Industrials

• On 28 Sep 2026, aircon instrumentation servicer/installer Nihon Dengi (1723 JP) announced five shareholders would sell 3.852mm shares in a secondary offering, with a 577,800 share greenshoe.
• That was about ¥11bn and not quite 20 days of ADV. Today, shares are 13% lower.  
• On an adjusted capital allocation basis, this company is cheap, the niche growth profile is still good, margins are high, position is strong, and there is One Big Thing coming.

• Flashlight Capital (Singapore based activist firm) is going activist on Secom Co Ltd (9735 JP), especially demanding Secom’s management team to overhaul the company’s overseas strategy.  
• Flashlight Capital has urged SECOM to increase its stakes in S-1 and Taiwan SECOM to at least 50% for under JPY 156 billion to raise overseas revenue to approximately 28%.
• All in all, despite Flashlight Capital’s attempt at overhauling Secom Co’s overseas business, I think realistically any major change could take a long period of time (several years).

• Organo Corp (6368 JP) has a strong pricing power and high customer retention ratio, as most fabs makers cannot run without Organo’s ultrapure water solution. 
• With an impending stock split of 5 to 1 on September 29th, 2026, the stock is about to get a lot of retail inflows as the nominal price is cheaper. 
• The company posts a 29% ROE, yet it trades at a 17-18% P/E, 1.5x PEG, and is cheaper than most semiconductor players, as it temporarily lost some business. 

• Bullish call positioning defined the week of September 21.
• Extreme low put-call ratios hit several names across autos, utilities, and financials.
• Yet bearish hedging surged in equal measure elsewhere – earnings-linked put buying and sector-level stress signals kept the week far from one-directional.

• Nihon Dengi Co., Ltd. (1723 JP) is Japan’s premier specialized engineering contractor for automated central HVAC and industrial control instrumentation, operating as the principal authorized distributor and engineering partner of Azbil Corporation (~70% domestic market share).
• The company is undergoing a highly lucrative structural shift toward existing facility renovations and maintenance (~65-70% of HVAC revenue), which has propelled gross margin from 36.5% in FY24 to 46.5% in FY26 and net margin to 18.2%, insulating earnings from broad construction cyclicality.
• Financial execution remains outstanding, characterized by a 3-year EPS CAGR of 38.91%, a debt-free fortress balance sheet generating JPY 8.6bn in Free Cash Flow, an industry-leading ROE of 18.4%, and aggressive dividend compounding (3-year CAGR of 35.56%).

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• Suzhou Dongshan Precision A (002384 CH) said in a filing that it has received approval from China’s securities regulator for the Hong Kong offering.  The company may raise $2-$3B.
• The company makes PCBs and optical transceivers, both key to the AI buildout. Despite falling almost 40% from a June peak, its shares have more than doubled YTD.
• The company’s vertically integrated AI interconnect business—spanning laser chips, optical modules, and AI server boards—is viewed as a unique, differentiated position in the optical networking supply chain.

• Short sellers made decisive moves this week ending September 26.
• Energy refining ETF CRAK saw SI hit 36.8% of float – up 38% in seven days.
• Mortgage REIT RWT saw the sharpest build, with SI surging 215% to 22.1% of float as borrow dried up.

• Robotechnik Intelligent Te-A (300757 CH) has dual-listed H-shares (3757 HK) today.  The company operates in the automation equipment industry, primarily serving the PV solar cell and electronics/semiconductor industries.
• RoboTechnik ranked first among all brands in China’s industrial robot market by shipment volume in H1 2026 and has held the top position among domestic brands for eight consecutive years. 
• The company’s risks include: solar overcapacity, intense competition, regulatory & geopolitical issues, customer concentration, capital needs, rising leverage, and governance issues.  

• Eaton Corporation is expanding its European electrical footprint through an agreement to acquire COL Group from Oaktree’s Power Opportunities strategy at an enterprise value of €810 million.
• Announced on September 25, 2026, the transaction is expected to increase Eaton’s manufacturing capacity and strengthen its power distribution capabilities across Europe, with closing targeted for the first quarter of 2027.
• COL Group is forecast to generate approximately €250 million in 2027 sales, making the acquisition relatively modest compared with Eaton’s overall revenue base but potentially important to its broader electrical strategy.

• In the past several months, Hanwha Group companies purchased additional shares in Korea Aerospace Industries (KAI) so their combined stake is now 15.89%.
• Hanwha Aerospace owns 9.9% stake in KAI, followed by Hanwha Systems (4.98%), and Hanwha Aerospace USA (1.01%). 
• I provide four main scenarios of the potential next moves by the Hanwha Group companies regarding Korea Aerospace Industries. 

• The ¥1tn impairment remains unconfirmed, but the market has already lost ¥500bn — pricing roughly half the reported accounting damage.
• EV motors delivered <40% of target revenue, China share has effectively disappeared, and the CEO exit leaves a governance vacuum.
• AVOID / REDUCE: ¥2,000 target; wait for audit resolution as ¥2,405 still offers little margin of safety and downside remains asymmetric.

• Overseas revenue is 60-100% more profitable, and interestingly, it has reached more than 50% of BYD’s total revenue for the first time. 
• The recent recall is not significant enough to dent the group’s overall business. BYD Company (1211 HK) has one of the highest overseas sales contributions compared to the peers. 
• The lower valuation, combined with a stronger operation including higher overall margin thanks to the growing overseas business, presents an opportunity to own BYD. 

