Daily Brief Energy/Materials: CPMC Holdings, Kurotani Corp, Allegheny Technologies, Chemours Co/The, SGX Rubber Future TSR20, Vale Indonesia Tbk and more

• CPMC Holdings (906 HK)’s offer from ORG Technology Co., Ltd. A (002701 CH) is HK$7.21 with a 50% minimum acceptance condition. The first closing date is 10 January.  
• CCASS data shows that Mr Wei has tendered (22.01% of outstanding shares). Including acceptances, ORG’s shareholding was 46.63% of outstanding shares as of 24 December.
• The Board supports the offer, and it is close to being declared unconditional. At the last close and 25 January payment, the gross/annualized spread was 0.8%/10.9%.

• In FY08/24, revenue was JPY82.1bn (-3.0% YoY), operating profit was JPY1.5bn (+172.2% YoY), recurring profit was JPY1.0bn (+355.9% YoY), and net income attributable to owners of the parent was JPY533mn (+212.8% YoY). The initial company forecast at the beginning of the fiscal year was revenue of JPY72.9bn, operating profit of JPY634mn, recurring profit of JPY454mn, and net income attributable to owners of the parent of JPY320mn. The initial assumptions were an exchange rate of JPY135/USD and an LME copper price of USD8,500/ton.
• The USD remained above JPY150 until end-Q3 and LME copper prices exceeded USD9,000/ton since April 2024. The company thus revised its performance forecast upward at its Q3 results briefing to revenue of JPY82.1bn, operating profit of JPY2.3bn, recurring profit of JPY1.9bn, and net income attributable to owners of the parent of JPY1.1bn.
• However, due to a decline in LME copper prices in Q4, the actual results for FY08/24 fell below the revised forecast.

• Allegheny Technologies Incorporated (ATI) recently reported mixed results for its third quarter of 2024.
• The company’s performance recognized some bright spots but ultimately fell short of its financial guidance due to both external market dynamics and internal operational challenges.
• Starting with the positives, ATI’s segment-adjusted EBITDA margins met or exceeded expectations, with notable sequential improvement in its High-Performance Materials and Components (HPMC) segment margins, which edged closer to the mid-20s percent range.

• Chemours is a chemical producer with a diverse portfolio in three segments
• Stock value decline due to poor TiO2 trends and weak refrigerant performance
• Expected earnings improvement in the second half of the year driven by growth in refrigerants, duopoly in next generation refrigerants, and long-term growth potential in data center cooling technology

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.

• Gloves main exports of rubber-based products at RM1.5 billion
• A total of 7,652 paid employees recorded in Oct, down 23.6% YoY
• Malaysian Sustainable Natural Rubber (MSNR) initiative launched

• Vale Indonesia has released the first guidance for its new projects with nickel matte to shift from 100% of revenue to 49% by 2029E, with nickel ore rising to 48%
• S&P has upgraded the company’s credit rating to BB+ from BB, placing it ahead of Indonesia’s BB- country rating and below the BBB rating of parent company Vale   
• We expect a weak nickel price will weigh on the shares in early 2025, although there could be considerable long-term upside from new projects and multiples remain low