Category: 3. Business

  • Ryoyu Systems (TSE:4685) Margin Beat Reinforces Strong Track Record, Underscores Valuation Discount

    Ryoyu Systems (TSE:4685) Margin Beat Reinforces Strong Track Record, Underscores Valuation Discount

    Ryoyu Systems (TSE:4685) posted annual earnings growth of 30.6%, easily outpacing its five-year average of 21.6% per year, while profit margins climbed to 8.2% from 7.4% the year before. Over the past five years, the company has grown earnings at a significant annual rate of 21.6%, highlighting both its consistent track record and high quality results for investors.

    See our full analysis for Ryoyu Systems.

    Next, we will compare these latest numbers to the prevailing narratives about Ryoyu Systems to see where the results fit expectations and where they surprise the market.

    Curious how numbers become stories that shape markets? Explore Community Narratives

    TSE:4685 Earnings & Revenue History as at Nov 2025
    • Profit margins reached 8.2%, improving from 7.4% the prior year. This marks a clear step-up in operational efficiency not just relative to last year, but also compared to typical margin ranges in the sector.

    • What is surprising is that Ryoyu’s momentum in expanding margins is seen as a direct validation of its ability to deliver stable IT infrastructure projects. This supports the scenario that it can continue carving out share in Japan’s digital transformation market.

      • This outpaces margin figures flagged among sector peers, which helps reinforce the view that incremental operational gains, rather than just general sector tailwinds, are behind the improvement.

      • Recent gains challenge doubts that competition might immediately squeeze margins, as Ryoyu’s quality focus is translating into real, visible profitability growth.

    • Ryoyu’s price-to-earnings ratio of 14x sits below both its direct peer average of 15.9x and the Japanese IT industry average of 17.3x. This signals a valuation that remains attractive for new investors despite five years of compounding profit growth.

    • The prevailing assessment is that the stock’s pricing reflects the company’s steady, reliable performance, but does not fully capture the upside if sector demand or operational leverage continue to drive earnings higher.

      • This discount stands out especially against peers with lower profit growth, suggesting the market is applying a conservative lens even as Ryoyu’s performance remains robust.

      • The pricing leaves room for re-rating, should Ryoyu demonstrate new catalysts such as large contract wins or further margin expansion that could shift its status from stable to stand-out in the industry.

    • While most financial indicators are strong, minor risks come from recent share price stability over the last three months and ongoing questions around how sustainable current dividends will be given sector competition.

    • The prevailing view acknowledges Ryoyu’s conservative growth approach appeals to risk-averse investors, but highlights how reliance on incremental gains and potential dividend pressure means outperformance is not guaranteed without future innovation.

      • Steady results are valued, but any prolonged stagnation in the share price or cuts to dividends could test investor patience and shift market perception toward a more cautious stance.

      • Incremental sector growth alone may not translate into further share gains unless the company can leverage new service lines or technology advances.

    Continue Reading

  • Huntington Ingalls Industries, Inc. (NYSE:HII) Beat Earnings, And Analysts Have Been Reviewing Their Forecasts

    Huntington Ingalls Industries, Inc. (NYSE:HII) Beat Earnings, And Analysts Have Been Reviewing Their Forecasts

    As you might know, Huntington Ingalls Industries, Inc. (NYSE:HII) just kicked off its latest third-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 8.3% to hit US$3.2b. Statutory earnings per share (EPS) came in at US$3.68, some 9.4% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

    AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10bn in marketcap – there is still time to get in early.

    NYSE:HII Earnings and Revenue Growth November 2nd 2025

    After the latest results, the ten analysts covering Huntington Ingalls Industries are now predicting revenues of US$12.6b in 2026. If met, this would reflect a reasonable 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to US$17.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.5b and earnings per share (EPS) of US$17.10 in 2026. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.

    See our latest analysis for Huntington Ingalls Industries

    The analysts reconfirmed their price target of US$311, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Huntington Ingalls Industries analyst has a price target of US$356 per share, while the most pessimistic values it at US$260. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

    Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Huntington Ingalls Industries’ revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2026 being well below the historical 5.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.5% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Huntington Ingalls Industries.

    The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$311, with the latest estimates not enough to have an impact on their price targets.

    With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Huntington Ingalls Industries going out to 2027, and you can see them free on our platform here.

    You should always think about risks though. Case in point, we’ve spotted 2 warning signs for Huntington Ingalls Industries you should be aware of.

    Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

    Continue Reading

  • Low-Cost Simulation Kits for Surgical Training in Resource-Limited Settings: A Student-Led Model

    Low-Cost Simulation Kits for Surgical Training in Resource-Limited Settings: A Student-Led Model


    Continue Reading

  • China to ease chip export ban in new trade deal, White House says

    China to ease chip export ban in new trade deal, White House says

    China will begin easing an export ban on automotive computer chips vital to production of cars across the world as part of a trade deal struck between the US and China, the White House has said.

    The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week.

    The nations also reached agreements on US soybean exports, the supply of rare earth minerals, and the materials used in production of the drug fentanyl.

    The deal de-escalates a trade war between the world’s two largest economies after Trump hit China with tariffs after he entered office this year, leading to rounds of retaliatory tariffs and global business uncertainty.

    Much of what is in Saturday’s fact sheet was announced by Trump and other officials following the meeting between the two leaders.

    Trump had described the talks, held in South Korea, as “amazing”, while Beijing had said they had reached a consensus to resolve “major trade issues” – but did not immediately release details of the deal.

    Speaking on Sunday following the release of the fact sheet, Treasury Secretary Scott Bessent told CNN: “We don’t want to decouple from China… (But) they’ve shown themselves to be an unreliable partner.”

    One of the issues addressed in the deal was the export of automotive computer chips. There had been concern that a lack of chips from Nexperia, which has production facilities in China, could create global supply chain issues.

    Nexperia is a Chinese-owned company, but is based in the Netherlands. About 70% of Nexperia chips made in Europe are sent to China to be completed and re-exported to other countries.

    The fact sheet states that China will “take appropriate measures to ensure the resumption of trade from Nexperia’s facilities in China, allowing production of critical legacy chips to flow to the rest of the world”.

    It follows Beijing saying on Saturday that it was considering exempting some firms from the ban.

    Last month, the likes of Volvo Cars and Volkswagen warned a chip shortage could lead to temporary shutdowns at their plants, and Jaguar Land Rover said the lack of chips posed a threat to their business.

    On other key issues, Beijing will now pause export controls it brought in last month on rare earth minerals – vital in the production of cars, planes and weapons – for a year.

    The White House also said it would lower tariffs brought in to curb the import of fentanyl into the US, with China agreeing to take “significant measures” to deal with the issue.

    Fentanyl is a synthetic drug manufactured from a combination of chemicals, and while it is approved for medical use in the US, the powerful and highly-addictive substance has since become the main drug responsible for opioid overdose deaths in the US.

    The chemicals used in its manufacturing, some of which have legitimate uses, are mostly sourced from China.

    On soybeans, China has committed to buying 12 million tonnes of US soybeans in the last two months of 2025, and 25 million metric tonnes in each of the following three years – which is roughly the level they were previously at.

    China’s decision to stop purchasing soybeans from the US earlier this year denied American farmers access to their largest export market.

    In response, Trump revived a bailout for farmers which was in place during his first term in office.

    Continue Reading

  • Five Things You Should Know About the New Look of GE Aerospace’s 747 Flying Test Bed

    Five Things You Should Know About the New Look of GE Aerospace’s 747 Flying Test Bed

    It’s easy to take the marvel of air travel for granted. What the flying public may not appreciate is the rigorous testing jet engines undergo long before you depart on your next flight. At GE Aerospace, there’s a one-of-a-kind team in Victorville, California, whose job is to put each new engine model to the test. They do it with a specialized and very large tool: the GE Aerospace 747 Flying Test Bed.

    We sat down with Jon Ohman, chief test pilot for GE Aerospace, and Renji Thomas, former Victorville site leader and newly appointed product validation test measurements leader, to hear more about the plane’s exploits. Here are five things you should know about GE Aerospace’s 747 Flying Test Bed.

     

    1. Same Plane, New Look

    Originally a Japan Airlines revenue-service Boeing 747-400, the current Flying Test Bed was acquired by GE Aerospace in 2010 and has been a critical tool in getting the CFM LEAP* engine into service, as well as for the certification of the GE9X engine. 

    When GE Aerospace became an independent, publicly traded company in 2024 and launched a refresh of the iconic brand, the team decided to update the livery design of the Flying Test Bed. It was an exciting opportunity for Ohman and Thomas, who were involved in the process from the initial brainstorming with the GE Aerospace branding team to the final touches of paint. The new livery features a pristine white fuselage bisected diagonally to cover the tail in a striking shade of “Atmosphere Blue” with the GE Monogram trademark showcased on the rudder.

