Daily Brief Industrials: Service Stream, Hyundai Elevator Co, Itochu Corp, Braemar Shipping Services PLC, Petards Group, Plug Power Inc, Qualtec , Advanced Drainage Systems, Sunwoda Electronic Co Ltd A, Frontier Management Inc and more

• In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the December 2025 index rebal event.
• We expect one change for ASX 50, one change for ASX 100, and four changes for ASX 200. 
• The official index changes will be announced after the close on Friday 5th December 2025.

• On 24 September, Hyundai Elevator Co (017800 KS) announced that it plans to sell 7.8 million shares of Hyundai Movex (319400 KS), representing 7% of its outstanding shares.
• Over the next several weeks, we expect continued outperformance of Hyundai Elevator vs Hyundai Movex. 
• We like the pair trade of going long Hyundai Elevator and going short Hyundai Movex over the next 1-3 months, especially due to concerns about a 7% sale in Movex.

• Earnings Growth: Non-resource engines (Food, FamilyMart, ICT, Textiles) compounding at double-digit rates; mid- to high-single-digit EPS growth outlook.
• Valuation: Trades at ~13× FY2026E P/E, in line with peers, offering steady TSR without a valuation premium.
• Capital Returns: ¥200/share dividend + ¥150 bn buybacks underpin 40–50% payout; EPS uplift from share reduction.

Braemar’s H126 trading update confirms that the first half was a tough period but the company is making progress against its FY30 growth targets (announced earlier this year). These include the opening of a new Cape Town office focusing on tanker chartering, which brought Braemar’s global footprint to 19 offices in 14 countries. The long-term fundamentals remain in place and we expect a return to growth in FY27e. Following the update, our profit estimates are unchanged, as is our valuation of 462p, which offers c 90% upside.

• Petards Group PLC (PEG) announced it’s interim results for the half year ended 30 June 2025.
• We have published research on this which is attached and a snapshot of the research is below.
• The Affini acquisition, the third acquisition since 2016, has had a strong positive impact on the Interims results to June 2025, while the other divisions achieved either higher or similar revenues to last year.

• Shares of Plug Power have defied gravity in recent weeks, notching an unprecedented 10-day winning streak and more than doubling in value to $2.82 as of September 23, 2025.
• Despite a historical track record of operating losses and continued projections of negative earnings in fiscal 2025, the stock has caught fire amid a convergence of bullish catalysts.
• Chief among them is the potential for a $370 million cash injection from warrant exercises by Heights Capital Management, following a new disclosure by the company.

Key points (machine generated)

• Qualtec reported record highs in sales, operating profit, and ordinary profit for the fiscal year ending June 2025, with sales reaching 4,025 million yen, an 11.1% increase year-on-year.
• The company’s growth is attributed to rising orders in power semiconductor testing and bio-related sectors.
• Qualtec specializes in reliability evaluation services and has gained recognition for its Total Quality Solution (TQS) among major clients, including complete vehicle manufacturers.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Advanced Drainage Systems, Inc. reported its first-quarter fiscal 2026 results, reflecting a mix of both positive performance indicators and challenges in the current market environment.
• Notably, the company achieved a 33.5% adjusted EBITDA margin, showcasing resilience despite facing demand headwinds.
• Revenue increased by 2%, driven primarily by the recent Orenco acquisition, while organic sales experienced a slight decline, although core nonresidential and residential markets remained stable.

• Sunwoda Electronic Co Ltd A (300207 CH) is looking to raise around US$400m in its upcoming H-share listing.
• It is a lithium-ion battery manufacturer. It covers a rich product matrix including consumer battery, EV battery and ESS.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Frontier Management (hereafter, the Company) announced its H1 FY2025/12 results after market close on August 13, 2025.
• Net sales rose 26.6% YoY to JPY 5,771 mn, supported by the consolidation of HobbyLink Japan, an investee company, while operating profit recorded a loss of JPY 10 mn.
• In addition, ordinary profit posted a loss of JPY 199 mn due to financing costs such as arrangement fees for a syndicated loan.