Industrials

• 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.

• SEMICON India 2026 launched the rollout of Semicon 2.0, a Rs 1,27,500 crore program, alongside roughly Rs 1 lakh crore of stated commitments and more than 40 agreements.
• Incentives have shifted from fabs toward equipment, materials, gases and chemicals, precisely the layers where India still imports almost everything it consumes.
• Three plants ship chips today and the first fab lands in 2028. Listed-market capture is far narrower than the headline numbers imply.

• Strong operational fundamentals with high entry barriers: Central Mine Planning & Design Institute (CMPDI) holds a 61% market share in the Indian mining consultancy space, with a structural demand anchor in Coal India Limited (CIL)’s target of reaching 1 billion tonnes of coal production by FY27.
• High book profitability vs. working capital stress: While CMPDI operates an asset-light, high-margin model with EBITDA margins historically hovering near 40%, its working capital is severely constrained by a collection cycle averaging 229 days and trade receivables sitting at 169 days, primarily due to slower payment clearing processes across PSU subsidiaries.
• Diversification runway and regulatory overhang: Non-CIL revenue has scaled significantly, but structural constraints around talent retention (losing senior engineers to private MDOs) and the lengthy 15-to-18-month environmental clearance timelines for public sector projects present major execution risks post-listing.

• Full Truck Alliance showed strong improvement in core margin in Q226 due to mix change
• We believe the company’s rate of top-line growth could begin to accelerate by end of H226
• At ~12x FY26 EPS and featuring a 4% dividend yield, shares appear attractive below US$9

• Central Mine Planning & Design Institute (CMPDI IN) raised about US$200m in its India IPO in Mar 2026. The lockup on its promoter, Coal India, is set to expire soon.
• CMPDI is a subsidiary of Coal India, providing consultancy and support services across the full range of coal-mineral exploration, mine planning and design, covering the entire lifecycle of mining operations.
• In this note, we will talk about the lockup dynamics and possible placement.

• A-One Steels India operates across the entire steel value chain across 6 manufacturing facilities in Karnataka and Andhra Pradesh. This vertical integration provides better cost control, product flexibility, and margin-protection. 
• In FY26, total revenue reached ~INR4,202 crore with an EBITDA margin of 7.29% (INR303.64 crore EBITDA) and PAT rising to INR127.41 crore, significantly boosting ROCE (12.86%) and ROE (14.76%).
• Operating with an 83.20% green energy mix and 38 MW of captive-power-assets (saving ~INR2/unit) and backward-integration projects including a 6,00,000 MTPA iron ore beneficiation plant and a manganese mining lease.

• Operational & Earnings Inflection: ES Ceramics Technology Bhd (ESC MK) achieved a strong operational rebound in FY2026, with annual revenue expanding to RM487.26m (+3.0% YoY) and net income surging 139.6% YoY to RM15.43m, driven by stabilizing glove manufacturing capacity utilization and enhanced manufacturing efficiencies.
• Balanced Dual-Core Portfolio: The group successfully pairs its high-margin, technically demanding ceramic glove former business (plants in Perak, Malaysia and Sadao, Thailand) with high-volume ready-mix concrete and construction materials distribution, providing stable cash flows and scale across cyclical economic phases.
• Compelling Deep-Value Valuation: At RM0.17, ESC trades at an undemanding normalized P/E of ~8.3x, a Price-to-Book of 0.62x, and an EV/EBITDA of ~2.1x, backed by a robust balance sheet (Debt/Equity of 0.17x) and FY2026 Free Cash Flow generation of RM20.89m, offering institutional investors an attractive margin of safety.

