Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

OSE Immunotherapeutics SA is a biotechnology company based in France, developing immunotherapy products against invasive/metastatic late-stage cancers.

OSE Immunotherapeutics’ final analysis of the CoTikiS trial in ulcerative colitis (UC) confirmed that Lusvertikimab met the primary endpoint with statistical significance, highlighting its potential to offer a clinically meaningful solution for the condition. In our view, this marks a positive step forward for the candidate, which, to our knowledge, has a unique mechanism of action to address chronic inflammatory and autoimmune diseases. We believe that OSE plans to advance this programme to the next stages of development (Phase IIb or Phase III) once a partner is onboard. Based on the encouraging full results, we have increased our probability of success for Lusvertikimab in UC to 35% (from 17%), resulting in a valuation upgrade for OSE to €541.2m or €24.8/share (from €465.7m or €21.3/share previously).

OSE Immunotherapeutics’ final analysis of the CoTikiS trial in ulcerative colitis (UC) confirmed that Lusvertikimab met the primary endpoint with statistical significance, highlighting its potential to offer a clinically meaningful solution for the condition. In our view, this marks a positive step forward for the candidate, which, to our knowledge, has a unique mechanism of action to address chronic inflammatory and autoimmune diseases. We believe that OSE plans to advance this programme to the next stages of development (Phase IIb or Phase III) once a partner is onboard. Based on the encouraging full results, we have increased our probability of success for Lusvertikimab in UC to 35% (from 17%), resulting in a valuation upgrade for OSE to €541.2m or €24.8/share (from €465.7m or €21.3/share previously).

OSE Immunotherapeutics - Full Lusvertikimab results reflect potential in UC

Vietnam Holding Ltd. is a closed-end investment company. The Company invests in sustainable investments in Vietnamese equities. VNH is a value investor, incorporating environmental, social and corporate governance (ESG) factors in its investment analysis and decision-making processes.

VietNam Holding (VNH) delivered a 27.3% net asset value (NAV) per share total return over the last 12 months (ending 31 October) in sterling terms. The company outperformed a strongly appreciating market (Vietnam All Share Index (VNAS) at 20.6%), driven by the demand from retail investors. The economy showed robust growth, supported by a surge in exports, and investor confidence was reinforced by good H124 corporate earnings. Meanwhile, VNH executed its first share redemption tender, and investors representing only c 12.6% of total share capital decided to sell their shares at NAV. The strong performance and investors’ vote of confidence contributed to the narrowing of the discount to the current premium of 1.2%.

VietNam Holding (VNH) delivered a 27.3% net asset value (NAV) per share total return over the last 12 months (ending 31 October) in sterling terms. The company outperformed a strongly appreciating market (Vietnam All Share Index (VNAS) at 20.6%), driven by the demand from retail investors. The economy showed robust growth, supported by a surge in exports, and investor confidence was reinforced by good H124 corporate earnings. Meanwhile, VNH executed its first share redemption tender, and investors representing only c 12.6% of total share capital decided to sell their shares at NAV. The strong performance and investors’ vote of confidence contributed to the narrowing of the discount to the current premium of 1.2%.

VietNam Holding - First redemption tender a success

Murray Income Trust PLC / Equity Bottom-Up

Murray Income Trust PLC is an investment trust incorporated in the United Kingdom. The aim of the Fund is to achieve a high and growing income combined with capital growth through investment in a portfolio of UK equities.

Murray Income Trust (MUT) invests in high-quality, mainly UK-listed stocks. MUT’s manager, Charles Luke, believes quality stocks are best placed to support the trust’s objective to provide a high and rising dividend. The trust has realised this objective, delivering continually rising dividends for 51 years, and looks set to extend this record in FY25. MUT’s quality focus has undermined its relative performance over recent years, as value stocks have outperformed, but long-term performance has been positive and close to the benchmark, satisfying MUT’s capital growth goal. And Luke is optimistic about the prospects for UK equities, especially the quality businesses he targets. Investors have been underweight this market for some time, suggesting a rise in inflows is overdue, especially as the UK’s political environment has stabilised. Furthermore, declining interest rates should encourage greater M&A activity as investors seek to take advantage of valuations that Luke believes remain ‘compelling’.

