Daily Brief Industrials: HD Hyundai Heavy Industries , WK Group, Indo-MIM Ltd, Butler National, Polar Power, Professional Diversity Network, Arcadis NV, Dida and more

• The memory giants, Samsung and SK Hynix, have driven the Korean collapse, as AI anxiety and competition concern takes hold. However, there’s more to Korea than memory and AI capex.
• Throughout last month’s carnage, Korean earnings estimates continued to be upgraded – not only in tech but also in financials, retail, basic materials, energy and industrial services.
• Based on strong growth, attractive valuations, healthy balance-sheets, robust earnings upgrades, we highlight 15 non-tech Korean companies. Companies from industrials, select household products, basic materials have the strongest growth forecasts.

• Contractor WK Group (2535 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Expect a Scheme Offer from the Chan family, who collectively hold ~39%.
• WK Group was listed in March 2024 at HK$0.25/share, and closed up 9.7% yesterday at HK$0.51/share.
• Interestingly, this is the second HK contractor suspended in as many days due to the Takeovers code, after Superland (368 HK) – see Superland (368 HK) Suspended: MBO (Takeunder) Expected.

• In this insight, we discuss why Indo-MIM Ltd (1666551D IN) IPO looks dressed up before the IPO.
• We highlight various metrics and discussion points to substantiate our view.
• Finally, we conclude why the company has more to prove post listing vs its historical past.

• Indo-MIM Ltd (1666551D IN) raised about US$395m in its India IPO. IML provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding (MIM) technology. 
• IML provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding technology. Its capabilities include mold designing and tooling, coupled with finishing and assembly operations.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

• Butler National is successfully executing a strategic pivot towards its high-growth, high-margin Aerospace Products segment, which is increasingly becoming the primary driver of financial performance.
• The Aerospace segment is capitalizing on growing demand for aircraft modifications and special mission electronics, evidenced by a 33% revenue increase in fiscal year 2026 and a record backlog of $47.1 million.
• The Professional Services segment, centered on the Boot Hill Casino, provides stable, albeit slow-growing, cash flow that helps fund aerospace growth and shareholder-friendly capital allocation, primarily through share repurchases.

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• Polar Power designs, manufactures, and sells DC power generators, renewable energy, and cooling systems for telecommunications and other markets.
• The company offers DC power systems with output from 5 kW to 50 kW, available in diesel, natural gas, and renewable fuel formats.
• A net loss of $9.1 million was reported for FY2025, with substantial doubt about the ability to continue as a going concern.

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• Professional Diversity Network, Inc. operates professional networks focused on diversity, employment, education, and training, expanding into entertainment assets and Web 3.0 technologies. This offering raises capital for a Streeterville payment.
• Professional Diversity Network operates professional networks, expanding into entertainment assets and Web 3.0 technologies. It established Colorful Japan in 2025 and its Common Stock is listed on Nasdaq under “IPDN”.
• As of March 31, 2026, the company had an accumulated deficit of $(110,720,671). Auditors noted recurring losses and Nasdaq notified non-compliance.

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• The Web 3.0 and entertainment pivot lacks any operational or strategic synergy with Professional Diversity Network’s legacy DEI recruitment business, representing a desperate attempt to utilize the public vehicle for speculative Asian and Middle Eastern tech trends under new management.
• The company is in an extreme liquidity crisis, with only $34,708 in cash as of March 31, 2026, and an accumulated deficit of $110,720,671. This capital starvation makes the execution of the “Colorful Japan” and OOKC Group initiatives highly improbable without inducing massive, value-destroying equity dilution.
• The recent S-1 filing on July 28, 2026, to raise up to $9.22 million is highly dilutive and structurally compromised. Under a standstill agreement, 20% of the gross proceeds must immediately be paid in cash to Streeterville Capital, illustrating how restrictive financing terms are draining the company’s limited incoming capital and accelerating its path toward potential Nasdaq delisting as it fights the December 2, 2026 compliance deadline.

• Q2 results, upgraded guidance and new medium-term targets reinforce Arcadis’ standalone case, supporting the Board’s view that WSP’s revised €51.50 proposal undervalues the company.
• Our valuation is unchanged at €47 standalone and €54 strategic value. We continue to view a negotiated outcome around €54 per share as the most likely scenario
• Stichting Lovinklaan’s unique ownership and long-term mandate may prove influential should negotiations continue, particularly given the proposal’s substantial stock component and governance implications.

• Back on the 29th June 2026, ride-hailer Dida (2559 HK) announced a super clean voluntary conditional offer from Tongcheng Travel (780 HK).
• Terms were HK$2.562, a 108.3% premium to undisturbed , comprising a cash component (HK$1.3875/share) plus a special dividend (HK$1.1745/share, 20th July record date). Irrevocables cleared the minimum acceptance of 50%.
• The Composite Doc is now out. The Offer is open to tendering. The IFA says fair & reasonable.