Cyfrowy Polsat : Waiting for the clear(er) sky - diversification costs money, time and focus

Cyfrowy Polsat has become a diversified corporation, adding real estate and clean energy to its core TMT business (90% of revenues) in 2022 and 2023 respectively. While these additions open new avenues for growth, they have resulted in one of the highest leverage levels in the TMT sector and led to a dividend cut in 2023. The new clean energy venture required significant upfront capital expenditure and now appears to fall short of initial management expectations. In addition, family dispute at the shareholder level is another factor contributing to uncertainty in the investment case. We initia...

Bachem Holding AG : Navigating strong growth and investment challenges

Swiss-based Bachem is a global leader focused on one of the most attractive areas within pharma outsourcing - TIDES, comprising peptides and oligonucleotides (GLP-1 therapies and complex APIs). Protected by high technological barriers to entry, the company benefits from long-term contracts with key pharma partners which ensure a strong growth outlook but also require high capex to carry out large-scale expansion projects. At this stage, we do not see the risk/reward profile on the stock as attractive enough given that rising debt, and execution risks associated with large-scale expansion proje...

SUSS MicroTec SE : Questions on margins, but we still expect orders for HBM to recover over the next few quarters