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12Sales at the industrial company R&S ($RSGN ) increased by 40% to CHF 283 million last year, partly due to acquisitions. EBIT climbed to just under CHF 63 million, more than twice as high as in the previous year. An unchanged dividend of 50 Rp. (~3% at the current share price).
The figures will be published in April. I am absolutely satisfied with the 4% dividend yield on my purchase. I am not planning to sell; at around CHF 14, I would even consider buying more.
Happy investing
GG
R&S Group expects lower debt
The transformer manufacturer has taken out a syndicated loan of CHF 160 million from ten financial institutions, led by UBS, to finance the acquisition of Kyte Powertech. The loan replaces an earlier bridging loan of CHF 233 million and will be repaid in tranches of CHF 25 million every six months from 2025. In addition, R&S has agreed a revolving credit facility of CHF 30 million for general purposes. The net gearing ratio is expected to be below 1.8 at the end of 2024, which is better than expected.
Happy Investing
GG
Source: FuW, 05.12.2024
Back again - military, new job & updates!
Reading time: approx. 2 minutes
Hey guys! đ
It's been quiet around me for a while, but now I'm back and happy to give you an update on why I've been so inactive lately. A lot has been going on, both professionally and privately. But don't worry, I haven't been completely inactive on the stock market front either - there's some exciting news there too.
Where have I been? Military, job change & relocation
First of all: I was away in the military and that took up a lot of my time and energy. You know how it goes: little free time, lots to do and hardly any time for other things. But now the chapter is closed again until May next year.
I've also moved house - so I've not only moved a lot mentally, but also physically. New apartment, new city, but everything went well. At the same time, I also changed jobs, which took up a lot of my time. I am now with an embedded finance company which is super exciting. If anyone has any questions about this area, please let me know - I'm currently learning an incredible amount myself and I imagine that some of you might also find the topic interesting.
Stock market updates: Acquisitions & Biggest Win
But enough of my personal stuff, let's get down to the essentials - the stock market activities! Despite everything, I was able to make a few purchases:
And now to the Biggest Win:
My investment in $RSGN is going like clockwork. You can find my articles on this under the title. I am (unfortunately?) the only observer/investor. The share price has developed steadily, demand remains stable, partly due to the limited supply of shares in the order book. I am holding on to my position and still see great potential here. I'm really looking forward to the next company updates and where the journey will take us!
Pain point: Coinbase & Swissquote
Where there is light, there is also shadow - and for me it was definitely Coinbase and Swissquotethat gave me a headache.
Performance: Satisfied
Overall, I am satisfied with my performance. On the whole, my portfolio has performed roughly in line with the market. I see this as positive - in these turbulent times, that's not a bad thing.
I hope you found this update helpful and interesting. It feels good to be back in the forum and I look forward to your comments and discussions! How are things going for you on the stock market? Have you had similar problems with platforms like Coinbase or Swissquote?
Happy investing and see you soon! đ
GG
Transformer manufacturer R&S was able to improve its financial position thanks to the tender of redeemable warrants.
By the end of September, 79 percent of the warrants listed on the Swiss stock exchange with the ticker "RSGW" had been converted into registered shares of the company. These conversions strengthened the Group's equity and liquidity by around CHF 60.8 million, the Basel-based company announced on Tuesday after the close of trading. The number of outstanding shares increased by 5.29 million to 35.95 million. This also increases the free float.
I filled my position for the time being today (finger twitched).
New 242 shares at an average of CHF 12.31
Investora 24' - R&S Group aims to further strengthen its market position. â€ïž
Reading time: 1-2 minutes
According to its own statements, the transformer manufacturer R&S Group is focusing primarily on further organic growth. Should attractive opportunities arise, however, acquisitions are also possible.
One example of a suitable deal was the purchase of the Irish manufacturer of distribution transformer solutions Kyte Powertech in August. "Kyte is in a sweet spot," said R&S CEO Markus Laesser on Thursday at the Investora investor conference.
The takeover has not only opened up new markets for R&S, but also broadened its technology base. The overlaps in the markets are very small, Laesser continued. Kyte is the market leader in Ireland and the UK. In addition, Kyte enables R&S to enter the markets in the Netherlands, Belgium and France, where it was previously hardly represented.
