Research Tree | Equity Research for Investors

21 Apr 22

LIBERUM: Emmerson* - Initiation - Best-in-class independent potash play

Companies: Emmerson Plc

04 May 22

Boohoo Group plc (BOO LN) - FY22 Results

• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind

Companies: boohoo group Plc

29 Apr 22

LIBERUM: Sylvania Platinum* - Production uplift coming

Companies: Sylvania Platinum Ltd.

20 Apr 22

Trading ahead of expectations

Volex has issued its year end trading update confirming revenues in excess of $605m and an operating profit in excess of $55m that are ahead of consensus FY22E expectations of $581m and $54.2m respectively. The Group continues to trade strongly whilst effectively managing global supply chain challenges and benefits from its proven ability to pass through inflationary cost increases, albeit with a time lag. Demand increased during the year, in particular in the EV sector where sales almost double

Companies: Volex plc

09 May 22

IOG - Forecast and valuation update

Forecast and valuation update

Companies: IOG PLC

16 May 22

WH Ireland: Jubilee Metals (JLP) - Operational update

Jubilee today provides an operational update on the ongoing commissioning at the new Inyoni chrome and PGM plants with Jubilee building up to steady state production for nameplate capacity of 1.2Mt chrome concentrate and 44koz PGM production per year. Remember processing chrome creates the upgraded PGM tailings for Jubilee to recover the PGMs (Jubilee being paid a small margin to preconcentrate its own feed) and with the expanded Inyoni there is no need to share the PGM revenues via a JV struct

Companies: Jubilee Metals Group PLC

12 May 22

SHORE CAPITAL - Kape Technologies (KAPE, House Stock at 343p)

Companies: Kape Technologies Plc

26 Apr 22

City of London Investment Group (CLIG LN) - 3Q update & Board streamlining

CLIG’s 3Q IMS revealed $147m of net inflows and 4.8% fall in Sterling value of Group Funds under Management “FUM” (using today’s exchange rate the FUM is materially unchanged) and a reorganisation, which streamlines the Board.

Companies: City of London Investment Group PLC

17 May 22

SHORE CAPITAL - Sureserve Group (SUR) - House Stock at 85p

Companies: Sureserve Group Plc

18 May 22

Continued capital redistribution story to offset weak profitability?

Aviva’s Q1 22 trading update was slightly above our expectations although this remains very much tied to the top-line and profitability could be impacted as of H1. Do the operations really mean that much for the share price with high dividends as a back-up? The latter are expected to continue as the firm has stated that it will release capital above its 180% solvency ratio.

Companies: Aviva plc

11 May 22

Site Visit Report

Last week Tamesis visited a number of Tharisa PLC's assets including the Tharisa Mine and Arxo Metals Beneficiation Site (AMBS) in South Africa and the Karo Platinum Project in Zimbabwe. Overall it was an extremely well received trip with evidence of efficiency improvements at the Tharisa mine, unexpected cash generation from the Vulcan Plant, further cash from the Salene Chrome Plant and, it also impressed on us that the Zimbabwe risk to the build out of Karo is lower than the market perhaps th

Companies: Tharisa Plc

16 May 22

LIBERUM: Plus500* - Strong trading leads to FY22 upgrades

Companies: Plus500 Ltd.

06 May 22

FY21 results update

S4 Capital has released very strong 2021 results and a robust start to 2022, and we raise our 2022 Gross Profit and EBITDA forecasts by +5% and +3%, respectively.

Companies: S4 Capital plc

17 May 22

First clinical evidence for LBP in asthma

MRx-4DP0004 is 4D Pharma’s oral, immunomodulatory, single strain Live Biotherapeutic product (LBP). The safety portion of this Phase 1/2 (Part A) met the primary endpoint of safety and tolerability, with five secondary endpoints qualitatively improved over the placebo arm. The data is being presented in poster session at the ATS meeting May 15-18, 2022.

