Industrials

• I was bearish Hino Motors Ltd (7205 JP) / Archion (543A JP) against Isuzu Motors (7202 JP) last year at this time. That trade did well. I am bullish now. 
• Isuzu released Q1 results a bit more than a week ago. They were salutary. Archion released Q1 yesterday. Also salutary. Historical comparisons are a bit tough, but outlook is good.
• When looking at Q1 seasonality vs Hino history, and Q1 revenue results vs last year, either Q1 was a very special outlier or the guidance is quite conservative.

• Cleanaway Waste Management (CWY AU) disclosed a non-binding proposal from EQT at A$3.13, a 32.1% premium to the undisturbed price of A$2.37.
• The Board has granted a nine-week exclusivity period. While the offer represents a 10-year high and is attractive compared to precedent transactions, it is light compared to peer multiples. 
• A restive shareholder base underscored by the last AGM results is a risk. However, with a turnaround remaining elusive (FY2027 EBIT downgrade), most shareholders will grudgingly accept it. 

• CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
• In this insight, we take a look at the potential ADDs and DELs leading the rankings for the semiannual index rebal event in December 2026.
• We continue to see 100 ADDs/DELs for the CSI 1000 index. Roughly 78% of the reference period is now complete.

• Q1 underlying OP rose 32% YoY to ¥29.0bn, annualising ahead of ¥110bn guidance; the ¥233bn bargain purchase gain we flagged at initiation landed almost to the number.
• We were right on the company, wrong on the entry: the July secondary cleared ¥260 — well below our ¥360 line — leaving the stock at ¥272, 0.80x book.
• Reaffirm BULISH stance, TP reset to ¥370 (was ¥450), +36% upside; basis is a tight blend of 14.5x ex-gain earnings, 1.08x book and ~5.2x EV/EBITDA at Isuzu-parity.

• Lyntris is a scaled defense technology platform operating across mission-critical communications, sensing, data and other technologies supporting U.S. and allied defense programs.
• The company offers institutional investors exposure to the modernization of military infrastructure without relying on a single product or emerging technology.
• The offering is led by Evercore, Citigroup, Guggenheim Securities and BofA Securities, providing a strong institutional syndicate with broad distribution across aerospace and defense, industrial technology and generalist investors.

• In Q1 FY03/27, the company reported a YoY revenue decline of 15.3% and operating profit drop of 73.8%.
• The company raised its 1H FY03/27 forecast, citing increased waste volumes and lower-than-expected energy costs.
• Revenue and profit increased in the spread business due to high resource prices and rigorous metal sorting.

• SPX Technologies reported strong second quarter results for 2026, highlighted by a 23% year-over-year increase in revenue and a 20% rise in adjusted EBITDA, alongside a 22% growth in adjusted earnings per share.
• This performance was driven by robust organic growth in both the HVAC and Detection & Measurement (D&M) segments, complemented by recent acquisitions, notably Neptronic, which was added to the HVAC segment.
• The company raised its full-year guidance, increasing the midpoint to imply 27% adjusted EBITDA growth, based on higher-than-expected data center volume, improved D&M performance, and contributions from Neptronic.

• Record Q1 sales and order inflow, 93% export mix in new orders, and FY27 revenue guidance raised to INR 2,600 crore.
• Order inflow exceeded quarterly revenue and the backlog rose to INR 2,207 crore, supporting visibility beyond the current year.
• The key debate is shifting from demand availability to execution, capacity additions, working-capital funding and valuation discipline.

• Lyntris Inc. (NYSE: LYNX) is preparing to raise approximately $492 million in an initial public offering of 24.0 million shares priced between $19.00 and $22.00 per share.
• At the $20.50 midpoint, the offering would value Lyntris at approximately $2.36 billion based on roughly 115.1 million shares expected to be outstanding following the offering.
• The company has applied to list on the New York Stock Exchange under the ticker LYNX. Evercore ISI, Citigroup and Guggenheim Securities are serving as lead book-running managers, with BofA Securities, Baird, Raymond James and William Blair also participating in the offering.

• Hai Leck faces a challenging operating environment characterized by a significant and persistent decline in revenue and net income over the past several years. The company’s growth track record shows negative compound annual growth rates across key metrics like revenue, net income, and dividends over 3, 5, and 7-year periods.
• The company operates in the highly cyclical and competitive Engineering, Procurement, and Construction (EPC) sector, primarily serving the oil & gas and petrochemical industries. Its performance is heavily tied to the capital expenditure cycles of these industries, which are influenced by volatile global energy prices and demand.
• Despite poor growth, the company exhibits some financial resilience, reflected in a high Smartkarma Resilience score. However, a significant corporate action is underway, with the founder and controlling shareholder proposing to privatize and delist the company, which will fundamentally change the investment thesis for public institutional investors.

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• We review the proposed HS TECH rule changes and screen an early beneficiary list for the December 2026 rebalance.
• Our screening returns 20 ADD candidates, 10 based on market value and 10 based on revenue growth.
• We expect all 30 current constituents are retained. 10 MV based stocks to be mechanical and sales growth for 10 growth based stocks to be cut off at 30%.

• Dmg Mori Co Ltd (6141 JP) is looking to raise up to US$320m from a primary offering to overseas investors.
• Proceeds will mainly be used for capex at various production plants to increase production capacity.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Ever Glory United Holdings Limited is a leading integrated M&E engineering service provider in Singapore, offering comprehensive electrical, air-conditioning and mechanical ventilation, fire protection, and plumbing, sanitary and gas services.
• The company ranked second among domestic M&E engineering service providers in Singapore in 2025, with a revenue CAGR of 60.0% from 2023 to 2025.
• Profit for 2025 was S$20,122 thousand, and net current assets were S$53,729 thousand as at 30 June 2026.

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• Growth runway remains considerable – Q1 FY3/27 results demonstrated sustained high earnings growth driven primarily by robust Modernization demand whilst maintaining high levels of profitability.
• We believe the market is overlooking the long-term value of consistency; while the company’s predictable earnings profile can limit the frequency of positive earnings surprises, it reflects a high-quality recurring revenue model capable of delivering sustainable compounding over time.
• The growth runway remains considerable in our view, given the demand pool for both maintenance and modernization, and the company’s track record in raising market share.

• It’s been pretty quiet on the M&A front for Cleanaway Waste (CWY AU). KKR was rumoured to be interested four years ago. Around the time Cleanaway acquired Suez Sydney Assets.
• Now Swedish PE outfit EQT has proposed taking Cleanaway private, via a Scheme, at A$3.13/share, a 32.1% premium to undisturbed. EQT has been afforded nine weeks of exclusive due diligence. 
• The indicative offer is subject to FIRB, ACCC, MACs, plus the standard Scheme vote from Cleanaway shareholders. Pricing appears fair. The board is supportive at A$3.13/share. 

