Daily Brief Industrials: Pylon Technologies , Ryanair Holdings, Rentokil Initial , Rolls-Royce Holdings, Blackline Safety and more

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• Unlike the other popular Chinese indices (CSI, SSE, ChiNext, etc.) that rebalance semiannually, the STAR 50 index has a quarterly rebalance cycle and the next rebalance will be in September.
• With the reference period for the September 2024 STAR 50 index rebal event coming to an end, we have presented our final expectations for ADDs and DELs in this insight.

• Latest fare data suggests an incrementally more concerning trend for Ryanair pricing from June.
• Concerns over pricing continue to increase in Europe, following Lufthansa’s profit warning last week.
• We cut our FY25 net income by 9% to €2,289m albeit remain above consensus of €2,170m.

• Rentokil Initial (RTO) is trading at a historically low valuation despite being in a resilient industry like pest control
• Rentokil is well-managed with a long-tenured management team that consistently exceeds guidance and has a track record of double-digit EPS growth
• With a P/E ratio of 17.5x, Rentokil presents an attractive investment opportunity with potential for a 30%+ return by the end of 2025 if targets are met and the multiple reverts to historical averages

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.

• Rolls Royce is a British company known for its power business, mainly converting stored energy into kinetic energy through big engines such as airplane engines.
• The company’s core business is in civil aerospace, with a focus on engineering excellence and a history dating back to the early 1900s.
• The publicly traded entity of Rolls Royce Holdings focuses on the aerospace market, specifically in the production of airplane engines for large commercial planes and business.

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

• Blackline Safety provides gas detection and safety monitoring services, currently undervalued at 2.3x NTM sales
• Transitioning from hardware to SaaS will potentially double the company’s value in 3 years
• Management’s experience in the industry supports the company’s potential for future success and 100% upside over the next 3 years through revenue growth and margin improvement.

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.