Companies: 4d Pharma PLC

17 May 22

Confidence in profitable expansion rebuilding

2021 was a tough year which saw the non-repeat of highly profitable hand sanitiser sales, almost no Chinese sales and the impact of input/cost inflation. However, it successfully integrated 2 acquisitions, which enhance the portfolio and earnings quality, and locked in the planned synergies. With new distribution agreements (inc to China), and mitigations in place to claw back lost margin, VLG looks set to return to profitable growth. The platform is highly scalable and trades on just 5x EV/EBIT

Companies: Venture Life Group Plc

21 May 22

CVS Health Corp.: Growth Strategy, Cost Advantage, Macro & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

CVS Health entered 2022 with solid momentum and had a great first quarter. The company increased revenue by over 11% to $76.8 billion and adjusted operating income by nearly 7% to $4.5 billion. They increased memberships whereas the medical costs are in line with projections despite inflationary pressures. These results reflect their diverse product portfolio, in-depth knowledge of consumer health needs, and superior customer service. During the first quarter of 2022, CVS Health distributed over

Companies: CVS Health (CVS:NYSE)CVS Health Corporation (CVS:NYS)

21 May 22

McDonald’s Corporation.: Menu Innovation & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

McDonalds had a decent top-line result in this quarter representing a continuation of the broad-based business momentum of the brand all over the world. The internationally operated markets of the company have been recovering. France has benefitted from a strong menu, strength in delivery, and marketing promotions that focus on family. The performance of MacD in Australia and China has been impacted because of stay-at-home restrictions. In Canada, the company had a strong result that was driven

Companies: McDonald's Corporation (MCD:NYSE)McDonald's Corporation (MCD:NYS)

21 May 22

Comcast Corp.: Cable Network & Peacock Upside, Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Comcast had a decent quarter with revenues being driven well by their cable division which continues to be a standout performer delivering more than 7% growth in revenue. The company is making the most of its huge network advantage and has started offering personalized solutions responding swiftly to the needs of its commercial customers. For the last decade, the small business has led to the growth of the company, but it is significantly penetrated the enterprise and mid-market segments. With i

Companies: Comcast Corporation Class A (CMCSA:NAS)COMCAST CORP-CLASS A (CMCSA:NYSE)

21 May 22

Merck & Company Inc.: Molnupiravir, Keytruda & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Merck had a decent start to 2022 and achieved noteworthy clinical advancements over the research pipeline, and Acceleron has been successfully integrated. The company has shown strong commercial execution over a wide set of key drivers of growth mainly Animal health, Gardasil, and Keytruda. The biggest outperformer for the company was the molnupiravir which, despite initial doubts, generated $3.2 billion in revenues, exceeding the $500 million expected by Wall Street analysts. Merck’s business o

Companies: Merck & Co (MRK:NYSE)Merck & Co., Inc. (MRK:NYS)

21 May 22

Restaurant Brands International Inc.: Robust Brands & Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Restaurant Brands International had a strong start to the year, with progress in key focus areas such as Tim Hortons Canada and Burger King USA, as well as continued momentum in its international business. The company saw digital traction across all brands, with home market digital sales reaching their highest levels ever as a percentage of system-wide sales. They grew comparable year-over-year sales by just over 10% at Tim Hortons in Canada during the first quarter, exceeding their own high sin

Companies: Restaurant Brands International Inc

21 May 22

Match Group Inc.: Business Model, The Hyperconnect Upside, Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Match Group had a strong first quarter, with total revenue of $799 million, up 20% year over year. As the dollar strengthened against a number of global currencies, including the euro and the yen, the company suffered and faced $26 million in forex headwinds, excluding Hyperconnect and these had a 4% impact on the top-line. In the Americas and Europe, the company fared well during the Omicron spike as stay-at-home consumers were happy to spend on their apps to find dates. However, they continue

Companies: MATCH GROUP (MTCH:NYSE)Match Group, Inc. (MTCH:NAS)

21 May 22

Estee Lauder Companies Inc.: Competitive Positioning & Growth Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Despite the increase of the temporary Covid-19 restriction in China, Estee Lauder managed to delivere an organic sales growth of 9% in the third quarter of the fiscal year 2022. As volatility increased, the company maintained cost discipline and expanded its operating margin, resulting in higher-than-expected adjusted diluted earnings-per-share growth of 17%. With sales rising organically across both brick-and-mortar and online, they were able to amplify the moment's engines in an intensified ma