• Nextpower’s first quarter fiscal year 2027 results reflected a combination of solid operational execution, continued demand growth, and strategic expansion across its core solar tracker business and emerging non-tracker product lines.
• The company reported a record quarterly revenue of $935 million, representing an 8% year-over-year increase, alongside adjusted EBITDA of $233 million, with a margin of 25%.
• Backlog expanded to over $5.5 billion, driven by bookings strength in both trackers and new energy storage offerings.

• Waste Management is the largest integrated provider of traditional solid waste services in North America, operating a vertically integrated business model that includes collection, transfer, recycling, and disposal.
• The company is pursuing a dual strategy of optimizing its core, cash-generative collection and disposal business while investing heavily in higher-growth sustainability initiatives, such as automated recycling and renewable natural gas (RNG) facilities.
• WM’s extensive network of assets, particularly its 250+ active landfills, creates a significant competitive advantage and high barriers to entry, as landfill capacity is increasingly scarce and difficult to permit.

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• Over five sessions, directors reported six acquisitions, substantial shareholders recorded six acquisitions and four disposals, with seven companies conducting buybacks totaling S$26.2 million.
• Singtel repurchased 195.3 million shares for S$893.0 million under its S$2 billion buyback program, increasing EPS by approximately 3%.
• Amova Asset Management increased its stake in Frencken Group to 7.19% and UI Boustead REIT to 7.02%, supporting growth initiatives.

• APi Group reported a second quarter performance reflecting solid growth across its business segments, supported by strong operational execution and a disciplined strategic approach.
• The company achieved net revenues of $2.25 billion, a 13.3% increase year-over-year, with organic growth of 10.1%.
• This growth was driven by both project and service revenues, as well as pricing improvements, indicating a healthy demand environment.

• WESCO International reported strong second quarter results for 2026, marked by record sales, adjusted EBITDA, adjusted earnings per share, and backlog, all surpassing previous plans.
• Sales increased by 13% year-over-year to $6.7 billion, driven primarily by continued momentum in the data center end market, which accounted for approximately 20% of total sales.
• Notably, excluding data center sales, the company still achieved mid-single-digit growth, indicating broad-based demand across its diversified portfolio spanning three business units: Communication & Security Solutions (CSS), Electrical & Electronic Solutions (EES), and Utility & Broadband Solutions (UBS).

• This morning (11th August), Aussie-based shipbuilding and defense firm Austal Ltd (ASB AU)  announced loses at its US unit after failing to secure contractual relief (previously expected & booked).
• Concurrent with this trading update, Austal announced Hanwha, currently holding 19.9% in Austal (9.9% direct + 9.9% via swap), has made a US$1.05-2bn indicative Offer for this US unit.
• On balance,  I see Hanwha receiving the necessary regulatory approvals. The US secures a cashed-up ally to construct strategic vessels; and Canberra keeps the domestic ops in local hands. 

• Austal Ltd (ASB AU) disclosed a non-binding proposal from Hanwha Ocean (042660 KS) for Austal USA at an EV of US$1.05-1.20 billion, 1.1x to 1.2x of the Group’s pre-bid EV.
• Alongside the NBIO disclosure, Austal has provided a trading update noting significant non-cash provisions at Austal USA, resulting in an expected FY26 EBIT loss of A$175 million.
• Hanwha’s offer is attractive, and securing US approvals should not be an issue. Austal’s valuation remains compelling, with my SoTP valuation of A$5.95, a 32% premium to the last close.

• Chiyoda Corporation is a Yokohama-based engineering, procurement, and construction (EPC) contractor and one of only a handful of companies on earth capable of building a full-scale LNG liquefaction plant, alongside Bechtel, Technip Energies, and Japanese peer JGC Holdings.
• Two of its own joint-venture partners on its largest US LNG projects, McDermott International and Zachry Holdings, went bankrupt attempting the same work, thinning an already tiny global competitive set just as a fresh ~$90B wave of global LNG projects arrives.
• Chiyoda itself nearly went the same way twice, with a ¥214.9B net loss in FY2019 and a second solvency scare in FY2024, both triggered by cost blowouts on the same Golden Pass LNG project in Texas, and was kept alive only because controlling shareholder Mitsubishi Corp injected preferred-stock capital both times.

• The market is underestimating Lonking (3339 HK)‘s earnings, with consensus forecasts pointing to an 8.5% decline in 2H26. Instead, industry wheel loader sales grew 30.8% in Jul. 
• Its net cash surged 2.8x in the last ten years, and by end-FY26, it will reach Rmb8.2bn, or 73.9% of its current market capitalisation.
• FY26-28F average ROE will reach 12.4%, the highest in the last five years, justifying its 0.9x P/B. Ex-net cash, its FY25 ROE will instead be 23.5%.

• The latest quarterly results from XPO Logistics, Inc. demonstrate record-setting financial and operational performance alongside ongoing investments in capacity and technology.
• The company reported second quarter revenues of $2.4 billion, marking a 13% year-over-year increase, with adjusted EBITDA of $434 million, a 25% rise excluding real estate gains.
• Adjusted diluted earnings per share increased 56% to $1.64.

• MasTec Inc. reported second quarter 2026 results marked by solid year-over-year growth in key financial metrics and an expanded backlog.
• Revenue increased 23% to $4.374 billion, adjusted EBITDA rose 40% to $384 million, and adjusted earnings per share grew 49% to $2.22.
• The company also ended the quarter with a record backlog of $21.4 billion, reflecting strong demand momentum.

• Ingersoll Rand reported its second quarter and first half of 2026 results with continued execution strength and improving demand across its diverse markets.
• The company achieved 2% organic order growth and 4% organic revenue growth in the quarter, driving a 7% adjusted EPS increase year-over-year.
• Growth was broad-based, with every major region delivering positive organic revenue growth, and strong momentum was seen particularly in short- to medium-cycle businesses.

• Dominant State-Owned Monopoly with Strong Sovereign Support: Kazakhstan Temir Zholy (KTZ) is the national railway and logistics champion of Kazakhstan, operating as a vertically integrated monopoly. Its strategic importance to the nation’s commodity-driven economy and its role as a key transit hub between Asia and Europe ensure a very high likelihood of ongoing government support, underpinning its financial stability.
• Significant Growth Potential Driven by Transit Volumes and Modernization: KTZ is at the center of Kazakhstan’s strategy to enhance its role as a critical land bridge in the Eurasian corridor. Substantial capital investments are being made to modernize infrastructure and rolling stock, aiming to capture a larger share of the growing trade between China and Europe, particularly along the Trans-Caspian International Transport Route (Middle Corridor).
• Elevated Financial Risks Amidst Ambitious Expansion: The company’s aggressive capital expenditure program is leading to a significant increase in its debt load, with a substantial portion denominated in foreign currencies, exposing it to exchange rate volatility. While government support mitigates immediate liquidity concerns, the rising debt and the need to balance strategic investments with financial prudence are key challenges to monitor, especially with a potential IPO on the horizon.

