Industrials

• The September 2026 HSCI review adds 53 names to southbound Connect, 49 new and 4 returning, and removes 15, all effective 7 Sep 2026.
• The announced list ran wider than our forecast. 33 of our 36 ADD calls and 14 of 25 DELETE calls were announced.
• Current ADDs rose into the announcement and DELETEs fell. Historically, ADD-NEWs outperformed ADD-REJOINs over the bridge, while DELETEs fell further after announcement.

• Eaglerise Electric & Electronic (CHINA) Co., Ltd. is a global supplier of power equipment and solutions, leveraging proprietary core technologies and R&D capabilities, specializing in transformer equipment.
• The company ranked second among China-based suppliers in the global medium-voltage transformer equipment market with a 2.3% share in 2025.
• Gross profit margin decreased from 21.7% in 2023 to 17.6% in 2025.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• The Arcline Carve-Out: The June 8, 2026 transaction in which US private equity firm Arcline Investment Management agreed to acquire Continental Aerospace Technologies for $535 million ended 15 years of Chinese state ownership under Aviation Industry Corporation of China (AVIC). The deal represents an EV/EBITDA multiple of 15.3x on 2025 adjusted EBITDA of $35 million (HKD 272 million) and is currently progressing through a complex liquidation and delisting of the Hong Kong-listed shell (0232:HK).
• Geopolitical Bottlenecks and Strategic Friction: The divestment was catalyzed by intense regulatory pressure, specifically CFIUS oversight and DOD scrutiny over AVIC’s military ties. Friction peaked following reports by local media outlet Lagniappe concerning a leaked 2022 proposal by CEO Karen Hong to acquire a Russian-owned competitor (RED Aircraft) to modernize Chinese military pilot training, making continued Chinese ownership of a critical US defense-adjacent supplier untenable.
• Structural Profitability Hurdles: While top-line revenue reached $257 million (HKD 2.0 billion) in 2025, gross margins remain constrained at 25.12% and operating margins sit at just 3.24%. This subpar performance is a direct result of inefficient capital allocation under AVIC, characterized by pre-2023 R&D starvation, high dual-certification compliance overhead between the FAA and EASA, and single-source dependencies for critical engine crankcase castings.

• Singapore Airlines (SIA SP) share price performance for the last 5 years is quite strong, thanks to the COVID rebound. 
• However, losses are still coming, notably from the continuing loss from Air India as well as the delayed fuel hedging loss as net fuel cost skyrocketed by 78% YoY.
• Air India losses come from a crowded market (with low-cost carriers) as well as integration issues. More capital calls are expected, which is a negative for Singapore Airlines. 

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Cygnus Metals (CY5 AU), OFX Group (OFX AU), Tourism Holdings (THL NZ), Atlantic Lithium (A11 AU). 
• Lowest spreads: Accent Group (AX1 AU), FleetPartners Group (FPR AU), Baudroie (4413 JP), Kakaku.com Inc (2371 JP), Ausgold Ltd (AUC AU), Taiyo Holdings (4626 JP). 

• Horizon Industrial Parks Limited (1327105D IN) (HIPL) raised around US$272m in its upcoming India IPO.
• HIPL is the largest industrial and logistics infrastructure developer, owner and operator by total network, as per JLL, with 45 assets across 10 cities spanning fulfillment, industrial and in-city centers.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Q1 FY27 revenue rose 8.3% YoY to Rs.382 crore against an internal target of Rs.410-415 crore, while order inflow hit a record Rs.532 crore, taking the book to Rs.1,686 crore.
• The shortfall stems from freight and shipping delays, not demand weakness, and the company entered semiconductor infrastructure and deepened its aerospace pipeline in the same quarter.
• With Savli ramping, an export order book above Rs.1,140 crore, and 18-20% FY27 growth guidance reaffirmed, the near-term execution gap is worth scrutinizing before the growth thesis is dismissed.

• Direct-drive technology is not a universal replacement for traditional harmonic gear reducers in robotics; instead, a structural bifurcation is occurring. Direct-drive (DD) and quasi-direct-drive (QDD) architectures excel in high-dynamic, low-load, and impact-resistant applications (such as legged robots and consumer sweepers), but traditional harmonic drives maintain an unassailable advantage in heavy-payload, high-stiffness, and ultra-precision industrial arms.
• Direct Drive Tech operates with an extreme customer concentration risk that severely limits its pricing power and compresses margins. The top five customers accounted for 85.7% of 2025 revenue and 81.3% in 1H2026, with a single Suzhou-based consumer robot giant contributing 53.6% of sales in 1H2026. This dependency forces the company to accept low single-digit margins on its high-volume, RMB 29 consumer-grade motor modules, while its high-tech humanoid joint modules and complete robots remain commercial footnotes.
• The company’s massive GAAP losses are driven by non-operating accounting liabilities, but its actual cash burn makes the post-IPO capital runway highly critical. Although the RMB 881 million net loss in 2025 was inflated by RMB 770 million in fair value changes of preferred share redemption liabilities, the company’s operating cash outflow of RMB 64.8 million in 1H2026 against limited cash reserves highlights its reliance on Chapter 18C IPO proceeds. If the IPO fails to price, the redemption liabilities—which escalated to RMB 1.74 billion by June 2026—could be triggered, posing an existential threat.

• Emerson Electric Company reported a solid performance in its third quarter of fiscal 2026, exceeding expectations across several key metrics including sales, margins, earnings per share (EPS), and cash flow.
• The company highlighted robust demand driven by secular trends in its growth verticals such as semiconductor and power, where underlying order growth reached 7%, with Software & Systems posting a 10% increase and Test & Measurement orders up 19%.
• Geographic growth was broad-based, led by North America and Asia, while Europe and China remained softer but showed signs of improvement.