Companies: Estee Lauder Companies (EL:NYSE)Estee Lauder Companies Inc. Class A (EL:NYS)

21 May 22

Biogen Inc.: Financial & Price Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Biogen’s failure of its Alzheimer’s drug, Aduhelm has led to a CEO change with the company looking for a successor to CEO Michael Vounatsos. The company’s MS business generated $1.6 billion in revenue, including Ocrevus royalties in the last quarter and has been performing fairly well. However, they have built a $1 billion dollar cost-saving plan and are significantly reducing spending on Aduhelm as part of designed to refocus the company’s flagging biotech business. The management sees the pote

Companies: BIOGEN (BIIB:NYSE)Biogen Inc. (BIIB:NAS)

21 May 22

Ametek Inc.: Acqusition-Led Growth & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Ametek had a strong first quarter, with strong sales growth and excellent operating performance, resulting in robust core margin expansion and earnings that exceeded the company’s expectations. The company’s $1.46 billion worth of revenues were up 20% from the same period in 2021 driven by a 14% jump in organic sales. Its core Electronic Instruments Group (EIG) business which accounts for around two-thirds of the business grew by 31% whereas its Electromechanical Group (EMG) segment was relative

Companies: AMETEK (AME:NYSE)AMETEK, Inc. (AME:NYS)

20 May 22

Expects a slower-than-expected recovery in China

Richemont has published a mixed set of FY21/22 results, with stronger-than-expected sales and an operating profit that missed consensus expectations. Although the group is very confident “to maintain the necessary agility and flexibility to manage global uncertainties”, the chairman warned the recovery in China will be slower and softer than expected. The lack of meaningful updates on the separation of YNAP has also disappointed the market.

Companies: Compagnie Financiere Richemont SA

20 May 22

Real Estate Credit Investments (RECI): New faces, same resilience

In previous notes, we have repeatedly outlined why we believe RECI shows resilience against inflation, interest rate increases and inflation risk (inter alia, see Experience shows resilience of the model, Experience shows resilience of the model (2) and Why rising rates should not hurt RECI). In this note, we highlight how the recent deals have added to the portfolio, and, as outlined in RECI’s recent quarterly presentation, how they have re-confirmed this protection. We also detail the other ke

Companies: Real Estate Credit Investments Limited

20 May 22

Britvic - Positive momentum

During H122, Britvic witnessed double-digit revenue growth and volume and price increases in all business units and strong momentum across core brands. Growth continued in the at-home channels, while out-of-home continued to recover towards pre-pandemic levels. Immediate consumption levels are now ahead of where they were before the pandemic. Growth accelerated during the half year, with revenues up 16.5% in Q1 and 20.8% in Q2. In underlying terms, revenue was up 13.6% versus H120 (ie pre-pandem

Companies: Britvic plc

20 May 22

AGL begins 3D printing power station parts on demand

AML3D Ltd (ASX:AL3) was established in 2014 to commercialise the patented WAM (Wire Additive Manufacturing) process, an additive manufacturing technology for the cost-effective production of large, high-performance metal components and structures. The company has reported a positive outlook with Q3 results and forecasts a strong revenue and cashflow quarter in Q4. AL3 is currently building three machines for delivery in FY22 and expects another sale in Singapore. The company has orders for two m

Companies: AML3D Ltd

20 May 22

Australian portfolio rebalance brings in up-front cash

Altus has entered into a Sale and Purchase Agreement (SPA) with AlphaStream Capital for the sale of a 30.1% interest in Alpha 3, the vehicle that owns the portfolio of 23 mining royalties in Australia acquired from Newcrest Mining in December. In consideration for the sale, Altus will receive US$5.3m in cash, the proceeds of which will be re-invested in royalty acquisition opportunities and generating new royalties. Alpha 3 will now be owned in a 50:50 partnership between Altus and AlphaStream.

Companies: Altus Strategies PLC