Daily Brief Industrials: easyJet, SSAB, AEye, Unitree Robotics, FTAI Aviation , Fuji Electric, DKSH Holdings Malaysia, Flowserve Corp, Samudera Shipping Line, Full Circle Lithium and more

• 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 Castlelake has withdrawn.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.