• Matson, Inc. reported strong financial results for the second quarter of 2026, driven primarily by robust performance in its China service.
• The company raised its full-year outlook, reflecting favorable market conditions including sustained demand in e-commerce, garments, and electronics, alongside tight supply dynamics in the Transpacific trade lane.
• Container volume in the China service increased 15.2% year-over-year, contrasting with a 1.1% decline in the Hawaii service volume, attributed to reduced general demand.

• Rockwell Automation reported third quarter fiscal 2026 results featuring 8% reported and 10% organic sales growth year-over-year, surpassing expectations.
• The company highlighted strength across several end markets, including Semiconductor, Data Center, and E-commerce & Warehouse Automation, which are currently driving the bulk of capital investment.
• Growth was supported by continued product innovation and broad adoption of new offerings such as PointMax I/O, PowerFlex drives, and FLEXLINE motor control centers.

• The TransDigm Group reported a third quarter of fiscal 2026 that exhibited growth across its three primary market channels: commercial original equipment manufacturer (OEM), commercial aftermarket, and defense.
• Revenues increased notably, driven by double-digit growth in commercial OEM sales aligning with rising production rates at Boeing and Airbus, a strong 18% year-over-year increase in commercial transport aftermarket revenues, and an 11% growth in defense revenues, supported by new business wins and operational execution.
• The company raised its full-year revenue guidance to a midpoint of approximately $10.51 billion—an increase of 19% over the prior year—and increased EBITDA As Defined guidance to a midpoint of $5.52 billion, an improvement of about 16%.

• AMETEK delivered a strong second quarter in 2026, achieving record sales of $2.04 billion, which reflected a 15% increase year-over-year, including 10% organic growth and 5% from acquisitions.
• Orders reached a record $2.3 billion, up 28%, with organic orders growing sharply by 25%, resulting in a backlog of $4.11 billion.
• Both operating income and EBITDA set new highs, increasing by 18% and 14%, respectively.

• W.W. Grainger’s second quarter of 2026 reported solid growth supported by strong execution and a favorable demand environment across its core segments.
• Total company sales increased 10.3% on a reported basis and 13.7% on a daily organic constant currency basis, with operating margin expanding to 16.1%, driven in part by tariff refunds related to the IEEPA impacting cost of goods sold.
• Diluted earnings per share rose over 20% year-over-year.

• Cummins Inc. reported record second quarter 2026 revenues of $9.5 billion, marking a 9% increase year-over-year, driven primarily by higher global demand in power generation markets—especially data centers—and international construction.
• EBITDA reached a record $1.7 billion (17.5% of sales), up from $1.6 billion a year prior, despite a slight margin contraction due to rising tariffs and increased variable compensation tied to projected full-year earnings.
• North American revenues increased 8%, supported by stronger medium-duty truck sales and power generation, while international revenues rose 12%, with notable momentum in China driven by data center demand, construction equipment, and truck exports.

• MHI’s diversified exposure to AI (and recent collaboration with NVIDIA), gas turbines, defense, and potentially space, point to potential for the stock in the long term. 
• Improvements to ROE, and profit margins alongside good visibility on profits with backlogs in the JPY 14T range indicate limited risks for the company in the near future.
• A directional DEC26 option trade may be the right strategy to gain exposure on the stock.  

• Direct Drive Tech Limited is a robotics technology company specializing in direct drive technology, selling robotic actuator modules and robots in China. It seeks a Main Board HKEX listing under.
• Direct Drive Tech ranked 1st in PRC consumer robotic direct drive actuator modules by revenue in 2025 with 61.1% market share. Revenue increased from RMB17.5 million in 2023 to RMB281.7.
• The company incurred operating loss since inception, with net loss of (880,977) RMB’000 in 2025 and net liabilities of (1,347,370) RMB’000 as of June 30, 2026.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Dover Corporation has agreed to acquire Ahmedabad-based Leistung Engineering, a specialist manufacturer of cryogenic valves and related equipment, in a transaction expected to close in the fourth quarter of 2026, subject to customary conditions.
• Financial terms were not disclosed, leaving the near-term earnings impact unclear.
• Leistung will join OPW Fluid Transfer Solutions within Dover’s Clean Energy & Fueling segment, adding local manufacturing capacity and a portfolio spanning globe, check and control valves, diaphragm valves, filtration systems and other low-temperature products.

• The Pivot is a Defensive Capital Restructuring, Not a Natural Expansion: iPower’s transition from a legacy e-commerce business to AI hardware leasing is an existential pivot driven by a collapsing retail base. Legacy revenue has declined by 56% year-over-year, and the company has executed two massive reverse stock splits in three months—a 1-for-8 in May 2026 and a 1-for-9 in August 2026—to prevent Nasdaq delisting.
• Toxic Convertible Notes and Death-Spiral Dilution Risk: The pivot is funded via a $30.0 million convertible note facility, with $12.18 million in Series A notes issued to date. These notes carry a toxic conversion structure, permitting the holder to convert debt into equity at an Alternate Conversion Price of 95% of the lowest 7-day VWAP. This has triggered massive dilution, shrinking the post-split share count to just 781,068 shares.
• Zero OEM Securing Power and Trapped Liquidity: iPower does not possess Tier-1 direct OEM allocation status with NVIDIA. To secure GPUs for its proposed $6.0 million leasing deal, it must purchase via secondary distributors at steep markups. Operational execution is further constrained because its primary liquid assets—$4.82 million in cash and 15.12 Bitcoins—are legally locked as first-priority pledged collateral in a controlled account for the noteholder.

• Atkore Inc. reported its third quarter results for fiscal year 2026 ending June 26, 2026, amid the announcement of its definitive agreement to be acquired by Prysmian in an all-cash transaction valued at approximately $3.8 billion.
• The transaction price of $95 per share represents a significant event for shareholders and frames the context for the quarter’s performance.
• During the quarter, Atkore completed the divestiture of its high-density polyethylene (HDPE) business and its surface protection and powder coating business in Belgium, following earlier sales of its Tectron mechanical tube business.

