Daily Brief Industrials: Kawasaki Heavy Industries, Guangdong Dtech Technology, Rigol Technologies, Continental Aerospace Technologies, Resideo Technologies Inc, Bloom Energy Corp, Trimas Corp, Adani Enterprises, Daiseki Co Ltd and more

• Kawasaki Heavy Industries (7012 JP) has just announced their capital raising intentions. ¥93.7bn (estimated) of shares (37.35mm shares), and ¥100bn of 2031/2033 convertible bonds.
• The Reuters article presaging this seemed to say this would be aimed at International Investors (i.e. an ABO). The extraordinary filing to EDINET suggests an Open Offering to the same.
• A bookbuilding between 14-16 July, but only for international investors. No greenshoe. Weird. 2.8x ADV, 4.5% of shares out, 10% of Max Real World Float. Should be easy. But weird.

• Kawasaki Heavy Industries (7012 JP) is looking to raise up to US$600m from a primary offering of shares, and another US$600m from two tranches of convertible bonds.
• The deal has been anticipated as it capital raising initiatives were reported yesterday.
• In this note, we will talk about the placement and run the deal through our ECM framework

• Guangdong Dtech Technology launched its Hong Kong IPO at a USD 617m base deal size. CITIC and HSBC are the deal sponsors.
• We review the deal terms, cornerstone investors, sponsor track records and valuation.
• We would participate, although the implied A-H premium is above our initiation-note fair-premium view.

• RIGOL, an electronic test and measurement instrument manufacturer, passed hearing for an A+H listing. CITIC is the sole sponsor.
• We look at the company’s core segments: digital oscilloscopes and solutions.
• We discussed our preliminary thoughts on the company’s valuation based on A-H premium.

• Continental Aerospace Technologies is liquidating, with initial distributions offering 9.3%-13.7% upside; further special dividend possible.
• Cygnus Metals merger with Central Asia Metals offers a 17% spread; major shareholders support, closing expected post-September meeting.
• Tourism Holdings received a non-binding offer from BGH Capital and Trouchet family, with potential for a price increase.

• Resideo’s Board approved the ADI Global Distribution spin-off; record date July 20, distribution August 3, with one ADI share for every two REZI shares. ADI trades regular-way August 4.
• We value Resideo (ex ADI) at $35.00/share and ADI at $25.00/share, implying combined fair value of $47.50, 53% upside
• Key risks: ADI’s thin distribution margins face freight/fuel inflation, ~$1.0B new debt, and $23M standalone costs. Investor Days on July 13–14 are the near-term re-rating catalyst

• Bloom Energy has become one of Wall Street’s most polarizing AI infrastructure trades.
• The stock is up sharply this year, suffered a brutal 28% one-day selloff around a Russell-index shuffle, and then roared back as investors refocused on the company’s role in powering AI data centers.
• The latest catalyst is the expanded Brookfield Asset Management partnership, which increased the financing framework for AI infrastructure power projects from $5 billion to $25 billion.

• Trimas is undergoing a significant strategic transformation, divesting its Aerospace segment to sharpen its focus on the higher-margin Packaging and Specialty Products segments.
• The company is poised for enhanced profitability, driven by a combination of reinvesting divestiture proceeds into core growth areas, a target of over $10 million in cost savings by 2026, and a focus on operational excellence.
• Valuation appears attractive, with the company trading at a notable discount to its peer group across key metrics, presenting a potential value opportunity as it executes its strategic shift.

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• Adani Enterprises (ADE IN) is looking to raise around US$1.05bn in its qualified institutional placement (QIP). 
• The deal is well flagged, having gone through rounds of board/shareholder approvals. The QIP has also been covered by domestic media reports.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Consolidated sales in Q1 FY02/27 rose 2.0% YoY to JPY18.3bn, driven by Daiseki Co.’s record-high sales.
• Consolidated operating profit increased 8.4% YoY to JPY4.2bn, with all major companies posting YoY growth in operating profit.
• Net income attributable to owners rose 17.6% YoY to JPY2.9bn, aided by making Daiseki Eco. Solution a wholly owned subsidiary.