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• Geographic margin divergence is the core driver of Hai Robotics’ path to profitability. Brutal domestic price wars with rivals like Hikrobot and Quicktron have suppressed domestic gross margins to 20.8% in FY2025, forcing the company to pivot rapidly toward international markets. In contrast, non-domestic gross margins reached 46.9% in FY2025, which represents the real economic engine for the firm.
• Hardware commoditization has shifted the competitive battleground entirely to software, fleet optimization, and specialized structural innovations. Standard box-handling (HPS1) has been commoditized, forcing a pivot to the hook-based HaiPick System 3 (HPS3) and the 15-meter single-sided climbing “Climb” series to unlock higher density, while multi-agent scheduling software acts as the primary barrier against domestic fast-followers.
• Operating cash burn and working capital cycles represent the most acute threats to the company’s pre-IPO runway. Despite scaling revenue to RMB 2,016.94 million in FY2025, Hai Robotics is highly capital-constrained, burdened by a cumulative loss of RMB 3.523 billion from 2023 to 1H2026 and severe working capital strains due to extended payment milestones and inventory accumulation.

Key points (machine generated)

• Meiho Holdings achieved record highs in sales, operating profit, ordinary profit, and EBITDA as of June 2026.
• The company operates a corporate support platform to enhance growth for small and medium-sized enterprises through mergers and acquisitions.
• Meiho Holdings provides support in management efficiency, human resources, and business collaboration across 25 companies, offering services in construction consulting, public works, and care services.

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• Since the last reshuffle (August 11), our Model Portfolio has appreciated 1.18%, against MXASJ’s 0.92% advance. Since inception on May 15, 2025, our portfolio is up 44.9%, against MXASJ’s 45.8%.
• The main drivers of our portfolio were Korea (contributed 2.77% return) and Taiwan (0.34%). The returns were dragged down by China (-1.14%) and India (-0.66%).
• We exclude Reliance Industries and include Hitachi Energy, reaffirming our preference for Indian industrials. Our overweight on HK/China, Korea, India and underweight on Taiwan (but preference for Taiwan technology) continues.

• Veritas’s recommended 940p offer provides the floor, while CVC remains a potential competing bidder after previously reaching 915p and completing confirmatory due diligence.
• Our LBO supports CVC’s 915p proposal under base-case assumptions; 975–1,000p requires a lower sponsor return, higher leverage or stronger exit valuation.
• At 963.5p, Bodycote trades above our 958p probability-weighted value, with the market already pricing a meaningful probability of a higher offer.

• The EQT Infrastructure proposal of A$3.13 per share (implying a A$9.4 billion enterprise value) represents a rich implied FY26 EBIT multiple of approximately 20x, which is a significant premium over historical Australian waste transactions that typically top out at 9x to 12x EBITDA for high-quality, scaled integrated platforms. However, activist shareholder Tanarra Capital (holding over 4% of Cleanaway) is opposing the board’s cooperative stance, claiming the valuation undervalues the company’s long-term infrastructure scarcity.
• Regulatory enforcement is becoming a major headwind for margins, exemplified by a A$27.5 million provision booked in July 2026. This provision followed a Victorian Supreme Court ruling that categorized quarry materials used as daily landfill cover at the Melbourne Regional Landfill (MRL) as “waste,” rendering them retroactively subject to the landfill levy. This decision significantly expands the legal definition of waste and exposes landfill operators to retroactive levy audits.
• Municipal collections remain a low-margin operational trap due to structural inflation in fleet maintenance and labor, which is governed by rigid Enterprise Agreements (EAs). While Cleanaway can pass through some of these costs, lag times in municipal price-escalation clauses create margin compression. Consequently, the company is shifting its capital allocation toward high-margin specialized segments, such as the A$377 million acquisition of Contract Resources in July 2025.

• Toppan Printing (7911 JP) is accelerating its strategic transformation from a conventional domestic printing house into a global high-value technology and packaging leader, driven by its high-margin Electronics segment (semiconductor photomasks and FC-BGA packaging materials) and proprietary GL Barrier sustainable packaging solutions.
• Financial performance over the past three years highlights steady top-line growth, with net sales reaching JPY 1,805.0B in FY2026 (a 3.27% 3-year CAGR), though ongoing aggressive capital expenditures in next-generation semiconductor lithography and overseas barrier capacity have temporarily suppressed Free Cash Flow (-JPY 42.7B in FY2026).
• Enhanced corporate governance reforms and Tokyo Stock Exchange capital efficiency mandates provide a powerful re-rating catalyst, as management actively divests strategic cross-shareholdings, enhances dividend distributions (JPY 58-60/share range), and optimizes ROE toward double-digit targets.