• Yinson Holdings (YNS MK), an energy infrastructure play, has re-affirmed privatisation talks with MISC (MISC MK), the founding Lim family, and EPF, at RM2.35/share, by way of a Scheme.
• Yinson Legacy, 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.
• Indicative terms are light. MISC will be able to unlock material interest savings rolling up Yinson’s debt exposure. 1H27 results are out tomorrow.

• CVC has withdrawn under Rule 2.8, leaving Veritas Capital’s recommended 940p acquisition as the only live offer.
• At 918p, Bodycote offers a 2.40% gross spread and approximately 5.3% annualised return to the expected 15 March Effective Date.
• Shareholder meetings are scheduled for 21 October, with regulatory approvals across the US and Europe the main remaining source of timing risk.

• Samsung SDI (006400 KS) returned to profitability earlier than expected, thanks to the pivot to AI data center back up system and key EV partnerships. 
• Contrary to popular belief, the AMPC (credit for being green in the US), is still active and contributed to SDI’s bottom meaningfully. 
• As the valuation is relatively depressed right now, we should expect some sort of the Value Up program to kick in and the share price should re-rate. 

• Over five sessions, 60 director interests and substantial shareholdings were filed, including 23 acquisitions and two disposals by directors/CEOs.
• Seatrium launched a new S$200 million Share Buyback Programme, funded from existing cash, doubling the previous programme.
• Alan Goh of Katrina Group sold 12.6 million shares, reducing his interest to 76.7%, with BYD By 1826 acquiring 5%.

• Direct Drive Tech (DDT HK) raised US$138m in its Hong Kong IPO.
• Direct Drive Tech Limited (DDT) is a China-based robotics technology company that specializes in direct drive technology as its core capability.
• We have looked at the company’s background and pricing in our earlier note, in this note we talk about the trading dynamics.

• In May 2021, EasyPost said it had entered the year with a $100M revenue run rate after achieving record growth in 2020, when the COVID-era e-commerce boom increased demand for parcel shipping and multi-carrier logistics software.
• EasyPost's most recent priced round was a $25M Series B-2 in September 2021, valuing the company at $1.52B post-money.
• The 2026 UCC foreclosure auction of approximately 16% of EasyPost's outstanding common shares signals potential stress or leverage at the shareholder or financing level, and although the auction involved an equity interest rather than operating assets, it introduces governance and capitalization risk as the company invests in enterprise sales, AI, and international expansion.

• Path Robotics has raised approximately $370 million, according to management in September 2026.
• Management said the 2025 growth spanned at least 14 industrial customers and expects another 3x revenue increase in 2026.
• At the July 2026 MACHINA Summit, CEO Andy Lonsberry said Path’s revenue had increased 15x over the preceding 15 months.

• On 25 September, Yinson Holdings (YNS MK) said MISC and YLSB would be equal co-offerors in the scheme, with EPF keeping its stake and the indicative price unchanged at RM2.35.
• KWAP holds a blocking stake but should back the deal, given its MAHB precedent, state links and MISC exposure. The main risk is vocal opposition from other minorities.
• The offer looks light. It’s 25.2% below the average analyst target, under the previously rumoured RM2.75–3.04 bids and at a 4% P/E discount to FPSO peers.

• The management of Tongda Group (698 HK) has decided to focus on the growth of its subsidiary, Tongda smart tech, thus less dependant on smart phone replacement cycle. 
• The subsidiary generated ~30% of the parent’s revenue but contributed to most of the parent’s operating profit. 
• Although the valuation gap presents a real arbitrage opportunity with the HK listed present a deep discount, the key lies in the not-so-difficult monetization potential to realize the gap. 

• WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
• We apply our quantitative models to each instrument’s trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.
• Most overbought: KS200, META, Samsung Electronics, Tokyo Electron, SK Hynix, Komatsu, Nikkei 225, Hitachi Most oversold: Contemporary Amperex Technology, S&P/ASX200, Bharti Airtel, ICICI Bank, Zijin Mining Group Company 

• No Commercial Scale Validation: KiNRG’s HydroThermal Reactor (HTR) technology is entirely unproven at commercial scale, having never constructed or operated a functional utility-grade tower. Its physical operation is highly dependent on specific thermodynamic conditions (dry-bulb and wet-bulb temperature differentials), making its “24/7 baseload” claim for AI data centers physically inconsistent outside of peak hot and dry desert environments.
• Severely Underfunded Capital Strategy: The upcoming IPO targeting $18 million (revised on September 24, 2026, to 3 million shares at a $5 to $7 range) is structurally insufficient to fund the construction of even a single modular HTR, which is estimated to cost less than $1.5 billion. A significant portion of the IPO proceeds is earmarked to repay a $3 million promissory note to the company’s President rather than directly fund project deployment.
• Controversial Related-Party Transactions: The acquisition of TRINITY Group Construction for $8.2 million on April 1, 2026, represents a major corporate governance concern, as the seller, Millard L. Wallen III, is also the President of KiNRG. While TRINITY’s $257 million in FY2025 revenue provides immediate cash flow, its thin general contracting net margins (typically 2% to 4%) cannot support the multi-billion-dollar CapEx required for HTR scale-out.

• This insight discusses about the broad structure of upcoming IPO of Mahanadi Coalfields Limited (0808507D IN) .
• It discusses about the company profile, key customers and financial snapshots.
• Finally, we highlight the various points to look forward to in this IPO.