• JBT Marel reported second quarter 2026 revenue of $981 million, marking a 5% year-over-year increase driven by 3% organic growth and favorable foreign exchange.
• Orders rose by 10% year-over-year, with the company recording over $1 billion in orders for the third consecutive quarter.
• This growth was supported primarily by the Protein Solutions segment, which saw an 11% revenue increase (8% organic) to $467 million, and by double-digit order growth in the Prepared Food and Beverage (PFB) segment, particularly within its value-added prepared foods technology.

• Allison Transmission Holdings Inc. reported strong second quarter 2026 results driven by the recent acquisition of its Off-Highway business unit and solid performance in the Transmission business unit.
• Consolidated net sales jumped 92% year-over-year to $1.566 billion, mainly reflecting the addition of the Off-Highway segment, which contributed $706 million in revenue, and a 6% increase to a record $860 million in the Transmission business unit.
• The growth in the Transmission unit was notably supported by a 57% year-over-year revenue increase in the defense end market, underscoring continued strength amid rising global defense budgets and geopolitical uncertainty.

• Tempsens Instruments (India) (TEMPSENS IN) opens its INR 650 crore IPO on August 20, 2026, priced at INR 285–300 a share, valuing the business at up to INR 2,515 crore.
• The company controls ~10.5% of India’s temperature sensor market and is the country’s only non-contact sensor manufacturer, a rare listed proxy for industrial capex.
• Margins and market position are genuinely strong, but geographic concentration, a heavy offer-for-sale, and a 35x post-IPO multiple demand a closer look before subscribing.

• Promoter holding fell from 74.77% in Mar-22 to 41.57% in Jun-26, driven overwhelmingly by the Gangwal family’s planned monetisation.
• Gangwal-Linked ownership is down from about 36.9% to 5.85%, while the Bhatia side remains near 35.7%, preserving a clear ownership anchor.
• Residual promoter supply is now finite and quantifiable; fuel, FX, capacity and international execution increasingly matter more than the ownership overhang.

• Keisei Electric Railway Co (9009 JP) is the main beneficiary of the Narita Airport capacity expansion. More travelers means a higher ridership rate. 
• It now trades at 12x PER, share price normalized post COVID. Trades at a discount compared to Shinkansen operator like East Japan Railway Co (9020 JP) 
• The short-term impact may be a little negative, but the mid- to long-term should be very positive. 

• iPower is a technology- and data-driven infrastructure company with a foundation in supply chain services, pursuing AI infrastructure acquisition and financing.
• iPower acquired Bitcoin and Ethereum in December 2025, then sold sUSDai and Ethereum in August 2026.
• iPower leverages internal software, data, and operational experience with a network of procurement and commerce partners.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• DKSH announced a good set of 2nd quarter results. Revenue up 11% & PAT up 35%
• The 2nd quarter is a seasonally low quarter for the company as the festive season happens in the first quarter
• A healthcare business that has a higher margin than the consumer business showed better growth than the consumer business, leading to improvement in the margins

• CATL’s Rmb 15.5 billion AI energy infrastructure program is not a portfolio diversification play; it is a defensive, vertical land grab structured through minority equity positions to lock in its proprietary energy storage standards and high-voltage direct current (HVDC) architectures in data centers before competitors can react.
• The Licensing, Royalty, and Service (LRS) model in North America faces severe structural bottlenecks following recent US policy shifts under Section 45X. Regulatory rules targeting Foreign Entities of Concern (FEOC) increasingly interpret Chinese intellectual property and engineering control as disqualifying triggers for tax credits, creating major execution risks for future JVs.
• CATL’s upstream lithium integration, spearheaded by the Jianxiawo lepidolite mine, acts as a strategic price cap rather than a direct profit engine. With internal cash production costs of Rmb 80,000 to Rmb 100,000 per ton of LCE, the mine’s recent restart serves to depress merchant lithium carbonate prices (currently at Rmb 140,000 to Rmb 150,000 per ton), but will become uneconomical if spot prices drop toward the Rmb 80,000 floor.

• For the first time in a while, ZTO reported a solid increase in Adj EBITDA in Q2 (+20%)
• But the company also lowered parcel volume guidance range for FY26, to a range of 6-10%
• After solid 9.6% growth in H126, new volume guidance implies H226 growth could fall to 0%

• De Facto Independence Realized via Rebranding and Parent Exit: The transition from the “Hitachi” name to LANDCROS Corporation in April 2027, coupled with Hitachi Ltd.’s complete exit through the sale of its remaining 21,462,310 shares on August 19, 2026, marks the end of parent-subsidiary constraints. This allows the company to operate with unprecedented agility, though it faces a near-term capital headwind with a ¥34.0 billion defensive share buyback to absorb the supply overhang.
• Shifting from Closed Ecosystems to Open Automation: Rather than fighting Caterpillar and Komatsu in a capital-intensive race to build a closed proprietary automation stack, the company is betting on open architecture. The strategic partnership with Pronto signed on July 16, 2026, integrated with the Wenco fleet management system, offers brownfield mine operators a highly flexible, OEM-agnostic alternative that lowers the barrier to entry for automated haulage systems (AHS).
• Aggressive Post-Deere Infrastructure Rebuild in the Americas: Rebuilding an independent dealer network from Newnan, Georgia, since the 2022 Deere split has been highly cash-absorbent. The company is actively mitigating these distribution gaps through targeted regional expansions, such as the newly formed Hitachi Construction Machinery Latin America SpA in Chile aiming for ¥150 billion in revenue by FY2030, and the July 23, 2026 Letter of Intent with Yanmar Holdings to co-develop compact equipment.