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• Hai Robotics, a warehouse picking robot solution provider, has filed its prospectus with the HKEX. GS and CITIC are the joint sponsors.
• We look at the company’s core segments: the distribution domain and the manufacturing domain.
• We then look at the company’s financial profile, loss-making status, pre-IPO valuation and investor backing.

• In this edition: • Arcadis | foundations circle the wagons as WSP deadline approaches • Ferrari Group | resilient 1H26; FY26 guidance range tightened • Kendrion | raises 2027-30 targets on secular industrial growth • Allegro | raises FY26 guidance following continued strong momentum in 3Q26

• Veritas Capital’s recommended offer of 940p per share implies an EV/EBITDA multiple of approximately 10.6x, which requires highly aggressive margin assumptions to meet typical private equity return thresholds. The underwriting relies on expanding the group-wide operating margin from 16.0% in H1 2026 to above 20.0% by 2028, driven by the expansion of Specialist Technologies and the realization of the remaining £15.0 million run-rate savings from the Optimise programme.
• The transaction will likely be executed via a Scheme of Arrangement under the UK Companies Act 2006, but significant minority concentration poses a blocking risk. Institutional shareholders Artemis and Fidelity collectively control over 20.0% of the register. If they hold out for a higher bid from CVC, Veritas may be forced to switch to a contractual Takeover Offer, lowering the execution threshold to a simple majority to secure control, though this complicates a full squeeze-out and delisting.
• Regulatory clearance under the UK National Security and Investment (NSI) Act 2021 is a critical hurdle rather than a rubber-stamp exercise. Bodycote’s heat treatment and Hot Isostatic Pressing (HIP) services are deeply embedded in mission-critical civil and military aerospace programs (e.g., F-35 joint strike fighter). While Veritas’ US-centric, defense-heavy portfolio is structurally aligned with Western security requirements, foreign ownership of sovereign metallurgical capability will trigger a detailed phase 1 review.

• To unlock earnings growth YoY – Q1-4 FY7/26 results were in line with guidance, with gross margin expansion YoY evident as management concentrated on winning work with higher pricing and improved profitability.
• With delivery capacity significantly expanded through senior hires, we believe the focus is now shifting toward raising utilization and deploying resources into higher-value-added projects, which will improve the sales mix and operating leverage.
• Continued investment in M&A, including the increased stake in DICS Holdings and acquisition of UNDERWORKS, is broadening sector exposure and service capabilities. 

• Retail investors net bought S$888 million of Singapore stocks, increasing 2026 net retail inflow from S$3.13 billion to S$4.02 billion.
• ISDN Holdings recorded the highest net retail inflow relative to market capitalisation, despite a 12.8% share price decline.
• REITs, SingPost, ComfortDelGro, and SATS were among top stocks for net retail buying relative to market capitalisation.

• Reliance Worldwide Corp (RWC AU) has disclosed a binding proposal from Brookfield at US$3.38 (A$4.75), a 31.5% premium to the undisturbed price.
• The required regulatory approvals are low-risk. AusSuper, with a potentially blocking stake, has yet to disclose its voting intentions. This is the primary source of uncertainty for the scheme. 
• RWC’s Go-Shop was built with the Origin precedent in mind. While not neutralising the risk, it makes it harder for AusSuper to argue that the board didn’t test the market.  

• Quality Power is moving from a specialist component maker toward a broader high-voltage technology platform spanning reactors, instrument transformers, power electronics and insulators.
• Q1 FY27 total income rose 32.1% YoY; the group order book reached Rs. 1,945.5 crore, extending visibility into FY28.
• Growth visibility has strengthened, but acquisition accounting, Turkey’s hyperinflation and a demanding valuation increase the importance of organic growth and operating cash flow.