• Established B2B Route-Based Services Platform: Daiohs Corp (4653 JP) is a prominent workplace solutions provider in Japan and North America, operating a direct-distribution route model across Office Coffee Services (OCS), pure water systems, and clean-care environmental hygiene, serving over 200,000 corporate client accounts.
• Cash Generation Amid Structural Workplace Headwinds: While the pandemic and subsequent adoption of hybrid work pressured top-line volume (3-year revenue CAGR of -4.55% and net income CAGR of -23.34%), Daiohs sustained robust cash flow conversion, delivering a 3-year Free Cash Flow CAGR of 37.60% through disciplined working capital and capital expenditure management.
• Private Equity Transformation and Cross-Selling Strategy: Supported by its management buyout (MBO) in partnership with Integral Corporation, the company is actively optimizing route density, upgrading to IoT-enabled bean-to-cup brewing hardware, and expanding high-margin environmental and indoor air quality services to drive customer lifetime value.

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• China-Listed express firms reported softer volume growth in August (vs July and Q2)
• SF Holding and Yunda Holding continued to lose share in August; STO Express gained
• We believe softer volume growth in August could indicate weak online retail activity

• KiNRG historically developed HydroThermal Reactor (HTR) projects for electricity generation without fossil fuels.
• TRINITY has constructed over 2.5 million square feet of data centers and currently manages over 500,000 square feet, with a backlog of approximately $657.4 million as of July 31, 2026.
• The company reported revenues of $369.2 million and net income of $15.9 million for the six months ended June 30, 2026, but faces substantial doubt about its going concern ability.

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• Siphoning of Capital via Inflated Related-Party Fees: The AI OKTO spin-off represents a stark three-fold increase in flat management fees paid to Castor Ships S.A. (owned by Petros Panagiotidis). Under the new agreement, the flat fee rises to $0.4 million per quarter ($1.6 million per year) for the exact same two vessels, shifting historical net income of $24,144 into a pro forma net loss of $1,428,389.
• Absolute Governance Lock on Public Vehicles: Panagiotidis maintains absolute voting control over the spun-off entity via Pelagos Holdings’ ownership of 40,000 Series B preferred shares carrying 100,000 votes each, yielding 99.9% of the aggregate voting power. This dual-class structure insulation ensures public shareholders bear the structural losses of the vehicle with zero recourse.
• Impending Carbon Intensity (CII) Liability: The spun-off 2015-built small LPG carriers (LPG Dream Arrax and LPG Dream Vermax) are non-eco hulls that face immediate degradation to ‘D’ or ‘E’ ratings as IMO reduction factors tighten. Retrofitting them with Engine Power Limitations (EPL) would permanently reduce commercial speeds, while physical modifications would require $1.0 million to $2.0 million per vessel in capital expenditures—representing an economically unviable hurdle relative to their residual values.

Executive Summary

• Regional Infrastructure Leadership: Charge+ operates one of the two largest electric vehicle charging networks in Singapore, with over 4,000 points locally and more than 6,000 across Southeast Asia, and is currently executing a cross-border expansion to complete a 5,000-kilometre charging highway to Vietnam. The company leverages proprietary ultra-slim hardware and a centralised smart software platform to secure exclusive, long-term contracts across high-density residential and commercial real estate.
• Favourable Regulatory Tailwinds: The investment case is anchored by state-mandated decarbonisation targets across Southeast Asia, which provide a highly visible and durable demand curve for charging infrastructure. By capturing early market share through strategic partnerships with major property developers and fleet operators, the company establishes high switching costs and secures a captive user base that drives recurring revenue.
• Heavy Capital Intensity Exposure: The business model requires continuous, substantial capital expenditure to manufacture and deploy physical hardware across multiple jurisdictions, structurally constraining near-term profitability and widening pre-tax losses to US$1.6m in FY24. This asset-heavy approach leaves the company highly dependent on external financing rounds and exposes gross margins to volatile wholesale energy prices.

• The Fed hiked 25 bps to 3.75-4.00% on 16-Sep as WTI returned near USD100/bbl; we expect Asian USD bond yields to stay elevated and spreads to widen into year-end. 
• We keep Asian USD bonds at Neutral at best and advise investors to favor floating rate bonds, Bond Laddering, duration below five years, and swap hedges on fixed rate positions. 
• We remain positive on Asian credit fundamentals and list 10 fixed rate picks yielding 7.4-10.8%, led by Avation at +233 bps over B-rated peers; we exclude China property.

• What you need to know: • IEHC announced that it has signed $3.6M in orders for mobile defibrillator applications.
• This gives us increased confidence that IEHC’s hyperboloid connectors have strong applications in the healthcare industry.
• • The other/medical segment represented only 3.8% of sales in FY26 or ~$1.1M, and as such, is growing off a small base.

• PNE AG (PNE3 GR) is actively executing its strategic transformation from a traditional clean energy project developer into an integrated Clean Energy Solutions Provider and Independent Power Producer (IPP), targeting over 1.5 GW of proprietary operating assets under its ‘Scale up 2.0’ roadmap to generate long-term recurring revenue.
• Financial performance over the 2023–2025 cycle reflects heavy front-loaded capital expenditure and project milestone lumpiness, resulting in widening net losses (-EUR 43.10m in FY25) and persistent Free Cash Flow deficits (-EUR 153.90m in FY25), requiring disciplined capital recycling and debt financing.
• At a current share price of EUR 6.91, the market values PNE at a discount to historical takeover-speculation peaks, presenting an asymmetric risk-reward profile backed by a multi-gigawatt wind and solar PV pipeline, offset by execution, grid connection, and power price volatility risks.