In the longer term, the acquisition of Kyte would also open up the US market. "Should we decide to enter the USA, we would be ready with the technology and the product," Laesser continued. However, expansion into the USA is not currently on the agenda.
Baltic states as a key market
"Next Monday will be a very important day for us," Laesser continued. This is when the final factory test for the expansion of the new plant in Poland will take place before production starts there.
With the expanded transformer plant there, the company intends to primarily serve the Baltic states as well as Norway, Sweden and Germany. The Baltic market in particular is very attractive and will be one of the key markets of the future. Two new nuclear power plants have just gone into operation there. In addition, numerous data centers are currently being built in the region, which have a great need for transformers.
The Basel-based R&S Group is a supplier of electrical infrastructure components in Switzerland and on international markets. It has six production sites in Switzerland, Italy, Poland and the Middle East and supplies both the domestic and various European export markets with small and medium-sized power and distribution transformers and other components for the energy supply, infrastructure and industrial sectors. The company was listed on the Swiss stock exchange in December 2023 through a merger with the Spac company VT5.
I am already Pre De-SPAC & will probably add a 3rd tranche sooner rather than later. (Currently 191 shares at Ă CHF 10.42)
$RSGN - BRIEF-R&S Group Announces Organic Net Sales Growth Of 15% And Operating Performance Above Expectations for HY
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I'll look at the figures later and report again. Looks very good at first glance!
GG
Update 1:
The Basel-based transformer manufacturer recorded a 15% increase in sales and an 18% rise in incoming orders in the first half of the year.
R&S will increase its production capacity to meet rising demand.
R&S performed well in the first half of 2024. Both sales and incoming orders increased significantly for the newcomer to the stock exchange.
According to a press release issued on Wednesday, sales from January to June climbed by 15% to CHF 109.9 million and order intake by 18% to CHF 141.0 million. The order backlog at mid-year was a record CHF 218.2 million.
The strong growth in key figures comes as no surprise, as R&S had already raised its outlook for 2024 and its medium-term forecast in May due to the good business performance.
Delay in new plant
R&S will increase its production capacity in order to meet rising demand. However, the opening of a new plant in Poland has been slightly delayed due to late machine deliveries. Production is now scheduled to start in October 2024 - the first deliveries will be made in the fourth quarter of 2024.
In addition, the company anticipates higher tax expenses in 2024 than previously expected due to a one-off tax payment of CHF 3.7 million for previous periods.
Nevertheless, the profit forecast is confirmed.
Accordingly, the Group anticipates sales growth of more than 12%, an EBIT margin of around 20% and a free cash flow margin in the mid-double-digit range as a percentage of net sales.
The full half-year report will be presented on September 11.
$RSGN Small update
Hi there!
I hope you can see the sun here and there and can look forward to a relaxing weekend. Sunday is the big finale of the European Championship campaign (Spain as the winner? đ)
Short update on $RSGN :
It seems that the company I described as a hidden gem has been "discovered". Various. Funds and investment banks are investing heavily in the company and have recently driven up the price.
Both LLB Invest, Swisscanto and UBS now hold notifiable shares.
I will probably buy a third and for the time being last tranche in the next 3 months. I still see great potential!
According to various analysts, the RSGN price target is CHF 14.55 with a maximum estimate of CHF 15.50 and a minimum estimate of CHF 13.60.
Happy Investing
GG
Presentation of the company: R&S Group Holding AG
Hidden Gem?
In this article I present my view on a Swiss UG. (Disclaimer: Hold 191 shares, bought 93 shares today at CHF 10.65).
R&S Group Holding AG ($RSGN) is a Swiss-based company specializing in the manufacture and supply of electrical infrastructure. Its main products include power transformers and oil-immersed and cast-resin-insulated distribution transformers. The company, which operates in Switzerland, Italy, Poland and the Middle East, serves the domestic and various European export markets. R&S was listed on the SIX Swiss Exchange in December 2023 under the ticker symbol RSGN - as DeSPAC.
A brief review
R&S Group Holding AG showed a strong financial performance for the financial year 2023 with sales growth of 40% and a 174% increase in net profit compared to the previous year. Sales forecasts indicate continued growth, with an expected annual increase of 5.3% over the next three years.
The stock is currently trading around 30.4% below its estimated fair value (SimplyWallStreet), indicating undervaluation. In addition, the company is characterized by low volatility compared to the broader market and has a stable business model underpinned by a high EBIT margin of 18.6% in 2023.
