Daily Brief Industrials: Sinotruk Hong Kong, Tier IV, ISDN, United Overseas Bank, Indo-MIM Ltd, Moriya Transportation Engineering and Manufacturing, Ichinen Holdings, Copart Inc and more

• German truckmaker, MAN SE (via MAN Finance and Holding) is looking to sell a ~2% stake in Sinotruk Hong Kong (3808 HK) to raise upto US$261m via a secondary selldown.
• Sinotruk (Hong Kong) Ltd is China’s leading heavy-duty truck manufacturer, focused on commercial vehicles with strong domestic market share, growing exports, and consistent cash generation.
• In this note we talk about the deal dynamics and run the deal through our ECM framework.

• Tier IV (593A JP) raised 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.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• TRATON SE’s 2.1% secondary selldown in January 2026 (reducing its holding to 23.2%) is a balance sheet optimization move to pay down TRATON’s own debt and fund Scania’s localized Rugao plant, rather than a reflection of operational or technical friction.
• Sinotruk’s technical partnership with MAN has fully matured over 17 years; the technology is completely localized (MC-series engines), and any incremental dependency is being mitigated by the rapid integration of Weichai Power engines under the parent Shandong Heavy Industry Group (SHIG) ecosystem, marked by the RMB 11 billion 2026 Weichai Parts Purchase Agreement.
• Sustainability of the record RMB 109.54 billion revenue and RMB 7.02 billion net profit in 2025 relies heavily on high-margin export markets (153,368 units in 2025) offsetting domestic price compression, where intense competition in the LNG segment and dilutive electric heavy-duty truck (HDT) lines are dragging on overall gross margin, which slid to 15.1% in 2025.

• ISDN Holdings (“ISDN” or “The Group”) is an industrial automation company that offers a full range of advanced automation solutions and services.
• These solutions and services range from precision components and engineering services to full machine and cloud solutions.
• Its components and systems power semiconductor factories, advanced medical devices, clean energy plants, electric vehicles and more across Asia.

• The IMF projects Singapore’s GDP growth to moderate from 5.0% in 2025 to 2.7% in 2027, driven by technology-related exports and investment.
• Gross capital formation is expected to rise from 22.5% of GDP in 2025 to 23.7% in 2027, supported by infrastructure and manufacturing investment.
• Singapore’s banking sector remains well-capitalised with a capital adequacy ratio of 18.5% in 2Q25, supporting economic stability.

• Indo-MIM Ltd (1666551D IN) is looking to raise about US$395m in its India IPO. The deal has been downsized from its earlier estimated size of US$750m.
• IML provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding technology. Its capabilities include mold designing and tooling, coupled with finishing and assembly operations.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates, peer comp and implied valuations in the price range.

• Moriya Transportation is demonstrating exceptional growth, with a 3-year net income CAGR of 86.14% and revenue CAGR of 15.23%, driven by margin expansion and strong demand.
• The company operates in the stable Japanese elevator market, which is supported by structural drivers including urbanization, an aging population requiring barrier-free access, and ongoing infrastructure modernization.
• While exhibiting high growth and resilience, the company’s valuation appears rich compared to peers, and its dividend yield is modest, suggesting a market expectation of continued high performance.

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Key points (machine generated)

• Ichinen Holdings reported a 6.3% increase in operating profit for the fiscal year ending March 2026, marking 23 consecutive periods of profit growth.
• The company operates in diverse sectors including automotive leasing, chemical production, and agriculture, contributing to its stable performance.
• For the fiscal year, Ichinen Holdings achieved sales of 162,254 million yen, a 4.7% increase year-on-year.

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• Copart is a dominant global leader in the online salvage vehicle auction industry, operating a capital-efficient, high-margin business model that benefits from significant network effects.
• The company’s growth is underpinned by the secular trend of increasing vehicle complexity, which drives up repair costs and leads to a higher frequency of total loss declarations by insurance companies.
• With a strong balance sheet, robust cash flow generation, and a focus on reinvesting in its physical and technological infrastructure, Copart is well-positioned for continued expansion, particularly in international markets.

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