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• Toro is spinning off its two LPG carriers into AI OKTO (AIOK) through a 1-for-8 share distribution. AIOK will start debt free with two vessels and $45 million of cash.
• Cash and vessel values make up most of AIOK’s value, so we focus on its estimated $78.6 million NAV rather than EBITDA multiples.
• Toro’s existing NAV discount could simply carry over to both companies, especially given their small size, related-party management and concentrated voting control.

• Context: The Sojitz (2768 JP) vs. Idemitsu Kosan (5019 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Sojitz (2768 JP) and short Idemitsu Kosan (5019 JP) targets a 10% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Accelerating Operational and Financial Inflection: XMH Holdings Ltd. has delivered strong compound growth, with revenue expanding from S$124.17M in 2024 to S$185.36M in 2026 (a 22.2% CAGR) and net profit rising from S$12.55M to S$31.56M (a 58.6% CAGR), underpinned by net profit margin expansion to 17.03%.
• Favorable Regional Marine and Industrial Power Tailwinds: The Group is capitalizing on sustained demand for marine propulsion systems driven by regional fleet renewal in Southeast Asian tug, barge, and offshore support vessel (OSV) markets, complemented by project-driven industrial genset demand via its Mech-Power Generator (MPG) subsidiary.
• Robust Cash Generation and Balance Sheet Strength: Operating cash flows reached S$22.10M in 2026 with free cash flow to equity (FCFE) of S$21.76M, supported by steady gross margins (~34%) and disciplined working capital allocation, providing high financial flexibility.

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• Dominant Platform Ecosystem and Network Effects: Full Truck Alliance (YMM) is the undisputed leader in China’s digital freight matching market, operating the flagship Yunmanman and Huochebang mobile platforms. By connecting millions of shippers and truck drivers, YMM has transformed a fragmented logistics sector into a digitized, centralized ecosystem, driving substantial operating leverage and expanding gross margins to over 72% in recent quarters.
• Accelerating Monetization and Cash Generation: YMM has successfully transitioned its revenue mix toward high-margin transaction commissions and value-added solutions, resulting in a 3-year EPS CAGR of 118.73% and a 3-year Free Cash Flow CAGR of 252.03%. Q2 2026 operating cash flow grew 64% year-over-year to $315.51M, demonstrating superior cash conversion capabilities.
• Compelling Valuation and Shareholder Capital Return: Trading at $8.16, shares offer an attractive entry valuation (~12x FY26 P/E) well below analyst fair-value thresholds of US$9.00. The company’s expanding shareholder return program delivers an attractive 4.12% dividend yield, backed by a robust net cash balance sheet and sustainable operational cash flows.

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• Bosung Power Technology is a Korean power-equipment manufacturer of transmission towers, steel structures for power plants and substations, gas-insulated switchgear, pole-mounted transformers and other electrical equipment.
• The company’s operations have remarkably improved in the past three years as it has been one of the beneficiaries of Korea’s aggressive investments in the high-voltage direct-current (HVDC) transmission infrastructure. 
• The company’s sales and profits worsened in 1H 2026 after record breaking results in 2025. Bosung Powertech looks fairly valued now at P/E of 20x and P/B of 3.1x. 

• In Q1 FY2027/3, Nitto Kogyo Corporation (hereafter, the Company) reported net sales of JPY 45,536 mn (+8.8% YoY), supported by corporate capital investment demand amid expanding investment in artificial intelligence (AI) and semiconductors.
• Profit also increased sharply, with operating profit rising 60.7% YoY to JPY 2,979 mn, ordinary profit increasing 56.3% YoY to JPY 3,178 mn, and profit attributable to owners of parent (hereafter, net profit) rising 67.2% YoY to JPY 1,554 mn.
• Despite a strong start in Q1, the Company maintained its full-year FY2027/3 forecast (see the table below for forecast figures).

• In Q1 FY2027/3, Nitto Kogyo Corporation (hereafter, the Company) reported net sales of JPY 45,536 mn (+8.8% YoY), supported by corporate capital investment demand amid expanding investment in artificial intelligence (AI) and semiconductors.
• Profit also increased sharply, with operating profit rising 60.7% YoY to JPY 2,979 mn, ordinary profit increasing 56.3% YoY to JPY 3,178 mn, and profit attributable to owners of parent (hereafter, net profit) rising 67.2% YoY to JPY 1,554 mn.
• Despite a strong start in Q1, the Company maintained its full-year FY2027/3 forecast (see the table below for forecast figures). It expects higher sales and profit, with net sales, operating profit, and ordinary profit set to reach new record highs following FY2026/3.

• BTG Consulting’s impressive acquisition track record continues with the acquisition of Hornbeam in Milton Keynes for £2m initial consideration and a further £2m earn-out.
• This fits well into BTG’s strategy.
• Employing 13 staff, Hornbeam generates the majority of its £1.9m revenues (for the year ended Jan 26) from contracted property management services.