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• Lyntris is targeting a $2.2-$2.5 billion valuation, leveraging exposure to growing defense spending and mission-critical technology across space, air, land and sea.
• The IPO is heavily secondary, with Trive Capital selling 19.1 million shares, representing 79.6% of the base offering and limiting primary capital raised.
• Strong Adjusted EBITDA growth and margins highlight improving financial performance, while the late-August debut faces a typically quiet IPO market backdrop.

• In 1H FY12/26, revenue rose YoY, driven by Machinery & Tools, despite declines in IoT Solution segment.
• Operating profit fell YoY due to increased SG&A expenses surpassing gross profit growth; Machinery & Tools, Construction Machinery, IoT Solution profits declined.
• Net income attributable to owners fell YoY; gains on asset sales were outweighed by operating profit decline.

• After initial good absolute and relative performance, the stock has corrected with the oil and gas complex
• Q1 results show the company is exceeding its plan as higher prices impact the P&L positively
• The highest commodity weightings across the major trading houses mean this will be a winner as the next leg of the commodity bull market unfolds

• Dhoot Transmission opens its INR 3,066.89 crore IPO on August 10, 2026, priced at INR 829 to INR 871 a share, ahead of an August 17 listing.
• The offer tests investor appetite for a debt-heavy, Bain Capital-backed 2W/3W wiring harness leader riding India’s electrification wave.
• Strong OEM moat and EV tailwinds are real, but concentrated customers and a debt clean-up-heavy use of proceeds warrant a closer read before subscribing.

• Robust Order Book & Diversification: G R Infraprojects possesses a strong and geographically diversified order book, providing significant revenue visibility for the next 2-3 years. The company is also actively diversifying its portfolio beyond roads into railways, power transmission, and ropeways to de-risk its business model.
• Execution Capabilities vs. Margin Pressures: The company has a proven track record of strong execution, often completing projects ahead of schedule. However, recent financial performance has been impacted by EBITDA margin compression due to rising input and energy costs, a key headwind noted by analysts.
• Positive Industry Outlook Tempered by Near-Term Headwinds: Long-term prospects for the Indian infrastructure sector are robust, driven by significant government spending initiatives. However, the industry faces near-term challenges, including delays in government project awards and intense competition, which could impact order inflow and profitability.

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• Kurita Water Industries (6370 JP) is an indirect beneficiary of the growing AI CapEx spending, and as a result, it trades at a discount to its global peers.  
• The management is committed to doing a share buyback of around USD 220 million from now to mid-next year, which will provide some floor for the share price. 
• It is also less volatile and less correlated with the other large caps within the AI CapEx spending beneficiaries such as TSMC, and SK Hynix. 

• Rajoo Engineers is a well-established Indian manufacturer of plastic extrusion machinery, demonstrating a robust growth trajectory driven by strong domestic demand and an expanding international footprint across more than 70 countries.
• The company exhibits superior profitability compared to its domestic peers, a testament to its technological capabilities and cost-effective, high-performance machinery. This is further supported by a healthy balance sheet and a consistent track record of reinvesting profits for growth.
• Future growth is anticipated to be fueled by the secular expansion of India’s packaging industry, strategic capacity enhancements including a new 80-acre manufacturing park, and a focus on higher-margin products and sustainable packaging solutions.

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• SiteOne Landscape Supply reported its financial results for the second quarter of 2026, reflecting a mix of modest growth amid challenging market conditions.
• Net sales increased by 5% to approximately $1.53 billion, driven primarily by price inflation contributing 3%, along with 1% organic daily sales growth and 3% from acquisitions.
• However, a 2% decline in sales volume was noted, largely attributable to softness in key end markets such as new residential construction and repair and upgrade activities, with the former down by a high single-digit percentage and the latter down mid-single digits for the year.

• SVN-015 has cleared its first external screening hurdle under NIDA’s Addiction Treatment Discovery Program. 
• Solvonis announced that its second AI-driven discovery platform compound, SVN-015, has come through the US National Institute on Drug Abuse (NIDA) initial heart safety and off-target screening and that the NIDA has agreed to take it into the next stage of work.
• That stage should cover confirmatory studies of how SVN-015 binds to and acts on the dopamine transporter, a closer look at its activity at the 5-HT2B receptor, and a mouse study measuring how quickly its effects start and how long they last. 

• Revenue reached JPY19.5bn (+11.9% YoY), operating profit JPY1.8bn (+27.2%), and net income JPY1.5bn (+225.0% YoY).
• Domestic revenue was JPY10.5bn (+7.4% YoY), overseas revenue JPY2.9bn (+80.3% YoY), with operating profit JPY2.8bn (+29.1% YoY).
• Domestic revenue declined YoY due to fewer development projects, while overseas revenue increased, boosting overall segment revenue.

• Quanta Services reported second quarter 2026 results marked by significant revenue growth, improved profitability, and a record backlog of $53 billion.
• The company achieved revenue of $9.6 billion, net income attributable to common stock of $451 million (or $2.96 per diluted share), adjusted diluted EPS of $4.24, and adjusted EBITDA of $1.1 billion.
• This performance exceeded expectations across the board and was driven largely by organic strength across the company’s various segments and end markets.

• Extreme Customer Concentration: Zhejiang Energy Marine’s recent Hong Kong IPO prospectus, filed on August 7, 2026, reveals that MSC Group represented 68% of its revenue in the first five months of 2026. This extreme concentration severely limits the company’s pricing independence and leaves its hyper-growth narrative highly vulnerable to a single commercial relationship.
• Regulatory-Driven Peak Demand Window: The current green equipment wave is tightly bound to EU ETS maritime integration (reaching 100% emissions coverage in 2026) and FuelEU Maritime compliance. However, this retrofit-heavy cycle is structurally temporary; the expert anticipates scrubber retrofit demand will peak around 2027 to 2028 before rapidly transitioning to dual-fuel newbuild orders.
• Mixed-Ownership Operational Agility: Unlike traditional rigid State-Owned Enterprises (SOEs), ZEME’s management holds a combined indirect equity stake of 45.8% through Dizuan Maritime and Hangzhou Xiling. This mixed-ownership reform aligns leadership incentives and enables exceptional operational execution—such as delivering single-vessel retrofits in 33 to 49 days versus the 60-day industry standard—while still utilizing the parent group’s state-backed credit.

• S.F. Holding is the largest integrated logistics provider in Asia, distinguishing itself with a premium, time-definite service model supported by an extensive air and ground fleet.
• The company is strategically diversifying into high-growth areas such as supply chain management, cold chain, and international logistics, partly through acquisitions like Kerry Logistics, to build a second growth curve beyond the competitive domestic express market.
• While facing intense domestic competition and macroeconomic headwinds, S.F. Holding‘s focus on high-end services, technological investment, and network optimization provides a foundation for long-term, sustainable growth and margin improvement.

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• A significant valuation disconnect exists between Tongda Group and its high-performing subsidiary, Tongda Smart Tech, with the market assigning a negative value to the parent company’s own operations.
• The parent company is burdened by debt, and management is prioritizing debt reduction over shareholder returns like dividends or share buybacks, which has pressured the stock performance.
• Despite the parent company’s challenges, its core business in consumer electronics components is positioned to benefit from a potential smartphone market recovery and growth in areas like WiFi 7 routers and smart appliances.

