External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>RLFCF multiple applied to 2025 guidance could result in 54% upside for stock</li><li>Cellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with projected IRR of 24%</li><li>Despite past disappointments in meeting free cash flow targets, company's future outlook looks promising for potential upside for investors</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

RLFCF multiple applied to 2025 guidance could result in 54% upside for stockCellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with projected IRR of 24%Despite past disappointments in meeting free cash flow targets, company's future outlook looks promising for potential upside for investorsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Cellnex Telecom Sa (CLNX) - Wednesday, Feb 14, 2024

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>This week in StubWorld ...</p>
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<div class="content-highlight">
<p>Cashed-up <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a> is in the market every day as its shares trade around all-time lows on an implied stub and simple ratio basis.</p>
</div>
</div>
</div>
<div>
<p>Preceding my comments on CKH are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
</div>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
</div>


This week in StubWorld ...




Cashed-up CK Hutchison Holdings (1 HK) is in the market every day as its shares trade around all-time lows on an implied stub and simple ratio basis.




Preceding my comments on CKH are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cellnex-telecom-sau" target="_blank" data-smartkarma-citation="entities:21258:1" rel="noopener">Cellnex Telecom Sau (CLNX SM)</a> plans to divest non-strategic assets in Ireland (for around €1.1 billion) and later in Austria in order to reduce its debt.</li>
<li>The new strategy focuses on portfolio rationalisation due to the higher debt costs. Cellnex seeks expansion in certain markets, but without taking on too much debt.</li>
<li>Using multiples EV/EBITDA, my base-case fair value estimate (pro-forma Ireland divestment) is €48.73; a reduction in leverage should drive multiple expansion. Long.</li>
</ul>



Cellnex Telecom Sau (CLNX SM) plans to divest non-strategic assets in Ireland (for around €1.1 billion) and later in Austria in order to reduce its debt.
The new strategy focuses on portfolio rationalisation due to the higher debt costs. Cellnex seeks expansion in certain markets, but without taking on too much debt.
Using multiples EV/EBITDA, my base-case fair value estimate (pro-forma Ireland divestment) is €48.73; a reduction in leverage should drive multiple expansion. Long.


<ul>
<li>The board's renewal and the arrival of a new CEO (both should be a positive catalyst) are on track and will be completed in the coming weeks.</li>
<li>Gone the takeover angle, Cellnex's new strategy focuses on organic growth and deleveraging, aiming an investment grade rating and reducing net debt by end of FY2024 (already 5.6x net debt/2023e EBITDA).</li>
<li>Cellnex trades at 15.3x EV/Fwd EBITDA, vs. 28.8x American Towers and 24.4x Inwit. TCI may still look for ways to increase the value of its investment.</li>
</ul>


The board's renewal and the arrival of a new CEO (both should be a positive catalyst) are on track and will be completed in the coming weeks.
Gone the takeover angle, Cellnex's new strategy focuses on organic growth and deleveraging, aiming an investment grade rating and reducing net debt by end of FY2024 (already 5.6x net debt/2023e EBITDA).
Cellnex trades at 15.3x EV/Fwd EBITDA, vs. 28.8x American Towers and 24.4x Inwit. TCI may still look for ways to increase the value of its investment.


