In today’s briefing:
- Nippon Steel (5401) – $14.2B U.S. Steel Bet Targets Growth, Faces U.S. Market Maturity Risks
- Cameco (TSX: CCO) – Strong Earnings, Westinghouse Expansion, Long-Term Tailwinds in Nuclear Cycle
- [IO Fundamentals 2025/24] Retail Revival Vs. Real Estate Rut: Uneven China Recovery Tempers Outlook
- PPG Industries: Will Its Strategic Focus on Organic Growth & Share Gains Be A Potential Game Changer?
- Tire Trade At Tipping Point After US Q1 Import Shifts
- Coterra Energy: The 7 Most Significant Forces Steering Its Performance into 2025 & Beyond!
- Oil Surges, Volatility Explodes: Is the Market Overpricing Risk
- Boliden AB: Initiation of Coverage- High-Impact Acquisitions & Financial Firepower Fuel Growth Surge!
- W&T Offshore, Inc: Estimate Update
- Centrus Energy (LEU): Rebuilding America’s Enrichment Capability with HALEU Tailwinds
Nippon Steel (5401) – $14.2B U.S. Steel Bet Targets Growth, Faces U.S. Market Maturity Risks
- Nippon Steel has acquired U.S. Steel for $14.2 billion in cash, adding 23 Mt of crude steel capacity and a full U.S. and EU footprint.
- The acquisition marks a bold step toward NS’s “100 MT Vision,” diversifying earnings beyond Japan and strengthening presence in a geopolitically stable market.
- U.S. Steel remains heavily BF–based and tied to a structurally flat demand market; long-term steel consumption in the U.S. has declined, making returns dependent on aggressive modernization & macro tailwinds.
Cameco (TSX: CCO) – Strong Earnings, Westinghouse Expansion, Long-Term Tailwinds in Nuclear Cycle
- Cameco’s earnings have rebounded strongly with operating leverage from higher uranium prices and conversion margins.
- The company is scaling its uranium volumes, upgrading fuel assets, and leveraging its 49% stake in Westinghouse to gain downstream exposure to SMRs and nuclear services.
- While valuations appear stretched in the near term, Cameco’s integrated nuclear platform offers attractive long-term optionality, albeit with execution and geopolitical risks.
[IO Fundamentals 2025/24] Retail Revival Vs. Real Estate Rut: Uneven China Recovery Tempers Outlook
- China’s May retail sales surged 6.4% YoY, driven by holiday spending and trade-in programs, though fading property prices may dampen future consumer sentiment.
- China’s new home prices fell 3.5% YoY in May, marking a 23-month decline streak, though policy support shows signs of easing the prolonged property downturn.
- Iron ore port inventories rose in mid-June as weaker steel margins cut pig iron output, reducing pick-up volumes and softening near-term demand despite steady arrivals.
PPG Industries: Will Its Strategic Focus on Organic Growth & Share Gains Be A Potential Game Changer?
- PPG Industries recently released its first-quarter financial results for 2025, which highlighted some key taking points for potential investors.
- The company’s reported sales amounted to $3.7 billion, reflecting a 4% year-over year decrease attributed primarily to unfavorable foreign currency translations and business divestitures, such as its Silicas business.
- Although these components adversely affected overall sales figures, PPG reported positive organic sales growth, driven by increased sales volumes and selling prices, notably in Asia, with strong performances in nations like China, India, and Vietnam.
Tire Trade At Tipping Point After US Q1 Import Shifts
- Truck tire imports from Thailand fell 41% YoY in Jan-Feb 2025
- Q1 2025 tire imports rise 3–4% year-on-year
- Vietnam, Japan, Cambodia gain as China, Thailand falter
Coterra Energy: The 7 Most Significant Forces Steering Its Performance into 2025 & Beyond!
- Coterra Energy’s recent earnings present a mixed picture of the company’s financial and operational standing.
- On the positive side, Coterra exceeded its oil production guidance, with natural gas production surpassing expectations.
- Additionally, capital expenditures were kept near the low end of projections, reflecting disciplined financial management.
Oil Surges, Volatility Explodes: Is the Market Overpricing Risk
- Oil prices and volatility have surged sharply following renewed geopolitical tensions.
- Implied volatility has spiked to multi-year extremes on both short- and medium-term horizons.
- We examine whether the move in implied volatility is overdone using a range of historical and model-based metrics
Boliden AB: Initiation of Coverage- High-Impact Acquisitions & Financial Firepower Fuel Growth Surge!
- Boliden AB’s Q1 2025 results offer a mixed view of the company’s current standing and future prospects.
- The highlights for the quarter indicate an operating profit of SEK 2.6 billion, which was impacted by Finnish strikes, resulting in a negative impact of approximately SEK 100 million.
- On the balance sheet, free cash flow was noted to be negative SEK 1.9 billion, attributed to a rebuild of working capital that was initially worked down effectively in the previous quarter.
W&T Offshore, Inc: Estimate Update
- W&T’s total production is expected to rise in 2H25 with the resumption of output from two fields that had remained shut in since they were acquired in the January 2024 Cox acquisition.
- The West Delta 73 and Main Pass 108/109 fields returned to production in late March/early April and are expected to ramp up during 2Q25.
- 2Q25 total production guidance is 32.7-36.2 Mboe/d, compared with 1Q25 total production of 30.5 Mboe/d. t.
Centrus Energy (LEU): Rebuilding America’s Enrichment Capability with HALEU Tailwinds
- Revenue has scaled meaningfully over the last few years, driven by resurgence in SWU demand and U.S. enrichment contracting.
- With exclusive U.S. HALEU production, Centrus is positioned to serve next-gen reactors in a market projected to require tens of tons annually by 2030.
- While the stock has rerated sharply, valuation remains reasonable given its strategic role, early mover status, and long-duration growth runway.
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