Daily Brief Industrials: Mitsubishi Logisnext Co., Ltd., Doosan Robotics , KBR, OKP Holdings, Air France-KLM, KeePer Technical Laboratory, Man Industries (India), Jain Resource Recycling, United Tractors and more

• Mitsubishi Logisnext Co., Ltd. (7105 JP) announced a pre-conditional tender offer from Japan Industrial Partners (JIP) at JPY1,537 per share, representing a 15.3% discount to the last close price.
• The offer resulted from an auction process. The offer is light in comparison to peer multiples and is below the midpoint of the target IFA DCF valuation.
• While Mitsubishi Heavy Industries (7011 JP) irrevocable has a competing proposal clause, it is unlikely that a bidding war will transpire. The low required tendering rate suggests a done deal. 

• There is an end of a lock-up period for 22.1 million shares (34% of outstanding shares) for Doosan Robotics (454910 KS) starting 5 October 2025. 
• This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks. 
• Doosan Robotics’ valuation multiples remain extremely high. We remain BEARISH on Doosan Robotics. 

• Strategic Repositioning Through Spin-Off: KBR is undergoing a significant transformation by spinning off its Mission Technology Solutions (MTS) segment. This strategic move aims to create two distinct, publicly-traded companies, allowing for greater focus, tailored capital allocation, and potentially unlocking significant shareholder value through a valuation re-rating for both the government-focused MTS and the technology-centric Sustainable Technology Solutions (STS) businesses.
• Favorable End-Market Exposure: The company is well-positioned in attractive, high-growth sectors. The STS segment is a key player in the global energy transition and sustainability movement, providing proprietary technologies for clean energy and petrochemicals. The MTS segment benefits from stable, long-term government contracts in defense, space, and national security, areas with consistent and growing budget allocations.
• Solid Financial Performance and Growth Outlook: KBR has demonstrated robust financial health, with consistent revenue growth, margin expansion, and strong cash flow generation. The company has a strong track record of earnings growth and has been consistently increasing its dividend, signaling confidence in its future prospects. Management has reiterated ambitious 2027 financial targets, projecting double-digit revenue CAGR for both of its core segments.

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• OKP Holdings is a leading Singapore-based infrastructure and civil engineering company with a strong reliance on public sector projects, complemented by a growing maintenance business and rental income from investment properties.
• The company has demonstrated a significant financial turnaround, with robust revenue growth and a substantial improvement in profitability in FY2024, driven by higher-margin projects and effective cost management.
• Fueled by a strong order book of S$600.7 million providing revenue visibility until 2027 and a favorable outlook for Singapore’s construction sector, OKP is well-positioned for sustained growth, though it remains exposed to the cyclical nature of the industry and potential project delays.

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• High miss probability: Latest emissions intensity 920 gCO₂e per RTK (YE 2024) vs 851 target for 2025. A 7.5% one‑year cut after flat 2024. Base case miss and event-driven opportunity. 
• Catalyst within months: The observation window ends YE 2025. Coupons adjust (up to +75bps) from May 2026 on the 2026s and over 2027-2028 on the 2028s, creating a tradable window. 
• How to position: Own selected credit and optionality rather than step‑up carry. Trade around KPI disclosures and verification when the probability of a miss is priced before payments change. 

• KBR will separate Mission Technology Solutions (government services, defense, space) from Sustainable Technology Solutions (process technologies, clean energy, and infrastructure), sharpening strategic focus and valuation clarity.
• STS is asset-light with strong FCF and IP-driven growth, while MTS is capital-intensive with long-term government contracts; independence allows each to tailor capital allocation and pursue targeted M&A.
• Post-Spin, STS could be benchmarked against clean tech/process peers and MTS against defense contractors, giving investors cleaner comparables and potential sum-of-the-parts upside.

• Dominant Market Position with Strong Growth Engine: KeePer Technical Laboratory is a market leader in Japan’s car coating industry, demonstrating a robust growth trajectory. This is driven by the continuous expansion of its dual-format network: company-owned ‘KeePer LABO’ stores and franchised ‘KeePer PROSHOP’ locations. The company has a proven track record of double-digit revenue and profit growth, supported by strong same-store sales and new openings.
• Vertically Integrated Business Model Creates Synergies: The company’s integrated model, which spans from the development and manufacturing of proprietary coating chemicals to the direct provision of services, creates significant competitive advantages. This ensures high-quality, standardized service across its network, reinforces its brand, and allows the KeePer LABO (B2C) stores to provide direct market feedback for the Products (B2B) segment.
• Attractive Financial Profile with Shareholder Returns: KeePer exhibits a strong financial profile characterized by high margins, robust cash flow generation, and a solid balance sheet with low leverage. The company has a consistent history of impressive earnings growth, which has translated into a rapidly growing dividend, signaling a commitment to shareholder returns.

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• SEBI barred Man Industries and three key executives from the securities market for 2Yrs, imposing 1 crore penalty on the company and officials for alleged “deliberate misstatement”.
• The order fundamentally questions the quality and credibility of past reported earnings, especially the non-consolidation of the loss-making subsidiary, Merino Shelters, and the alleged round-tripping of funds.
• While MIIL cites its strong ₹4,700 crore order book and minimal operational impact, the significant governance discount will persist until the SAT appeal is settled.

• Jain Resource Recycling (2300699D IN)  raised about US$142m in its India IPO.
• The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• United Tractors (UNTR) is a market leader in Indonesia’s heavy equipment and mining contracting sectors, but faces significant near-term headwinds from weak coal prices and weather-related production shortfalls in its contracting business.
• Despite challenges in the coal sector, the Construction Machinery segment shows robust growth, driven by strong demand for Komatsu equipment, particularly from the forestry and construction sectors. This diversification provides a partial hedge against coal market volatility.
• The company maintains a strong financial position characterized by robust free cash flow generation and a commitment to shareholder returns through dividends. Management is actively pursuing a diversification strategy into non-coal minerals like gold and nickel, and renewable energy to ensure long-term sustainable growth.

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