Peace Within the Board and Focus on Organic Growth

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/dai-ichi-life-insurance" target="_blank" data-smartkarma-citation="entities:1109:1" rel="noopener">Dai Ichi Life (8750 JP)</a></strong>'s proposal suggests more upside to <strong><a href="https://www.smartkarma.com/entities/benefit-one-inc" target="_blank" data-smartkarma-citation="entities:14502:1" rel="noopener">Benefit One (2412 JP)</a></strong>'s minorities than originally thought, and less upside (but still a chunk) to <strong><a href="https://www.smartkarma.com/entities/pasona-group-inc" target="_blank" data-smartkarma-citation="entities:15778:1" rel="noopener">Pasona Group (2168 JP)</a></strong>.</li>
<li>It's all over for <strong><a href="https://www.smartkarma.com/entities/eoflow-co-ltd" target="_blank" data-smartkarma-citation="entities:36100:1" rel="noopener">EOFlow (294090 KS)</a></strong>, as <strong><a href="https://www.smartkarma.com/entities/medtronic-plc" target="_blank" data-smartkarma-citation="entities:14982:1" rel="noopener">Medtronic Plc (MDT US)</a></strong> folds it tent. </li>
<li>Cho Hyun-Sik (eldest son of Cho Yang-Rae, Chairman of <strong><a href="https://www.smartkarma.com/entities/hankook-company-co-ltd" target="_blank" data-smartkarma-citation="entities:19369:1" rel="noopener">Hankook &amp; Company (000240 KS)</a></strong> has joined MBK Partners in making a partial Tender Offer for Hankook &amp; Co.</li>
</ul>



Dai Ichi Life (8750 JP)'s proposal suggests more upside to Benefit One (2412 JP)'s minorities than originally thought, and less upside (but still a chunk) to Pasona Group (2168 JP).
It's all over for EOFlow (294090 KS), as Medtronic Plc (MDT US) folds it tent. 
Cho Hyun-Sik (eldest son of Cho Yang-Rae, Chairman of Hankook &amp; Company (000240 KS) has joined MBK Partners in making a partial Tender Offer for Hankook &amp; Co.


Last Week in Event SPACE: Pasona/Benefit One, EOFlow, Swire Pacific, Hankook & Co, Toyo Construction

Spain

Cellnex Telecom S.A.U. is an independent operator of wireless telecommunications infrastructure and broadcast infrastructure. The Company's sites are located in Spain and Italy.

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Cellnex Telecom Sau (CLNX SM)

Cellnex Telecom Sa (CLNX) - Wednesday, Feb 14, 2024

Cellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with...

Value Investors Club

StubWorld: CK Hutch's Ongoing Buybacks

CKH looks cheap here priced at 6.8x/0.4x forward PE/PBR, together with a 50% discount to NAV. Expect buybacks to continue. Recommend an outright...

David Blennerhassett

Focus on Leverage Reduction

Cellnex Telecom plans to sell non-strategic assets in Ireland and Austria to reduce debt, focusing on portfolio rationalization and expansion in...

Jesus Rodriguez Aguilar

Peace Within the Board and Focus on Organic Growth

Gone the takeover angle, Cellnex's new strategy focuses on organic growth and deleveraging, aiming an investment grade rating and reducing net debt...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Pasona/Benefit One, EOFlow, Swire Pacific, Hankook & Co, Toyo Construction

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Cellnex Telecom Sa (CLNX) - Wednesday, Feb 14, 2024

Cellnex's strong presence in key European countries and potential for free cash flow growth make it an attractive investment opportunity with...

Value Investors Club

StubWorld: CK Hutch's Ongoing Buybacks

CKH looks cheap here priced at 6.8x/0.4x forward PE/PBR, together with a 50% discount to NAV. Expect buybacks to continue. Recommend an outright...

David Blennerhassett

Focus on Leverage Reduction

​Cellnex Telecom plans to sell non-strategic assets in Ireland and Austria to reduce debt, focusing on portfolio rationalization and expansion in...

Jesus Rodriguez Aguilar

Peace Within the Board and Focus on Organic Growth

Gone the takeover angle, Cellnex's new strategy focuses on organic growth and deleveraging, aiming an investment grade rating and reducing net debt...

Jesus Rodriguez Aguilar

Last Week in Event SPACE: Pasona/Benefit One, EOFlow, Swire Pacific, Hankook & Co, Toyo Construction

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Cellnex Telecom plans to sell non-strategic assets in Ireland and Austria to reduce debt, focusing on portfolio rationalization and expansion in...