    “Everyone here is really energized by the new look,” Ohman says. “It was a different experience outside our normal operations here, but definitely a unique and exciting one.”

    For Thomas, who started in 2008 with GE Aircraft Engines, as it was known then, it’s a visual representation of the ways in which the company has evolved to its current position in the market. “All of us here recognize that it’s not just a new paint job, but really a visual reminder of who we are and the importance of what we do every day,” he says. “The 747 is an iconic aircraft, and we’re privileged to take thousands of people’s work on each engine and move them to the next stage.” 

     

    2. A Busy Season Is Approaching

    The Flying Test Bed’s fresh look coincides with an expected uptick in testing over the next decade. 

    A major campaign on the horizon in coming years for the new-look jet is the much-anticipated CFM RISE program, a technology demonstrator advancing a suite of technologies aimed at improving fuel efficiency by more than 20% compared with today’s most efficient engines. Notably, one of the technologies being developed is an Open Fan architecture, in which the engine’s fan blades are not encased in a nacelle.

    “The RISE program is going to be an exciting opportunity for the team here in Victorville,” Ohman says. “The Open Fan catches your eye, but what we’re really after is the performance data. This plane is more like a laboratory than anything else, and all that data ensures that the advanced technology in the engine is working as expected to meet the goal of that step change in fuel efficiency and durability.” 

     

    3. It’s the Best Office at the Company …

    Home base for the Flying Test Bed is a massive hangar at the Victorville Airport, about 85 miles northeast of Los Angeles. When Thomas looks out the window of his office, he says he can’t help but feel a connection to the importance of his work there. “We have a critical role in ensuring that new engine models coming into service perform exactly the way they should so our customers and the flying public can depend on them,” he says.

    Thomas also jokes that his office is the “second best” at GE Aerospace. “Jon [Ohman] has the best office.”

    “I’d probably have to agree with that,” Ohman replies with a laugh. “We take this aircraft to some pretty spectacular places. In the course of testing we’ll fly over the highest point in the continental U.S. in the Sierra Nevada mountains, and then fly over the lowest point at Death Valley. We’ve gone to Hawaii, Alaska, the Rocky Mountains, and our upcoming testing will take us overseas as well. It’s hard to beat the view from the flight deck of a 747.”

     

     

    4. … And a Flying Laboratory Above the Clouds 

    That office that Thomas and Ohman speak of doesn’t just come with an amazing view. It’s also equipped with some of the most advanced testing technology in the aviation industry. 

    The Flying Test Bed functions as a flying laboratory, providing engineers with the capability to conduct integrated systems testing and refine engine performance and control systems under real-world flight conditions. This includes assessing fuel efficiency, optimizing control schedules, and ensuring that engines can operate effectively across diverse operational scenarios. Rigorous testing in extreme conditions — involving everything from stalls and air starts to zero-gravity maneuvers, large sideslips, and icy environments — plays a critical role in validating engine reliability and adaptability.

    Since its acquisition in 2010, the 747-400 has racked up over 1,500 flight hours dedicated to advancing engine technology. This testing not only supports the development of robust and reliable products but also enables the evaluation of emerging technologies, providing valuable data that sparks innovations. Last fall, GE Aerospace conducted a series of test flights for the Contrail Optical Depth Experiment (CODEX) project, in which they studied contrail formation — the ribbons of ice that form when jets fly through cold, humid air. The CODEX tests aimed to deepen the aviation industry’s understanding of emissions — and help establish a baseline for future engine testing in the RISE program.

     

    5. It Takes a Team to Achieve Success

    Ohman, a former F-18 Hornet pilot in the U.S. Marine Corps, is accustomed to flying solo. Of course, he had other pilots in his squadron, aerial refuelers, and maintenance teams on the ground, but inside the aircraft it was just him.

    When the Flying Test Bed takes off, there’s typically a team of 15 to 20 on board, consisting primarily of flight test engineers at data consoles monitoring performance. “What makes flying this aircraft so special is doing it with a crew versus on your own,” Ohman says. “We do some demanding, precise work every time we fly, and when the team can get everything it needs to move an engine to the next milestone, there’s a real sense of accomplishment.”

    On the ground, the Victorville team has plenty of work as well.

    “Everything we do on the ground is to support the team up there in the skies,” says Thomas. “Takeoff happens with the team here in Victorville, but really, there’s a team of thousands around the world that get an engine model to us. Flying an aircraft like this isn’t a walk in the park, and our team is constantly on their A game to prioritize safely accomplishing our objectives each time the Flying Test Bed leaves the hangar.” 