• Conflict-Free Advantage vs. Scale Treadmill: Andersen’s lack of an audit arm is a powerful competitive differentiator, allowing it to win lucrative tax and valuation mandates from public companies where the Big Four are barred due to independence restrictions. However, maintaining this growth requires a capital-intensive “treadmill” of lateral partner recruitment and high upfront equity compensation.
• Extractive Up-C Capital Structure: The Tax Receivable Agreement (TRA) siphons 85% of the tax savings generated from basis step-ups back to pre-IPO partner-owners (the Aggregator). Combined with 98.7% voting control concentrated in Class B shares, public Class A shareholders have virtually no governance leverage and face structurally capped cash generation.
• Operational Strains & Delivery Risk: While top-line growth is strong, underlying operational metrics show early warning signs: annualized US attrition has ticked up to 15.7%, and the firm is struggling to remediate persistent material weaknesses in internal controls, even as it executes a highly aggressive, margin-dilutive international M&A strategy.

• Grafta has a patented scalable process for producing synthetic graphene, which can remove heavy metals, hydrocarbons, and harmful chemicals from industrial wastewater.
• The product has various applications as a low-cost turnkey solution across industrial assets, mining, in situ, and other contaminated waters.
• Unlike many other graphene stocks, Grafta is starting to produce revenue, which we estimate $0.5M in sales in 2026 and $3.2M in 2027.

• Hitachi Ltd (6501 JP) is looking to raise around JPY116bn(US$730m) via a cleanup in Hitachi Construction Machinery(6305 JP), comprising 21.46m shares(~10.1% of voting rights), as per the company’s press release.
• Hitachi Construction Machinery Co (HCMC) is a Japanese company that designs, manufactures, sells, and services construction and mining equipment.
• In this note, we will talk about the possible deal dynamics.

• CATL has committed ~Rmb15.5bn across Zhongheng, VNET and DeepSeek in five months — roughly 0.9% of its market cap. None of the three consolidates. Near-term earnings impact is nil.
• The market has declined to pay: shares are down 1.3% over the three sessions since the 14 August definitive signing, and sit 17% below the 52-week high.
• We remain BULLISH with unchanged FV of Rmb500/share. The AI programme cost Rmb3.37/share; one turn of multiple is Rmb21/share. Own CATL for the batteries, consider this option attached for free.

• Bain Capital raised around US$440m via selling some of its stake in Virgin Australia (VAH AU) IPO in June 2025. All of Bain’s stake could be released from escrow soon.
• Virgin Australia (VA) is the second largest airline group operating in the Australian aviation market, with an average 32% domestic RPT capacity market share in CY24.
• In this note, we will talk about the lockup dynamics and possible placement.

• On 18 August, WSJ reported that the Donald Trump wants to meet North Korea’s Kim Jong-Un as soon as this fall.
• There is a trade involving this event which is to go long on a basket of stocks related to North Korea reconciliation leading up to meeting between Trump and Kim.
• I provide a list of 10 Korean stocks that could benefit from a reconciliation with NK. A key risk with this trade is if Trump and Kim never meets again.

• SITC International (1308 HK)‘s 1H26 net profit grew 7.4% despite a challenging environment. Its interim dividend payout ratio increased by 5.2pp as net cash surged. 
• The outlook remains decent as fuel, charter and port handling charges elevate freight rates. So far in 2H26, China-SE Asia and China-Korea freight rates are higher YoY. 
• The market is underestimating the 2H26 earnings, implying upgrade potential. Its 12.3x PER and 5.4x P/B are undemanding given high ROE and net cash on hand.

• Andersen Group Inc. provides independent tax, valuation, and financial advisory services to clients in the United States. The company differentiates itself by not providing audit services, offering a comprehensive suite.
• Andersen Group achieved a 15% revenue CAGR from 2003 through 2025. Over 70% of 2025 revenue came from clients engaged for more than three years.
• As of June 30, 2026, total assets were $571,487 and total liabilities were $540,033. Revenue for the six months ended June 30, 2026, was $458,404.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• BWX Technologies reported its second quarter 2026 results with revenue reaching $902 million, marking an 18% increase year-over-year, including 9% organic growth.
• Adjusted EBITDA rose 7% to approximately $155 million, while adjusted earnings per share increased 5% to $1.07.
• The company raised its full-year free cash flow guidance by $30 million to a range of $345 million to $360 million, supported by disciplined working capital management and controlled capital expenditures, which totaled $41 million for the quarter.

• Qingtao KUNSHAN ENERGY DEVELOPMENT (QEDG) plans to raise around US$900m in its upcoming Hong Kong IPO.
• QEDG manufactures solid-liquid hybrid and all solid-state batteries for electric vehicle (EV) and energy storage system (ESS) applications.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Capesize futures gained 87% in H1 2026, with June’s 35% reversal erased as Middle East tensions eased, before prices recovered in July.
• Chinese commodity demand remains a key support: YTD iron ore imports rose 6.4%, aluminium ores 18%, while longer Guinea- and Brazil-origin voyages tighten effective Capesize supply.
• Options positioning remains more bullish for Capesize: H1 put/call ratio was 0.38 versus 0.47 for Panamax, with August Capesize calls nearly three times puts and 40k a key upside strike

• In this edition: • a.s.r. Nederland | solid 1H26; Aegon integration completed, momentum intact • ING | reduces stake in TMBThanachart Bank (TTB) • InPost | EU clearance for the proposed takeover of InPost by the consortium • Alfen | reiterates FY26 as well as FY27 guidance • TomTom | Orbis Maps selected by Cedar Electronics • E-commerce & Logistics | Amazon brings AWD to Europe

• Cleanaway Waste Management received a non-binding takeover proposal from EQT at A$3.13/share, with an 18% spread.
• Priority Technology Holdings is reviewing a $6.00-$6.15/share privatization offer, with a 14% spread currently.
• DoubleDown Interactive’s Q2 results showed no update on the offer review; stock trades 11% above the offer.

