I think right now LMT isn't bothered by these supply contracts. It's still of petty cash to them in procurement costs. ~$100m a year costs (avg. for next 7years inc. new contracts/orders) to take over the hard work of an Australian manufacturer? Margins are too thin for them to do vertically integrate at this point. The clean profit that can be derived from it is also too little even if contracts doubled.
What I see is 1. Chinese firm trying a backdoor to get the 'technology' and defense sensitive designs/capabilities for the F35s. Similar to how they developed their tech-manufacturing-research sectors. Probably copy, replicate it for their own defense capabilities. QHL definitely ticks the boxes for 'national interest' and 'corporate espionage'. 2. PE buying it as provides a good platform for future relisting. Probably milk it now with the positive cashflow, and try to repackage it in future with 'new industry', all those old talk of electric/F1/racing vehicle components or medical implants/equipment (think exoskeleton or prosthetic parts). They would sell the 'dream' of a new industry and then IPO the company again at. (THIS IS WHAT I THINK WOULD HAPPEN)
Well, seems there is still some spring in the step. Hope QHL don't fizzle out like last month, maintain the current SP and consolidation can happen for the breakout!
(20min delay)