Daily Brief Industrials: Hanwha Aerospace, Contemporary Amperex Technology (CATL), Keppel Infrastructure Trust, Transformers & Rectifiers (India) Ltd, Beacon Roofing Supply, Berli Jucker, Tsubakimoto Kogyo, Verbrec , Boeing Co, Dun & Bradstreet Holdings and more

• After the market close on 27 March, the Financial Supervisory Service (FSS) surprisingly announced a temporary halt to the 3.6 trillion won rights offering capital raise of Hanwha Aerospace. 
• The FSS has requested a correction report to the massive paid-in capital increase securities report submitted by Hanwha Aerospace on 20 March.
• While there could be a short term pop to Hanwha Aerospace’s stock tomorrow, we continue remain negative on Hanwha Aerospace over next 1 year mainly due to its stretched valuations

• Given the slew of A/H offerings in the Hong Kong IPO pipeline, in this note, we talk about the overall A/H premiums currently.
• We also had a quick look at the past A/H listing performance, including subscription rates and A/H premiums at the time of listing.
• Overall, most of the A/H listings haven’t done much in the near term, with a few exceptions.

• Incentives drive behavior. Designing a good fee structure is paramount in managing potential conflicts of interests.
• This is all the more important in Singapore’s REIT and Business Trust sector, where the use of external manager and Trustee Manager is the norm.
• This is in sharp contrast to all for profit companies, where internal management teams manage the businesses for the benefit of all (or most) shareholders.

• Transformers & Rectifiers (India) Ltd (TRIL IN)  is a prominent player in the manufacturing of transformers and reactors with the largest private sector facility in India producting diverse product range
• With three transformer manufacturing facilities, the company has embarked on a capex spree, with planned additions of ~30,000-35,000 MVA. 
• Taking about forensics, the company has faced concerns with regarding liquidity, issuance of a stop-deal notice and stop payment by a major customer, write offs, etc.

• Brad Jacobs’ company QXO acquired Beacon Roofing for $11 billion in all cash deal
• Beacon Roofing is a distributor specializing in roofing and waterproofing products.

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• Berli Jucker booked a solid set of results for 4Q2024, with margin improvements across its four major segments, but its modern retail supply chain under Big C stood out.
• A call with Big C confirmed strong momentum behind SSSG, driven by its ongoing move into fresh food and private label, which are both outperforming overall growth.
• Packaging, consumer, and healthcare & technical supply chains are also seeing strong recovery, whilst valuations look attractive from a historical perspective. 

• Tsubakimoto Kogyo Co., Ltd., (hereafter, the Company) announced its Q3(9M) FY2025/3 results on January 31, 2025.
• Net sales and profit were higher than in Q3 FY2024/3 due to the substantial order backlog.
• Growth in Q3 FY2025/3 orders was lackluster due to a falloff from large Q3 FY2024/3 orders from China, but if one excludes those particularly large orders, net sales grew year on year.

• Verbrec Limited (ASX:VBC) provides engineering, asset management, infrastructure services and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands.
• The company has announced that its wholly-owned subsidiary StacksOn Operations Pty Ltd has entered into a Software Reseller Agreement with Datamine for Verbrec’s stockpile digital twin product StacksOn.
• The product was developed in-house by Verbrec and commercialised in 2021 and is currently utilised by BHP at its iron ore mines and ports in Western Australia.

• After years of turbulence marked by the 737 MAX crises, persistent quality control issues, and billions in losses across both its commercial and defense segments, Boeing is showing signs of a long-awaited stabilization.
• In recent weeks, a series of major developments have helped reignite optimism around the aerospace giant.
• The company scored a significant defense contract victory over Lockheed Martin, landing the U.S. Air Force’s F-47 fighter jet deal—an upset that added billions in market value and sent Boeing shares surging.

• In Dun & Bradstreet’s latest financial performance, the company demonstrated both progress and areas needing attention.
• The fourth quarter and full-year results for 2024 show mixed outcomes, reflecting the broader challenges and strategic shifts within the organization.
• Dun & Bradstreet reported a modest revenue increase of 3% for the full year, culminating in total revenues of $2,382 million, consistent with both before and after foreign exchange adjustments.