• Reliance Worldwide Corp (RWC AU) disclosed a non-binding proposal from Brookfield at A$4.75, a 31.6% premium to the undisturbed price.
• The Board has entered into a process deed providing Brookfield with exclusivity for four weeks, from 17 August to 15 September.
• The timing is opportunistic (given depressed earnings and the outlook) and is light relative to peers’ multiples. However, the lack of a credible alternative path suggests low resistance from shareholders.

• Demand Restocking vs. Structural Growth: NAFCO’s strong H1 2026 revenue of NT$ 2.59 billion (up 34.67% YoY) is heavily supported by an extended 8-to-9-year order visibility, but a portion remains driven by OEM safety-stock buffering amid casting and forging bottlenecks, rather than pure structural demand growth.
• Malaysia Expansion Risk/Reward: The USD 40 million Malaysia facility in Seremban offers structural labor cost advantages, but near-term margin pressure is expected. While Phase I is operational, the much larger Phase II facility broke ground on January 30, 2026 and will not reach commercial operation until 1H 2028, pushing optimal utilization and margin-accretive scale out by at least two to three years.
• Defensibility of Engine Monopolies: Despite rising regional players, NAFCO remains the sole certified aerospace engine fastener manufacturer in the Asia-Pacific region for GE and Safran. Its 2021 Safran forging certification and NADCAP MMM status create a high moat that protects its 23.87% TTM gross margin from competitor pricing pressure, as additive manufacturing presents zero immediate threat to its high-volume, safety-critical hot-forging business.

• In this Deep Dive series episode, Nicolas Bornozis, President of Capital Link is joined by the senior management team of Capital Clean Energy Carriers Corp., Mr. Brian Gallagher, EVP of Investor Relations, Mr. Nikos Tripodakis, Chief Commercial Officer and Mr. Jack Neilan, Head of LPG Commercial, to discuss the Company’s long-term strategy, investment program, commercial and chartering approach, financing strategy, and the structural trends shaping the LNG, LPG and liquid CO₂ shipping markets.
• Watch the full discussion: https://www.youtube.com/watch?v=NEASHPHIm0Y Becoming the Reference Owner in Gas Transportation Two years ago, the Company was a Nasdaq-listed MLP with a mixed fleet and a legacy containership business.
• Since then, it has undergone a significant transformation – renaming itself, refinancing, converting to a corporation in August 2024 and gradually exiting its containership exposure.

• Polycab posted highest-ever Q1 revenue and PAT for the quarter ended June 30, 2026, with consolidated revenue up 39% YoY to Rs.8,209.73 crore and PAT up 33% to Rs.796.65 crore.
• Growth arrived on tough base (Q1FY26 volumes were up 26%), FMEG turned genuine profit engine at 8% EBIT margin, and market share is now 30-31%, up 300-400 bps in year.
• The next leg hinges on data centre and T&D capex converting from pipeline to invoices, export recovery from the Middle East, and whether Street valuations already price this in.

• Precision Castparts Corp. (PCC) is a world-leading manufacturer of complex, mission-critical metal components, primarily for the aerospace and industrial gas turbine (IGT) markets.
• The company was acquired by Berkshire Hathaway in January 2016 for approximately $37.2 billion and now operates as a wholly-owned subsidiary. Consequently, it is no longer a publicly traded entity, and detailed financial reporting is not available.
• PCC possesses a wide economic moat, underpinned by proprietary manufacturing processes, deep customer integration with high switching costs, and significant barriers to entry in the highly regulated aerospace and power generation industries.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Gravis Robotics closed a $200M Series A led by SoftBank on August 17, 2026.
• The retrofit autonomy market for heavy earthmoving equipment is contested on three fronts: machine-guidance incumbents selling lower-risk operator-assistance tools, teleoperation-first startups targeting the same equipment budgets, and OEMs embedding autonomy into their own platforms.
• The nearest-term TAM lever is expanding the number of autonomous tasks the platform supports on machines already in the field.

• Eaton Corporation reported strong financial and operational results in the second quarter of 2026, demonstrating progress in its strategic focus on growth, portfolio transformation, and cultural evolution.
• The company posted record revenue of $8.5 billion, representing 21% total revenue growth, including 14% organic growth, both exceeding the high end of guidance.
• Adjusted earnings per share (EPS) of $3.15 set a quarterly record and beat mid-point expectations by $0.10.

• nVent Electric reported strong second quarter 2026 financial results, driven primarily by its infrastructure vertical, particularly the data center segment, while also seeing growth across other verticals and geographies.
• The company achieved record sales of $1.471 billion, reflecting a 53% increase year-over-year, with organic growth of 47%, surpassing prior guidance.
• This growth was supported by the continued strength in data centers, liquid cooling, cable management, and engineered buildings, with data center sales expected to exceed $2 billion for the full year 2026.

• The latest quarters reported by TriMas Corporation reflect a company navigating a period of strategic repositioning and execution of operational improvements following the divestiture of its aerospace segment.
• The company remains focused on three core pillars: customer success, its workforce, and operational excellence, which collectively guide resource allocation and strategic priorities.
• Financially, the second quarter of 2026 showed modest sales growth with net revenues reaching $174.6 million, a 1.6% increase year-over-year, primarily driven by favorable foreign currency effects, while organic sales remained essentially flat.

• Reliance Worldwide Corp (RWC AU), a manufacturer of plumbing components, has entered into a process deed with Brookfield, potentially leading to a A$4.75/share Offer by way of a Scheme.
• Brookfield has been granted four weeks of additional due diligence to “progress the proposal”. Brookfield had previously fielded bids of A$4.15, A$4.25, and A$4.50/share.
• Reliance’s board is unanimously supportive of terms, if firmed, which represent a 31.6% premium to undisturbed. 

• Micro-Mechanics (Holdings) (“MMH”) is a company that designs, manufactures and markets high-precision tools & parts used in the assembly and wafer fabrication processes of the semiconductor industry.
• It has five operating facilities located in Singapore, Malaysia, China, the Philippines, and the U.S., and serves more than 600 customers (as noted by MMH in April 2026).
• Besides designing & manufacturing consumable tools & parts used for the assembly & testing of semiconductors, MMH also produces parts for Wafer Fabrication Equipment (“WFE”).

