Daily Brief Industrials: Mitsubishi Heavy Industries, Direct Drive Tech, Dover Corp, iPower , Atkore Inc, JBT Marel, Allison Transmission Holdings and more

• MHI’s diversified exposure to AI (and recent collaboration with NVIDIA), gas turbines, defense, and potentially space, point to potential for the stock in the long term. 
• Improvements to ROE, and profit margins alongside good visibility on profits with backlogs in the JPY 14T range indicate limited risks for the company in the near future.
• A directional DEC26 option trade may be the right strategy to gain exposure on the stock.  

• Direct Drive Tech Limited is a robotics technology company specializing in direct drive technology, selling robotic actuator modules and robots in China. It seeks a Main Board HKEX listing under.
• Direct Drive Tech ranked 1st in PRC consumer robotic direct drive actuator modules by revenue in 2025 with 61.1% market share. Revenue increased from RMB17.5 million in 2023 to RMB281.7.
• The company incurred operating loss since inception, with net loss of (880,977) RMB’000 in 2025 and net liabilities of (1,347,370) RMB’000 as of June 30, 2026.

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• Dover Corporation has agreed to acquire Ahmedabad-based Leistung Engineering, a specialist manufacturer of cryogenic valves and related equipment, in a transaction expected to close in the fourth quarter of 2026, subject to customary conditions.
• Financial terms were not disclosed, leaving the near-term earnings impact unclear.
• Leistung will join OPW Fluid Transfer Solutions within Dover’s Clean Energy & Fueling segment, adding local manufacturing capacity and a portfolio spanning globe, check and control valves, diaphragm valves, filtration systems and other low-temperature products.

• The Pivot is a Defensive Capital Restructuring, Not a Natural Expansion: iPower’s transition from a legacy e-commerce business to AI hardware leasing is an existential pivot driven by a collapsing retail base. Legacy revenue has declined by 56% year-over-year, and the company has executed two massive reverse stock splits in three months—a 1-for-8 in May 2026 and a 1-for-9 in August 2026—to prevent Nasdaq delisting.
• Toxic Convertible Notes and Death-Spiral Dilution Risk: The pivot is funded via a $30.0 million convertible note facility, with $12.18 million in Series A notes issued to date. These notes carry a toxic conversion structure, permitting the holder to convert debt into equity at an Alternate Conversion Price of 95% of the lowest 7-day VWAP. This has triggered massive dilution, shrinking the post-split share count to just 781,068 shares.
• Zero OEM Securing Power and Trapped Liquidity: iPower does not possess Tier-1 direct OEM allocation status with NVIDIA. To secure GPUs for its proposed $6.0 million leasing deal, it must purchase via secondary distributors at steep markups. Operational execution is further constrained because its primary liquid assets—$4.82 million in cash and 15.12 Bitcoins—are legally locked as first-priority pledged collateral in a controlled account for the noteholder.

• Atkore Inc. reported its third quarter results for fiscal year 2026 ending June 26, 2026, amid the announcement of its definitive agreement to be acquired by Prysmian in an all-cash transaction valued at approximately $3.8 billion.
• The transaction price of $95 per share represents a significant event for shareholders and frames the context for the quarter’s performance.
• During the quarter, Atkore completed the divestiture of its high-density polyethylene (HDPE) business and its surface protection and powder coating business in Belgium, following earlier sales of its Tectron mechanical tube business.

• JBT Marel reported second quarter 2026 revenue of $981 million, marking a 5% year-over-year increase driven by 3% organic growth and favorable foreign exchange.
• Orders rose by 10% year-over-year, with the company recording over $1 billion in orders for the third consecutive quarter.
• This growth was supported primarily by the Protein Solutions segment, which saw an 11% revenue increase (8% organic) to $467 million, and by double-digit order growth in the Prepared Food and Beverage (PFB) segment, particularly within its value-added prepared foods technology.

• Allison Transmission Holdings Inc. reported strong second quarter 2026 results driven by the recent acquisition of its Off-Highway business unit and solid performance in the Transmission business unit.
• Consolidated net sales jumped 92% year-over-year to $1.566 billion, mainly reflecting the addition of the Off-Highway segment, which contributed $706 million in revenue, and a 6% increase to a record $860 million in the Transmission business unit.
• The growth in the Transmission unit was notably supported by a 57% year-over-year revenue increase in the defense end market, underscoring continued strength amid rising global defense budgets and geopolitical uncertainty.