Daily Brief Industrials: Sany Heavy Industry, UBTech Robotics, BeNext-Yumeshin Group, Doosan Enerbility, Kanematsu Corp, Orient Overseas International, COSCO SHIPPING International (Singapore), The Keepers Holdings, iWOW Technology Ltd and more

• Sany Heavy Industry (600031 CH), the world’s third-largest construction machinery company, has launched an H Share listing to raise US$1.6 billion.
• I discussed the H Share listing in SANY Heavy Industry H Share Listing: The Investment Case. 
• The proposed AH discount of 17.2% to 13.1% (based on the 17 October A Share price) is attractive, and I would participate in the H Share listing.

• The increase in the stock price over the last 3 months could result in UBTech Robotics (9880 HK) being added to a global index in November.
• There is a fair amount to buy in the stock and cumulative excess volume has picked up since July. Short interest has dropped over the same period.
• The recent drop in the stock price provides a better entry point for a short-term trade as positioning builds up ahead of the potential passive buying.

• Our base case valuation of Sany Heavy Industry is target price of CNY21.1 per share. This represents 7.6% lower than current price of CNY22.83 per share.
• IPO price of Sany Heavy is expected to be set between HKD20.30 and HKD21.30. Our valuation analysis suggests lack of a meaningful upside for Sany Heavy Industry listing in HK.
• There are still lack of a major turnaround of the property market in China and this could continue to negatively impact the overall construction equipment market in China.

• BeNext-Yumeshin Group is a major player in the Japanese human resource services industry, specializing in the dispatch of engineers and technical staff across several key sectors.
• The company has demonstrated a strong growth trajectory in revenue and net income, supported by a robust dividend payout history, making it an attractive proposition for income-oriented investors.
• Key challenges include navigating the highly competitive and fragmented domestic market, managing risks associated with economic cyclicality, and adapting to evolving labor regulations in Japan.

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• Doosan Enerbility is strategically pivoting towards eco-friendly energy solutions, including gas turbines, renewables (wind, hydrogen), and small modular reactors (SMRs), positioning itself to capitalize on the global energy transition.
• The company maintains a strong, albeit cyclical, position in the global power and water plant construction market, with core competencies in nuclear reactors, turbines, and desalination technologies.
• Financial performance is characterized by revenue growth but significant volatility in profitability and cash flow, alongside a high valuation (P/E > 100x) that presents a risk for investors.

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• Kanematsu is a diversified general trading company distinguishing itself with a strong focus on high-growth areas like ICT Solutions and Electronics & Devices, which now constitute the majority of its operating profit.
• The company exhibits a shareholder-friendly capital return policy, evidenced by a strong dividend yield and a consistent track record of increasing dividend payouts, supported by robust cash flow generation.
• Recent performance highlights a tale of two businesses: significant profit growth in technology-related segments is being partially offset by pronounced weakness in the more traditional Motor Vehicles & Aerospace and Foods, Meat & Grain segments.

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• OOIL is a core subsidiary of the state-owned COSCO SHIPPING, operating as a key entity within the world’s fourth-largest container shipping group, which provides significant operational and financial backing.
• The container shipping industry is facing a challenging outlook with significant new vessel capacity entering the market, which is expected to outpace demand growth through 2026, potentially pressuring freight rates and profitability.
• Despite the cyclical downturn from the post-pandemic peak, the company maintains a strong balance sheet with a high net cash position, supporting a robust dividend payout and providing resilience against market volatility.

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• COSCO SHIPPING International (Singapore) reported a 10.6% revenue increase in 1H 2025, driven by logistics and marine engineering growth.
• The company is constructing Jurong Island Logistics Hub Phase 2, with completion expected in Q4 2026, enhancing logistics infrastructure.
• Key risks for 2025 include potential global trade slowdown, operational disruptions, and regulatory changes affecting logistics and marine services.

• The Keepers Holdings (KEEPR) is the dominant distributor of imported spirits in the Philippines, boasting a market share of 74% by volume. This commanding position is anchored by its exclusive distribution rights for high-demand products like Alfonso Brandy.
• The company is pursuing growth through strategic acquisitions, such as the planned purchase of Booze Online Inc. to enter the beer market and a 50% stake in Bodegas William & Humbert to secure its supply of Alfonso Brandy.
• While demonstrating robust double-digit revenue and profit growth, KEEPR faces headwinds from margin compression due to foreign exchange volatility and an unfavorable product mix. However, its strong balance sheet, net cash position, and attractive valuation present a compelling investment case.

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• Institutions were net sellers of Singapore stocks from Oct 10 to 16, with a net outflow of S$167 million.
• United Overseas Bank led share buybacks with 500,000 shares at S$34.91, totaling S$39.3 million across 19 companies.
• Reclaims Global proposed a placement of 15,384,700 shares at S$0.39 each, raising approximately S$5.75 million.