My investment case for a buy
R&S Group Holding AG represents an attractive buying opportunity based on several key factors:
Robust growth: the company has shown impressive growth rates in sales and profits and continues to forecast above-average growth compared to the industry.
Stable finances: R&S has a strong cash flow position, which allows the company to invest in strategic initiatives while managing its debt burden.
Dividend potential: Based on the strong results, the Board of Directors is proposing a dividend, which represents additional income potential for shareholders. CHF 0.25 will be paid out for FY 2023 ( ~2.4% yield).
Sustainability and strategic positioning: The company is well positioned to benefit from long-term trends such as decarbonization and energy efficiency.
The board and the previous SPAC include high-caliber individuals who have already helped VAT to achieve success on the stock market.
P/E ratio at ~25, EPS CHF 0.40; current share price of CHF 10.65
Overall, R&S Group offers a compelling investment opportunity for me due to its combination of financial strength, strategic positioning and market potential.
In my opinion, R&S is just waiting to be discovered. They still have to prove themselves this year and then I see disproportionate share price potential. So far, R&S is the first and only company to be listed on the Swiss stock exchange via SPAC. While many US SPACs are performing poorly, R&S has so far been able to hold its own, is not making disproportionate promises and is not reaching for the stars. It seems to be aiming for sustainable growth.
The future (2025+) will show.
Happy investing
GG
Info about $RSGN
Keep me short, you can find more information about my opinion in old posts under the title.
Greater resistance in the order book at 13.00 and 13.80. Supports are missing around the current level.
GG
RSGN - On the occasion of today's AGM
$RSGN continues to expect a strong development and future. The first dividend (CHF 0.25) is due soon.
In December, shares of SPAC investors will be released for trading (lock-up expires), which could lead to a price decline. So far, however, SPAC investors are interested in long-term participation.
We will see!
GG
Presentation of the company: R&S Group Holding AG
Hidden Gem?
In this article I present my view on a Swiss UG. (Disclaimer: Hold 191 shares, bought 93 shares today at CHF 10.65).
R&S Group Holding AG ($RSGN) is a Swiss-based company specializing in the manufacture and supply of electrical infrastructure. Its main products include power transformers and oil-immersed and cast-resin-insulated distribution transformers. The company, which operates in Switzerland, Italy, Poland and the Middle East, serves the domestic and various European export markets. R&S was listed on the SIX Swiss Exchange in December 2023 under the ticker symbol RSGN - as DeSPAC.
A brief review
R&S Group Holding AG showed a strong financial performance for the financial year 2023 with sales growth of 40% and a 174% increase in net profit compared to the previous year. Sales forecasts indicate continued growth, with an expected annual increase of 5.3% over the next three years.
The stock is currently trading around 30.4% below its estimated fair value (SimplyWallStreet), indicating undervaluation. In addition, the company is characterized by low volatility compared to the broader market and has a stable business model underpinned by a high EBIT margin of 18.6% in 2023.
My investment case for a buy
R&S Group Holding AG represents an attractive buying opportunity based on several key factors:
Robust growth: the company has shown impressive growth rates in sales and profits and continues to forecast above-average growth compared to the industry.
Stable finances: R&S has a strong cash flow position, which allows the company to invest in strategic initiatives while managing its debt burden.
Dividend potential: Based on the strong results, the Board of Directors is proposing a dividend, which represents additional income potential for shareholders. CHF 0.25 will be paid out for FY 2023 ( ~2.4% yield).
Sustainability and strategic positioning: The company is well positioned to benefit from long-term trends such as decarbonization and energy efficiency.
The board and the previous SPAC include high-caliber individuals who have already helped VAT to achieve success on the stock market.
P/E ratio at ~25, EPS CHF 0.40; current share price of CHF 10.65
Overall, R&S Group offers a compelling investment opportunity for me due to its combination of financial strength, strategic positioning and market potential.
In my opinion, R&S is just waiting to be discovered. They still have to prove themselves this year and then I see disproportionate share price potential. So far, R&S is the first and only company to be listed on the Swiss stock exchange via SPAC. While many US SPACs are performing poorly, R&S has so far been able to hold its own, is not making disproportionate promises and is not reaching for the stars. It seems to be aiming for sustainable growth.
The future (2025+) will show.
Happy investing
GG
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