In today’s briefing:
- EQD | SPX Vs SX5E: Trade a Relative Value Vol Spread
- Schneider Electric Infra Ltd (SEIL)- Forensic Analysis
- Cie De Saint-Gobain: +17% Since Our Initial Note. Fantastic Results Confirm Our Bull Case.
- Margin Improvement Evident in 4Q22; Sales Headwinds Remain into 2023
- Kimball International, Inc. (Nasdaq: Kbal) – Initiating Coverage
- UBTech Robotics Pre-IPO Tearsheet
EQD | SPX Vs SX5E: Trade a Relative Value Vol Spread
- European markets have begun to outperform their US peers over last few months
- The differences in market sentiment have driven both the implied and realised vol spread wider
- Trade a relative vol spread that should hold up in multiple market scenarios
Schneider Electric Infra Ltd (SEIL)- Forensic Analysis
- Schneider Electric Infrastructure (SCHN IN) is engaged in manufacturing of products and systems for electricity distribution, such as distribution transformers, medium voltage switchgears, etc.
- After plagued with losses for most of last decade, the company has entered into positive net worth and profit territory.
- However, forensics do indicate concerns on aspects such as borrowing rates, inventory verification, contingent liability, etc. including few governance woes.
Cie De Saint-Gobain: +17% Since Our Initial Note. Fantastic Results Confirm Our Bull Case.
- All financial performance indicators at a record high in 2022 (growth, operating income, margin, recurring net income, free cash flow, ROCE)
- Transformation going according to plan, group’s profile towards fast-growing markets
- Valuation remains cheap on our model – still upside from here. TP: €72
Margin Improvement Evident in 4Q22; Sales Headwinds Remain into 2023
- Before market open on February 23, HNI reported 4Q22 results that were better than we expected on both the top line (a modest beat) and margins (a significant beat).
- Results were also ahead of consensus. HNI reported 4Q22 sales of $569 million versus $603 million in 4Q21, ahead of our estimate by $7.5 million and consensus by $9 million.
- Adjusted EPS was $0.63, or $0.17 ahead of our estimate of $0.46 (also consensus).
Kimball International, Inc. (Nasdaq: Kbal) – Initiating Coverage
- We are initiating research coverage of Kimball International. For shareholders and potential investors, Kimball’s relevant history began in 1949 when Arnold Habig led the acquisition and reorganization of Midwest Manufacturing, a struggling manufacturer based in Jasper, Indiana.
- Kimball management initiated its current strategy in 2014, focusing exclusively on commercial furniture.
- Its strategy differs from other commercial furniture manufacturers by emphasizing ancillary products (88% of TTM revenues as of 2Q23) and concentrating on secondary geographic markets (79% of TTM revenues as of 2Q23).
UBTech Robotics Pre-IPO Tearsheet
- UBTech Robotics (1683374D HK) is looking to raise about US$700m in its upcoming HK IPO. The deal will be run by Guotai Junan.
- UBTech Robotics is engaged in artificial intelligence (AI)-empowered robotics in China, dedicated to the innovation of humanoid robots and development and sales of smart service robotic solutions.
- It has a full stack of proprietary robotic, AI and integrated robotic and AI technologies for application in a range of enterprise-level and consumer-level use scenarios across various sectors.
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