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• Paramount Communications is capitalizing on strong tailwinds in the Indian infrastructure and power sectors, evidenced by a robust 3-year revenue CAGR of 34.48%.
• Despite impressive top-line growth, the company faces significant profitability challenges, with declining margins and negative operating and free cash flow in recent years, raising concerns about operational efficiency and working capital management.
• The company’s strategic focus is on expanding its high-margin export business, particularly in the U.S. market, and diversifying its product portfolio into specialized cables to improve profitability and drive future growth.

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• Nippon Parking Development (NPD) showcases a unique and resilient business model, successfully diversifying from a core parking business into high-growth leisure segments, including ski resorts and theme parks.
• The company has demonstrated a strong track record of growth, with a 5-year revenue CAGR of 9.89% and a 5-year net income CAGR of 31.91%, supported by the revitalization of underutilized assets and capturing inbound tourism demand.
• A commitment to shareholder returns is evident through 16 consecutive years of dividend increases and a recently announced policy to raise the minimum annual dividend by approximately 33% over the next three years, supplemented by share buybacks.

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• Zhejiang Energy Marine Environmental Technology Co., Ltd, founded in 2018, is a leading global green shipping equipment and systems provider. It offers five business lines and was the largest provider.
• The company was the largest global green shipping equipment and system provider by revenue in 2025. Revenue increased by 89.4% from RMB1.32 billion (5M2025) to RMB2.51 billion (5M2026).
• Revenue was RMB2,507,000 thousand (5M2026) and profit for the period was RMB622,104 thousand (5M2026). Total assets were RMB4,119,286 thousand as of May 31, 2026.

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• Strategic pivot to the high-growth offshore wind sector is set to be a primary long-term value driver, capitalizing on a structural shift towards renewable energy in Asia.
• The proposed spin-off of its shipyard business via a reverse takeover is a key catalyst, intended to unlock value, improve earnings visibility, and provide the unit with independent capital-raising capabilities for accelerated growth.
• Strong insider confidence, demonstrated by share acquisitions from key management and industry veterans, coupled with significant institutional placements, signals strong conviction in the company’s growth trajectory and strategic direction.

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• EV Powertrain Shift Drives Massive CPV Growth: The transition from internal combustion engines (ICE) to electric vehicles (EV) in the 2W/3W segments increases the Content-Per-Vehicle (CPV) for electrical distribution systems (EDS) from ₹800–₹1,200 to ₹3,500–₹6,500 (and up to ₹8,000+ when integrated with battery pack systems), representing a 3x to 5x value multiplication.
• Underlying Margin Compression Amid Volume Growth: Despite a stellar 27.20% revenue CAGR over the last two years, reaching ₹4,524.96 crore in FY26, DTL’s EBITDA margin compressed from 18.31% in FY24 to 15.71% in FY26. This dilution is structurally driven by initial high scrap rates in high-voltage shielding, copper pass-through lag, and a rising mix of lower-margin battery pack assembly.
• Bain Capital’s Operational Rigor and Pre-IPO De-risking: Bain Capital’s 2025 strategic investment introduced disciplined capital allocation, lowering working capital cycles, and forcing the repayment of high-cost debt. The ₹3,066.89 crore IPO opening on August 10, 2026, devotes ₹1,400 crore of fresh issue strictly to debt repayment and capex, aiming to rebuild ROCE from its current 19.14% toward historical mid-20s levels.

• Bigbloc Construction is aggressively expanding its production capacity to capitalize on the strong growth projected for India’s eco-friendly Autoclaved Aerated Concrete (AAC) block market, positioning itself as a key player in the shift from traditional red bricks.
• Despite strong revenue growth, the company has experienced a significant deterioration in profitability and negative free cash flow over the past three years, driven by high capital expenditures for expansion and potential pricing pressures.
• The company’s outlook is dependent on successfully ramping up new capacities, improving operational efficiencies to restore margins, and navigating the cyclical and competitive nature of the Indian construction materials industry.

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• Privatized and Integrated: Keppel Telecommunications & Transportation (Keppel T&T) was privatized by its parent, Keppel Corporation, in a deal completed in May 2019, and is now a wholly-owned subsidiary. Consequently, its shares are no longer publicly traded on the SGX-ST. The move was part of Keppel Corporation’s strategy to simplify its corporate structure and better align Keppel T&T’s interests with the broader group.
• Dual-Focus on Digital and Physical Infrastructure: The company operates through two primary segments: Data Centres and Logistics. The Data Centre division is positioned to capitalize on the high-growth digital economy, driven by AI, cloud adoption, and digitalization. The Logistics division provides traditional integrated supply chain solutions, though this unit was largely acquired by GEODIS in 2022.
• Pre-Privatization Financial Pressures: Financial data from the three years leading up to its delisting (2016-2018) shows a trend of declining revenue, contracting margins, and falling net income. This performance likely contributed to the decision by Keppel Corporation to privatize the entity to facilitate a strategic overhaul away from public market scrutiny.

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• Apollo’s £5.7 billion takeover of easyJet at £7.15 per share utilizes a highly complex ownership structure to navigate strict aviation rules, capping Apollo’s equity and voting rights at 49.9%, with the Haji-Ioannou family rolling over their 15.3% stake and up to 5% held in an EU trust.
• Standalone profitability has been severely compressed, with Q3 2026 headline profit before tax dropping to £85 million from £286 million in Q3 2025, driven by a 13% surge in fuel CASK from Middle East disruptions, exposing the high sensitivity of easyJet’s seasonal model to fuel spikes compared to better-hedged peers.
• Fleet execution is facing major bottlenecks as easyJet’s 17 scheduled deliveries for FY26 are running 5 to 6 months behind schedule due to Airbus supply constraints and CFM LEAP-1A delays, threatening their slot-upgauging strategy at capacity-constrained airports where they compete with Ryanair and Wizz Air.

• Premier Energies is capitalizing on the strong tailwinds of India’s renewable energy push, evidenced by its exponential growth in revenue and a significant expansion in profitability over the past three years.
• The company is in a heavy investment phase, focusing on capacity expansion to meet burgeoning domestic and export demand. This has led to negative free cash flow, a typical characteristic of a high-growth company in a capital-intensive industry.
• While the company’s growth trajectory is impressive, its valuation appears stretched compared to peers. Key risks include dependence on government policies, volatility in raw material prices, and high competitive intensity within the solar manufacturing sector.

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• KEI Industries is a key player in the Indian cables and wires (C&W) industry, demonstrating a robust track record of revenue and profit growth, significantly outpacing the industry average. The company is well-positioned to capitalize on strong secular tailwinds from government-led infrastructure spending, urbanization, and the renewable energy transition.
• The company’s strategic focus on expanding its higher-margin retail business, supported by a growing distribution network of over 2,100 dealers, is a key driver for margin improvement and de-risking its revenue base from cyclical institutional orders.
• Despite a strong growth profile, the company’s valuation appears stretched, trading at a significant premium to historical averages. Furthermore, consistently negative free cash flow, driven by high working capital requirements for growth, remains a key concern for investors.

