Bottom-Up EquitiesDaily Briefs

Equity Bottom-Up: Mitsubishi Heavy Industries, Telix Pharmaceuticals and more

In today’s briefing:

  • MHI (7011 JP): Opportunity or Value Trap?
  • Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.

MHI (7011 JP): Opportunity or Value Trap?

By Scott Foster

  • MHI is selling at 9.9x EPS guidance and 0.7x book value, with a dividend yield of 3.0%. We see potential upside of at least 25% beyond the New Years bounce.
  • The shares have underperformed for several years due to serious managerial errors. But the mess is being cleaned up and new growth opportunities have emerged.
  • Risks include limited margins in the energy and aerospace & defense sectors and the possibility of renewed investment in the failed regional jet aircraft project.

Telix Pharmaceuticals (TLX AU): Stepping Ahead with First Product Approved in the U.S.

By Tina Banerjee

  • Last month, Telix Pharmaceuticals (TLX AU) received FDA approval for its first cancer imaging product, Illuccix. Commercial launch of Illuccix will be the major milestone for the company in 2022.
  • EU approval for Illucix is expected in March. Illuccix has multi-billion-dollar global market opportunity, driven by rising incidence of prostate cancer, increasing clinical adoption, and geography expansion.
  • The company has a rich pipeline targeting seven indications, having high unmet medical needs. Telix is expected to file for kidney cancer imaging product, TLX250-CDx in early 2022.

Related tickers: Mitsubishi Heavy Industries (7011.T), Telix Pharmaceuticals (TLX.AX)

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