In today’s briefing:
- Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident
- NewMarket Corporation: The AMPAC Acquisition & Strengthening of Petroleum Additives Makes Us Bullish! – Major Drivers
- Agnico Eagle Mines Ltd – Mining Monthly: June Edition
- Axalta Coating Systems Ltd.: Its Asia Expansion & Strategic Market Positioning Is Driving Our Optimism! – Major Drivers
- Element Solutions Inc: The Story Behind The Innovative Product Initiatives and Kuprion Integration! – Major Drivers
- Valvoline Inc.: A Tale Of Enhanced Service Portfolio and Innovation! – Major Drivers
Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident
- Shougang Fushan Resources (639 HK) is a play on strengthening coking coal prices with downside protection due to its net cash reserves of 1.1 bn USD (Vs. Mkt Cap 2.1).
- At the lower end of the cost curve, its EBITDA margins have averaged 54% (last 16 years), with its lowest EBITDA number of 19% in FY15.
- With an 80% payout, the company trades at a trailing yield of 9% (the average spot price assumed is 1900 RMB/ton).
NewMarket Corporation: The AMPAC Acquisition & Strengthening of Petroleum Additives Makes Us Bullish! – Major Drivers
- NewMarket Corporation reported a solid performance in the first quarter of 2024, with notable developments in financial results and strategic actions aimed at expanding its business operations.
- The company reported a net income of $108 million or $11.23 per share, reflecting an increase from $98 million or $10.09 per share in the same period the previous year.
- The primary revenue generator, the petroleum additives segment, demonstrated a robust operating profit of $151 million up from $132 million in the first quarter of 2023, though it experienced a slight decline in sales from $700 million in the previous year to $677 million.
Agnico Eagle Mines Ltd – Mining Monthly: June Edition
- Following back-to-back positive months and new all-time highs, gold closed down slightly in June, while the gold equities sold off more dramatically.
- Silver fell more sharply than gold (down 9%) following the strong outperformance in May (up 14%), and silver equities followed suit.
- Copper also dropped significantly in June, down 9% to $4.4/lb while the copper equities outperformed the metal slightly, down 7%.
Axalta Coating Systems Ltd.: Its Asia Expansion & Strategic Market Positioning Is Driving Our Optimism! – Major Drivers
- Axalta Coating Systems reported a stable set of results for the first quarter of 2024.
- The company demonstrated resilience through flat year-over-year net sales and a significant increase in Adjusted EBITDA, which was reported as a record for any first quarter in the history of Axalta Coating Systems.
- The margins have shown a notable improvement, providing optimism for further growth potential.
Element Solutions Inc: The Story Behind The Innovative Product Initiatives and Kuprion Integration! – Major Drivers
- Element Solutions Inc reported a positive start to 2024 with its Q1 results reflecting a mixed macroeconomic environment.
- The company saw a modest organic sales growth of 1% year-over year, while the constant currency adjusted EBITDA grew by a robust 17%, demonstrating substantial margin expansion.
- The Electronics segment appeared resilient, benefiting notably from recovery in high-margin semiconductor and circuitry businesses in Asia.
Valvoline Inc.: A Tale Of Enhanced Service Portfolio and Innovation! – Major Drivers
- Valvoline’s performance in the second quarter of fiscal 2024 demonstrates robust growth and operational efficiency.
- The company showed an impressive growth trajectory with system-wide store sales increasing by 13% to $746 million.
- The expansion was complemented by a significant rise in profitability, evidenced by a 21% increase in adjusted EBITDA to $105 million and a notable jump in adjusted earnings per share (EPS), which increased over 60% to $0.37 per share.
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