• Omega Flex, Inc. (OFLX US) is a premier manufacturer of corrugated stainless steel tubing (CSST) and engineered flexible metal hose systems, anchored by flagship brands TracPipe and CounterStrike which command leading positioning across North American gas piping markets.
• The company faces cyclical end-market headwinds in residential housing and commercial construction, reflected in a 3-year revenue CAGR of -7.82% and recent gross margin compression from 58.25% in FY2023 to 49.58% in Q2 2026 as input costs and volume de-leverage impact operating leverage.
• Financial resilience remains a core pillar, supported by a debt-free balance sheet, sustained positive free cash flow generation ($15.35M in FY2025), and an attractive 5.08% dividend yield, though current valuation multiples (14.4x EV/EBITDA, 21.8x P/E) trade at a substantial premium to global valve and piping peers.

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• Mismatched Valuation and Structural Drags: While Hero Motors’ EV-related Powertrain business shows an impressive 46.1% 2-year CAGR (reaching Rs 273.29 crore in FY26), the overall IPO valuation of Rs 3,815.41 crore (implying a 92.7x FY26 P/E multiple on its Rs 41.17 crore PAT) is highly inflated. This multiple is significantly higher than established peer Sona BLW (~70.2x P/E) despite Sona possessing superior ROCE (16.96%) and much stronger operational margins.
• The Alloys & Metallics Margin Drain: The legacy Alloys & Metallics (A&M) segment, which accounts for 46.33% of total revenue, has turned into a major profitability drag, slipping into an operating loss of Rs 16.00 crore (-3.00% segment margin) in FY26. Fixed-cost under-recovery is exacerbated by severe underutilization in overseas facilities (Thailand at 3.87% and Hewland UK at 24.19%), which undermines the global expansion narrative.
• Capital Allocation Misalignment: Earmarking Rs 200.00 crore of the fresh issue proceeds for further capacity expansion at Gautam Buddha Nagar seems logical given its high utilization (78.53%), but it doesn’t resolve the massive cash drag of underutilized overseas plants. Furthermore, allocating Rs 210.00 crore to unidentified technology acquisitions is a risky bet, especially when the top two executives’ compensation already consumes 24.30% of consolidated PAT.

Key points (machine generated)

• Movin Strategic Career is rapidly growing in high-end recruitment, especially in consulting sectors like IT, M&A, and private equity.
• The company benefits from a favorable market with high demand for hiring and an increase in AI consulting roles.
• Its unique business model focuses on expanding career advisors and using proprietary systems, leading to significant revenue growth.

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• Transforming from a processing-led model into an integrated textile player across yarn, technical textiles and RMG.
• Entering specialised military-grade fabric manufacturing to capture higher-value textile segments
• RMG Expansion: Moving downstream into ready-made garments to improve customer proximity and capture more value.

• BTG Consulting’s diversified mix of business services has delivered good Q127 growth, in-line with management’s expectations.
• As such, management is confident in delivering FY27E market expectations for c.7% revenue growth and a c.15% Adj. PBT margin.
• The restructuring business continues to benefit from the tough macro-economic situation with a good flow of new instructions and no sign of that changing given BTG’s Q2 26 Red Flag Report shows a 9% year-on-year increase in the numbers of businesses in “critical” financial distress.

• Watsco has added another major transaction to its consolidation strategy, agreeing to acquire The Granite Group, a plumbing and HVAC distributor generating roughly $500 million in annual sales across seven Northeastern states.
• Announced on September 14, 2026, the transaction would add 82 locations, approximately 11,000 customers, around 29,000 SKUs, and relationships with more than 450 vendors to Watsco’s distribution network.
• Granite is expected to continue operating independently under CEO Bill Condron, consistent with Watsco’s decentralized acquisition model, while gaining access to the parent company’s capital, technology, supplier relationships, and distribution scale.

• FuelCell Energy’s third quarter of fiscal 2026 financial results reveal a company in transition, shifting focus from a broad pipeline toward commercial commitments, particularly within the expanding data center market driven by AI growth.
• The company secured its first order for FuelCell Energy Blocks supplying baseload power to data centers and increased its committed backlog to $1.3 billion, with an additional $2.4 billion in awarded capacity backlog, totaling $3.6 billion.
• This awarded capacity backlog reflects selections as preferred supplier with potential future contract conversion but lacks firm revenue guarantees.