Murray Income Trust (MUT) invests in high-quality, mainly UK-listed stocks. MUT’s manager, Charles Luke, believes quality stocks are best placed to support the trust’s objective to provide a high and rising dividend. The trust has realised this objective, delivering continually rising dividends for 51 years, and looks set to extend this record in FY25. MUT’s quality focus has undermined its relative performance over recent years, as value stocks have outperformed, but long-term performance has been positive and close to the benchmark, satisfying MUT’s capital growth goal. And Luke is optimistic about the prospects for UK equities, especially the quality businesses he targets. Investors have been underweight this market for some time, suggesting a rise in inflows is overdue, especially as the UK’s political environment has stabilised. Furthermore, declining interest rates should encourage greater M&A activity as investors seek to take advantage of valuations that Luke believes remain ‘compelling’. 

Murray Income Trust - Income focus keeps paying dividends

HELLENiQ ENERGY Holdings S.A. / Equity Bottom-Up

HELLENiQ ENERGY Holdings S.A. explores for, develops, produces, refines, and markets petroleum products.  The Company also produces petrochemicals and chemicals, and explores for and produces hydrocarbons.  It constructs and operates pipelines. The Company also offers engineering services.  HELLENiQ ENERGY Holdings S.A. operates refineries in Thessaloniki, the Athens metropolitan area, and Skopje.

HELLENiQ ENERGY’s Q324 results were held back by a weak refining environment, as previously guided by the company, but showed an impressive operational performance. The company noted that the Q424 refining margin is likely to be $2/bbl to $3/bbl above the average for Q3. Q3 refining sales volumes of 4.163m tonnes were up 8% y-o-y, adjusted EBITDA of €183m was down 54% y o y and adjusted net income of €49m was down 77% y-o-y. HELLENiQ’s Q324 benchmark refining margin declined to $3.6/bbl, from $5.5/bbl in Q224, as anticipated by the company at the Q2 results, and at its lowest level since 2021. HELLENiQ announced a €0.2 per share dividend to be paid in January 2025, implying an interim yield of c 3.0%. Management was more confident on the Q424 outlook, expecting a better market and potentially some progress on its DEPA and ELPEDISON business associations that might continue the streamlining of the group.

HELLENiQ ENERGY’s Q324 results were held back by a weak refining environment, as previously guided by the company, but showed an impressive operational performance. The company noted that the Q424 refining margin is likely to be $2/bbl to $3/bbl above the average for Q3. Q3 refining sales volumes of 4.163m tonnes were up 8% y-o-y, adjusted EBITDA of €183m was down 54% y o y and adjusted net income of €49m was down 77% y-o-y. HELLENiQ’s Q324 benchmark refining margin declined to $3.6/bbl, from $5.5/bbl in Q224, as anticipated by the company at the Q2 results, and at its lowest level since 2021. HELLENiQ announced a €0.2 per share dividend to be paid in January 2025, implying an interim yield of c 3.0%. Management was more confident on the Q424 outlook, expecting a better market and potentially some progress on its DEPA and ELPEDISON business associations that might continue the streamlining of the group. 

HELLENiQ ENERGY - Margins troughed in Q3, expect Q4 improvement

Solid State PLC distributes electronic components for use in the industrial, automotive, mobile phone, computer and military markets of the United Kingdom. The Company also provides technical support to its customers.  The Company has agreements to supply products to nine electronic components manufacturers, mainly into the UK market. ... More

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to develop into a higher value-added electronics components and systems business, as witnessed by the two recent small acquisitions. Post the current hiatus we expect this to drive growth and value creation.

The delay of a major contract inevitably has an impact on short-term profitability. Solid State has a strong balance sheet and a growth strategy to develop into a higher value-added electronics components and systems business, as witnessed by the two recent small acquisitions. Post the current hiatus we expect this to drive growth and value creation.

Solid State - Defence contract delay affects expectations