Daily Brief Industrials: Service Stream, easyJet PLC, Continental Aerospace Technologies, Circuit Fabology Microelectronics Equipment, GMM Pfaudler, Guangdong Dtech Technology, Tourism Holdings, DPC Holdings and more

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the September 2026 index rebal event.
• We expect two changes for ASX 50, one change for ASX 100, and eight changes for ASX 200. Separately, we see 13 ADDs and 11 DELs for ASX 300.
• There are still a couple of months left in the reference period which means our expectations may change.

• Castlelake raised its proposal to 650p/share and secured limited due diligence, while easyJet rejected the offer and obtained a PUSU extension to 5 July to continue discussions.
• At 650p, easyJet would be acquired at 3.6x NTM EBITDA, below the 4.1x sector median and roughly half Ryanair’s 7.2x multiple, supporting the Board’s position.
• I raise my target price to 675p/share. The probability-weighted value is 677p, as ownership concerns have eased and valuation now appears the principal remaining issue.

• Continental Aerospace Technologies announced liquidation, selling assets for US$500-520m, distributing HK$0.4263-0.4433/share, offering 9.3%-13.7% upside.
• Office asset sold to AVIC for HK$69.5m, yielding HK$0.0073/share; independent valuation may prompt renegotiation.
• US$535.42m sale price reduced by leakage, PPP loan settlement, and withholding tax, resulting in US$500-520m proceeds.

• Circuit Fabology Microelectronics Equipment (9630 HK) priced its H Share at HK$252.73, raising HK$3,245 million (US$414 million) in gross proceeds. The H Share will be listed tomorrow.
• I discussed the H Share listing in Circuit Fabology H Share Listing (9630 HK): The Investment Case and Circuit Fabology H Share Listing (9630 HK): Valuation Insights. 
• The grey market price is up 76%, partly due to A Shares rising 20% since the prospectus was released. The international oversubscription rate was the highest of large AH listings. 

• GMM Pfaudler is a global leader in corrosion-resistant technologies, with a dominant market position in the glass-lined equipment (GLE) sector, particularly in India where it holds approximately 50% market share.
• The company has strategically diversified its portfolio through acquisitions, reducing its reliance on the cyclical chemical and pharmaceutical industries by expanding into non-GLE products and services which now cater to a wider range of sectors including oil & gas, water treatment, and food & beverage.
• While long-term revenue growth has been strong, recent financial performance shows significant pressure on profitability, with declining net income and margins over the past three years, alongside a sharp drop in its market capitalization and earnings per share.

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• Guangdong Dtech Technology is a leading provider of integrated solutions for the Printed Circuit Board (PCB) and Computer Numerical Control (CNC) precision parts industries, with a strong market position, particularly in PCB drill bits.
• The company is poised to benefit from favorable industry tailwinds, including the growth of the global electronics market, advancements in 5G, AI, and automotive electronics, which are driving demand for more complex and high-precision PCBs and components.
• Recent financial performance indicates strong growth, with significant increases in revenue and net income. The company’s planned dual listing in Hong Kong is expected to provide additional capital for expansion and enhance its international profile.

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• Tourism Holdings (THL NZ) received a competing, non-binding proposal from an unnamed strategic buyer at NZ$3.30 to NZ$3.40, representing a 6.5% to 9.7% premium over the BGH/Trouchet NZ$3.10 offer.
• The AFR reported that the strategic buyer is Indie Campers, which on 15 February 2026 agreed to acquire THL’s UK and Ireland business assets for NZ$58.3 million.
• The competing bid is likely to be structured as an off-market takeover offer with step-up payments. This development is likely to increase the odds of a bidding war.  

• Circuit Fabology Microelectronics Equipment (9630 HK) raised US$413m in its upcoming Hong Kong IPO.
• It is the world’s largest provider of PCB direct imaging equipment, delivering PCB direct imaging and semiconductor direct-writing lithography equipment. 
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• DPC upsized its IPO and priced above range before opening 33.3% higher, reflecting exceptionally strong institutional demand.
• Sources indicate the deal was more than 30x oversubscribed with substantial participation from long-only investors and anchor accounts
• Aerospace suppliers remain a favored theme, and limited allocations may continue driving aftermarket demand as investors fill positions.

• Doncasters (NYSE: DPC) delivered another strong performance on its public market debut, opening at $44.00 after pricing its upsized IPO at $33.00 , a gain of more than 33% from the offering price.
• IPO Prophet established bullish sentiment at the opening trade , and that outlook remained intact throughout the session as the stock never triggered a bearish momentum marker.
• Shares finished the day at $46.96 , up 42.3% from the IPO price and 6.7% above the opening trade.