In today’s briefing:
- ZKH Group IPO: The Bull Case
- Impressive Progress on Multiple Fronts to End the Year
- CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Our Oil Price Analysis // FED is Willing to Break the Market
- DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
- AmerisourceBergen Corporation: Initiation of Coverage – Acquisition of PharmaLex & Key Drivers
- Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers
- SPPP: Betting Big On Platinum And Palladium
- The Aftermath: What Happened to USDC?
- FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers
ZKH Group IPO: The Bull Case
- ZKH Group (ZKH US), a leading MRO (maintenance, repair, and operations) procurement service platform in China, is pre-marketing an NYSE IPO to raise US$200-300 million.
- The ZKH platform is for enterprise customers and the GBB platform is for micro businesses. Key backers include Tencent (700 HK) and Tiger Global.
- The key elements of the bull case rest on large addressable markets, solid customer loyalty, improving gross margin, lower operating losses and a strong balance sheet.
Impressive Progress on Multiple Fronts to End the Year
- WWR provided an investor update for 4Q22 and FY22 results, which included a full-year net loss of $11.1 million, compared with a $16.1 million loss in 2021, driven by lower product development costs, partially offset by higher general and administrative costs, as the company continues to add to its team.
- For the year, WWR spent $52.8 million in capex on Phase I of its Kellyton, AL graphite plant and has $75 million in cash remaining on its balance sheet as of the end of 2022, with no debt.
- Agreement with Tier I battery OEM. WWR has entered into an agreement with a Tier I EV battery manufacturer that can result in a finalized offtake agreement for potentially all graphite anode material from the plant.
CF Industries Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on one of the largest producers of nitrogen products in the world – CF Industries.
- CF’s overall performance was fairly good against the backdrop of a continually tight global supply-demand balance for nitrogen.
- We initiate coverage on the stock of CF Industries with an ‘Outperform’ rating.
Our Oil Price Analysis // FED is Willing to Break the Market
- According to S&P Global, the renewable output by the grid operator MISO averaged 333,012 GWh in Q4.
- Despite Bonneville Power Administration’s (BPA) renewable output slipping 12% in Q4, it remained the footprint with the most renewable market share at 75.6% of its total fuel mix for Q4.
- The latest ACP data shows that the total installed solar capacity in the US grew by 17% year on year, reaching 74.126 GW in Q4.
DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
- This is our first report on major healthcare provider, DaVita.
- DaVita produced an adjusted operating income of $317 million and adjusted profits per share from continuing operations of $1.11 for the fourth quarter, bringing the entire year squarely at the top of the revised target range it provided last quarter.
- During the previous quarter, the international adjusted operating income fell by $15 million.
AmerisourceBergen Corporation: Initiation of Coverage – Acquisition of PharmaLex & Key Drivers
- This is our first report on major pharmaceutical sourcing and distribution services provider, AmerisourceBergen.
- Among major updates, AmerisourceBergen added PharmaLex to its portfolio of specialty solutions to expand its capabilities.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Parker-Hannifin Corporation: Initiation of Coverage – The Meggitt Synergies & Other Drivers
- This is our first report on Parker-Hannifin Corporation, a global leader in motion and control technologies.
- Parker-Hannifin delivered strong operating performance throughout the second quarter of the current fiscal and delivered an all-around beat.
- We initiate coverage on the stock of Parker-Hannifin Corporation with a ‘Hold’ rating.
SPPP: Betting Big On Platinum And Palladium
- Sprott Physical Platinum & Palladium Trust has a nearly equally-weighted portfolio of physical Platinum and Palladium.
- The closed-ended trust has an expense ratio of only 0.5% and is trading below its short and long-term moving averages.
- Platinum Group Metal (“PGM”) prices offer researchers an exciting topic, given the velocity of the recent shift in supply and demand-side variables that influence PGM prices.
The Aftermath: What Happened to USDC?
- In the hours following Sillicon Valley Bank’s collapse, news emerged that Circle, issuer of the USDC stablecoin, held $3.3bn of reserves in SVB, triggering panic that the stablecoin was no longer fully backed.
- As of Sunday night, we know that Circle’s reserves are safe, but over the weekend both centralized and decentralized markets descended into chaos.
- Today, we’ll walk you through what exactly happened.
FMC Corporation: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on FMC Corporation, a major agricultural sciences company in the U.S.
- FMC achieved significant results in the quarter because of high volume growth and aggressive pricing and it managed to deliver an all-around beat.
- Its new product sales are growing quickly, nearly doubling year over year, accounting for 11% of overall sales in the quarter.
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