• First-mover premium in the ACR (Autonomous Case-handling Robots) segment is eroding rapidly as hardware commoditizes: While Hai Robotics holds a dominant 32.8% global ACR market share by revenue as of 2025, the transition from niche pioneering to high-volume commercialization is sparking a severe price war. Competing tote-to-person systems, such as Geek+’s recently launched RoboShuttle Hyper climbing solution and Quicktron’s alternatives, are squeezing hardware pricing power globally.
• The gross margin expansion is real but structurally disconnected from cash profitability: Hai’s gross margin improved from 16.0% in 2023 to 31.2% in 2025, and reached 34.4% in the first half of 2026. This was achieved by standardizing products—specifically the HPS3 system, which rose to 54.3% of H1 2026 revenue—and reducing the share of custom-engineered HPS1 systems. However, this improvement has been entirely neutralized by steep localization, installation, and compliance costs overseas, leading to a massive cumulative net loss of RMB 3.523 billion from 2023 to H1 2026.
• The September 13, 2026 Hong Kong IPO refiling is an urgent liquidity play: After its initial February 2026 filing lapsed in August, the company’s immediate refiling three days ago underscores its critical balance sheet pressure. As of June 30, 2026, Hai carries RMB 4.371 billion in net liabilities and a worsening operating cash outflow of RMB 360 million in the latest half-year. Operating cash-flow breakeven is unlikely before late 2027 under current overseas execution models.

• On the 13th August, EQT proposed taking Australia’s largest garbage and waste disposal play Cleanaway Waste  (CWY AU) private, via a Scheme, at A$3.13/share, a 32.1% premium to undisturbed. 
• EQT was afforded nine weeks of exclusive DD; and announced yesterday nothing had arisen in its review that was likely to cause it not to proceed on the same terms.
• All good? Mostly. There’s some pushback in the market CWY’s management’s backing an (exclusive) Offer as the Iran war suppressed CWY’s share price. I’m not a buyer into that narrative.

• After four weeks of due diligence, Reliance Worldwide Corp (RWC AU), a manufacturer of plumbing components, has now entered into a Scheme Implementation Deed (SID) with Brookfield.  
• Terms are A$4.75/share (or US$3.638/share), in cash, a 31.5% premium to undisturbed, unchanged from the Process Deed. Terms are not final.
• The binding SID provides Reliance with a “go shop” provision for 30 days. After AustralianSuper bumped its holding, twice, post-deal-announcement, that might be worthwhile pursuing. 

• Hunan Junxin Environmental Protection (HJXEP HK) , a waste treatment company, aims to raise around US$400m in its H-share listing.
• Hunan Junxin Environmental Protection (HJEP) operates in the solid waste treatment and green energy sectors, specializing in integrated waste treatment and resource utilization projects.
• In this note, we look at the firm’s PHIP updates and valuation.

• Circular “Asset Carousel” Cash Drains: In late 2023, KFM Kingdom structured a highly controversial transaction where the listed company acquired a 70.0% stake in Kingdom Precision Science and Technology (KPST) from the parent, KIG Real Estate, for HK$168.0 million. KIG subsequently used HK$135.0 million of this cash to execute a private buyout of Massive Force’s 75.00% controlling stake in KFM at HK$0.30 per share. This represents a classic “carousel” mechanism where minority shareholder cash effectively financed the founders’ corporate consolidation.
• Speculative Premium vs. Tangible Asset Reality: As of September 15, 2026, KFM’s stock is suspended at HK$4.54, representing a ~700% year-to-date run-up driven by takeover speculation. However, this implies an astronomical 4.4x book value multiple against KFM’s actual book value of HK$1.14 per share, and a P/E of 33x on cyclical peak earnings of HK$83.63 million. Any imminent transaction is highly likely to be structured as a massive “takeunder” priced closer to tangible assets of HK$0.91 to HK$1.14 per share.
• Impassable Regulatory Float Hurdles: Under Rule 26.1 of the Hong Kong Takeovers Code, any block trade representing KIG’s 75.00% stake will trigger an unconditional Mandatory General Offer (MGO). Because public float is currently at the absolute regulatory minimum of 25.00%, a single public acceptance under the MGO will drop public float below the 25.0% threshold, triggering automatic suspension or requiring an immediate, dilutive placing-down process.

