Daily Brief Industrials: Sigenergy Technology, Eaglerise Electric & Electronic (CHINA), Continental Aerospace Technologies, Singapore Airlines, Horizon Industrial Parks Limited and more

• The September 2026 HSCI review adds 53 names to southbound Connect, 49 new and 4 returning, and removes 15, all effective 7 Sep 2026.
• The announced list ran wider than our forecast. 33 of our 36 ADD calls and 14 of 25 DELETE calls were announced.
• Current ADDs rose into the announcement and DELETEs fell. Historically, ADD-NEWs outperformed ADD-REJOINs over the bridge, while DELETEs fell further after announcement.

• Eaglerise Electric & Electronic (CHINA) Co., Ltd. is a global supplier of power equipment and solutions, leveraging proprietary core technologies and R&D capabilities, specializing in transformer equipment.
• The company ranked second among China-based suppliers in the global medium-voltage transformer equipment market with a 2.3% share in 2025.
• Gross profit margin decreased from 21.7% in 2023 to 17.6% in 2025.

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• The Arcline Carve-Out: The June 8, 2026 transaction in which US private equity firm Arcline Investment Management agreed to acquire Continental Aerospace Technologies for $535 million ended 15 years of Chinese state ownership under Aviation Industry Corporation of China (AVIC). The deal represents an EV/EBITDA multiple of 15.3x on 2025 adjusted EBITDA of $35 million (HKD 272 million) and is currently progressing through a complex liquidation and delisting of the Hong Kong-listed shell (0232:HK).
• Geopolitical Bottlenecks and Strategic Friction: The divestment was catalyzed by intense regulatory pressure, specifically CFIUS oversight and DOD scrutiny over AVIC’s military ties. Friction peaked following reports by local media outlet Lagniappe concerning a leaked 2022 proposal by CEO Karen Hong to acquire a Russian-owned competitor (RED Aircraft) to modernize Chinese military pilot training, making continued Chinese ownership of a critical US defense-adjacent supplier untenable.
• Structural Profitability Hurdles: While top-line revenue reached $257 million (HKD 2.0 billion) in 2025, gross margins remain constrained at 25.12% and operating margins sit at just 3.24%. This subpar performance is a direct result of inefficient capital allocation under AVIC, characterized by pre-2023 R&D starvation, high dual-certification compliance overhead between the FAA and EASA, and single-source dependencies for critical engine crankcase castings.

• Singapore Airlines (SIA SP) share price performance for the last 5 years is quite strong, thanks to the COVID rebound. 
• However, losses are still coming, notably from the continuing loss from Air India as well as the delayed fuel hedging loss as net fuel cost skyrocketed by 78% YoY.
• Air India losses come from a crowded market (with low-cost carriers) as well as integration issues. More capital calls are expected, which is a negative for Singapore Airlines. 

• I summarise the latest spreads and newsflow for the merger arb situations covered across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
• Highest spreads: Skyworth (751 HK), Changhong Jiahua (3991 HK), European Lithium (EUR AU), Cygnus Metals (CY5 AU), OFX Group (OFX AU), Tourism Holdings (THL NZ), Atlantic Lithium (A11 AU). 
• Lowest spreads: Accent Group (AX1 AU), FleetPartners Group (FPR AU), Baudroie (4413 JP), Kakaku.com Inc (2371 JP), Ausgold Ltd (AUC AU), Taiyo Holdings (4626 JP). 

• Horizon Industrial Parks Limited (1327105D IN) (HIPL) raised around US$272m in its upcoming India IPO.
• HIPL is the largest industrial and logistics infrastructure developer, owner and operator by total network, as per JLL, with 45 assets across 10 cities spanning fulfillment, industrial and in-city centers.
• We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.