The Point for CEEMEA

Research evidence excerpt

The Point for CEEMEA

27 Sales CAGR (including M&A, 5% organic) and ~9% FY25 div yield, which we see

as attractive; direct comps are trading at ~9x 2026e P/E and 12% FCF yield which

we think is attractive, the shares are ~17% below below Feb-26 levels. Our TP is

revised to AED 0.96 on estimate changes, putting ADNHC at 13x '26e, we remain

Buy-rated.

Maxim Nekrasov

Sector

Global Industrials - 7th Proprietary Automation Survey Signals Encouraging

Demand Outlook

Our 7th annual automation survey of 200 manufacturing decision-makers

(conducted in coordination with Citi Research Innovation Lab) points to

encouraging demand momentum across automation spending despite modest

macro-related concerns (including geopolitical conflict/tariff uncertainty).

Decision-makers on average expect accelerating spending growth on automation-

related hardware, software, and AI/GenAI, indicating an expected +LDD increase

in spending over the next 12 months (vs. ~HSD% spending growth in the LTM

period) and across the next 1-3 years, above last year’s +HSD-LDD outlook, and

indicative of an encouraging/inflecting demand backdrop. Buy-rated ROK, EMR,

HON and Siemens are our preferred automation-exposed names and remain well

positioned to benefit from what appears to be a sustainable automation

investment cycle. Productivity gains, operating efficiency, and improved product

quality are primary drivers underpinning automation investments according to the

survey, with a broader agreement that labor inflation/shortage along with global

supply chain constraints/delays/tariff uncertainty have further strengthened the

case for automation.

Andrew Kaplowitz | Martin Wilkie | Piyush Avasthy

Global Luxury Goods - May Swiss watch exports flat YoY on easier US tariff

comp base.