Daily Brief Industrials: Jardine Matheson Holdings, Hitachi Construction Machinery, Dazhong Transportation (Group) – A, Keppel Infrastructure Trust, Grupo Aeromexico, Welcron Kangwon, LiqTech International , MegaRobo Technologies, Nihon Dengi and more

• Back in 2021, Jardine Matheson (JM SP) took 84.89%-held Jardine Strategic (JS SP) private by way of an Amalgamation. As Matheson was permitted to vote, the outcome was assured. 
• Less clear are “fair value” appraisal rights afforded Strategic’s dissentient shareholders, the outcome of which navigates the Bermuda/UK courts. To date, dissenters have mostly had their way.
• Which may have precipitated Matheson opting for a (full value) Scheme for Mandarin Oriental International (MAND SP), in which appraisal rights are not afforded.

• Hitachi Ltd (6501 JP) aims to raise around US$452m via a 6.97% stake sale in Hitachi Construction Machinery Co. Post the selldown, Hitachi’s stake will reduce to 18.4%.
• Hitachi Construction Machinery Co (HCMC) is a Japanese company that designs, manufactures, sells, and services construction and mining equipment.
• In this note we talk about the deal dynamics and run the deal through our ECM framework.

• CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800. 
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in December 2025.
• We expect 100 ADDs/DELs for the CSI 1000 index during this index review based on the latest available data. 

• Corporate Monitor strongly recommends that unitholders of Keppel Infrastructure Trust (“KIT”) reject the proposed acquisition of a 46.7% interest in Global Marine Group (“GMG”) for approximately S$119 million, with additional equity commitment of S$68 million.
• Keppel Infrastructure Fund (“KIF”), managed by Keppel Ltd., owns another 46.7% stake and the balance is held by a co-investor.
• KIT argues that GMG operates in a resilient, high-barrier subsea cable industry supported by strong structural demand drivers.

• Keppel Infrastructure Trust (KIT) is Singapore’s largest listed infrastructure business trust, featuring a diversified portfolio across energy transition, environmental services, and distribution & storage.
• The Trust is strategically focused on sustainable infrastructure, targeting 2GW of renewable energy capacity by 2030, while navigating a capital-intensive business environment with increasing competition.
• While KIT offers a strong dividend yield and has demonstrated robust earnings growth, it faces challenges from volatile net income, relatively weak resilience metrics, and potential overcapacity in key markets like the subsea cable industry.

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• Since emerging from Chapter 11 in 2020, Aeroméxico has delivered record profitability with FY24 operating margins of 19% and leverage reduced to just 1.9x net debt/EBITDAR.
• Positioned as Mexico’s flagship full-service carrier with Delta partnership synergies, Aeroméxico offers a compelling valuation discount to peers despite macro and FX headwinds.
• Grupo Aeroméxico’s IPO is reportedly oversubscribed more than 10x, with strong participation from long-only and international investors, indicating robust institutional appetite.

• Welcron Kangwon is undergoing a significant transformation, leveraging its legacy in the industrial boiler market to penetrate the high-growth secondary battery equipment sector. This strategic pivot has driven remarkable revenue growth, though profitability and cash flow remain volatile.
• The company is well-positioned to benefit from powerful secular tailwinds, including global industrialization, increasing demand for energy efficiency, and stricter environmental regulations. Its core products, such as waste heat recovery systems, directly address these trends.
• Despite strong top-line momentum, significant risks persist. Financial performance is characterized by fluctuating profitability and deeply negative free cash flow, raising concerns about earnings quality and financial stability. The business model’s reliance on large, project-based contracts contributes to this inherent volatility.

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• The US clean energy landscape is rapidly evolving across sectors.
• Nuclear generation is set to grow 27% post-2035, as data centers drive power demand, while domestic solar manufacturing has surged under the Trump administration, with more than 65 new facilities and $4.5 billion in investment.
• Smarter EV charging could cut household electricity bills by 10%, complemented by Arizona’s plan to install 34 new high-speed charging stations. 

• MegaRobo has established a clear revenue structure and formed a sustainable business model. Core revenue stream is the sale of autonomous agents/multi-agent solutions.Customized solutions and Megalab have high growth potential.
• MegaRobo will face competition pressure from international giants in the field of life science automation. The relatively weak international patent layout may affect the process of globalization.
• Revenue growth in the next three years would be kept above 30% YoY. The Company is still in the growth stage. A comfortable valuation range could be P/S of 6-8x.

• In Q2 FY03/26, the company reported revenue of JPY18.7bn, gross profit of JPY8.4bn, and net income of JPY3.0bn.
• Air Conditioning Instrumentation-related business revenue was JPY16.7bn, driven by new installations and improved gross profit margin.
• The company raised its FY03/26 earnings forecast due to strong demand in Air Conditioning Instrumentation-related projects.