• In a statement to accompany today’s AGM, Cohort reports that trading in the year to date has been consistent with the Board’s expectations; the FY27 outlook remains unchanged, with the customary H2 earnings weighting.
• This builds on the ‘robust platform’ of record year in FY26 for revenue (£306m) and adjusted operating profit (£36.3m), with a record closing order book of £618.8m.
• The Group reports a mid-September order book of c.£700m which underpins “nearly 90% of current market consensus revenue expectations for FY2027” and continues “to see good prospects for further order intake”.

• Silicon Photonics (SiPh) Inflection Overcoming PV Cyclicality: RoboTechnik’s business model is undergoing a dramatic structural shift, with SiPh assembly and testing equipment—via the fully consolidated German subsidiary ficonTEC—rising to 80.3% of group revenue in 1H2026 (reaching RMB 488.2 million), successfully buffering the company against the massive capex downturn in the domestic photovoltaic (PV) market.
• Precision vs. Throughput Moat: While competitors like ASMPT (AMICRA) and Mycronic (MRSI) lead in high-throughput eutectic die-bonding (800+ UPH) with sub-micron capabilities, RoboTechnik’s ficonTEC dominates the hyper-precise, active optical multi-axis alignment space, achieving post-bond accuracies of <250 nm and rolling out pioneering double-sided electro-optical wafer-level test systems (WLT-D2) to drastically improve early-stage yield rates.
• IPO Capital Allocation and Profitability Headwinds: The pricing of RoboTechnik’s HK$4.9 billion (up to HK$5.18 billion) Hong Kong IPO on September 24, 2026, represents a crucial step to fund international manufacturing capacity and R&D. While group operations returned to a slim RMB 6.6 million net profit in 1H2026 (reversing an RMB 45.5 million net loss in FY2025), long-term margins depend on shifting ficonTEC from high-touch, customized engineering prototypes to standardized, scalable machines, alongside managing severe sole-source dependencies on Western motion-control suppliers.

• Specialized SAP ERP Integration Footprint: Adroit Infotech Limited is a Hyderabad-based niche IT consulting firm providing comprehensive SAP lifecycle services, including SAP S/4 HANA migrations, conventional ECC implementations, custom FIORI applications, and SAP BTP cloud integrations across domestic and global markets.
• Revenue Expansion Amid Margin Volatility: The company demonstrated strong top-line momentum, expanding revenue at a 3-year CAGR of 29.42% to reach INR 486.58M in FY2026, though operational profitability and gross margins have shown quarterly cyclicality due to project mobilization and delivery cycles.
• Strategic Repositioning via Verso Altima India: Adroit is accelerating growth through wholly-owned subsidiary Verso Altima India (VAI), leveraging SAP PartnerEdge – Sell authorization and newly appointed executive leadership (Group CEO and COO) to capture higher-margin enterprise cloud migrations and managed services.

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• Operating Loss and Margin Pressure: Despite growing revenue to $126.4 million in 2025 (up from $117.3 million in 2024), Rothe swung to a $700,000 operating loss. This deficit highlights the immediate margin pressure of heavy phase-in costs for the $814 million eMITS contract and unrecoverable subcontractor wage inflation on fixed-price tasks.
• SBA Size Graduation and WOSB Risks: Rothe’s dual-class IPO structure preserves Women-Owned Small Business (WOSB) status via Karen Wheeler-Hall’s super-voting Class A shares. However, with TTM revenue of $122.0 million, Rothe faces impending organic graduation from SBA small business size standards, making its long-term pipeline heavily dependent on structured Mentor-Protégé joint ventures.
• Internal Control and Remediation Burdens: The S-1 reveals three critical material weaknesses in internal control over financial reporting: contract estimate adjustments, joint venture intercompany account reconciliations, and balance sheet classification. Remediating these controls and migrating to an enterprise ERP like Deltek Costpoint will likely take 12 to 18 months and cost between $1.0 million and $1.5 million annually.

• Impenetrable Anti-Takeover Structure: The rejection of WSP’s €51.50 proposal was enabled by Dutch corporate governance structures, specifically the Stichting Prioriteit Arcadis NV and Stichting Preferente Aandelen Arcadis. The Priority Foundation requires a 60% majority vote to approve transactions, giving employee-directors (via the Bellevue Foundation) veto power, while the Preferred Stock Foundation holds a call option for protective preferred shares to dilute hostile bidders by up to 50%.
• Synergy Realization and Operational Friction: Cost synergies from the IBI and DPS acquisitions reached the €20 million target by the end of 2024, primarily through office co-locations and IT rationalization. However, integrating their legacy IT systems into Arcadis’s central Oracle ERP system created significant near-term friction, driving localized payment delays and working capital bottlenecks.
• PFAS Margin Premium vs. Severe Tail Liability: Environmental consulting for PFAS commands gross margins roughly 15% to 20% higher than standard civil engineering. However, these margins carry significant joint and several liability under CERCLA. Arcadis manages this risk by refusing to take title to contaminated waste, capping contract-level liability at 1x to 2x fee value, and utilizing specialized technology subcontractors (such as 374Water) to absorb operational performance risks.

• BQE hosted a conference call yesterday, providing various strong updates on the business and operations.
• H2 is expected to show strong growth.
• The pipeline has 40 active projects, including 17 high-impact ones.

• In this insight, I provide an investment thesis on Doosan Enerbility (034020 KS) which is a Korean nuclear powerhouse. 
• In addition, I highlight the likely pre-IPO investment in Westinghouse Electric (US) which is likely to occur in 4Q 2026/1Q 2027. 
• Despite the long-term higher demand for nuclear and SMRs made by Doosan Enerbility, I remain wary of the company’s high valuation multiples and worsening balance sheet.

