Daily Brief Industrials: Yinson Holdings, Contemporary Amperex Technology, MS Group, Zhejiang Chint Electrics, Rail Vikas Nigam, Direct Drive Tech, Vertiv Holdings Co and more

• Yinson (YNS MK), a energy infrastructure play, has confirmed it is in privatisation talks with MISC (MISC MK), the Lim family, and EPF at RM2.35/share, by way of a Scheme.
• Yinson Legacy Sdn Bhd, a vehicle tied to Yinson’s exec chair Lim Han Weng and his family hold 27.68%. EPF intends to roll-up its 17.09% into a back-end unlisted vehicle. 
• This development comes as no surprise. As discussed in Yinson (YNS MK) Offer? Lim Family Reportedly Weighing Options, Yinson has been in the crosshairs since 1Q26.

• CATL’s BESS revenue surged 87.5% YoY to RMB53.26bn in H1 2026, now 19.23% of sales — the mix shift the market still prices as a battery cyclical.
• RMB17bn deployed into AI data centers, hydropower, and robotics turns CATL into an equity holder in the demand for its own BESS hardware.
• BULLISH, FV HK$770 (3750 HK) — basis: SOTP blending core battery PE re-rating with unpriced AI-grid infrastructure optionality and RMB40bn buyback-cancellation support.

• Dual-Engine Business Model: MS Group operates an established original equipment manufacturing (OEM) business focused on infant/toddler plastic cups and sports bottles primarily for overseas markets (notably the United States), paired with an internal proprietary brand (‘Yo Yo Monkey’) addressing the mainland Chinese mother-and-baby retail segment.
• Cyclical Normalization with Superior Cash Conversion: FY25 revenue contracted 30.77% YoY to HK$291.50M and net income declined 46.33% to HK$26.51M following peak post-pandemic inventory restocking in FY24; however, exceptional working capital management drove operating cash flow to a record HK$105.43M and free cash flow to HK$104.77M.
• Defensive Balance Sheet vs. Geopolitical Headwinds: MS Group maintains a robust net cash position with a Smartkarma Resilience score of 5/5 and Dividend score of 5/5 (HK$0.35 paid per share across 2025), though elevated exposure to US trade policy shifts, tariff risks, and subdued PRC birth rates warrant a balanced neutral outlook at an EV/EBITDA of 6.6x.

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• Zhejiang Chint Electrics Co., Ltd. is a leading global integrated power and energy solution provider from China. It operates two segments: intelligent electrical products and green energy solutions.
• Zhejiang Chint Electrics was the No. 1 Chinese brand in low-voltage electrical products in 2025 and No. 1 globally for cumulative residential photovoltaic capacity.
• Revenue was 64,524,402 in 2024, decreasing to 59,166,504 in 2025. Total assets were 158,124,483 as of June 30, 2026.

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• Indian Railways is moving toward four tracks across seven high-density routes spanning nearly 11,000 km.
• Only 16% of the network carries about 41% of traffic, making capacity addition economically urgent.
• RVNL and IRCON gain the clearest addressable pipeline; specialist systems firms benefit later and selectively.

• Direct Drive Tech happened to catch the purchasing wave for large-scale adoption of direct-drive technology in consumer robot categories.But the entire embodied intelligence industry is in a critical transition period.
• Consumer-Grade direct-drive actuator modules is highly competitive in specific vertical segments, and faces constraints such as fluctuations in downstream customer demands and limited growth boundaries of a single market segment.
• Post-Money valuation is 3.185bn yuan. Based on 2025 revenue, P/S is 11.3x.If based on the logic of consumer electronics components, P/S is usually 5x-10x. So, 11.3x is already not cheap.  

• Medium term: Vertiv’s Gray-space leadership is extending into white space through liquid cooling, integrated infrastructure and 800VDC; management targets 20-22% organic revenue CAGR through 2030, with further content/share upside.
• Short term: 2Q26 weakness was driven by supply-chain constraints and execution on larger integrated projects. FY26 guidance 40%+ 2H26 organic growth, making 2H26 backlog conversion the key debate near-term.
• Valuation: Recent consensus earnings have upgraded, accompanied by P/E de-rating to bottom-of-range. Our base case implies roughly 80% upside and bull case 100%+, driven mainly by earnings growth.