Daily Brief Industrials: Cleanaway Waste Management, Reliance Worldwide Corp, Hunan Junxin Environmental Protection, KFM Kingdom, Kinik Company, Hai Robotics Innovation Group, Kanzhun, Shanghai Zhixin Electric Co, Ltd., Arcadis NV, Xeros Technology and more

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

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

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

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

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

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

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

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

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

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