• RoboTechnik is a global provider of manufacturing equipment and systems for the PV and SiPh industries, ranking first in intelligent SiPh equipment by revenue in 2025.
• RoboTechnik ranked first globally in intelligent SiPh manufacturing equipment by revenue in 2025 with a 20.5% market share.
• Net cash generated from operating activities was RMB232,602 for 6M2026, with cash and cash equivalents at RMB463,646 as of June 30, 2026.

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• We think ASL Marine is a differentiated play on the Asia Pacific marine infrastructure and offshore vessel markets with its vertically integrated model.

• Its extensive shipyard infrastructure, chartering fleet, alongside proprietary dredging engineering capabilities, allow the company to capture value across the asset lifecycle.

• ASL Marine’s operating cash flows have  supported an ongoing fleet renewal and deleveraging of its balance sheet.

• Earnings up, multiple down: FY26 guidance and Energy orders are rising while Fuji’s EV/EBIT has compressed to ~13x.
• Energy is mispriced: High-margin Energy has strong backlog and capacity expansion, yet trades below global electrification peers.
• Catalyst-Rich asymmetry: Results, backlog conversion and data-center growth could drive re-rating; High/Low valuation implies ~2.9x reward-to-risk.

• Hunan Yuneng New Energy Battery Material (301358 CH) (HYNEB), a new energy materials company, aims to raise around US$600m in its H-share listing.
• HYNEB focuses on the research and development, manufacturing and sales of phosphate-based cathode materials, primarily lithium iron phosphate (LFP) cathode materials.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• WSP has walked after Arcadis refused to engage, despite room to improve its €51.50 proposal; ownership, culture and independence may have mattered more than we assumed.
• Our €39 break value proved broadly accurate, but we assigned too little probability to that outcome. At €40.22, most of the takeover premium has disappeared.
• We recommend LONG: our €47 standalone value offers 16.9% upside, with the 29 September Capital Markets Day the immediate test of Arcadis’ standalone plan.

• Pacific Radiance is a post-restructuring recovery story in the offshore marine sector.

• After a court sanctioned debt restructuring in 2022, it has rebuilt a smaller business that has returned to accounting profitability around offshore support vessel (OSV) chartering and its
  Singapore shipyard.

• The shares trade at a discount to both net asset value and peers, perhaps reflecting concerns around earnings quality (including from the SGX’s queries), related party transactions, a concentrated register and founder Pang Yoke Min’s role as both Executive Chairman and CEO.

• FY 2025 generated net profit, removing bankruptcy risk for Grab (GRAB US) .
• Grab posted strong revenue growth momentum, achieved record revenue, and had positive FCF while it was trading at a discount to its global peers. 
• Its CEO, Anthony Tan, bought back around USD 30 million worth of Grab shares recently. 

• Waste Connections, Inc. reported second-quarter 2026 revenue of $2.562 billion, up 6.4% year-over-year.
• Adjusted EBITDA increased 6.8% to $840.1 million, while margin expanded to 32.8%, including 70 basis points of underlying improvement.
• Margin growth reflected favorable price-cost spreads, improved employee retention, safety performance, and AI-driven efficiencies.

• Commoditization of Consumer Modules: Direct Drive Tech dominates China’s consumer-grade direct-drive actuator module market with a 61.1% share, but these high-volume units sell for a rock-bottom average price of RMB 29, leading to compressed gross margins of 17.2% due to intense buyer power.
• Structural Bifurcation in Actuation: While direct-drive (DD) architectures offer zero backlash, low noise, and rapid response for low-payload household sweepers and wheeled-legged robots, they cannot structurally replace traditional harmonic gears in heavy-payload, high-stiffness industrial arms, representing a fundamental limit to the addressable market.
• IPO Capital as a Crucial Lifeline: Listing under HKEX Chapter 18C to raise up to HKD 1.08 billion is a critical funding event; despite rapid revenue growth to RMB 200.3 million in 1H 2026, the company suffered an operating cash outflow of RMB 64.79 million in the same period against a cash reserve of RMB 294 million, leaving a short runway without public capital.

• Rotork’s shareholder vote is complete, removing one execution risk. The remaining 503p cash consideration offers a 3.6% spread at the 485.4p close.
• Regulatory filings are under way in Germany and Austria, with no indication of substantive competition concerns. We move expected settlement from May to March 2027.
• A March settlement implies c.7.1% annualised. We raise completion probability from 90% to 95%, giving a 497.4p expected value and 2.5% upside.

• Direct Drive Tech (DDT HK) is looking to raise around US$138m in its upcoming Hong Kong IPO.
• Direct Drive Tech Limited (DDT) is a China-based robotics technology company that specializes in direct drive technology as its core capability.
• In this note, we talk about the company’s past performance and valuations.

• Allison Transmission Holdings Inc. reported strong second-quarter 2026 results, with consolidated net sales rising 92% year-over-year to $1.566 billion.
• Growth was driven primarily by the newly added Allison Off-Highway business, which contributed $706 million, while the Allison Transmission segment increased 6% to a quarterly record of $860 million.
• Defense remained a major growth driver, with revenue increasing 57% year-over-year to nearly $100 million.