• Market Leader with Strong Aftermarket Business: Burckhardt Compression is a global market leader for reciprocating compressor systems, critical for various industrial processes. Its large installed base provides a significant and stable revenue stream from high-margin aftermarket services, enhancing earnings visibility and resilience.
• Positioned for Energy Transition: The company is strategically positioned to benefit from the global energy transition. Its compressors are essential for emerging applications such as hydrogen production, transportation, and storage, as well as for carbon capture, utilization, and storage (CCUS), representing significant long-term growth avenues.
• Robust Financial Performance and Shareholder Returns: Burckhardt has demonstrated a strong track record of revenue and net income growth, coupled with consistent and rising dividend payments. The company maintains a solid balance sheet and has shown disciplined capital allocation, supporting both investment in growth and attractive returns to shareholders.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Post-Quarter order from existing semiconductor-equipment customer is described in management call notes as roughly Rs.1,250 crore over five years, taking ADS backlog from ~Rs.4,464 crore at Mar-26 to ~Rs.5,750 crore.
• ADS is a structurally higher-margin business. Management has indicated 25–30% margin potential at better utilisation, versus Sansera’s Q1 FY27 consolidated EBITDA margin of 19.2%.
• Sansera is moving from an auto-heavy precision component maker toward a broader high-complexity engineering platform. The key debate shifts from auto cyclicality to ADS execution, capacity and valuation.

• The latest quarterly results of TAL Education Group exhibit progress across its core business lines, reflecting a focus on high-quality growth, disciplined execution, and efficiency improvement.
• The company operates primarily through two main pillars: offline Peiyou enrichment learning services and online learning content solutions, complemented by its learning devices business that integrates technology with education.
• The offline Peiyou learning programs showed sustained double-digit revenue growth year-over-year, supported by steady student enrollment and retention rates above 80%.

• The international provider of transport technology solutions announced that it has been awarded £1.43m in grant funding from the UK Government to investigate how autonomous vehicles can be used to make airports safer.
• The Company will use the CAM Pathfinder grant to deploy its Auto-Shuttle vehicles to complete several routine tasks, including performing security patrols, perimeter inspections and the review of runway and taxiway surfaces for cracks, wear or loose objects that can cause serious damage to an aircraft.
• The grant forms part of the UK Government’s £150m CAM Pathfinder programme.

• In this edition: • Bnode | BIPT signals regulatory relief for Bpost on priority mail • E-commerce & Logistics | early evidence of demand shock for Chinese online platforms • Corporate agenda | week 34 – 38

• CSW Industrials, Inc. reported its fiscal 2027 first-quarter results demonstrating significant growth, largely driven by acquisitions and operational execution.
• The company achieved record revenue of $351 million, a 33% increase year-over-year, supported by all three business segments—Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions.
• Organic growth contributed 5.3% overall, indicating solid fundamental demand alongside acquisition-driven growth.

• First revenue-generating quarter. 
• Bimergen reported 2Q26 revenue of $7.9 million and gross profit of $4.8 million (61% gross margin)—the company’s first quarter of recognized revenue, driven by the Cerberus/Frontier Power USA (Redbird) transaction ($6.7 million), a one-time Eos Energy joint development payment ($0.25 million), and recognition of the long-standing Bridgelink solar deposit ($0.9 million).
• The quarter produced GAAP net income of $1.6 million, or $0.22 per diluted share, versus a net loss of $0.8 million in 2Q25.

• Hertz Global Holdings, Inc. has delivered one of Wall Street’s most dramatic turnaround stories of 2026, but the latest twist has made the recovery considerably harder to judge.
• After plunging roughly 70% from late June and touching an all-time low of $1.51 on August 4, Hertz shares surged 85% over just six sessions as second-quarter results came in better than investors feared.
• Then came the shock: Bill Ackman’s Pershing Square disclosed that it had exited its position after becoming uncomfortable with management’s financing decisions, sending the stock sharply lower.

• On 10 August, Hang Seng Index launched a market consultation on potential changes to the Hang Seng TECH Index (HSTECH INDEX) methodology.
• If the proposals are approved, there will be 20 stocks added to the index in December creating a lot of flow and impact for the index constituents.
• One way turnover is estimated at 13.4% leading to a round-trip trade of HK$73.3bn (US$9.3bn), so this could be implemented in a phased manner.

• Hynix could announce KRW 100tn shareholder returns this week, with a 60:40 dividend buyback mix. Yeouido is increasingly positioning for this outcome.
• KRW 40tn buyback matches the ADR proceeds, with Hynix repurchasing below the issuance price. The broader package also creates a timely window to upstream excess cash to SK.
• Square looks set to outperform Hynix near term as the return mix reinforces the cash upstreaming narrative. A long Square, short Hynix or market setup looks compelling into the announcement.

• Context: The Inpex (1605 JP) vs. Mitsui & Co (8031 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Mitsui & Co (8031 JP) and short Inpex (1605 JP) targets a 5% 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.

• The Tongcheng-Dida transaction is a rescue merger of necessity rather than a pure growth play. Standalone, Dida was in a terminal operational spiral, as evidenced by its July 31, 2026 profit warning projecting a 1H 2026 revenue drop of up to 45.2% to RMB 157.0 million and swinging to an adjusted net loss of up to RMB 59.7 million.
• The deal structure features a highly sophisticated offshore capital recycling mechanism. Paying a massive one-off special dividend of HK$1.1745 per share out of Dida’s share premium account (capitalized from its 2024 IPO) bypasses PRC capital controls and the 10% withholding tax on onshore repatriation, while effectively subsidizing Tongcheng’s net acquisition cost.
• Dida’s regulatory environment imposes a hard structural ceiling on its standalone economics. Legally restricted to “non-commercial mutual assistance” carpooling, Dida is subject to municipal caps on daily trips and price-matching margins. This, alongside rising safety and data compliance costs, has squeezed its gross margins from 74.3% in 2023 to 66.3% in 2025, rendering independent traffic acquisition unviable.