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• Architects Studio Japan (ASJ) is facing significant financial distress, characterized by persistent net losses, negative cash flow, and a deepening negative net worth, which raises going-concern uncertainty.
• The company’s core business model, a platform connecting architects with clients and builders, is under pressure from a shrinking network of affiliated studios and a challenging macroeconomic environment in the Japanese construction sector.
• Management has initiated a turnaround strategy focused on restructuring contracts to regain studio members, diversifying into new business areas like environmental solutions and AI platforms, and seeking capital alliances to repair its balance sheet.

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• Doosan Fuel Cell is undergoing a critical strategic pivot from its mature Phosphoric Acid Fuel Cell (PAFC) technology to high-efficiency Solid Oxide Fuel Cells (SOFC), targeting high-growth markets like data centers and maritime applications.
• The company’s financial performance has been weak, with significant operating losses driven by investment in new technology, underutilization costs, and legacy product issues. However, revenues are expected to rebound, driven by deferred volumes and new orders from South Korea’s Clean Hydrogen Portfolio Standard (CHPS) auctions.
• Long-term success hinges on the successful commercialization and market adoption of its new SOFC products, proving their competitiveness against established players, and securing anticipated export orders, particularly in the U.S. market.

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• Advanced Drainage Systems (ADS) is the leading U.S. manufacturer of high-performance thermoplastic corrugated pipe and related water management products, with a dominant position in the stormwater and onsite septic wastewater industries.
• The company’s growth strategy is centered on driving the conversion from traditional materials like concrete and steel to its lighter, more durable, and cost-effective plastic products, supplemented by strategic acquisitions and product innovation.
• While facing cyclical risks from the construction market and margin pressures from volatile raw material costs, ADS has demonstrated a strong track record of profitable growth, margin expansion, and robust cash flow generation, supporting consistent dividend increases and share repurchases.

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• Advanced Innergy Holdings is a global leader in materials science, providing critical protection systems for the energy and industrial sectors. Its strong intellectual property portfolio and established customer relationships create a significant competitive moat.
• The company is demonstrating a robust growth trajectory, driven by both organic expansion and strategic acquisitions. Financial performance shows significant year-over-year increases in revenue, profitability, and operating cash flow.
• AIH is well-positioned to capitalize on long-term trends in energy infrastructure investment, including offshore oil and gas projects and the growing renewables sector, particularly offshore wind. The company is also diversifying into new applications like electric vehicle battery protection.

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• Accel Group is an established Electrical & Mechanical (E&M) engineering services provider in Hong Kong, heavily reliant on the local construction market. While it benefits from a pipeline of public sector projects, it faces significant headwinds from a competitive and fragmented market.
• Financial performance shows a concerning trend, with both revenue and net income declining over the past three years. This has been accompanied by a consistent reduction in dividends, reflecting pressure on profitability and cash flow.
• The company is strategically pivoting towards green and smart building technologies, such as solar panel installations and intelligent control systems. This move aligns with market trends and government initiatives, potentially offering a new avenue for growth and margin improvement, but its contribution to the bottom line is yet to be seen.

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• Aeso Holding is a Hong Kong-based contractor specializing in fitting-out and renovation services, facing a challenging operating environment characterized by intense competition and market cyclicality.
• The company has experienced a significant downturn in financial performance over the last three years, with declining revenue, profitability, and alarmingly negative operating and free cash flows.
• While the stock appears inexpensive on some valuation metrics compared to a peer, the deteriorating fundamentals, high uncertainty, and lack of shareholder returns present substantial risks for investors.

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• Aduro possesses a patented, disruptive Hydrochemolytic™ Technology (HCT) for chemical recycling that operates at lower temperatures and potentially lower costs than competing pyrolysis-based systems, attracting interest from industry giants like Shell.
• The company targets a massive addressable market in plastic recycling and bitumen upgrading, estimated to be over $290 billion, supported by strong regulatory tailwinds such as upcoming EU mandates for recycled content.
• Despite the significant opportunity, Aduro is a pre-revenue company with high execution risk, as its first commercial plant is not expected until 2028, making its valuation dependent on achieving critical technical and commercial milestones.

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• Aerospace Technology of Korea (ATK) is experiencing a significant operational turnaround, marked by robust revenue growth that aligns with the strong recovery in the global aerospace sector. The company has successfully transitioned from substantial net losses in 2023 and 2024 to achieving profitability in the most recent quarters, indicating a substantial improvement in operational efficiency and margin control.
• The company is a key supplier of aerostructures, including fuselages and doors, for major aircraft programs. Its established relationships with global original equipment manufacturers (OEMs) provide a solid foundation for future growth, although this also presents a customer concentration risk. The ongoing ramp-up in aircraft production, particularly for narrow-body jets, serves as a primary tailwind.
• Despite the positive operational momentum, ATK’s financial history is characterized by significant volatility in earnings and cash flow. The company’s stock has underperformed its operational growth, and it does not have a history of paying dividends. High uncertainty remains regarding the sustainability of its recent profitability, making it a high-risk, high-reward investment proposition.

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• Apollo has announced a recommended 715p/share Rule 2.7 offer. Castlelake has withdrawn. Regulatory approvals and completion timing now determine the remaining spread.
• The Haji-Ioannou family’s decision to roll its 15.3% stake validates our earlier view that Apollo’s voting rollover and brand commitments were central to securing founder support.
• We maintain our 715p target price. At 670p, the shares offer a 6.7% gross spread and an estimated 10.6% annualised return to end-Q1 2027.

• Pioneering Green Steel Transition: SSAB is at the forefront of the steel industry’s decarbonization with its HYBRIT technology, aiming to be the first to commercialize fossil-free steel by 2026. This strategy positions the company to capture a ‘green premium’ and meet growing demand for sustainable materials, but also entails significant capital expenditure and execution risk.
• Market Leader in High-Value Niches: The company holds a global leadership position in high-strength steels, particularly Quenched & Tempered (Q&T) steels, with strong brands like Hardox® and Strenx®. This focus on specialty products provides a degree of insulation from commodity steel price volatility and fosters strong customer relationships.
• Navigating Cyclical Headwinds: Like all steelmakers, SSAB is exposed to the inherent cyclicality of the global economy and steel demand. Recent financial performance reflects a normalization from peak earnings, and the company’s profitability remains sensitive to fluctuations in raw material costs, energy prices, and end-market demand.

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• AEye is a pre-revenue LiDAR technology company positioning itself as a leader in high-performance, software-defined sensing solutions for Automotive (ADAS), smart infrastructure, and industrial applications.
• The company’s core competitive advantage lies in its unique iDAR™ (Intelligent Detection and Ranging) platform, which is software-configurable, enabling adaptability and a capital-light business model focused on licensing and partnerships with Tier 1 suppliers.
• While the company has secured key partnerships and is integrated with platforms like NVIDIA DRIVE, it faces significant risks related to its pre-revenue status, high cash burn, and intense competition within the crowded LiDAR market, making the path to profitability uncertain.