• Old Dominion Freight Line reported a 10.4% increase in revenue to $1.55 billion in the second quarter of 2026, accompanied by a 450 basis point improvement in its operating ratio to 70.1%.
• Earnings per diluted share rose 32.3% to $1.68, matching a previous company record.
• This performance was driven by a combination of improved demand trends, disciplined yield management, operational execution, and investments in infrastructure and personnel, despite ongoing challenges related to inflation and lower network density.

• Simpson Manufacturing Company, Inc. reported second-quarter 2026 net sales of $671.1 million, up 6.3% year-over-year.
• Growth was driven primarily by 2025 pricing actions, which contributed approximately 5%, along with about 1% from favorable mix and foreign exchange.
• Volume declined roughly 1% because of softer demand and selected business exits.

• Kirby Corporation reported second-quarter 2026 EPS of $1.67, up 11% sequentially and broadly unchanged from the prior-year quarter.
• Results reflected solid execution across Marine Transportation and Distribution and Services.
• Marine Transportation generated $537 million of revenue and $88 million of operating income.

• Illinois Tool Works Incorporated reported solid operational and financial performance for the second quarter of 2026, demonstrating growth across multiple business segments amid a dynamic cost environment.
• The company achieved 4.5% organic revenue growth, driven primarily by its capital expenditure (CapEx)-focused businesses: Welding (14% organic growth), Test & Measurement and Electronics (10%), and Polymers & Fluids (7%).
• This growth was supported by ITW’s long-term innovation initiative, Customer-Back Innovation (CBI), which contributed 3% to revenue in the first half of 2026, exceeding its full-year 2025 contribution of 2.4%.

• Micro-Mechanics (Holdings) Limited (“MMH” or “The Group”) is a Singapore-based precision engineering company that designs, manufactures, and markets high-precision tools and parts for process-critical applications for the semiconductor and other high technology industries.
• The group operates across two segments: Consumable Tools, which are small, consumable precision tools used in the assembly and testing of semiconductor chips, and Wafer Fabrication Equipment (WFE), which are precision components used in the semiconductor wafer fabrication process.
• By serving both back-end and front-end processes, MMH operates in a niche and essential segment of the semiconductor supply chain.​

• Core & Main reported second-quarter fiscal 2026 revenue of approximately $2.1 billion, up 2.5% year-over-year.
• Adjusted EBITDA increased about 3% to $274 million, while adjusted EBITDA margin expanded 10 basis points to 12.8%.
• Adjusted diluted EPS rose 8% to $0.94, supported by operating growth and share repurchases.

• In this edition: • InPost | 89.81% of all shares have been tendered

• In this edition: • InPost | 89.81% of all shares have been tendered

• Severe Liquidity Constraints and Weak Cash Position: Despite positive operating cash flow of $948,134 for the first half of 2026, Greenwave Technology Solutions operates on a highly precarious cash runway. As of June 30, 2026, the company held only $654,987 in cash against a massive working capital deficit of $23.05 million, highlighting its extreme dependence on constant dilutive equity raises and debt-for-equity conversions to survive.
• Strategic Disconnect in Capital Allocation: The company’s long-standing strategic goal of acquiring a facility with deep-water port or rail access is fundamentally unviable under current financial conditions. This capital-intensive strategy is blocked by an accumulated deficit of $525.66 million, and past diversions into non-core services—such as the $15–$35 million wood-grinding contract for Hurricane Helene cleanup—have drained operational focus away from optimizing their core 13 scrap yards.
• Structural Disadvantage in the Scrap Value Chain: Greenwave is caught in a classic margin squeeze, lacking pricing power against dominant electric arc furnace (EAF) off-takers like Nucor and Cleveland-Cliffs. Because the regional scrap market is highly consolidated and dominated by players like Sims Metal Management (which boasts deep-water logistics), Greenwave is relegated to being a landlocked, price-taking intermediary with high logistics costs and thin, volatile margins.

• Solar capacity now serves electricity demand equivalent to more than 50 million homes, with utility-scale projects and storage driving most new generation, although residential installations have weakened after tax credit expiry.
• Pennsylvania’s $11-million NEVI allocation will broaden EV charging access across 26 central counties, supporting adoption and regional commerce.
• Conversely, the EPA’s repeal of carbon standards removes key incentives for carbon capture at coal and gas plants. 

• Silicon photonics adoption remains focused on 1.6T pluggable transceivers, with true Co-Packaged Optics (CPO) volume delayed until late 2027 or 2028. ficonTEC’s current backlog is supported by immediate 1.6T demand, highlighted by a 0.6 billion yuan order in March 2026, but the optical equipment cycle is near a local peak, introducing intermediate cyclicality risks.
• ficonTEC maintains a technical moat in active alignment and optical coupling but faces a persistent trade-off between throughput and accuracy. While competitors like ASMPT (Amicra) and Mycronic (MRSI) lead in high-throughput eutectic bonding (800+ UPEH) with ±0.2 µm to ±1.0 µm precision, ficonTEC dominates the sub-0.1 µm active optical coupling niche, where throughput drops to 40 to 60 UPEH due to dynamic search algorithms.
• RoboTechnik’s A+H share dual listing seeks to raise up to HK$5.18 billion to alleviate severe cash conversion pressures and legacy solar PV cyclicality. While consolidated H1 2026 revenue surged 144.8% to 608.5 million yuan following ficonTEC’s consolidation, net profit was restricted to 6.6 million yuan due to heavy goodwill amortization and legacy solar margin erosion, highlighting structural integration and capital allocation challenges.

