative and resilient solutions for the defence industry. The partnership combines Unipart’s expertise in supply chain management, logistics, and digital solutions with KBR’s deep-rooted experience in systems engineering, programme management, and defence operational sup ...

Core Insights - The U.S. Defense Logistics Agency plans to purchase up to $40 million worth of scandium oxide over the next five years to secure supplies for the national stockpile, following China's export controls on the material [1][2] - The acquisition includes a target of 6.4 metric tons of scandium oxide, with nearly 2 tons sought in the first year, representing about 5% of last year's global production [2][3] - Rio Tinto has been identified as the sole vendor capable of meeting the government's requirements for scandium oxide, with the company actively collaborating with the U.S. government to enhance domestic production [4][5] Company Insights - Rio Tinto's facility in Quebec, Canada, produced its first batch of scandium oxide three years ago and currently has an annual production capacity of 3 metric tons [5] - The company has developed a process to extract high-purity scandium oxide from titanium dioxide production waste, which eliminates the need for additional mining [4]

Core Viewpoint - Amentum plans to create 3,000 new jobs over the next four years, driven by growth in nuclear power and defense sectors in the UK [1] Company Summary - Amentum is a global leader in advanced engineering and innovative technology solutions [1] - The announcement of job creation aligns with the company's strategic focus on expanding its operations in the UK [1] Industry Summary - The growth in nuclear power and defense sectors is expected to contribute significantly to job creation and economic development in the UK [1] - The UK-U.S. partnership is highlighted as a key factor in supporting Amentum's expansion plans [1]

Core Insights - P2P Group Limited has announced significant advancements in its defense and security offerings, including the release of a US Military Presentation and the launch of the StealthWave HumanRadar product line [1][2][7] Group 1: Product Launch and Features - The StealthWave HumanRadar is designed to detect and track human presence in environments where conventional systems fail, utilizing disruptions in radio frequency signals caused by human tissue [2][3] - HumanRadar can be mounted on various platforms such as operators, drones, or K9 units, enhancing situational awareness for defense personnel in complex environments [3] - This technology provides a non-intrusive layer of human detection, supporting mission safety and operational success [3] Group 2: Strategic Importance - The release of the US Military Presentation highlights the capabilities of StealthWave technology in redefining tactical spatial intelligence for military and law enforcement organizations [1][7] - P2P Group's developments reflect its commitment to equipping defense and security forces with advanced intelligence solutions that enhance operational effectiveness and safeguard lives [3]

Core Insights - Leidos has introduced Sea Dagger, a next-generation Commando Insertion Craft designed for the Royal Navy, which combines speed, range, vehicle delivery, and modular mission systems into a single platform, setting a new standard in maritime autonomy and operational agility [1][3] Group 1: Product Development - Sea Dagger is developed under the UK Commando Force programme, aiming to deliver 24 medium surface insertion craft for deploying Commando Strike teams and other tactical platforms from long range [2] - The craft can exceed speeds of 40 knots and is a result of collaboration between Leidos Naval Architects, military experts, and the Royal Navy, leveraging over 30 years of fast-craft expertise [3] Group 2: Technological Features - Sea Dagger incorporates advanced technologies such as Trusted Mission AI, autonomous systems, and integrated weaponry, focusing on operational resilience, readiness, and maintainability [3] - The design addresses challenges faced by specialized units in coastal and shallow-water environments, combining naval architecture with high-tech sensors and command-and-control capabilities [5] Group 3: Strategic Alignment - The development of Sea Dagger aligns with AUKUS Pillar 2 maritime autonomy objectives and the UK Strategic Defence Review, enhancing the UK Commando Force's ability to respond to modern threats [4] - The initiative reflects a commitment to equipping military forces with resilient, future-ready platforms that can adapt to the complexities of modern warfare [6] Group 4: Company Overview - Leidos is a leader in industry and technology, serving government and commercial customers with innovative digital and mission solutions, reporting annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025 [8]

Financial Performance - The company's statutory NPAT increased by 82% to $149.1 million compared to FY24[9] - Underlying EBITA increased by 25% to $474.2 million compared to FY24[9] - The company achieved an EBITA margin of 4.4%, exceeding the management target of 4.2%[9] - The company's cash conversion was 98%, exceeding the target of >90%[9] - The company's leverage ratio improved to 0.9x net debt to EBITDA, compared to 1.3x at Dec-24[9] - The company achieved annualised gross cost out of $213 million, exceeding the upsized target of $200 million[9] Revenue and Work-in-Hand - The company's FY25 revenue was $10.6 billion[101] - The company's work-in-hand is $35.1 billion[53] Shareholder Returns - The company announced an on-market share buy-back of up to $230 million, representing approximately 5% of issued capital[8, 73, 78] - The company's total dividend increased by 46% on FY24[9, 75] - The company's final dividend is 14.1cps, 100% franked[9] Outlook - The company is targeting underlying earnings and EBITA margin improvement in FY26, with underlying revenue forecast to be flat to slightly lower than FY25 pro forma revenue[84]

Financial Performance - Science Group reported a record Adjusted Operating Profit (AOP), demonstrating resilience in a volatile market[5] - Group revenue increased to £57.2 million (H1-24: £53.7 million)[9, 16], while Adjusted Operating Profit reached £11.3 million (H1-24: £11.0 million)[9, 16] - Profit Before Tax significantly increased to £32.2 million (H1-24: £7.6 million)[7] and Statutory EPS increased to 55.3p (H1-24: 12.9p)[8] Investment in Ricardo plc - The investment in Ricardo plc generated a pre-tax investment gain of £24.0 million[9, 37] with a 74.2% Return on Investment[37] - The total investment in Ricardo was £32.4 million, realized for £58.0 million[37] - Tax liability on the Ricardo investment is estimated at £5.1 million[9, 37] Segment Performance - Professional Services revenue was £33.2 million (H1-24: £36.5 million) with an AOP of £7.9 million (H1-24: £8.8 million)[16, 22, 23] - Systems Division revenue increased to £23.7 million (H1-24: £16.8 million)[16] Cash Flow and Balance Sheet - Group cash increased to £82.0 million (H1-24: £38.8 million) and net funds to £70.3 million (H1-24: £26.4 million)[9, 21] - Cash generated from operations was £22.7 million (H1-24: £10.7 million)[21]