• Kinik says its biggest challenge is accelerating factory expansion and automating production lines against a labor shortage, so it can deliver capacity ahead of schedule into high demand.
• The capacity plan is dated: 12 inch wafer capacity goes from 330,000 pieces a month to 400,000 by the third quarter, all of the addition high grade reclaim.
• Concentration at the leading node helps a high end supplier: gross margin reached 37.6% in the first half of 2026 against 32.5% for 2025 and 31.3% for 2024.

• Hai Robotics Innovation Group is a global leader in warehouse automation, specializing in ACR solutions for picking, aiming for flexible, fully autonomous operations in warehouses and factories.
• Hai Robotics was the world’s largest ACR solution provider in 2025, with a footprint in over 40 countries and regions globally.
• Revenue increased from RMB807,007 thousand in 2023 to RMB2,016,936 thousand in 2025, with gross profit margin reaching 34.4% by June 30, 2026.

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• Core Profitability vs. Temporary Spikes: Kanzhun’s core operations are highly profitable, with an adjusted operating margin reaching a record 43.8% and gross margins hitting 87% in Q2 2026, supported by AI matching efficiencies and lower App Store fees. However, headline net income of RMB 1,942.3 million is heavily distorted by a RMB 1.5 billion non-operating fair-value gain from a portfolio company’s IPO, while near-term adjusted cash flows are temporarily pressured by a 38.3% surge in Sales & Marketing (S&M) expenses due to 2026 FIFA World Cup sponsorship.
• Labor Market Bifurcation and Defense Moats: China’s labor market is structurally divided. While white-collar recruitment remains stagnant due to caution in internet, finance, and real estate, blue-collar and local services (SMEs) are driving growth. To counter the rise of short-video platforms like Kuaishou’s Kuaipin, which captures blue-collar interest, Kanzhun’s Conch Selection program has achieved critical scale, exceeding RMB 200 million in contract value in 2024 and protecting the company’s competitive moat.
• Strategic Evolution and Tencent’s Exit Strategy: Tencent’s US$287 million secondary placement via Image Frame Investment on September 15, 2026—following a US$205 million sell-down in January—and the September 1, 2026 leadership transition of CTO Tao Zhang to Rotating President represent a deliberate shift. Kanzhun is transitioning from a high-growth, marketing-led customer acquisition phase into a technology-driven, margin-optimized matching platform focused on capital efficiency and heavy shareholder returns.

• Shanghai Zhixin Electric Co., Ltd. (600517 CH) is a leading Chinese power distribution equipment manufacturer, specializing in energy-efficient amorphous alloy transformers, switchgear, busways, and integrated substation solutions tailored to China’s grid modernization.
• Financial performance demonstrates sustained operational compounding, with net income growing at a 3-year CAGR of 33.27% to RMB 2,530.52 million in 2025, driven by net margin expansion from 12.57% to 21.24% and cumulative three-year operating cash flows of RMB 7.14 billion.
• Trading at 11.0x P/E, 1.2x P/B, and 3.7x EV/EBITDA with a 2.69% dividend yield, the company screens attractively against international peers, backed by top-tier Smartkarma Smartscores of 5/5 across Value, Dividend, Growth, Resilience, and Momentum.

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• In this edition: • Arcadis | independence backed by employee shareholders amid WSP approaches • Allegro | direct presence in China to tighten seller control and capture tech edge • Dutch housing market | more price cuts signal normalization, not yet falling prices • Dutch wage inflation | FNV pushes for 5.5% plus EUR 80, raising upside risk to labour costs

• The energy transition Company has selected Jacobs (NYSE:J) to provide planning, regulatory, consenting and environmental services for its proposed Long Duration Energy Storage (LDES) project in the Irish Sea and Barrow-in-Furness.
• This includes assisting the Company in its submission to Ofgem’s forthcoming LDES Cap and Floor round.
• MESH, designated as a project of national significance by the UK Government, is positioned to become the UK’s largest long-duration energy storage project at 300MW / 55 GWh / 100+hours duration. 

• Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder. 
• Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.
• Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.

