Daily Brief Energy/Materials: CPMC Holdings, DSM-Firmenich, Gold, TotalEnergies, Richards Packaging Income Fund, Cabb, Trigon Metals , Fedrigoni, New Zealand Energy and more

• Back on the 6th December 2023, packaging play CPMC Holdings (906 HK) announced a pre-conditional Offer of $6.87/share, in cash, from SASAC/NCSSF-backed Champion.
• The Offer Document is now out. This is not a Composite Document. A “Response Document” is expected in two weeks, which will include the IFA opinion. 
• All the above is moot. ORG Technology Co., Ltd. A (002701 CH)‘s superior HK$7.21/share Offer is currently navigating the necessary regulatory approvals. With irrevocables, ORG has 46.44% in the bag.

• Changping Industrial’s offer for CPMC Holdings (906 HK) opens at an unchanged HK$6.87, 4.7% below ORG Technology Co., Ltd. A (002701 CH)’s competing HK$7.21 offer. 
• Changping Industrial thinks deal fatigue may tip the balance in its favour. However, minorities will call Changping’s bluff, as the offer at current terms has a low chance of success. 
• Despite the current posturing, Changping Industrial will likely need to bump above ORG’s offer marginally to succeed. Expect more twists and turns in this contested battle. 

• The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
• In this insight, we take a look at Quiddity’s estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.
• We have been tracking these movements for several months and it seemed like index changes were unlikely to take place but our expectations have changed now.

• Fed is expected to start easing cycle in September, potentially leading to a bullish trend for gold and silver
• Structural factors such as US fiscal deficit concerns, central bank reserve diversification, and geopolitical risks could continue to support gold prices
• Chinese physical gold demand has cooled, but other factors like western ETF demand and potential Indian import duty reduction may provide support for gold prices

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• TotalEnergies missed Q2 revenue and EPS estimates by 7.3% and 7.2%, respectively, with a 7.4% YoY drop in net profit due to contracting refining margins.
• TotalEnergies’ hydrocarbon production hit 2.44 mboe/d in Q2, near the top of its guidance. Projects production in Q3 at 2.4-2.49 mboe/d.
• In Q2, TotalEnergies generated USD 7.8 billion in cash flow and completed USD 2 billion in buybacks. Authorized up to USD 2 billion in buybacks for Q3.

• Surge in demand for packaging products and healthcare supplies
• Strong long-term growth prospects
• Attractive investment opportunity with history of acquisitions, minimal equity issuance, and low valuation at 7x 2023 FCF

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.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess CABB’s ESG as “Strong”, in line with its Environmental and Governance scores, while the Social score is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

• Trigon announced its Q4/24 and FY24 financial results marking the completion of a transformational year for the Company.
• With just a small amount of underground production included in the Q4 numbers, costs have already started to decrease with C1 cash costs coming in at $3.31/lb vs. $3.81 for the full fiscal year.
• The failed pump has been replaced and most importantly, mining activities were not affected by the short dewatering issue.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Fedrigoni’s ESG as “Strong”, in line with its Environmental and Social scores. Governance is “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”. 

Fedrigoni received a Platinum medal from Ecovadis in 2022 and 2023, which places it in the Top 1% of companies assessed. This is an improvement from the Gold medal received in 2021. 

In addition, the company received a score of 59/100 in 2022 and 61/100 in 2023 from S&P (Top 15% in the Paper & Forest Products sector), which evaluated the integration level of ESG factors in policies and practices to mitigate risk as well as maximise opportunities.

• The Tariki-5 well continues to be expected to spud in early September.
• Drilling operations are expected to take 28 days with production starting in late October or early November.
• Initial production is expected to be around 6-8 mmcf/d growing to 20 mmcf/d within 10 months once New Zealand Energy has upgraded its facilities to comply with current safety and production standards.