Daily Brief Industrials: Korea Airport Service, Tier IV, SATS, Sanli Environmental, Fanuc Corp, Asia High Yield Bond Index, Greaves Cotton, Amaero International Ltd, Mastec Inc, Midac Holdings and more

• Korea Airport Service commands a dominant market share in domestic aircraft ground handling, air cargo processing, aircraft fueling, and line maintenance services in Korea. 
• The completed merger between Korean Air and Asiana Airlines is likely to result in higher sales and profits for Korea Airport Service which is 59.5% owned by Korean Air Lines.
• Third, there has been a noticeable increase in foreign visitors to South Korea, led by Chinese tourists in 2026. Valuations are cheap with P/E of 5.4x and EV/EBITDA of 2.5x. 

• Tier IV (593A JP) is looking to raise up to U$143m in its upcoming Japanese IPO.
• It is an autonomous driving company and a key player in the mobility sector, with operations spanning data analysis, software development, and the provision of reference platforms for autonomous systems.
• In this note, we examine the IPO dynamics, and look at the firm’s valuation.

• Since the acquisition of WFS 3 years ago, SATS has delivered consecutive years of growth in revenue and earnings.
• In addition, margins, return on equity (ROE) and leverage have also improved.
• The company is making real progress in meeting or exceeding the very comprehensive set of targets it set for FY2029. 

• Sanli Environmental Limited reported mixed financial results for FY2026.
• The Group’s FY26 revenue declined by 11.4% YoY to S$139.6 million due to extended project timelines and resulting delays in revenue recognition.
• The Group’s overall gross margin increased 18.7% to 11.1% in FY26 from FY25 mainly due to improved margins from its Engineering, Procurement and Construction (EPC) segment. 

• Fanuc seeing several ups and downs after a record breaking May for the stock. 
• Although some risks remain such as tariff risks, and cost risks related to oil price and geopolitical risks, it may be an opportune time for volatility strategies.
• Fanuc’s cash flows, and cash reserve policy keep the company resilient to short term effects.  

• What has changed since our ABM in May is the vulnerable ceasefire, which President Trump called it over, and the partial unwind of the oil-driven war premium.  
• The oil shock has partially unwound and growth data has held up but inflation and rates remain elevated for a different reason; a hawkish new Fed Chairman.
• We maintain our bearish stance on fixed rate bonds on elevated and volatile oil prices which should result in elevated rates. We remain positive in Asian credit fundamentals

• Greaves Cotton is a 165-year-old engineering company transitioning beyond diesel engines. FY26 consolidated revenue grew 18% to INR 3,437 crore, led by diversified verticals.
• Three-Wheeler diesel engines, once 80% of revenue, are now roughly a quarter, reducing regulatory risk as Ampere’s pending IPO tests EV appetite.
• Greaves is now exploring acquisitions and JVs in defence, aerospace, auto components and energy solutions, making execution and capital allocation the key monitorables.

• Amaero Inc (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
• Amaero has announced that following a six-week pause due to safety incidents, it has resumed titanium powder production.
• The company noted that during the production pause, there were no purchase order cancellations and no employee attrition.

• MasTec has moved deeper into the center of the AI infrastructure cycle with its agreement to acquire electrical contractor Superior Group in a cash-and-stock transaction valued at roughly $1.65 billion.
• The deal includes about $1.175 billion in cash and $475 million in MasTec common shares, and it follows a record first quarter in which MasTec reported $3.829 billion of revenue, $284 million of adjusted EBITDA, $1.39 of adjusted EPS, and a record $20.3 billion backlog.
• The timing is notable because management has already been highlighting data centers, grid reliability, power generation, telecom fiber, and mission-critical infrastructure as major long-term demand drivers.

Key points (machine generated)

• Midac Holdings is expected to achieve double-digit revenue and profit growth by March 2027.
• The company focuses on establishing a circular society through effective waste management.
• Midac’s integrated processing system and diverse business segments enhance its profitability.

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