• ChiNext and ChiNext 50, respectively, represent the top 100 and top 50 A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• We expect 7 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the December 2026 index rebal event.
• The ChiNext and ChiNext 50 index rebal events could trigger US$417mn and US$263mn in one-way flows respectively.

• Back on the 18th August 2026, Reliance Worldwide Corp (RWC AU) entered into a process deed with Brookfield, potentially leading to a A$4.75/share Offer by way of a Scheme.
• Brookfield was granted four weeks of additional exclusive due diligence to “progress the proposal“. That exclusivity expires today.
• Should Brookfield firm terms, Reliance is permitted to “go shop” for 30 days. After AustralianSuper bumped its holding, twice, post-deal-announcement, a higher price may be warranted.

• DTS is getting ready to complete its IPO in October 2026 in KOSDAQ. DTS designs and manufactures air-cooled heat exchangers used in power generation, LNG, and petrochemical plants.
• The IPO price range is from 17,000 won to 18,500 won per share. Based on this range, the expected market capitalization ranges from 252.6 billion to 274.9 billion won.
• DTS is a subsidiary of Dasan Networks (039560 KS). Dasan Networks’ 32% stake in DTS (post IPO) represents 84% of Dasan Networks’ market cap. 

• Sunny Smart Autotech, an automotive optical products supplier, has filed its prospectus with the HKEX. CICC and CITIC are the joint sponsors.
• We look at the company’s core segments: sensing products and cabin products.
• We then look at the company’s financial profile, gross margin decline, pre-IPO valuation and investor backing.

• Rocket Lab has become one of the more unusual stories in the booming commercial space market.
• Its shares fell roughly 46% over three months following the enthusiasm and subsequent selloff around SpaceX’s June IPO, even though Rocket Lab’s operating performance continued to improve.
• Second-quarter revenue reached a record $234 million, up 62% year over year, while the company ended the period with $2.36 billion in backlog and continued signing major government and commercial contracts.

• Uber CEO Dara Khosrowshahi has sent investors an unusually direct signal at a time when Wall Street is debating whether autonomous vehicles could eventually undermine the ride-hailing giant.
• Khosrowshahi recently purchased 141,000 Uber shares at an average price of $70.96, investing roughly $10 million of his own money in his first open-market purchase since May 2022.
• The transaction followed another sizeable insider purchase by COO Andrew Macdonald, who bought roughly $5.3 million of stock days earlier.

• Strategic Pure-Play Pivot: Nexans SA (NEX FP) has successfully executed a multi-year portfolio transformation toward pure-play electrification, refocusing capital allocation from commoditized volume-driven legacy cables toward high-margin, high-voltage subsea/underground transmission and smart grid distribution infrastructure.
• Attractive Valuation Arbitrage: Nexans trades at an enterprise valuation discount across key operational multiples (0.9x EV/Sales, 10.8x EV/EBITDA, and 2.9x P/B) relative to peer averages (Furukawa Electric, Hubbell, Fujikura at 2.3x-6.2x EV/Sales and 19.3x-29.3x EV/EBITDA), presenting institutional investors with substantial re-rating potential underpinned by secular grid modernization tailwinds.
• Robust Cash Generation & Capital Return: Despite bottom-line variability driven by transformation and restructuring expenses, free cash flow has compounded rapidly, rising from €264.0M in 2023 to €385.0M in 2025, enabling a sustained dividend progression from €0.70 per share in 2021 to €2.90 per share in 2026 (13.0% 1-year CAGR and 29.4% 3-year CAGR).

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• T3 Defense (NASDAQ: DFNS) is a global defense and aerospace holding company with a strong portfolio of growth oriented operating businesses.
• Portfolio companies cover areas such as energy systems, drones, rugged infrastructure, production engineering and motion control technologies.
• The company also has an acquisition pipeline of over 400 high quality targets that could add substantial value.

Key points (machine generated)

• TOKAI Holdings is experiencing revenue growth due to increased customer numbers and strong cloud services performance.
• The company is on track for record-high results for the fiscal year ending March 2027, with Q1 consolidated sales of 59,993 million yen, a 3.2% increase from last year.
• With approximately 3.47 million customers and a strong sales force, TOKAI is well-positioned for continued growth.

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