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• Unitree Robotics is a rapidly growing Chinese robotics company that has established a dominant position in the global consumer and education quadruped robot market and is making significant inroads into the burgeoning humanoid robot sector.
• The company’s core competitive advantages are its aggressive pricing strategy, driven by a high degree of vertical integration and a cost-efficient manufacturing base in China, and its rapid product iteration cycle.
• With a successful recent IPO on the Shanghai STAR Market, Unitree is well-capitalized to fund its ambitious growth plans, which include expanding production capacity, investing heavily in AI and software development, and diversifying its revenue streams towards industrial applications and recurring software/service models.

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• FTAI Aviation operates through three main business segments: Aerospace Products, Asset Management via Special Purpose Vehicles (SPVs), and Power, each centered on aftermarket turbine engine performance.
• The second quarter of 2026 showed progress across these units, with Aerospace Products notably increasing production by over 60% year-over-year and expanding capacity to 3,000 CFM56 modules annually, positioning the company toward its goal of capturing 25% market share.
• Despite supply constraints in the CFM56 market, FTAI has prioritized directing production toward third-party customers, emphasizing market share growth and customer relationships over expanding its own leasing fleet.

• Fuji Electric is strategically positioned to capitalize on global megatrends of decarbonization and automation, leveraging its core technological strengths in power semiconductors and power electronics.
• The company is making significant capital expenditures, particularly in high-growth silicon carbide (SiC) power semiconductors, to capture increasing demand from the electric vehicle (xEV) and renewable energy sectors.
• While facing intense competition and cyclical market risks, the company’s vertical integration from chips to systems provides a competitive advantage, though execution on scaling new technologies remains a key factor for future profitability.

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• DKSH is a dominant Market Expansion Services (MES) provider in Malaysia with a long-standing history, offering an extensive and integrated service portfolio across the Healthcare and Consumer Goods sectors.
• The company demonstrates a solid growth trajectory, particularly in net income and EPS over the last decade. However, recent performance is characterized by revenue growth offset by margin pressures from foreign exchange effects and rising operational costs.
• Valuation appears attractive with a low P/E and P/B ratio. The forward-looking strategy is focused on operational efficiency, digitalization, and potential M&A, though the weak performance of the ‘Others’ segment (Famous Amos) and declining dividend trend are key concerns.

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• Flowserve Corporation reported second quarter 2026 results characterized by solid bookings growth and ongoing operational progress, though sales faced headwinds from the Middle East conflict and portfolio optimization efforts.
• Bookings increased by 26% year-over-year to $1.35 billion, highlighted by record aftermarket orders nearing $700 million, which reflects the company’s sustained focus on expanding service offerings and faster customer response.
• Original equipment bookings also rose significantly by 44%, buoyed by a healthy project pipeline including LNG projects in the Middle East and Canada, as well as nuclear awards in Asia and North America.

• Samudera Shipping Line operates as a resilient, regionally-focused shipping operator, primarily in the intra-Asia market, with a business model built on navigating the industry’s inherent cyclicality through financial discipline rather than a wide competitive moat.
• The company is currently trading at what appears to be an attractive valuation relative to its peers, though its financial performance has moderated from the cyclical peak seen in 2023, with recent 3-year growth metrics showing a downturn.
• Future growth is tied to the expansion of intra-Asia trade and the company’s strategic initiatives to grow its logistics segment and selectively acquire vessels, balanced against the significant industry-wide risks of freight rate volatility and potential overcapacity.

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• What you need to know: • Over the past several months, FCLI has continued to make steady progress across its sales channels, spanning international distribution, fire departments, retail, and industrial end markets.
• • The Company signed its first exclusive international distribution agreement, appointing FireFront Vietnam as its exclusive distributor for Vietnam.
• • FCLI continues to build commercial momentum and is advancing a private placement upsized to $8.0M on strong demand.

• We screen our HSCI September 2026 review candidates for southbound Connect action, with 36 Connect ADDs and 25 DELETEs.
• ADD candidates split into 31 ADD-NEW and 5 ADD-REJOIN, with one WVR name deferred and seven A+H names already in Connect.
• DELETE candidates are 23 MV cases and 2 velocity cases, after one A+H name is exempt from Connect deletion.

• Unitree Robotics (688836 CH) concluded its IPO price at Rmb150.8, and we estimate this equals 78.5x PER for FY26 and 55.3x for FY27.
• The IPO valuation is cheap when compared with the peer median of 86.7x and 119.7x, respectively. Its higher P/S of 21.2x and 15.2x is due to its better profitability.
• We calculate that it can reach 146.5x PER, or a price of Rmb399.5, 164.9% upside if we apply the current AH premium to the peers’ median FY27 PER. 

• Bizlink Holding (3665 TT) is looking to raise up to US$315m in its upcoming GDRs offering. The firm is also looking to raise another US$500m via convertible bonds.
• Similar to previous GDR listings, the firm has undergone a long drawn out process prior to launching the deal, having to jump through a number of board/shareholder/regulatory approval loops.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• The SP 500 index tracks the 500 largest (mostly profitable) US-listed names and is one of the most highly-tracked indices in the world.
• We expect two ADDs and two DELs at the September 2026 rebalance, with some larger names likely skipped over on volatility grounds.
• No intra-review changes are expected before the rebal as the pending deals have been pushed out by regulatory challenges.

• LEAP India Limited (1414703D IN)  (Leap) is looking to raise up to US$260m in its upcoming India IPO.
• As per F&S, Leap is India’s largest on-demand asset pooling provider in supply chain management, operating a share-and-reuse model with 13.5 million assets across 7,747 customer touchpoints nationwide.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates, peer comp and implied valuations in the price range.

• My base case valuation of Unitree Robotics IPO is implied market cap of 106.9 billion RMB, which is 155% higher than the company’s target valuation of 42 billion RMB. 
• My base case valuation is based on P/E of 81.9x (30% premium to the comps) using my estimated net profit of 1.3 billion RMB for the company in 2028.
• Unitree Robotics is one of the major leaders in the humanoid and quadruped robotics industry in China. 

• Axbis is demonstrating a remarkable financial turnaround, with strong revenue growth and a significant shift from a net loss in 2023 to robust profitability in 2025. This is driven by its specialized laser technology solutions for high-growth industries.
• Despite improving profitability, the company has exhibited consistently negative operating and free cash flows over the past three years, raising concerns about working capital management and capital expenditure intensity.
• Positioned in the growing industrial laser market in South Korea, Axbis serves key sectors like automotive, semiconductors, and electronics. Its valuation appears moderate compared to its peer, presenting a potential opportunity contingent on resolving its cash flow challenges.

