Daily Brief Industrials: SpaceX, Luxshare Precision Industry, Japan Airlines, Ecopro BM , Guangdong Dtech Technology, SBS Transit, Middleby Corp, Mitsui Matsushima and more

• SpaceX is public but relatively unknown in terms of market knowledge on the industry due to the complexity of its business across communication systems, AI, space transport,  social networks.
• This insight discusses the investment potential from this point on post IPO volatility for SpaceX.  We explore the use of put options as a strategic volatility trade.  
• Governance, execution, and regulatory risks are transparently disclosed with SpaceX treated as a mature company. Planned satellite business expansions may be closer to deployment than consensus estimates are pricing in. 

• Luxshare Precision Industry (002475 CH) (LP), a precision intelligent manufacturer, aims to raise around US$3.1bn in its H-share listing.
• LP provides cross-sector, vertically integrated development and intelligent manufacturing solutions—from components and modules to systems—for global clients across consumer electronics, automotive electronics, communication and data centers, and other end markets.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Luxshare Precision, a consumer electronics precision components and EMS manufacturer, launched its IPO to raise USD 3,119m through an A+H listing. CITIC, GS, and CICC are joint sponsors.
• In this note, we look at the deal terms and provide our thoughts on valuation for the company.
• We analyze reference A+H deals, cornerstone and sponsor performance and assess the risk-reward of the deal.

• MSCI Japan June 2026 added 3 stocks and deleted 14. With the first implementation week complete, we review current-cycle performance vs history.
• ADDs gave back after a positive bridge. All 3 ADDs fell in WI0-4, with aggregate return of -9.0% vs the historical ADD mean of -2.9%.
• DELETEs rose +3.4% in WI0-4, the strongest first-week result in the study history. Low-velocity DELETEs also rose, returning +2.6% across 4 names with data.

• On 30 June, Ecopro BM (247540 KS) announced that it will conduct a rights offering capital raise worth 1.2 trillion won.
• The planned issue price for the rights offering is 121,200 won, and the final issue price will be determined on October 12.
• Despite its expected better sales and profits in 2027, the company’s valuation multiples are unattractive. It is trading at P/E of 143.6x in 2027 and 75.6x in 2028. 

• Guangdong Dtech Technology (Dtech) aims to raise around US$612m in its H-share listing.
• Dtech is an integrated provider of precision manufacturing solutions for key process segments of the global printed circuit board (PCB) fabrication value chain.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.

• Remains the number 1 bus company in Singapore with approx. 50% market share.
• Runs 3 train lines and is bidding for the Cross Island line, which will span over 50 km. Tender expected to be in 4th quarter this year.
• The company still has excess cash on its books after paying .32 cents in a special dividend.

• Luxshare has adopted a dual-drive strategy of internal growth and external acquisition – The automotive and AI computing power businesses are the fruits of its twelve-year-long early planning.
• New businesses are in the investment stage and their short-term contribution to profits is limited.There’s a time lag in the transmission of cost pressure caused by the upstream price hikes.
• Luxshare’s profit CAGR of next three years is 22%. A conservative scenario is P/E of 20x. A neutral scenario is P/E of 25x. An optimistic scenario is P/E of 30x.

• Middleby to complete Midera spin-off July 6, 2026, creating two pure-plays: commercial foodservice equipment (MIDD) and industrial food processing automation (MFP)
• When-Issued trading began on June 26; Regular-way trading to commence from July 7, 2026.
• SOTP fair value of $202/share combined: $162 for Middleby (ex Midera) (14.2x FY27E EBITDA), $40 for Midera (11.0x FY27E EBITDA).

Key points (machine generated)

• Mitsui Matsushima Holdings celebrated its 110th anniversary in 2023 and reported increased revenue and profit.
• The company aims for a net profit exceeding 10 billion yen by March 2030 and will conclude its coal business by March 2024.
• Starting from March 2025, Mitsui Matsushima plans to focus on new revenue streams in consumer goods, industrial products, and finance.

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