• On-Grid Yield Outperformance: Junxin achieves an industry-leading on-grid electricity yield of 508.99 kWh/ton in Q1 2026, significantly outperforming the domestic peer average of 280 to 350 kWh/ton. This premium is driven by sophisticated boiler designs, lower auxiliary power consumption, and the high calorific value of waste in its core Changsha market.
• Aggressive Central Asian Expansion: With China’s domestic waste-to-energy (WtE) sector fully saturated and transitioning to a mature operational phase, Junxin is deploying a planned $600 million across Central Asian Belt and Road projects. Key milestones include the December 2025 launch of the 1,000 tons/day Bishkek plant in Kyrgyzstan and the May 2026 finalized investment of $280 million to $308 million in Almaty, Kazakhstan.
• Industry-Leading Capital Allocation: Unlike over-leveraged peers, Junxin is leveraging its strong domestic cash generation—bolstered by the late 2024 acquisition of Renhe Environment, which contributed 1.08 billion RMB in revenue and 357 million RMB in net profit in 2025—to maintain a massive 77.86% total payout ratio via dividends and buybacks. This makes it a rare cash-generative play in a defensive sector.

• RBC Bearings Incorporated has added another targeted bolt-on to its industrial portfolio through Dodge Industrial’s acquisition of PSC Couplings, LLC for $24.2 million in cash.
• PSC, based in Richfield, Wisconsin, generated approximately $15.1 million of net sales over the last twelve months and manufactures standard and custom disc couplings for reliability-critical industrial applications.
• The timing is notable because RBC entered fiscal 2027 with broad industrial momentum, reporting 8.4% Industrial segment growth in its first quarter while OEM revenue rose 21.5%, alongside strength in aggregates and cement, food and beverage, warehousing, semiconductors and grain.

• Builders FirstSource reported its second quarter 2026 financial results amid a challenging housing market characterized by persistent inflation, geopolitical uncertainty, elevated interest rates, and affordability pressures.
• Net sales declined approximately 9% to $3.9 billion due to lower core organic sales and commodity deflation, partially offset by acquisitions.
• Core organic sales decreased 8% in single-family, 10% in multifamily, and 2% in repair and remodel segments, aligning broadly with company expectations given weak demand conditions and consumer caution.

• Federal Signal Corporation reported a strong second quarter with year-over-year improvements across key financial metrics, driven by robust demand and effective execution of strategic initiatives.
• Consolidated net sales rose by 19% to $670 million, including 6% organic growth, while operating income increased by 21% to $118.2 million.
• Adjusted EBITDA grew 22% to $144.4 million, representing a margin expansion of 60 basis points to 21.5%.

• A.
• O.
• Smith’s financial results for the second quarter of 2026 displayed a mixture of performance across its geographic markets and product segments amid varied industry conditions.

• Schneider National reported second quarter 2026 revenues of $1.3 billion (excluding fuel surcharges), marking a 4% increase year-over-year.
• Adjusted income from operations rose 29% to $73 million, with adjusted diluted earnings per share of $0.29 compared to $0.21 in the same period last year.
• The company’s adjusted operating ratio improved by 110 basis points from the prior year, reflecting gains across all business segments supported by ongoing cost-saving initiatives and productivity enhancements.

• Hunan Junxin Environmental Protection Co., Ltd. provides specialized solutions in integrated waste treatment and resource utilization, operating green energy and environmental services projects. Its Changsha Environmental Protection Industrial Park is.
• Its Changsha Environmental Protection Industrial Park is among China’s largest, and it ranked first in 2025 for on-grid electricity generated per ton of waste.
• In FY2025, revenue was 2,730,708 and profit for the year was 994,018. Gross profit margin decreased from 51.2% (2023) to 41.5% (2024).

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Container carrier Maersk delivered strong Q2 results, mainly due to improved unit pricing
• Company revised FY26 EBITDA guidance upward for the second time in just six weeks
• We underestimated carriers’ ability to quickly, successfully pass along big fuel cost increase

• GATX Corporation reported a rise in diluted earnings per share (EPS) to $2.84 for the second quarter of 2026, compared to $2.06 in the same period of 2025.
• Year-to-date EPS also increased to $5.19 from $4.21, reflecting general strength across its business segments.
• In Rail North America, utilization remained high at 98%, with a solid renewal rate of 82.6% and a lease price index (LPI) increase of 16.8%, though influenced by an outsized quarter for sand car renewals—a segment with lower rates that had been anticipated as part of the Wells Fargo Rail acquisition integration.

• Aperture size dictates the physics of direct-to-cell (D2C) performance. AST SpaceMobile’s large-aperture architecture (693 square feet for Block 1, scaling up to 2,400 square feet for Block 2) offers a superior link budget, allowing for standard, unmodified handset connectivity with true broadband speeds (LTE/5G data). In contrast, Starlink’s smaller D2C phased-array design is physically constrained to narrower bandwidths, limiting its initial commercial offering primarily to messaging and voice.
• Spectrum access and the FCC’s Supplemental Coverage from Space (SCS) framework form a highly defensible regulatory moat. By locking in exclusive partnerships with tier-1 Mobile Network Operators (MNOs) like AT&T and Verizon in the US, and Vodafone globally, ASTS utilizes existing terrestrial low-band spectrum (e.g., 700-850 MHz). This bypasses the need for new global spectrum allocations and prevents competitors from using those same bands within partner territories due to mutual interference rules.
• The transition to the custom ASIC chip is the single most critical commercial catalyst and execution risk. While Block 1’s FPGA-based architecture successfully validated the technology, it is commercially unfeasible for continuous global service due to power and processing bottlenecks. The custom TSMC-built ASIC is designed to deliver a tenfold increase in processing bandwidth (up to 10,000 MHz), but any manufacturing delay or tape-out defect would stall Block 2 deployments and threaten the company’s capital runway.

