Daily Brief Industrials: Cie De Saint-Gobain, Toyo Construction, DMCI Holdings, Norfolk Southern, Zoomlion Heavy Industry H and more

• New Management, New Targets, New Profile. Mission to change the underlying culture to one of ‘accountability’ and ‘delivery’
• Launch of the Grow & Impact program which sets out a clear and coherent strategy to 2025, a plan designed to accelerate the group’s profitable growth. 
• Valuation upside. The stock trades on EV/Sales below 0.5x. Historical multiple above 1x. We see rerating potential. Price could double if the Company delivers on targets

• We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads – Alliance Aviation Services (AQZ AU), 21Vianet Group (VNET US), Golden Energy & Resources (GER SP), Genesis Minerals (GMD AU), 111 Inc (YI US), Origin Energy (ORG AU).
• Lowest spreads – Nitro Software Ltd (NTO AU), Norwest Energy NL (NWE AU), Chip Eng Seng Corp (CHIP SP), Conexio Corp (9422 JP), Elmo Software (ELO AU). 

• Some creative float increases for AC Energy Corp (ACEN), San Miguel (SMC PM) and Emperador (EMP PM) should result in the stocks remaining in the index and getting passive inflows.
• DMCI Holdings (DMC PM) should replace Megaworld Corp (MEG PM), while UnionBank of the Philippines (UBP PM)‘s inclusion should result in Robinsons Land Co (RLC PM)‘s deletion from the index. 
• There will be a big impact on the additions, deletions and stocks with float changes. The stocks have already started to move ahead of the passive flows.

• There are 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• No new deals were discussed on Smartkarma in the past week. 
• Key updates took place for: OZ Minerals Ltd (OZL AU), Warrego Energy (WGO AU), Shandong Fengxiang (9977 HK), and Toyo Construction (1890 JP).

• Norfolk Southern is a rail transport major, known to offer its services in the Southeast, East and Midwest U.S.
• The company’s recent financial performance has been decent and the management has shown its commitment to productivity and efficiency by significantly improving its operating ratio.
• They are actively qualifying conductors, carrying out and fine-tuning their TOP|SPG operating strategy, and bolstering their leadership group and operations.

• This is our first report on rail transport major, Norfolk Southern.
• The company delivered strong financial results in Q3 surpassing Wall Street expectations in terms of revenues as well as earnings.
• We initiate coverage on the stock of Norfolk Southern Corporation with a ‘Hold’ rating.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Zoomlion Heavy Industry H