Daily BriefsIndustrials

Daily Brief Industrials: Capita PLC, Qantm Intellectual Property, Otis Worldwide Corp and more

In today’s briefing:

  • Quiddity Leaderboard for UK F100/​​250 June 23: 20+ Days to Buy for Top-Ranked F250 Potential ADDs
  • QANTM Intellectual Property (ASX:QIP) – Registering Potential Operating Leverage
  • QANTM Intellectual Property Ltd – Registering Potential Operating Leverage
  • Otis Worldwide: Equipment Growth & Acceleration Of Service Portfolio – Key Drivers

Quiddity Leaderboard for UK F100/​​250 June 23: 20+ Days to Buy for Top-Ranked F250 Potential ADDs

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for F100 and F250 in the run up to the June 2023 Rebalance.
  • Based on latest prices, there could be one change for F100 and four changes in F250 between now and the June 2023 Rebalance including Mediclinic International (MDC LN)‘s intra-review change. 
  • Many of the high-ranked F250 potential additions could have very high impact according to our estimates.

QANTM Intellectual Property (ASX:QIP) – Registering Potential Operating Leverage

By Research as a Service (RaaS)

  • Initiation of Coverage with a DCF valuation of $1.57/share. QIP is trading at a 60% discount to its nearest peer, IPH (ASX:IPH)
  • Key areas of focus  are completing its business transformation programme and expanding geographically.
  • Success will lead to EBITDA margin expansion, greater exposure to Asia, and a growing exposure to automated and IP technology.

QANTM Intellectual Property Ltd – Registering Potential Operating Leverage

By Research as a Service (RaaS)

  • QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys and Sortify.tm.
  • It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market with 16.5% market share (H1 FY23) in its key patents segment (68% of revenue) and a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
  • QIP produces ~$97m service revenue (3.7% five-year CAGR) primarily via various workstreams underlying the patent and trade marks lifecycles, and has a history of profitability and cash flow generation which facilitates high dividend pay-outs. 

Otis Worldwide: Equipment Growth & Acceleration Of Service Portfolio – Key Drivers

By Baptista Research

  • Otis entered the year with good momentum and delivered an all-around beat with improved organic growth in its last result as it continues to execute its four strategic pillars – advancing digitization, accelerating service portfolio growth, and sustaining new equipment growth while focusing on and empowering the organization.
  • Strong service performance, particularly on price and volume, was partially offset by commodities in new equipment, mixed headwinds, and higher corporate costs.
  • The pricing on new equipment orders in the quarter rose, led by the Americas, with a solid performance in APAC and EMEA.

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