In today’s briefing:
- MHI (7011 JP): Opportunity or Value Trap?
- Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.
MHI (7011 JP): Opportunity or Value Trap?
- MHI is selling at 9.9x EPS guidance and 0.7x book value, with a dividend yield of 3.0%. We see potential upside of at least 25% beyond the New Years bounce.
- The shares have underperformed for several years due to serious managerial errors. But the mess is being cleaned up and new growth opportunities have emerged.
- Risks include limited margins in the energy and aerospace & defense sectors and the possibility of renewed investment in the failed regional jet aircraft project.
Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.
- Last month, Telix Pharmaceuticals (TLX AU) received FDA approval for its first cancer imaging product, Illuccix. Commercial launch of Illuccix will be the major milestone for the company in 2022.
- EU approval for Illucix is expected in March. Illuccix has multi-billion-dollar global market opportunity, driven by rising incidence of prostate cancer, increasing clinical adoption, and geography expansion.
- The company has a rich pipeline targeting seven indications, having high unmet medical needs. Telix is expected to file for kidney cancer imaging product, TLX250-CDx in early 2022.
Related tickers: Mitsubishi Heavy Industries (7011.T), Telix Pharmaceuticals (TLX.AX)
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