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• Financial Turnaround with Strong Outlook: JGC has successfully returned to profitability in the latest fiscal year after two years of losses, driven by improved execution on large-scale Engineering, Procurement, and Construction (EPC) projects. The company has a substantial order backlog of over ¥1.1 trillion, providing good visibility for near-term revenue and profit stabilization.
• Dominant Player in Global LNG Market: The company is a world-leading contractor for Liquefied Natural Gas (LNG) plants, having built facilities that account for over 30% of global production capacity. This deep expertise positions JGC to capitalize on the continued medium-to-long-term demand for LNG as a key energy transition fuel.
• Strategic Pivot to New Energy and High-Margin Materials: While maintaining its strength in traditional energy, JGC is actively expanding into future-growth areas, including hydrogen, fuel ammonia, and Sustainable Aviation Fuel (SAF). This is complemented by a stable, high-performance functional materials business, which provides diversification and a source of steady earnings.

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• First Breach’s expansion into drone manufacturing through the 50/50 ideaForge joint venture (First Forge Technology Inc.) is fundamentally throttled by a severe liquidity crisis, marked by an accumulated deficit of $35.24 million and a revenue base of just $384,129 in FY 2025.
• The company’s claim of having “140+ potential sales channels” is a paper-thin narrative; these are unvetted, non-binding wholesale relationships with local ammunition dealers rather than the established enterprise or defense procurement pipelines required for Class 2–4 drone commercialization.
• With a $23.3 million secured debt load and a highly compressed cash runway as of their mid-2026 S-1/A filings, a debt restructuring or distress-driven asset sale is highly probable, especially since the pending Nasdaq direct listing (FBDT) raises zero growth capital.

• Deteriorating Financials: China Saftower is facing significant financial distress, characterized by a consistent decline in revenue, persistent and widening net losses, and negative margins over the past three fiscal years. The company’s Growth Track Record further underscores this, with 3-year and 5-year compound annual growth rates (CAGRs) for revenue and net income being deeply negative.
• Intense Industry Competition: The company operates in China’s highly fragmented and competitive wire and cable manufacturing industry. This market is characterized by overcapacity, particularly in low-end products, and intense price competition, which exerts significant pressure on profitability. The primary cost component, raw materials like copper and aluminum, accounts for over 70% of production costs, making the company highly vulnerable to volatile commodity prices.
• Macroeconomic Headwinds and Dependencies: The company’s performance is heavily reliant on China’s infrastructure and construction sectors. While there are long-term government initiatives to invest in the power grid and other infrastructure projects, recent data indicates a slowdown in fixed-asset and infrastructure investment, posing a near-term risk to demand.

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• Unitree Robotics is getting ready to complete its IPO on the STAR market of this Shanghai Stock Exchange this month. 
• Unitree would become the first major producer of humanoid robots to be listed on the Chinese mainland.
• Target valuation is about 42 billion yuan (US$5.7 billion). Subscription date is 10 August. The company is looking to raise 4.2 billion yuan (US$618 million). 

• On the 5th February 2026, MAAS Group (MGH AU) announced it was selling its construction materials division to Heidelberg Materials Australia for A$1.703bn. The ACCC signed off on the 31st July.
• This morning (5th August), Wes Maas (founder & CEO) announced he had upped his stake to 50.62% from 49.4%. 
• Post sale to Heidelberg, how much, if any, will the market re-rate MAAS as an infrastructure/ “AI-enabler” rather than a contractor currently? 

• SpaceX has been crashing post IPO, now trading below the initial price after short strategies became active as Tesla-SpaceX merger speculation has grown, and the first lockup period expires.
• Q2 positive as measured by consolidated revenues and EBITDA, but short term market perceptions dominate rather than Elon Musk comments on projects such as moon, Mars projects, and Starmind.
• It may be time to revisit our earlier volatility trading strategy in light of the market sentiment after the IPO.

• Dongshan’s core competitiveness lies in its technological R&D barriers. Dongshan has the ability to provide integrated comprehensive solutions, making it one of the few all-round suppliers among new energy customers.
• Affected by the price reduction of old models from major customers in 2024, Dongshan’s profit was under pressure. The improvement in 26Q1 results indicates that performance turning point has occurred. 
• There is usually a 20%-40% A/H discount, but Hong Kong stock market shows high recognition for high-growth technology-based manufacturing enterprises. Therefore, we expect an A/H discount of 20-30% for Dongshan. 

• Starlink Unit Economics: Hardware subsidies have dramatically decreased with the transition to Gen 3 (V3) terminals, bringing manufacturing costs down to approximately $400 against a $599 retail price, effectively neutralizing the hardware CAC bottleneck and driving the customer LTV/CAC ratio above 5:1 in mature markets.
• Starship Human-Rating Bottleneck: The critical path to human-rating Starship for NASA’s Artemis HLS program is not the launch or landing of the vehicle itself, but the demonstration of orbital cryogenic propellant transfer, which requires a rapid, successive sequence of 10 to 15 uncrewed tanker flights within a tight orbital window.
• Dual-Role Conflict of Interest: SpaceX manages the inherent friction of launching competitor constellations (e.g., Amazon’s Project Kuiper) through absolute operational silos and strict “Chinese walls” mandated by federal antitrust laws, though launch priority naturally defaults to internal Starlink manifests during capacity constraints.

• A leading defense technology company delivers “sense-to-act” connectivity solutions for the modern, connected battlespace, enabling warfighters to detect threats earlier.
• Total revenue was $240,984 for six months ended June 30, 2026, and $388,943 for the year ended December 31, 2025.
• The company reported a net loss of $(8,458) for 2025 and total indebtedness was approximately $275.7 million as of June 30, 2026.

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• Japan’s listed power electrical contractors reported June-quarter results consistent with the early stages of a multi-year infrastructure upcycle, driven by grid modernisation, data centre build-out, and offshore wind development.
• Profit increases were largely attributed to improved construction efficiency, thorough cost management, and an increase in net sales for segments such as indoor electrical and air-conditioning work.
• The decision to maintain full year guidance reflects a cautious outlook due to persistently high raw material prices, a continued labor shortage, and potential supply chain disruptions

• Sieyuan Electric is a high-growth manufacturer of power transmission and distribution equipment, capitalizing on global grid modernization and the renewable energy transition.
• The company demonstrates superior profitability, with gross margins and ROE that are consistently higher than many domestic and international peers, underpinned by strong operational efficiency.
• Significant growth in overseas markets and a planned A+H listing are key strategic initiatives, though the company faces execution risks with new technologies and potential margin pressure from lower-margin business segments.

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• DSV has established itself as a global leader in transport and logistics through a highly effective and aggressive M&A strategy, culminating in the landmark acquisition of DB Schenker, which is set to double the company’s size.
• The company operates an asset-light business model, focusing on service quality, network reach, and operational efficiency rather than owning transportation assets, which provides scalability and high returns.
• While facing a challenging macroeconomic environment with normalizing freight rates and margin pressure, DSV’s proven ability to integrate large acquisitions and extract synergies is a key driver for future earnings growth.

