Daily Brief Energy/Materials: Sanil Electric, Occidental Petroleum, Asian Paints, Copper, Commercial Metals Co and more

• Sanil Electric (062040 KS), a Korean industrial transformer manufacturer, is seeking to raise up to US$165 million.    
• The IPO is a pure primary raise of 7.6 million shares at an IPO price range of KRW24,000-30,000. Book building will run from 9 to 15 July.
• The bull case rests on US-led rapid revenue growth, high barriers to entry, good revenue visibility, improving margins, top-quartile margin performance and modest leverage.

• Occidental Petroleum is a quality oil and gas operator focusing on the Permian Basin, available at a discounted price for investors
• The company has undergone strategic changes, selling off non-core operations and refocusing on core assets in the Permian Basin
• Occidental Petroleum has improved management and technological advancements in the Permian Basin, leading to a projected value of $100 per share by 2026

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.

• We visited some paint dealers representing Asian Paints (APNT IN) and Akzo Nobel India (AKZO IN)  to understand the current competitive intensity in the industry.
• While three months is too short of a time frame to observe a significant change in industry structure, current signals seem to favor the incumbent. 
• Opus may influence dealers and painters, but what if consumers simply prefer APNT?

• Copper continued its slide on concerns about inventory and the commencement of new projects and delivered a -9% return for the month. 
• Check out our initiation, Copper Primer: What We Like About Copper And What to Play, and equity initiation Southern Copper: In a League of Its Own 
• We like the long copper-short gold trade and explore iron condors in the copper Freeport Mcmoran (FCX US) . 

• Commercial Metals Company (CMC) recently shared the outcomes of its third quarter fiscal 2024 results, presenting a resilient financial and operational performance amidst the complexities of the steel industry and broader market uncertainties.
• On the positive side, CMC reported strong core EBITDA and margin results, with performance levels well above the company’s historic averages.
• The earnings resilience can be attributed to positive shifts in the company’s business structure and the steel industry, notably marked by CMC’s strategic acquisitions that have bolstered its market leadership and enhanced the operational efficiency of its asset base.