Thanks to a target price increase, R&S (+4.1%) is continuing to soar. UBS has once again raised its target with an unchanged buy recommendation. The shares had already risen sharply in 2024, and since the beginning of April the price has risen sharply again.

$RSGN

A few years ago, SPACs were seen as the next big thing. A kind of shortcut for companies on their way to the stock exchange: faster, more flexible, less regulated than traditional IPOs. However, it is now clear that the euphoria was largely unfounded.

The results of many SPACs are sobering.

• After 1 year: -35% to -50% on average
• After 3 years: often even -70%
• And after 5 years, many disappear completely into insignificance.

There are many reasons for this: companies were often taken over that were not yet ready for the stock market. In addition, there were strong dilution effects and few incentives for quality - the main thing was that the deal went through.

And that is precisely why it is so exciting to look at $RSGN (R&S Group), one of my favorite stocks, a closer look.

The Swiss company went public in 2023 via a SPAC (VT5) - at a time when SPACs were already under pressure internationally. Nevertheless, RSGN has delivered.

• The focus on energy infrastructure fits in perfectly with the current energy transition.
• The customer list (including Siemens and ABB) is impressive.
• The figures? Profitable and growing.
• And the share price? It has remained stable since the merger and has even risen sharply - that alone is exceptional in the SPAC environment.

I looked into the UG, VT5, because I wrote my master's thesis on SPACs in Switzerland.

Of course, it remains to be seen $RSGN It remains to be seen how the business will develop in a volatile market environment. But it is clear that a SPAC does not necessarily have to end in disaster.

Perhaps RSGN is exactly the example that is needed to restore confidence in the model - at least if the foundations and strategy are right.

I would definitely like to see the next SPAC in Switzerland...

Happy investing

GG

Germany is in the middle of the energy transition. Coal and gas out, sun, wind and water in. 🌞💨🌊 That sounds like a purely German thing at first - but it's not. Because when billions are pumped into new power lines, grids and hydrogen infrastructure in Germany, the cash registers in Switzerland are also ringing. For example at the R&S Group ($RSGN ) - a transformer manufacturer based in Sissach (BL) and one of my favorites. But what's the connection?

Billions for new lines - and what does it take?

Germany needs to get its electricity grid up to scratch so that all the green electricity from wind and sun can actually get to where it is needed. 🔌 In concrete terms, this means more lines, new substations and tons of technology - including transformers.

A few figures:

• According to studies, it will take 650 billion euros by 2045 for the electricity grid alone. 🤯
• In addition, a new hydrogen core grid with over 9,000 km of lines will be built.
• Large wind farms such as "He Dreiht" (960 MW capacity) are coming on top. 🌬️

And this is where it gets exciting for the R&S Group.

Who supplies the transformers?

The R&S Group produces exactly what is needed for such a mega conversion: Transformers and switchgear in all sizes - in all sizes, from small distribution transformers to large power transformers with up to 120 MVA. ⚡ The company is not only active in Switzerland, but also delivers throughout Europe - and has over 100,000 transformers worldwide at the start. 💪

In order to position itself even better, R&S recently acquired the Irish transformer manufacturer Kyte Powertech acquired. The deal was worth approx. 264 million francs francs. As a result, R&S now has an even stronger presence in the European market - including Germany. 🏗️

Why an advantage right now?

In Germany, it's not just the politicians who are motivated, the pressure is also high: old grids won't last much longer and without a reliable infrastructure, no energy transition is possible. That's why planning and tendering are currently taking place on a grand scale - and that's exactly where specialized providers like R&S come into play.

Another plus: many transformers have to be "Made in Europe" in order to comply with EU directives or to be delivered more quickly. Despite not being a member of the EU, Swiss manufacturers are often still in demand because of their quality, reliability and proximity.

So: while Germany is building grids, building electricity storage systems and planning hydrogen pipelines, a Swiss company could make a lot of money in the process. 💼💡

What do you think? 🤔💭 Where and how else could you benefit?

Happy investing

GG

Sources:

[Bug? Can't insert links?]

The shares of transformer manufacturer R&S have not really taken off this year and have lost ground against the rising overall market. The shares were also weighed down by a large share placement by CGS at the end of January. Since the annual figures at the beginning of March, however, a trend reversal seems to have been initiated. R&S offers an ideal combination of a solid business model and strong external growth drivers, according to a study by "Neue Helvetische Bank", which has added the shares to its list of favorites. For example, the ongoing electrification in areas such as e-mobility, renewable energies and data centers is driving massive demand for high-performance transformers. In addition, the Group has made a promising addition to its product portfolio with the acquisition of Kyte. The recent weakness in the share price therefore offers an attractive entry opportunity, especially for long-term investors, the analysts conclude.

$RSGN

Sales 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

$RSGN

Source: FuW, 05.12.2024

$RSGN
joins the MSCI Small Cap Index as of November 25.

nomnomnom

Back again - military, new job & updates!

Reading time: approx. 2 minutes

Hey guys! 😎

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:

• $BTC (+0,09%)
  
  - I continue to see potential here in the long term.
• $ETH (+0,12%)
  
  - It remains a core component of my crypto portfolio.
• $SOL (+0,2%)
  
  - I have added a little here after some recent fluctuations.
• $FWRG (-0,97%) - Fundamentally Well-Rounded Growth (jokingly 😉)
• $PAWS (-1,01%) - The sustainable investment solution. 😊
• $JEGP (-0,3%) - To be saved more regularly in future.

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.

• Coinbase was buying and selling every day for a long time - for no reason at all. You can imagine how confusing that was! Fortunately, I was able to fix the problem by reconnecting. Since then it's been back to normal, but it was definitely a pain.
• SwissquoteAbsolutely the hate! The connection was erratic, sometimes it works, sometimes it doesn't. After I reconnected it, new errors popped up while old ones were fixed. I currently have a deviation of around 5% in the depotwhich I still have to sort out. A constant up and down that is really driving me crazy. Has anyone had similar experiences?

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! 😊

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.

$RSGN

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. ❤️

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 Ø CHF 10.42)

$RSGN