Daily Brief Industrials: Hanwha Aerospace, Seojin System Co, Ltd., Minebea Mitsumi, Nippon Sheet Glass and more

• Ducommun will be added to the MarketVector Global Defense Industry Index at the close on 18 September, while DroneShield and Red Cat Holdings will be deleted.
• The constituent changes, float changes and capping changes will result in an estimated one-way turnover of 5% resulting in a round-trip trade of US$695m.
• Float and capping changes result in over 0.5x ADV to trade in some stocks and those could be interesting in the next week.

• KODEX AI Electric Power Core Facilities ETF (487240 KS) had a market cap of 3.2 trillion won as of 11 September 2026, up 104% in the past one year. 
• In this insight, I discuss the impact of rebalance of the iSelect AI Power Core Equipment Index in December 2026 which impacts the KODEX AI Electric Power Core Facilities ETF. 
• Seojin System and GnCEnergy are two potential inclusion candidates. LS Marine Solution, LS Eco Energy, and Cheryong Electric are potential exclusion candidates. 

• Minebea Mitsumi (6479 JP) occupies an entrenched global leadership position in precision mechanical and electro-mechanical components, holding over 60% global market share in miniature and instrument ball bearings while leveraging an unmatched low-cost, vertically integrated production base across Thailand, Singapore, and Cambodia.
• Financial performance demonstrates robust secular momentum, with FY2026 revenue reaching JPY 1,664,387 million (+9.3% YoY) and net income advancing 66.6% YoY to JPY 99,034 million, driven by the expansion of its ‘Eight Spear’ product portfolio across automotive electrification, AI server thermal management, aerospace, and industrial automation.
• Trading at 12.4x P/E and 8.7x EV/EBITDA, the stock trades at an unwarranted 40-50% discount to peers such as Murata Manufacturing (51.7x P/E), Kyocera (28.3x P/E), and Nidec (26.2x P/E), offering institutional investors an asymmetrical risk/reward profile bolstered by disciplined capital return (DPS increased to JPY 55.0, 1.77% yield).

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• Nippon Sheet Glass (5202 JP) is now down to “pure arb.” All approvals are in. All financing done. The remaining trade is to buy and hold until the cash settles.
• I see no startling revelation when inspecting Guotai Junan International (1788 HK)‘s s329 investigative reports.
• Resonac (4004 JP) is spinning off 80+% of its petrochemical division. Crasus Chemical is unlikely to stay in MSCI. Definitely not Nikkei 225. Big selling on Day 1 at the close likely.