In today’s briefing:
- Next Era Energy: Investments into Clean & Green Energy, and the IRA, to Drive Outperformance
- LianBio (LIAN US): Lead Asset Is Approaching Commercialization; Satisfactory Cash Runway
- Culp, Inc. – Revising Estimates to Reflect Continued Demand Weakness and Margin Improvement
Next Era Energy: Investments into Clean & Green Energy, and the IRA, to Drive Outperformance
- A 100-year-old firm, Next Era Energy is America’s largest utility firm and the world’s largest renewable energy producer commanding a market cap of USD 136.6B.
- Significant capex into Next Era Energy Resources combined with the benefits of the Inflation Reduction Act to drive stock outperformance.
- Downside exposure remains from idiosyncratic risks, weather shocks and an economic recovery which warrants risk management considerations.
LianBio (LIAN US): Lead Asset Is Approaching Commercialization; Satisfactory Cash Runway
- LianBio (LIAN US)‘s new drug application for its lead asset mavacamten is under priority review in China for the treatment of symptomatic obstructive hypertrophic cardiomyopathy, with approval expected in mid-2024.
- The company is expected to start commercialize mavacamten in Singapore and Macau this year. As of June 30, 2023, LianBio has cash balance of $267M, with runway into H1 2025.
- LianBio is currently conducting phase 3 trial to evaluate the efficacy and safety of TP-03 in Chinese adult patients with Demodex blepharitis. Topline data is expected in 4Q23.
Culp, Inc. – Revising Estimates to Reflect Continued Demand Weakness and Margin Improvement
- Herein we revise our estimates for Culp, which reported 1QFY24 results and issued guidance in the face of continued weak demand juxtaposed against improving and better-than-expected margins.
- Gross margin for CHF, Culp’s mattress fabrics segment, is recovering faster than expected (up ~700 bps in 1QFY24 versus 1QFY23).
- For CUF, Culp’s upholstery fabrics segment, management grew 1QFY24 gross margin by 667 bps despite a significantly down Y/Y sales comparison (~ -17.4%).
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