In today’s briefing:
- Constituents of the 1st Corporate Value Up ETF in Korea
- Adbri (ABC AU): CRH and Barro’s Binding A$3.20 Offer
- DRX: Increasing Target Price on Improved Outlook
- Ecolab Inc: Successful Pricing Initiatives and Delivered Product Costs (DPC) Management! – Major Drivers
- Phillips 66: Is The Demand Recovery In The Refining Macro Enough To Warrant A Bullish Thesis? – Major Drivers
Constituents of the 1st Corporate Value Up ETF in Korea
- Samsung Active Management launched the first Corporate Value Up ETF called KoAct Dividend Growth Active ETF on 27 February. It also revealed some of the major constituents of this ETF.
- Samsung Active Management revealed the top 20 constituents of this ETF, which comprised 73.2% of the total ETF AUM.
- In the coming weeks, there will be many other Corporate Value Up related ETFs that will be created that are similar to Samsung’s KoAct Dividend Growth ETF.
Adbri (ABC AU): CRH and Barro’s Binding A$3.20 Offer
- Adbri (ABC AU) has entered a scheme implementation deed with CRH (CRH US) and Barro at A$3.20 per share, a 41.0% premium to the undisturbed price of A$2.27 (13 December).
- The offer requires shareholder and FIRB approval. FIRB approval for the bidder, CRH, should be forthcoming as it is a Fortune 500 company with HQ in Ireland.
- The offer is attractive vs. peer multiples and historical ranges. At the last close and for a mid-June payment, the gross/annualised spread is 1.9%/6.6%.
DRX: Increasing Target Price on Improved Outlook
- We are revisiting the assumptions in our model for ADF following strong industry data and positive conversations with management.
- We are increasing our revenue and profitability estimates from Q4 onward to reflect the more bullish outlook.
- We have increased our target multiple to 6.5x FY25 EBITDA (previously 6.0x), leading to a new $13.00/share target price (previously $10.00/share).
Ecolab Inc: Successful Pricing Initiatives and Delivered Product Costs (DPC) Management! – Major Drivers
- Ecolab Inc., during their latest earnings, highlighted strong growth in their fourth quarter performance for 2023, solidifying a favorable year for the company.
- Despite unstable macroeconomic conditions, the team drove value-based pricing while consistently maintaining strong business momentum.
- Their success arose from creating value for customers by enhancing operational performance, as well as reducing water and energy consumption.
Phillips 66: Is The Demand Recovery In The Refining Macro Enough To Warrant A Bullish Thesis? – Major Drivers
- Phillips 66 delivered a strong performance in the fourth quarter and for the full year 2023.
- It reported a total shareholder return of 33% in 2023 and also increased its quarterly dividend by 8%.
- The company highlighted its diversified and integrated portfolio as a key aspect of its business strategy, claiming that it delivered strong returns on capital employed and a high payout ratio backed by dividend growth.
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