     

    *CFM International is a 50-50 joint company between GE Aerospace and Safran Aircraft Engines.

    Continue Reading

  • Coffee commotion puts German view of venture capital under scrutiny

    Coffee commotion puts German view of venture capital under scrutiny

    Unlock the Editor’s Digest for free

    A series of attacks on a nascent Berlin coffee chain backed by venture capital has sparked a lively debate about German attitudes to entrepreneurship.

    The shopfronts of 15 LAP Coffee outlets were splattered with red paint last weekend in what appeared to be a co-ordinated assault by perpetrators whose identity and motives remain unknown. The chain, which pitches itself as a disrupter offering cheap but high quality coffee, had previously been targeted by an online campaign called “LAP Coffee? Shit!”

    The group describes the company, backed by investors including New York-based Insight Partners, as the “tech industry’s aggressive attempt to take over another part of our lives, to push out local independent cafés, and to make big profits for founders and investors”.

    The attacks triggered an outpouring of anger from the German start-up scene. Paula Hübner Wehmeyer, a New York-based venture capital investor, said in a video on LinkedIn that the controversy “tells me so much about the German attitude to entrepreneurship”.

    Dozens of others piled in, with one founder in the German capital claiming that “a €2.50 cappuccino is apparently too disruptive for Berlin”.

    The row partly represents a clash between two sides of Berlin. It is a techno city that prides itself on its gritty countercultural vibe, but has also become a hub for start-up founders over the past two decades. It has faced soaring rents and widespread gentrification.

    The debate has shone a light on Germany’s efforts to shake off a long period of economic stagnation and promises by new chancellor Friedrich Merz to boost innovation.

    While Europe’s largest economy lags significantly behind the US and the UK in terms of venture capital deal volume, Dirk Schumacher, chief economist at the development bank KfW, pointed out that the German VC market had developed significantly over the past 10 to 15 years.

    He said that Germany now had a record 32 unicorns — start-ups with valuations above $1bn. However, that figure pales in comparison with the 729 in the US and 313 in China at the end of 2024, according to PitchBook data.

    While Germany still has fewer venture capital deals than many of its international peers, Schumacher said this had more to do with the lack of large private pension pools and university endowments than social or political attitudes. He described the LAP coffee row as a “tempest in a teapot”.

    Yet some start-up founders and their backers say there are grains of truth in the cries of anti-entrepreneurship that must be addressed if Germany — and Europe more broadly — is to have any hope of keeping pace with its rivals.

    Kai Eberhardt, chief executive and co-founder of the medical app developer Oviva, recently spent close to €7mn to obtain a new data protection certificate from German authorities. “Of course patients must be protected, but the process was opaque and frustrating,” he said. “Entrepreneurship is celebrated and supported in the US. In Europe, failure is punished far more harshly.”

    Jeannette zu Fürstenberg, one of the godmothers of the German VC scene, said that the country “still lacks the density of companies capable of scaling into truly massive valuations or revenues”.

    Although successive governments had made promises and launched schemes to support start-ups, she said: “Public equity financing is too bureaucratic, too sluggish, and not ambitious enough in scale.”

    Herbert Mangesius, general partner and co-founder of Vsquared Ventures, said that Germany’s real challenge “isn’t a lack of entrepreneurial spirit, but the system itself.” He added: “Anyone trying to start a business here — whether it’s a coffee shop or a deep tech start-up — faces high costs, bureaucracy, and complex regulation.”

    LAP’s critics say that it is absurd and dishonest to turn the debate into one about Germany and its pro- or anti-business credentials. They say that they are not opposed to innovation, but object to the chain’s business model, which they say is an exploitative attempt to push into residential areas and force out local independent rivals.

    “They’re just collecting data and numbers so that they can get so big that at some point that they can sell,” said Philipp Reichel, who founded a Berlin roastery and also owns an independent coffee shop.

    Reichel said that the LAP model was not even innovative. He points to the venture capital-backed Blank Street coffee, which has more than 80 branches in the US and the UK, and Luckin Coffee, the Chinese chain that now has more than 24,000 outlets globally.

    LAP’s opponents and the company itself can agree on one thing: that this particular row may say more about Berlin and the city’s unique character than about Germany as a whole.

    “We don’t see these issues happening in other cities,” said LAP co-founder Ralph Hage, who has also opened stores in Hamburg and Munich. “Berlin is its own bubble.”