• Over five sessions to 17 September, 75 director interests and substantial shareholdings were filed for 40 primary-listed stocks, with 18 acquisitions and six disposals by directors or CEOs, and nine acquisitions and eight disposals by substantial shareholders.
• All-Link Air & Sea’s Executive Director Tang Ying increased her stake to 57.94% after acquiring 2.3 million shares for S$1.22 million, following a 38.2% revenue increase in 1HFY26.
• Amova Asset Management increased its stake in Frencken Group to 8.09% on 14 September, while Frencken completed a S$100 million private placement for business expansion and strategic investments.

• 2026 A+H IPOs have punished day-one buyers: Luxshare, Innolight and Longsys all closed below issue despite discounts of 13–44%.
• RoboTechnik’s photonics inflection is real, but FY27E at 372x EPS leaves almost no fundamental valuation support.
• Investment positioning: bid only at ≥30% discount, size for a weak open, stop at CNY545 and exit around Southbound eligibility.

• WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
• We apply our quantitative models to each instrument’s trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.
• Most overbought: Meta, Hitachi Ltd, SK Hynix  Most oversold: Meituan, ICICI Bank, HKEX and Clearing, Ping An Insurance, Contemporary Amperex Technology (CATL), Komatsu, Hanwha Solutions, Zijin Mining, Shin Etsu Chemical

• 89.81% of InPost shares were tendered, comfortably clearing the 80% minimum acceptance condition, while all required regulatory approvals have already been obtained.
• The offeror will announce by 23 September whether the offer is unconditional. Below 95%, the planned demerger and liquidation provides an alternative route to full ownership.
• We recommended InPost at €15.10 in February. The €15.60 offer delivers a 3.31% gross return, or approximately 5.2% annualised assuming settlement by end-September.

• Greenwave Technology Solutions operates 13 metal recycling facilities in Virginia, North Carolina, and Ohio, processing various scrap metals for sale. This filing is for resale of shares by selling stockholders,.
• Greenwave operates 13 facilities and reported revenue of $32,271,860 for the six months ended June 30, 2026. Revenue increased by 76.06% and gross profit by 129.92% compared to 2025.
• The company reported a net loss of $(4,745,708) and an accumulated deficit of $525,656,136 as of June 30, 2026. Concerns exist about the ability to continue as a going concern.

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• The space for new franchise projects in regional markets is becoming saturated. Junxin has almost achieved full coverage in Hunan, and the growth space of domestic stock market is limited.
• Ahead of Junxin’s development path lies both vast market space and unknown obstacles. 2026 will be a crucial year for testing Junxin’s strategic choice. High dividend is attractive to investors.
• Junxin’s overseas projects are still in the development stage and it will be difficult to generate substantial profits in short term. Valuation support mainly relies on the domestic core business.

• Shipping is cyclical, and earnings volatility has long been the sector’s biggest weakness for investors.
• IINO Lines has successfully reduced the volatility of its earnings by combining its real estate business with shipping.
• The Company was profitable through all seven years of the FY3/15–FY3/21 shipping market downcycle and grew BVPS +26.9%, while the major domestic peers recorded multiple years of losses and saw BVPS decline meaningfully

• Take-Private Delisting and Sponsor Dynamics: The consortium led by FedEx and Advent International successfully completed its €7.8 billion takeover of InPost on September 18, 2026, with 89.81% of shares tendered. Operating as a private company will insulate InPost from the public market’s hyper-focus on near-term margin dilution, allowing it to syndicalize a massive €4.2 billion buyout loan and execute high-capex logistics transformations in the UK and France.
• International Margin Pressures: Group adjusted EBITDA margins fell from 28.3% to 25.0% in Q2 2026. This margin erosion is heavily driven by the UK, where EBITDA margins bottomed at 2.8% due to the restructuring of the underinvested Yodel asset. Meanwhile, Eurozone EBITDA margins of 16.6% reflect a structurally lower-margin mix relative to the highly mature, 45.3% margin domestic Polish market.
• Zoning, Noise, and Regulatory Risks: Automated Parcel Machine (APM) rollouts face escalating localized friction. Local municipal noise ordinances—particularly night limits of 40 to 45 decibels in residential areas—threaten night-time replenishment cycles. Simultaneously, Poland’s consumer watchdog (UOKiK) is pursuing serious greenwashing allegations over “zero-emission” delivery claims, representing a legal risk of up to 10% of annual revenue.

• Semiconductor Pivot is Asset-Light but Talent-Heavy: L&T Semiconductor Technologies (LTSCT) is executing a pure-play fabless design strategy to avoid massive capital foundry risks. However, achieving its $500 million annual revenue target by FY31 hinges on exporting 70-80% of its volume and successfully navigating the highly competitive global VLSI design talent market.
• Friction in Concession Exits: While the Nabha Power divestment to Torrent Power was finalized in June 2026, the critical ₹1,461.47 crore Hyderabad Metro (LTMRHL) equity divestment has hit a temporary snag. The Telangana government is seeking a three-month extension to December 31, 2026, due to delays in refinancing the subsidiary’s ₹13,500+ crore debt.
• Arbitration and Cash Flow Headwinds: The Supreme Court’s April 2026 ruling in Union of India v. Larsen & Toubro Ltd. has significantly weakened EPC contractors’ bargaining power. By upholding contractual bans on pre-award interest, the ruling incentivizes government entities to drag out disputes, threatening to reverse some of L&T’s recent net working capital efficiency gains.