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• CemIndia Projects, a specialist infrastructure EPC contractor, expanded its order book 71% to INR 31,307 croreafter Adani’s takeover, led by data-centre, water and Q1 FY27 wins.
• The acquisition broadens CemIndia from marine and metro execution into a diversified EPC platform, improving revenue visibility, private-sector exposure, credit access and participation in Adani-linked infrastructure opportunities.
• The business outlook is constructive, but valuation is demanding, revenue conversion, sustainable 10–11% margins, working-capital control and disciplined deployment of the INR 5,000 crore fundraise will decide returns.

• The “10% Rule” and the SK Hynix Surrogate Play: SK Square’s stock price—which peaked at an all-time high of 2,189,000 KRW on June 22, 2026, before consolidating around 1,025,000 KRW in August 2026—is structurally supported by Article 8 of the Capital Markets Act. Because domestic equity funds cannot invest more than 10% of their assets in a single stock, and SK Hynix’s massive market cap weighting on the KOSPI sits near 25%, institutional funds are forced to buy SK Square (which holds a 20.1% stake in Hynix) as a proxy, narrowing the NAV discount to 39.9% in May 2026.
• Resolution of the 11Street (11st) Dispute: In October 2025, SK Square resolved its two-year deadlock with financial investors (FIs like the National Pension Service) over 11Street. The board approved an internal transaction where SK Square’s subsidiary, SK Planet, acquired 100% of 11Street’s equity for 467.3 billion KRW, allowing FIs to recover their principal in full and shielding SK from fiduciary duty lawsuits under the amended Commercial Act.
• The Operational Hard Law of Corporate Value-up: Sweeping reforms passed under the Lee Jae-myung administration—specifically the July 22, 2025 amendment to Article 382-3 expanding directors’ fiduciary duty of loyalty to include “shareholders as a whole” and the February 2026 amendment making cancellation of acquired treasury shares mandatory—have forced SK Square’s board to pivot from voluntary targets to hard structural compliance, pushing executive KPIs to target an NAV discount of under 30% by 2028.

• 1Q results comfortably beat expectations, with 65% profit growth and record order intake highlighting sustained momentum across Energy Systems and Defence.
• Management raised order guidance but left earnings forecasts unchanged, suggesting meaningful upside as the record backlog converts into revenue.
• Despite recent gains, MHI remains attractively valued, supported by the gas turbine supercycle, margin expansion, and accelerating defence spending.

• Q1FY27 revenue rose 130% YoY to INR 360.7 crore, EBITDA nearly tripled to INR 85.1 crore and PAT increased 365% to INR 50.2 crore.
• MTAR’s post-quarter order visibility reached INR 5,943 crore, about 3.8x the revenue implied by its FY27 growth guidance shifting the bottleneck from demand to execution.
• Bloom’s record Q2 and higher 2026 outlook validate MTAR’s fuel-cell expansion, but customer concentration and a INR 500 crore capex programme keep the thesis execution-sensitive.

• Leonardo DRS has moved to deepen its role in defense software through a definitive agreement to acquire Raft LLC for $450 million in cash.
• Announced on July 28, 2026, the transaction would add open-architecture mission software, multi-domain data fusion, and artificial intelligence capabilities to DRS’s established strengths in sensing, network computing, force protection, and naval power systems.
• Management framed the deal as a strategic step toward delivering integrated hardware-and-software solutions as defense customers seek faster decisions from increasingly fragmented sensor networks.

• JL MAG is a global market leader in high-performance Neodymium-Iron-Boron (NdFeB) permanent magnets, critical components for rapidly growing sectors like new energy vehicles (NEVs), wind power, and energy-efficient appliances.
• The company’s strategic position is reinforced by long-term supply agreements with key Chinese rare-earth suppliers and a vertically integrated production process, which provides a competitive advantage in a geopolitically sensitive industry.
• Financial performance is intrinsically linked to the volatile prices of rare-earth raw materials, which can cause significant margin fluctuations. However, the strong secular demand from electrification and green energy provides a robust long-term growth outlook.

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• Megmeet actively involved in the power system design of NVIDIA’s Blackwell and Vera Rubin series architectures. This position enjoys very strong scarcity and an ecological moat.
• If the product iteration pace of NVIDIA slows down, the technical roadmap changes, or the order delivery fails to meet expectations, it will directly affect Megmeet’s growth logic.
• The “scarcity” of Megmeet can provide certain valuation premium. Conservative scenario is A/H discount of 35%. Neutral scenario is A/H discount of 25%. Optimistic scenario is A/H discount of 15%.

• GFL Environmental has become the center of an unusual takeover contest after reportedly attracting preliminary interest from at least six private-equity groups.
• Waste collection rarely generates the excitement associated with technology or artificial intelligence, yet GFL offers something financial buyers value highly: recurring demand, pricing power, hard-to-replicate infrastructure and substantial opportunities to increase cash flow.
• The company has confirmed that multiple parties submitted unsolicited expressions of interest, prompting its board to form a special committee and examine possible outcomes.

• Boeing operates as a global duopoly with Airbus in the large commercial aircraft market, benefiting from a record-high backlog that provides significant long-term revenue visibility.
• The company is in a critical recovery phase, focused on stabilizing production and improving its supply chain for key programs like the 737 MAX and 787, with operational execution being the primary determinant of near-term financial performance.
• While long-term demand fundamentals for air travel and defense remain robust, the company faces high uncertainty related to production ramp-up targets, intense regulatory scrutiny, and a valuation that appears stretched on earnings-based metrics pending a full recovery.

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• Revenue increased to JPY19.5bn (+10.2% YoY) with gross profit at JPY4.5bn (+15.8% YoY) and operating profit at JPY2.2bn (+16.9% YoY).
• Installation Work and Equipment businesses saw revenue growth, with orders at JPY35.2bn (+17.2% YoY) and operating profit up 17.3%.
• Revenue in another segment fell to JPY814mn (-38.4% YoY) with an operating loss of JPY37mn, despite improved margins.

• Dominant Market Leader with Deep Vertical Integration: BYD is a global leader in New Energy Vehicles (NEVs), underpinned by a formidable competitive advantage in its deep vertical integration. The in-house production of critical components, including its proprietary Blade Batteries and semiconductors, provides significant cost control, supply chain resilience, and rapid innovation capabilities.
• Aggressive International Expansion as a Key Growth Driver: Facing a hyper-competitive and maturing domestic market, BYD is aggressively expanding its global footprint. This strategy involves not just exporting vehicles but also establishing localized manufacturing hubs in regions like Southeast Asia, Latin America, and Europe to mitigate tariff impacts and cater to local market preferences.
• Intense Competition and Geopolitical Risks Present Headwinds: The company’s profitability is under pressure from a severe price war in the Chinese domestic market. Furthermore, its international ambitions face significant geopolitical risks, including the imposition of tariffs and trade barriers in key markets like the European Union, which could temper its growth trajectory.

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