Daily Brief Industrials: Generac Holdings, Growatt Technology, Mytilineos Holdings Sa, Parker Hannifin, Rockwell Automation, Ww Grainger Inc and more

• This is our first report on a renowned energy technology player, Generac Holdings.
• Sales of C&I products climbed significantly, with strong core sales growth across all domestic channels and all overseas areas.
• We initiate coverage on the stock of Generac Holdings Inc. with a ‘Hold’ rating.

• Generac Holdings is a major energy technology player with a reasonable amount of debt on its balance sheet and showing ongoing growth in its commercial and industrial product categories.
• Its weaker residential product sales have been a point of concern for the management.
• Sales of C&I products have climbed significantly, with strong core sales growth across all domestic channels and all overseas areas.

• Growatt Technology (1833969D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. 
• Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization. 
• In our previous notes, we looked at the company’s past performance, peer comparison and shared our thoughts on valuation. In this note, we will talk about its refiling updates.

We are raising our earnings estimates for Mytilineos and increasing our valuation 29% from €28/share to €36/share. Cyclical factors helped earnings acceleration in 2022, but we see underlying organic growth (particularly in Energy) resetting earnings to €1bn/year from FY24. Mytilineos is simplifying its story around two key activities in a roughly 70/30 earnings mix: Energy (renewables, generation and natural gas supply) and Metallurgy (aluminium smelting). Its renewables business is particularly well positioned to benefit from European policy initiatives.

• Parker-Hannifin Corporation is among the market leader in motion and control technologies across the globe.
• Parker-Hannifin has also benefited from a positive net impact of the aircraft Wheel and Brake sale and the Meggitt acquisition.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• Rockwell Automation is a major provider of digital transformation and industrial automation solutions across the world.
• Its backlog orders continue to increased sequentially with order cancellation rates staying in the low single digits as per recent results.
• Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.

• W.W.
• Grainger, Inc is among the major global distribution players of MRO materials and other related products and services.
• The management has continued to invest in its strategic objectives and its margin profile appears strong.