Techtronic (+ve Catalyst Watch), Estun First Take; Beat, NVDA-JP Collaboration on Physical AI: APAC Industrial & Auto Sector Specialist Sales Commentary Auto & EV • Equipment • Machinery • F&C • AGD

Research evidence excerpt

Techtronic (+ve Catalyst Watch), Estun First Take; Beat, NVDA-JP Collaboration on Physical AI: APAC Industrial & Auto Sector Specialist Sales Commentary Auto & EV • Equipment • Machinery • F&C • AGD

M beat seasonality and achieved 56% of JPM’s full-year forecast, ~7ppts above the historical

upcycle average, driven by product mix optimization, higher value-added products, and cost-reduction initiatives. While line-

by-line details are absent, no specific negatives were noted. The upcoming injection of the humanoid robot business

(Estun Codroid) into the listco raises questions about integration and financial impact, but should support further

valuation re-rating.

• Our FY26 forecast is 14% above consensus, suggesting potential for upward revisions as Estun continues to deliver on

profitability and commercializes new business lines. We expect a positive share price reaction, with the stock up ~60% YTD,

and see further upside as margin recovery and new business integration progress. Maintain OW.

Key News - NVIDIA and Japan bring full-stack AI and robotics to every industry - NVDA

• Today will be the "beginning of Japan's AI era", according to NVIDIA Jensen who arrived to Japan yesterday to announce a

major partnership with the Japanese gov, and to unveil collaborations with multiple large Japanese companies. Robotics and

physical AI is expected to be the main focus, as Jensen stressed the importance there in his interviews yesterday, and he will

be attending a Physical AI event hosted by METI today from 11AM JST.

• Our Japan sales desk flags that it’s worth revisiting the heavies, which have largely underperformed. Two days ago, MHI

announced a partnership with NVIDIA to introduce MHI's cooling systems to NVIDIA's AI facilities, and earlier this