Industrials
Industrial Innovations at a glance
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The aerospace and defence sector is experiencing a remarkable surge, with companies listed on the Tel Aviv Stock Exchange (TASE) playing a pivotal role. The TASE has become a nurturing ground for aerospace and defence companies, reflecting Israel’s strategic emphasis on technological advancements in these fields. Key players range from established giants to innovative startups.
Due to the robustness and strategic importance of this sector, it attracts considerable interest from both domestic and international investors. The consistent demand for advanced defence solutions ensures a steady flow of capital into these companies, making them key components of the TASE…..READ MORE ON AEROSPACE AND DEFENCE SECTOR
Itaconix Plc’s (AIM: ITX.L, OTC: ITXXF) vision – safer chemicals in consumer goods. ITX makes IP protected innovative bio-polymers that replace acrylic acid and styrene based polymers (US$ 20bn market) in consumer products. IA polymers have commercial applications in consumer and specialty chemicals markets including detergents markets as water softeners and dispersants; odour capture markets and hair products markets for hold, texture and flexibility. ITX’s innovations are protected by 16 patent families. ITX revenues YE22A rose to US$ 5.6m up 115% vs. 2.6m y/y. ITX’s recent YE23A preliminary revenues US$ 7.86m, despite a recent YE24 downgrade, ITX’ IP product strategy has attractive long run growth and margin characteristics…..READ MORE ON ITX CORE INVESTMENT CASE
CIEL Limited (SEMDEX: CIEL) is a Mauritius listed diversified industrial company with a 111-year track record and exposure to the globe’s last great growth opportunities, Asia and Africa. CIEL has a diversified international growth portfolio of 25 companies across 6 ‘clusters’ – Textile, Properties, Healthcare, Hotels & Resorts, Finance and Agro. CIEL’s geographical footprint
spreads across 10 emerging markets in Asia and Africa. CIEL Group delivered a series of 1H24A significant estimate beats for EBITDA, PAT and FCF, irrespective of a 1.1% miss on our revenue estimate and a decline in the EBTIDA/FCF conversion rate by 610bps to 45.1% y/y. We estimate Textile contributed 46.7% of Group FCF in part driven by a one off Textile WCAP reduction driven by a 1H24A 15.6% decline in Textile revenues y/y….READ MORE ON CIEL POST-RESULTS NOTE
CIEL Limited (SEMDEX: CIEL) is a Mauritius listed diversified industrial company with a 111-year track record and exposure to the globe’s last great growth opportunities, Asia and Africa. CIEL has a diversified international growth portfolio of 25 companies across 6 ‘clusters’ – Textile, Properties, Healthcare, Hotels & Resorts, Finance and Agro. CIEL’s geographical footprint
spreads across 10 emerging markets in Asia and Africa. CIEL delivered 24.1% y/y revenue growth YE23A fiscal. CIEL EBITDA margins expanded (up 153 bps) to 20.01% and EBITDA grew 34.4% vs. YE22A restated EBITDA. 1Q24A results – CIEL’s portfolio asset value (AV) was MUR 23.1bn (~USD500m at date of note) up 8.5% vs. YE23A – Textile and Properties accounted for 48% of AV vs. 52% YE23A, driven by AV growth in Hotels & Resorts. …READ MORE ON CIEL INITIATION NOTE
CIEL Limited (SEMDEX: CIEL) is Mauritius listed. It has a 111-year track record. CIEL has a diversified portfolio of 25 companies across 6 sectors – Textile, Finance, Healthcare, Hotels & Resorts, Property and Agriculture (sugar dominated). CIEL’s geographical footprint spreads across 10 emerging markets in South Asia and Africa. Africa is the last regional megascale growth opportunity. CIEL has delivered solid growth 1H23A fiscal – revs up 37% y/y. We estimate EBITDA up 42% y/y. The value of CIEL’s portfolio as at 31 Dec 2022 was MUR 21.2bn (~US$475m), with Textile and Healthcare together accounting for more than 50% of this value…READ MORE ON CIEL CORE INVESTMENT CASE
Textile manufacturing is potentially a very attractive business investment. The cost base is often in low value currencies and revenues are often in US dollars (US$).
The tactical challenge for public companies engaged in textile manufacturing is customer base diversification. Over reliance on a small number of significant customers, though initially attractive (large reliable orders and relatively simple customer relationship management) makes textile manufacturing businesses particularly vulnerable to cyclicality.
The textile industry is inherently cyclical and can be subdivided into textiles and apparel. Inherent cyclicality drivers in the textile industry include fashion trends, which come and go very quickly, and seasonal variation, e.g. winter coats and summer dresses and supply chain complexity…READ MORE ON GLOBAL TEXTILE AND APPAREL VALUE CHAIN