    Continue Reading

  • Nvidia Is Worth $5 Trillion. Here’s What It Means for the Market – Bloomberg.com

    1. Nvidia Is Worth $5 Trillion. Here’s What It Means for the Market  Bloomberg.com
    2. Nvidia hits $5 trillion valuation as AI boom powers meteoric rise  Reuters
    3. Nvidia’s $400 Billion Week Fueled by Jensen Huang’s Dealmaking Spree  Bloomberg.com
    4. Nvidia’s dominance upends world industrial policy, becomes a risk to the global economy  Cryptopolitan
    5. Key facts: Nvidia reaches $5 trillion market value; exports chips to U.A.E.; gains in China  TradingView

    Continue Reading

  • China's Shein pulls child-like sex dolls from sale following French watchdog complaint – Reuters

    1. China’s Shein pulls child-like sex dolls from sale following French watchdog complaint  Reuters
    2. Shein accused of selling childlike sex dolls in France  BBC
    3. French consumer watchdog reports Shein over childlike sex doll  politico.eu
    4. SHEIN is under scrutiny in France over this product listing  NewsBytes
    5. The company: Report against Shein in France for child-like sex dolls | blue News  blue News

    Continue Reading

  • Saudi Arabia is making a massive bet on becoming a global AI powerhouse

    Saudi Arabia is making a massive bet on becoming a global AI powerhouse

    Saudi Arabia is turning its oil wealth toward its massive AI ambitions.

    Its chief investment vehicle is Humain, a homegrown company that is building out a full stack of data centers, cloud capabilities, large language models and applications. It’s owned by the Kingdom’s nearly $1 trillion sovereign wealth fund.

    Crown Prince Mohammad bin Salman unveiled Humain in May ahead of President Donald Trump’s state visit to Riyadh. This week, at the annual Future Investment Initiative in the same location, the scale, ambition and deep pockets behind the project came into clearer focus.

    Humain CEO, Tareq Amin, is setting out to make Saudi Arabia the world’s third-largest AI market, after the United States and China. It’s a bold ambition for a newcomer to the industry, but Amin argues the Kingdom’s competitive edge lies in its abundant and cheap energy resources that can feed the seemingly insatiable demand for computing power.

    “We have an advantage in Saudi Arabia,” he told CNN’s Becky Anderson. “Look at this country’s amazing energy grid that doesn’t require a company like Humain to build the substations and the power to deliver that to a data center. That means I have saved 18 months of time.”

    Humain plans to build up to six gigawatts in data center capability across the country by 2034, with a rolodex of key AI partners, including Nvidia, AMD, Amazon Web Services, Qualcomm and Cisco.

    On Tuesday, Humain announced a $3 billion deal with private equity giant Blackstone to build data centers in the Kingdom.

    It also publicly launched Humain One, an AI-powered operating system where users speak or type to a computer to tell it to perform tasks, rather than clicking on icons, as is conventional in systems like Windows or iOS.

    Humain has been using the AI system internally to run much of its HR, finance, legal, operational and IT departments. Amin says there is now only one employee in his payroll department, with AI agents handling the rest.

    The Kingdom is entering the closing stretch of its Vision 2030 economic transformation plan facing headwinds from declining oil prices and delays in its construction of giga-projects like Neom, placing new urgency on its AI push to support the growth of the Arab world’s largest economy.

    It also faces competition from the neighboring United Arab Emirates, which has its own AI vehicle, G42, and recently secured a landmark deal with the Trump administration to build “Stargate UAE,” a sprawling $500 billion data center project billed as the largest outside the United States, with the help of OpenAI, Oracle, Nvidia and Cisco.

    Asked whether there’s room for two regional heavyweights, Amin said he supports democratizing AI, while touting Humain’s robust operations.

    “It is good for humanity to have knowledge — especially around AI — not to be all centralized in one location. So it’s good what is happening in the UAE. It’s very good what’s happening in Saudi Arabia,” he said. “I will tell you what we decided to do, which is very different … Humane is not a holding company. We are an operating company.”

    Continue Reading

  • Most Gulf markets end lower on US rate cut uncertainty – Reuters

    1. Most Gulf markets end lower on US rate cut uncertainty  Reuters
    2. UAE Stocks Rise On Rate Cuts And Easing Trade Tensions  Finimize
    3. Most Gulf bourses rise on higher oil prices; Fed’s meeting in focus  Business Recorder
    4. Most Gulf markets end higher on earnings, Fed cuts; Saudi falls  TradingView
    5. Gulf markets end mixed as U.S.-China trade thaw offsets weak oil prices and cautious earnings  Profit by Pakistan Today

    Continue Reading