• No-Man’s Land Valuation Sizing: The $200 million trust size of Karman Line Acquisition Corp. is strategically awkward—too small to realistically merge with Tier-1 defense tech “megacorns” (e.g., Anduril or Shield AI) without crushing dilution, yet too large for profitable niche component suppliers without triggering massive redemptions.
• The Double-Edged Meteora FPA Structure: While the sponsor’s backer, Meteora Capital, utilizes Forward Purchase Agreements (FPAs) to synthetically guarantee transaction approval, these structures often drain the post-merger company of net-cash-on-hand, leaving de-SPAC targets functionally undercapitalized.
• Severe Regulatory & Structural Friction: Because Karman Line is incorporated as a Cayman Islands exempted company, any transaction with a US defense target holding classified DoD contracts will trigger extensive CFIUS reviews and FOCI (Foreign Ownership, Control, or Influence) mitigation, adding months of delay to a tight 21-month liquidation clock.

• Strategic Evolution to Integrated Rack Infrastructure: BizLink is aggressively transitioning from a components-focused cable assembly provider into an integrated, rack-level hardware player. The massive US$850 million acquisition of Blackstone’s Interplex Datacom in June 2026 is a pivotal step, bridging the gap between electrical connectivity and the precision mechanical/structural components required for next-generation AI server racks.
• High-Speed Copper Interconnect Ramps Driving Growth: While the high-speed copper interconnect cycle is booming (supporting speeds up to 448Gbps per lane and Co-Packaged Copper architectures), it is undergoing an intense validation and complexity shift. This technological evolution is offsetting broader macro cyclicality, such as global EV demand cooling and a slower recovery in industrial automation.
• LTI Margin Realities and pass-through Lag: Margin stability remains highly sensitive to copper price volatility, with LME copper hovering near US$14,000 per ton in August 2026. Standard pricing pass-through mechanisms operate with a two-to-three month lag, exposing BizLink to temporary gross margin compression during rapid commodity run-ups. Moving up the value chain toward system-level box builds and active copper/optical integration is crucial to improving bargaining power against margin-squeezing hyperscale and Tier-1 automotive customers.

• LMS Compliance (LMS) saw record revenue growth of RM$18.19 mil, +40.5% yoy, in 1H FY26, significantly outpacing the 32.5% growth in FY25 and translating into a solid +23.9% yoy increase in Net Attributable Profit to RM$3.43 mil.

• This was in line with RHTC’s investment thesis for LMS of a doubling in revenues in the next couple of years driven by recent acquisitions and forays into new business streams.

• The robust top-line growth was largely driven by stronger contributions from certification and consultancy services of RM$5.44 mil, a phenomenal 1,833.7% yoy, supported by the integration of recently acquired business units (such as 75%-owned Anchor Technology).

• Sourcing Strategy Built on Generational Churn: NorthStrive’s core thesis relies on consolidating sub-scale precision manufacturing and CNC machining businesses, specifically targeting the Baby Boomer succession crisis. This play is grounded in their own proprietary data showing that over 125,000 U.S. manufacturing companies are currently held by Boomers lacking clear succession plans.
• Valuation Arbitrage with Real Cash Flow: Unlike the tech-focused SPACs of previous years, NorthStrive targets stable, lower-middle-market manufacturing entities with real EBITDA. These targets are typically valued at 6.0x to 8.0x EBITDA in private transactions (e.g., PMGC Holdings’ acquisition of SVM Machining for $2.45 million in early 2026), offering clear arbitrage potential when rolled up into a public vehicle trading at 12.0x to 15.0x.
• High Redemption Risk Mitigated by Structured Equity Roll: To counter the prevailing 90%+ redemption rates in the 2026 SPAC market, NorthStrive’s transaction structure must require sellers to roll a significant percentage of their equity into the combined entity, alongside structured earnouts and potential debt financing, rather than relying on a fully-funded trust account of $100.0 million.

• Cohort’s subsidiary ELAC SONAR (Sensors & Effectors Division) has secured a contract worth €140.7m (c.
• £120m) to collaborate with Saab to deliver integrated sonar systems for the Polish Orka Submarine Programme.
• The Orka programme involves provision of 3 submarines for the Polish Navy, based on the Swedish Saab Kockums A26, one of the most advanced non‑nuclear submarine designs.

• High-Risk Turnaround Play: Intrum is a highly levered credit management services leader in Europe, currently undergoing a significant strategic transformation to deleverage and de-risk its business. The company’s stock has declined over 90% in the past year, reflecting severe financial distress, including recent net losses and a dividend suspension.
• Strategic Shift to Capital-Light Model: Management’s ‘Intrum 2030’ plan focuses on reducing debt, cutting costs, and emphasizing its capital-light ‘Servicing’ business. A recent SEK 7.5 billion equity raise is a critical step to shore up the balance sheet and reduce refinancing risk ahead of significant 2027 debt maturities.
• Distressed Valuation with Execution Risk: The company trades at a steep discount to peers, reflecting the high uncertainty and execution risk of its turnaround strategy. A successful transformation could unlock significant value, but failure to stabilize earnings and manage its debt burden in a challenging macroeconomic environment poses a substantial risk to equity holders.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Cohort’s subsidiary ELAC SONAR (Sensors & Effectors Division) has secured a contract worth €140.7m (c.
• £120m) to collaborate with Saab to deliver integrated sonar systems for the Polish Orka Submarine Programme.
• The Orka programme involves provision of 3 submarines for the Polish Navy, based on the Swedish Saab Kockums A26, one of the most advanced non nuclear submarine designs.