Daily BriefsEnergy & Materials Sector

Daily Brief Energy/Materials: Hanwha Solutions, Rajshree Polypack, Conocophillips, Copper and more

In today’s briefing:

  • Index Corporate Actions for Hanwha Solutions Split: Passive Flow Size & Schedule
  • RPPL: Q3FY23 Was Seasonally Weak As Expected, But Q4FY23 Is On Track To Be Strong
  • ConocoPhillips: Collaboration With Sempra Infrastructure & Other Drivers
  • Commodity Watch – What Super Cycle?

Index Corporate Actions for Hanwha Solutions Split: Passive Flow Size & Schedule

By Sanghyun Park

  • Hanwha Solutions received shareholder approval for its proposed demerger on February 13. The demerger will split Hanwha Solutions into two separate entities: Hanwha Galleria and Hanwha Solutions.
  • Hanwha Solutions will experience a passive outflow of 0.92x ADTV at the closing price on February 24 for KOSPI 200. A similar passive inflow will occur on March 31.
  • MSCI Standard will deliver an outflow of 0.43x ADTV at the close on March 31 as the weight of Hanwha Solutions, an existing constituent, will be reduced.

RPPL: Q3FY23 Was Seasonally Weak As Expected, But Q4FY23 Is On Track To Be Strong

By Ankit Agrawal, CFA

  • Q3FY23 tends to be the weakest quarter seasonally. Volume de-growth was -10% QoQ, in line with the expectation as per historical seasonality trend.
  • Q4FY23 is all set to be a strong quarter. Management is confident of closing FY23 as per the previously stated revenue and margin guidance.
  • The new value-added segment, Barrier Packaging, has started to contribute meaningfully to the revenue. Tube Laminates, another value-added segment, will also start to contribute soon.

ConocoPhillips: Collaboration With Sempra Infrastructure & Other Drivers

By Baptista Research

  • ConocoPhillips had a mixed result in the last quarter as the company was able to surpass the revenue expectations of Wall Street given its diversified and deep portfolio.
  • From a portfolio perspective, the company’s deep asset base is very well-positioned to generate solid cash flow and has generated a high return on capital.
  • The company has many new LNG opportunities in the United States and in Qatar which provide a strong upside.

Commodity Watch – What Super Cycle?

By Andreas Steno

  • Where is the global commodity super cycle that everyone keeps predicting? 
  • Industrial metals have outperformed energy (as we predicted) and will likely continue to do so
  • Selective positioning in the commodity space remains of vital value with no super cycle in sight

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