HMC CAPITAL: KKR to Invest Up to A$603 Million in Preferred Equity, Including A$355 Million in Initial Funding
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: moomoo
Investment Overview: A deal involving up to $603 million in preferred equity investment by KKR has been announced.
Funding Breakdown: The investment includes a $355 million upfront funding component, among other financial arrangements.
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Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Funding Breakdown: The investment includes a $355 million upfront funding component, among other financial arrangements.
See More
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Funding Breakdown: The investment includes a $355 million upfront funding component, among other financial arrangements.
See More
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- Market Competition Analysis: In the U.S. EV market, Tesla holds a commanding 43.1% market share, while Rivian's sales are less than half of second-place Chevrolet's, highlighting its insufficient market penetration amid fierce competition.
- New Model Launch: Rivian plans to introduce the more affordable R2 SUV starting at $45,000, aimed at attracting a broader consumer base, yet the high price of its R1 model continues to limit market acceptance.
- Gross Margin Challenges: Although Rivian achieved a gross profit of $24 million in Q3, its gross margin stands at a mere 2%, significantly lower than Tesla's 17%, indicating a pressing need for improvement in profitability.
See More
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- New Model Launch: The company plans to introduce the R2 SUV starting at $45,000, aimed at expanding its customer base and attracting more consumers amid intensifying competition in the EV market.
- Financial Condition: Although revenue hit $1.5 billion in Q3 2025, a 78% increase, the company still reported a $2.75 billion loss for the first nine months, highlighting its fragile profitability with a gross margin of only 2%.
- Market Outlook: The end of the EV tax credit has dampened overall EV sales in 2025, leaving Rivian's future uncertain; while it has potential, the investment risks remain high.
See More
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