Company Reports

Mengniu is China's second-largest dairy producer, after Yili. Revenue more than doubled in the decade to 2023 on rising Chinese dairy consumption but fell in 2024 and 2025 amid weak consumer demand. Despite recent headwinds, we remain optimistic about Mengniu’s long-term growth outlook given China’s dairy consumption per capita remains well below the global average and that of many Asian neighbors.

Yili has been the largest dairy producer in China since the early 2010s. Revenue more than doubled in the decade to 2023 on rising Chinese dairy consumption but fell in 2024 and stalled in 2025 amid weak consumer demand. Still, we remain optimistic about Yili’s long-term growth outlook, since China’s dairy consumption per capita remains well below the global average and that of its Asian neighbors.

Vylor is a seeds and crop genomics pure play formed in late 2026 when it spun out of Corteva. The company is a global leader in seeds. Vylor develops its pipeline by investing around 10% of sales in research and development. New products should generate sales and profit growth even as patents expire or competitors develop rival products.

Legrand has established itself as a dominant player in electrical equipment, enjoying a leading market share in two-thirds of its product ranges. Its brand reputation for reliability and extensive product range has fostered close-knit relationships with key participants in sales channels, creating high barriers to entry and resilient profitability. Products are specified by electrical engineers/designers and purchased through installers and contractors for buildings. For data centers, Legrand works directly with the design teams of hyperscalers and major co-locators to ensure product specification and compatibility. Legrand’s push-pull strategy reinforces its close relationships with stakeholders by offering distributors an extensive product range of over 300,000 products and frequent training on its regular product innovations for installers, who are largely price-insensitive and value reputation and ease of installation over price.

Nidec is the world's leading manufacturer of electric motors, with origins in small precision motors for IT applications such as hard disk drives and optical disk drives. Through decades of organic investment and mergers and acquisitions activity spanning more than 70 acquisitions, the company has significantly broadened its product and end-market exposure.

Acuity is a leading industrial technology company offering lighting, lighting controls, and intelligent building solutions. It has two reportable segments: Acuity Brands Lighting and Acuity Intelligent Spaces.

New World Development is a leading property developer in Hong Kong and mainland China under the Cheng family, with property development and investment as core businesses. As NWD aims to raise the revenue mix of investment properties, we think execution efficiency remains crucial for the group to maintain healthy top-line growth. We believe NWD is poised to leverage the success of its well-received K11 commercial project in Victoria Dockside to expand its portfolio of K11 malls in the wealthy cities of mainland China. With continued floor area expansion and upward rental reversion, we estimate that recurring earnings from investment properties should represent over 30% of NWD’s operating profit in fiscal 2031.

Accenture boasts many different professional services to tackle almost any need an enterprise might have. We view the company as the best-of-breed professional services provider thanks to its prominent reputation, established customer base, and deep technological expertise.

StandardAero is a maintenance, repair, and overhaul provider focused on aircraft engines. It is authorized to work on more than 40 engine platforms in service today, including the ubiquitous CFM56 engine and its successor LEAP engine. It provides much-needed capacity in a mission-critical segment of the aerospace supply chain, allowing aircraft operators to avoid unwanted plane downtime. Turnaround time is paramount in the MRO business, and StandardAero’s experience and access to replacement parts give it a competitive edge over smaller independent shops. Around 60% of the firm’s revenue comes from servicing engines for commercial jets, with the rest split between military aircraft and business jets.

Allegion sells building access products to a range of institutional, commercial, and residential customers. It has a strong presence in all parts of a building’s life, from design and construction to maintenance and upgrades.

Hapag-Lloyd boosted spending across its business over the past three years. In liner services, the firm's dominant segment, accounting for 99% of revenue, aims to grow capacity slightly faster than the market. The company is also investing outside of its core business to provide non-ocean solutions to customers, including terminal services at ports and inland services once docked.

Corteva is a crop protection pure play that was formed in 2019 when it was spun out of DowDuPont and spun off its seeds business in late 2026, which is now Vylor. Corteva is a global leader in crop protection and seed treatment products. Corteva develops its pipeline by investing around 6%-7% of sales in research and development. New products should generate sales and profit growth even as patents expire and generic products enter the market.

Maersk is now a focused global shipper and logistics company after divesting its energy and drilling, banking, and towage businesses in recent years. It is investing heavily to build its logistics and solutions segment, aiming to match the core maritime shipping business in revenue in the future. The shipping business, oceans, remains the largest division, contributing 75% of group EBITDA, but capacity is not expected to expand much going forward. While volume contributes to EBITDA, freight prices have the largest impact, something Maersk has little control over, making earnings volatile.

The strong secular trend where very wealthy individuals grow their wealth ahead of the growth in global GDP remains in place. The demand for bespoke financial planning and wealth management services will continue to be strong. However, we anticipate that fee margins will remain under pressure as competition increases with many financial services firms expanding their presence in the wealth management market.

BridgeBio Pharma is a biotechnology company focused on bridging the gap between genetic research and unmet patient needs. Its pipeline targets Mendelian disorders, precision oncology, and gene therapy, with four programs in late-stage development.

Chewy’s strategy centers on leveraging its leading online pet retail offering to construct a wide-ranging, integrated pet-care ecosystem. Rather than viewing its business as a transaction marketplace, Chewy capitalizes on high-frequency consumable and prescription purchases to establish a relationship with pet parents. This scale is underpinned by its autoship program, which accounts for over 83% of its sales. While autoship carries no explicit switching costs, we believe it acts as a powerful convenience engine that enables predictable purchase frequency and captures front-of-mind wallet share.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North America. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Lynas Rare Earths is the largest rare-earth producer outside China, with vertically integrated operations spanning mining, refining, and separation of various rare-earth oxides. It owns the Mount Weld mine in Western Australia, one of the highest-grade, lowest-cost, and longest-life rare-earth deposits in the world. It also has processing operations in Kalgoorlie, Australia, and Kuantan, Malaysia. Lynas’ main products are separated light rare-earth neodymium and praseodymium, which account for about 60% of its production. They are sold to customers in the form of neodymium-praseodymium oxide. Lynas sold 7,300 metric tons of NdPr in fiscal 2026, roughly 10% of global supply, and we expect it to produce around 12,500 metric tons of NdPr midcycle in fiscal 2031 as it ramps up to its current nameplate while further expanding capacity.

Nexon was among the first developers to adopt the free-to-play model in the 1990s. While players can play for free, they are incentivized to spend on in-game items that unlock cosmetics or character/equipment enhancements. To stay profitable in the long term, developers must continually maintain user loyalty and engagement so players keep investing time and money.

Repsol is investing in lower-carbon businesses to achieve its long-term emissions targets and succeed in the energy transition, but its oil and gas businesses will continue to contribute the bulk of its earnings and cash flow over the next five years.