Daily Brief Equity Bottom-Up: 10 in 10 with Procurri Corporation – Empowering sustainable IT consumption and more

• Last week, Filipino food manufacturer Monde Nissin Corp (MONDE PM) announced FY22 top-line growth of 6.7%. 
• However, the bottom line spilled red ink after booking impairment losses relating to its Quorn meat alternative ops. 
• The thrust of Quorn/Impossible/Beyond alternatives was that meat eaters would sacrifice their burgers without having to sacrifice anything at all. Yet the Big Meat appetite is not so easily swayed. 

• CSL Ltd (CSL AU) is well-positioned to report double-digit revenue and profit growth through FY25, driven by strong performance of existing business and new growth engines.
• CSL will launch FDA-approved gene therapy Hemgenix for Hemophilia B in the US in 2H23. With estimated global annual peak sales of $2.4B, Hemgenix is a compelling opportunity for CSL.
• During H1FY23, CSL reported record level of plasma collections, with 36% growth in                volume. Current plasma collection is 10% above the pre-pandemic. Higher volume and yield will improve profitability.

• A surprise OPEC cut has sent oil prices higher, a surprise cut could leave the SPR depleted.
• An oil surge could see lower growth and a return to inflation, an oil surge.
• A return toflation could be seen in the future, according to a report by the U.S. Department of Energy.

UK equity capital market (ECM) activity has remained subdued and Numis does not expect a near-term revival. Nevertheless, its strategy of investing in diversification is bearing fruit with M&A advisory showing continued strength and private markets transactions showing signs of picking up. Numis’s strong balance sheet allows it to take opportunities to recruit and maintain investment in technology in the downcycle. This should pay dividends in a stronger market and underpin longer-term growth.

• BHP Group Limited’s recent drawdown presents a lucrative opportunity for investors seeking to lower their portfolio cost basis.
• BHP’s exploration pipeline and planned pivot out of coal might add volume to its stock’s valuation.
• BHP is yet to realize the benefits of higher base metals prices.

• This is our first report on Masco Corporation, a major global player involved in the design, manufacture and distribution of home improvement and building products.
• Plumbing increased by 2% in local currency, with a 7% increase in overseas plumbing offsetting a 1% fall in North American plumbing.
• Over the year, DIY paint saw low single-digit growth, while professional paint saw over 25% growth.

Oryzon has announced promising results from an interim analysis of the Phase IIb PORTICO study, a trial evaluating vafidemstat as a treatment for borderline personality disorder (BPD). An independent data monitoring committee (IDMC) conducted an analysis of the first 90 patients who completed the treatment and recommended that the trial continue without any modifications to the design. These interim results, along with positive safety data reported in September 2022, are encouraging for the clinical development of vafidemstat in this indication, in our view. Management anticipates that top-line data will be shared in early 2024 and we believe this represents the next most significant catalyst for the PORTICO trial.

• This is our first report on the American software giant, Pegasystems Inc.
• The company ended 2022 on a positive note with an all-around beat and a 16% ACV growth.
• Pega Cloud innovation has sped up adoption, and they have made great strides toward modernizing its clients.

• Trigon is cashed up (~$C34M) to initiate and ramp production 5x from FY24 to FY27. We are expecting $31M in operating cash flow in FY25
• Tier-1 copper camp in the making; 500 Blbs of copper found on just 4.2km of the 35km strike. Significant exploration upside still exists and cashflow from operations will allow TM to explore without dilution
• TM is trading at just 0.2x NAV compared to copper producing peers at 0.7x NAV