Daily Brief Industrials: Beijing Originwater Technology Co,Ltd., Hanwha Aerospace, Daewon San Up, HNI Corp, Honeywell International, Citra Marga Nusaphala Persada, Moriya Corp, OKP Holdings, Venus Pipes & Tubes, IRB InvIT Fund and more

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming December 2025 index rebal event. 11 ADDs, 11 DELs, $2.3bn to trade.

• In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY and 1.6% lower than consensus) and operating profit of 856.4 billion won (up 79.5% YoY).
• The company’s results in 3Q 2025 were its best ever in its history. The strong results were driven by its land defense business and its shipbuilding unit Hanwha Ocean.
• Given the company’s excellent growth in sales and profits in the past several years as well as its strong order backlog, its valuationsremain attractive. 

• Daewon Sanup’s net cash as percentage of market cap is 171%. This is one of the highest net cash/market cap ratios in the Korean stock market.
• Daewon Sanup is one of the largest Korean automobile seat manufacturers. It is also one of the beneficiaries of the reduction in US auto tariffs to 15% (from 25% previously). 
• The company is trading at dirt cheap valuations. It is trading at P/E of 2.3x and P/B of 0.4x based on LTM financials. 

• HNI reported 3Q25 ongoing EPS of $1.10 versus $1.03 in 3Q24, up 6.8%, which was ahead of our $1.06 estimate, which was also consensus
• Sales grew 1.7% in the quarter to $683.8MM, slightly below our forecast for 2.2% growth and consensus of 2.5% growth.
• Excluding the HNI India divesture, organic sales growth was 2.6% in the quarter.

• This week we had a busy week of earnings (WDC, AAF, LBTYA), and it will continue next week.
• Honeywell (HON)  spun off 100% of its Advanced Materials business, Solstice (SOLS), on October 30, 2025.

• Solstice was added to the S&P 500 and performed well on its first day of trading before selling off on Friday.

• CMNP is an established toll road operator in Indonesia with a portfolio of concessions primarily located in strategic, high-traffic urban areas, positioning it to benefit from the country’s continued economic growth and urbanization.
• The company is embarking on significant expansion projects, notably the Harbour Road II, which is expected to drive future revenue growth. However, these projects also entail considerable execution and financing risks.
• Valuation appears attractive, with a low price-to-book ratio and a high Smartkarma value score. This is contrasted by a lack of dividend payments and potential corporate governance concerns related to concession extensions that are under investigation.

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• Moriya Corp is a well-established general construction company based in Nagano, Japan, with operations primarily in civil engineering, building construction, and real estate. The company has demonstrated a strong growth trajectory, underscored by a robust increase in market capitalization and a solid financial performance in recent years.
• The Japanese construction market provides a stable, albeit moderately growing, backdrop, supported by significant government investment in infrastructure, disaster resilience, and renewable energy projects. Moriya is well-positioned to capitalize on these trends, particularly in public works and infrastructure renewal.
• Despite a strong performance and an attractive valuation with a low P/E ratio, the company faces industry-wide challenges, including a shrinking workforce, rising material costs, and intense competition. Volatility in operating cash flow presents a key area for investor monitoring.

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• SMID stocks in Singapore saw S$472 million net institutional inflows in 2H25, reversing S$150 million outflows from 1H25.
• Technology sector led SMID inflows with S$308 million, driven by AI adoption and CSE Global’s 50% share price increase.
• Construction sector growth boosted nine SMID stocks, with OKP Holdings securing a S$258 million contract, increasing its order book.

• Venus Pipes & Tubes is a rapidly growing manufacturer and exporter of stainless steel (SS) seamless and welded pipes and tubes in India, capitalizing on the expanding domestic and international demand across various industries.
• The company is in the midst of a significant capacity expansion and backward integration strategy, which is expected to drive revenue growth, improve margins, and strengthen its market position.
• While the company has demonstrated strong financial performance and a robust growth trajectory, it faces risks associated with the cyclicality of the steel industry, raw material price volatility, and increasing competition from both domestic and international players.

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• Established Portfolio with Stable, Long-Term Cash Flows: IRB InvIT Fund owns a portfolio of operational toll road assets with long concession periods granted by the National Highways Authority of India (NHAI), providing predictable, long-term revenue streams essential for stable distributions to unitholders.
• Strong Growth Trajectory via Strategic Acquisitions: The Trust is actively expanding its asset base through strategic acquisitions from its sponsor, IRB Infrastructure Developers Ltd. A recent major acquisition of three high-revenue BOT assets is set to double the enterprise value to over ₹16,000 crore and extend the weighted average life of the portfolio to 17 years.
• Attractive Dividend Yield and Valuation: As an Infrastructure Investment Trust (InvIT), it is mandated to distribute 90% of its net distributable cash flow, resulting in a consistently high dividend yield. The units trade at an attractive price-to-book ratio, suggesting a favorable valuation relative to its underlying asset value.

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