Daily Brief Industrials: Atlas Arteria, RPMGlobal Holdings Limited, Singapore Airlines, Asian Terminals, Sanyu Construction, Federal Signal, Sodick Co Ltd, U-Haul Holding , UOB and more

• Back on the 8th June 2022, IFM Global Infrastructure Fund announced a 15% stake in Atlas Arteria (ALX AU) (ATLAX), and subsequently floated the possibility of a non-binding proposal. 
• However, IFM’s request, at the time, for limited company information on ATLAX , a US/Europe toll-road play, came to nought.
• Undeterred, IFM continues to accumulate shares. Reportedly, IFM now holds ~35% after picking up 1.9% this morning.

• The RPMGlobal Holdings Limited (RUL AU) IE considers Caterpillar Inc (CAT US)’s scheme offer at A$5.00 to be fair and reasonable, as it falls within its valuation range (A$4.43-A$5.12).
• The key scheme conditions are shareholder approval, FIRB approval, and ACCC approval. Regulatory approvals are expected to be forthcoming, and the scheme vote carries a low risk.
• The offer is attractive. At the last close and for an 18 February 2026 payment, the gross/annualised spread is 2.5%/10.2%.  

• Singapore Airlines (SIA SP) is growing its footprint in India, presenting an interesting opportunity for long term investors. 
• However, it may come slightly costly in the near term as Indian aviation infrastructure is not that ready just yet. 
• Singapore Airlines (SIA SP) does not trade at a significant discount to its peers from PER and PBR. 

• We strongly recommend looking at container port terminal companies with monopoly/ duopoly, or oligopoly dynamics, as pricing power appears strong there. 
• After their 30% tariff hike, Westports Holdings (WPRTS MK) reported a strong Q3, and ICTSI (ICT PM), following tariff hikes across most of its ports, also reported 25% earnings growth. 
• We like Asian Terminals (ATI PM) for its cheap valuation/duopoly and ICTSI (ICT PM) for its strategy of acquiring terminals with a monopolistic presence. 

• Sanyu Construction has demonstrated a remarkable turnaround, with stellar three-year growth in net income and EPS, driven by significant margin recovery. This positions it as a compelling value and growth story within its sector.
• The company’s valuation appears attractive, trading at a low P/E ratio of approximately 7.1x and a significant discount to its book value (0.29x P/B ratio), which may appeal to value-oriented investors.
• Despite recent strong performance, the company operates in the highly cyclical and competitive Japanese construction market, facing headwinds from labor shortages and rising material costs, which introduces a medium level of uncertainty to its future earnings.

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• Federal Signal Corporation’s third-quarter results for 2025 demonstrated significant financial growth and strategic progress, balanced with certain challenges.
• The conglomerate reported a 17% year-over-year increase in net sales, reaching $555 million.
• This rise was driven by organic growth of 11% and contributions from recent acquisitions, namely Hog Technologies and Standard, which added a combined $30 million to the quarterly sales.

• Stable performance maintained – With demand stemming from technology (chiefly optical connectors), aerospace, and medical sectors, Sodick’s Q1-3 FY12/25 results demonstrated a sustained recovery YoY.
• Order visibility for the mainstay EDM units remains high, with Q3 FY12/25 orders rising 18.9% YoY, driven primarily by demand from China.
• Quarterly GPM of 36.2% in Q3 FY12/25 indicates progress toward improving the sales mix by selling high-value-added products. 

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• As management continues to expand capacity in the self-storage segment and U-Box, three major initiatives in the Moving & Storage segments are being implemented addressing depreciation expense, expanding the rental dealer network and increasing revenue-generating capacity through the removal of delinquent self-storage tenants.

• Institutions recorded a net inflow of S$236 million in Singapore stocks from Nov 7 to Nov 13, reversing prior outflows.
• United Overseas Bank led share buybacks with 1,071,900 shares at an average price of S$33.95, totaling S$56.5 million.
• Fuxing China Group raised S$1.245 million through a placement of 3 million shares at S$0.415 each.