Latest news with #GIC
Yahoo
9 hours ago
- Business
- Yahoo
1 Stock Under $50 with Promising Prospects and 2 to Question
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead. They also usually carry less risk than penny stocks, though they're not immune to volatility as many lack the scale advantages of their larger peers. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 that could 10x and two that could be down big. Share Price: $26.62 Formerly known as Systemax, Global Industrial (NYSE:GIC) distributes industrial and commercial products to businesses and institutions. Why Do We Steer Clear of GIC? Annual revenue growth of 5.7% over the last four years was below our standards for the industrials sector Earnings per share fell by 6.8% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable Diminishing returns on capital suggest its earlier profit pools are drying up Global Industrial's stock price of $26.62 implies a valuation ratio of 16.6x forward P/E. To fully understand why you should be careful with GIC, check out our full research report (it's free). Share Price: $37.40 As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries. Why Are We Out on TTMI? 1.3% annual revenue growth over the last two years was slower than its business services peers 9.2 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position ROIC of 4.7% reflects management's challenges in identifying attractive investment opportunities At $37.40 per share, TTM Technologies trades at 17.8x forward P/E. If you're considering TTMI for your portfolio, see our FREE research report to learn more. Share Price: $14.68 Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada. Why Are We Fans of LYFT? Active Riders have grown by 10.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 72.9% outpaced its revenue gains Free cash flow margin jumped by 23.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends Lyft is trading at $14.68 per share, or 12.1x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
11 hours ago
- Business
- CNA
China soy sauce maker rises on Hong Kong debut
HONG KONG: Shares in China's top soy sauce maker Foshan Haitian ended slightly higher on its debut on Thursday (Jun 19) after raising US$1.3 billion in one of Hong Kong's biggest initial public offerings (IPO) this year. The listing came weeks after openings by Chinese battery giant CATL and pharmaceutical firm Jiangsu Hengrui boosted hopes that the Asian financial hub is bouncing back as a destination for stock market flotations. Foshan Haitian's shares rose as much as 4 per cent in opening trade before sinking back towards their HK$36.30 (US$4.62) listing price, which was the higher end of its offer range. The stock ended the day up 0.55 per cent at HK$36.50, though it outperformed the Hang Seng Index, which sank 2 per cent. Chairwoman Cheng Xue called the listing "another important milestone in Haitian's development history". Foshan Haitian was founded in southern China's Guangdong province in 1955 and has developed from a small family workshop into a major producer of soy sauce, an essential ingredient in East Asian cuisine. The company has claimed the title of China's largest condiments maker by volume for 28 years, and its IPO came after it listed in Shanghai in 2014. Cornerstone investors for the Hong Kong listing - including private equity giant Hillhouse, Singapore's sovereign wealth fund GIC and Royal Bank of Canada's Global Asset Management - agreed to buy shares worth US$595 million. The firm exercised its option to issue additional shares, reflecting robust market demand. Foshan Haitian says it will use the proceeds to develop products, expand capacity and explore overseas markets in Southeast Asia and Europe. Hong Kong's stock market has taken a battering in recent years as appetite for new listings in the city was dampened by the COVID-19 pandemic and China's lethargic domestic growth, while a strict security law added to uncertainty. But it is now seeing a strong rebound, with an increasing number of listed Chinese companies flocking to the former British colony for secondary offerings. "We are cautiously optimistic that Hong Kong is well-positioned to contend for the top position in the global IPO market in 2025," Edward Au, Deloitte China's southern region managing partner, wrote in a note. But "adverse geopolitical or macroeconomic disruptions" could affect the optimism, he warned. Foshan Haitian's listing comes after Jiangsu Hengrui raised around US$1.3 billion in May in one of the world's biggest biopharma IPOs this year. That was days after the US$4.6 billion taken by CATL, which was the most so far in 2025. Proceeds from IPOs and additional share sales in Hong Kong have reached US$26.5 billion as of June, compared with US$3.8 billion over the same period last year, according to data compiled by Bloomberg.
Bloomberg
a day ago
- Business
- Bloomberg
China's Top Soy Sauce Maker Set to Begin Trading in Hong Kong
Foshan Haitian Flavouring & Food Co., China's biggest soy sauce maker, will begin trading in Hong Kong on Thursday after its HK$10.1 billion ($1.3 billion) stock offering drew strong demand from investors. The stock rose in Hong Kong's gray market on Wednesday. Earlier this week, Foshan Haitian sold the shares at HK$36.30 apiece, the high end of its marketed range, and attracted cornerstone investors including Hillhouse Investment, GIC Pte and RBC Global Asset Management.
Bloomberg
2 days ago
- Business
- Bloomberg
KKR, GIC Are Among Final Bidders for MasOrange, Zegona Joint Venture
KKR & Co. and GIC Pte. are among the final bidders for a stake in a fiber-optic broadband network venture owned by MasOrange and Zegona Communications Plc, according to people familiar with the matter. The two funds are among the suitors that have entered a second round of the process to buy a 40% stake in the joint venture, the people said, asking not to be identified because the matter is private. A final decision on a sale hasn't been made and MasOrange and Zegona could still decide not to go ahead with one.
Mint
2 days ago
- Business
- Mint
Unfazed by new players, GIC Re gears up to reclaim market share
Mumbai: Encouraged by promising results in the previous fiscal year, General Insurance Corporation of India (GIC) Re is looking to take the fight to its private-sector and foreign rivals. The country's largest and oldest reinsurance company grew its non-obligatory business for the first time in four years. The reinsurer posted a net profit of ₹6,701 crore for FY25, higher than ₹6,497 crore in the previous year. Earned premium for the year stood at ₹36,130 crore compared to ₹33,576 crore in FY24. Combined ratio, a profitability metric that indicates whether an insurer is making an underwriting profit or loss, improved to 108.8% for FY25 from 111.8% in FY24. Ramaswamy Narayanan, the company's managing director and chief executive officer, is aiming to bring this to below 100% over the next 6-7 years. Underwriting loss for the year reduced 16.4% to ₹3,352 crore. In an interview with Mint, Naranayan said the company is unfazed by the entry of new private players and falling market share, and the focus is now on profitability and improving the combined ratio. 'Today, I have the capital and the solvency. Going forward, GIC will write big-ticket shares in areas where there is profitability, growth and which gives us diversification. You will not see us writing the same classes again. We will look for opportunities elsewhere and that is where I see the strength of this company." Also read | Reform push: Insurance amendment bill heads to Parliament; changes to IBC, Companies Act will have to wait Narayanan attributed the fall in the company's market share in the domestic market from 60% to below 50% over the past 3-4 years to the increased size of the sector, entry of new players and more business being written by other existing players at a time when GIC itself was de-growing. Even so, GIC Re continues to write a big share in India, he said. 'The phase of de-growth and consolidation is done," Narayanan said, adding that growth going forward would be with profit. Reinsurance is insurance for insurance companies--insurers transfer their risk to another company to reduce the likelihood of large payouts for a claim. Reinsurers allow insurers to remain solvent by recovering all or part of a claim payout. Obligatory business Despite increasing calls for cessation of the obligatory business to GIC Re, Narayanan is confident that even if the obligatory business component is removed, GIC Re will only see a short to medium term impact. His confidence stems from the other-than-obligatory business that the reinsurer does today, called 'voluntary quota shifts'. This includes insurers which may feel that just giving 4% of business to GIC is less and may want the company to write more. 'So even if this 4% goes, I will get it back in voluntary quotations. I have no issues there," he said. Under the obligatory business arrangement, all insurance companies in India are required to get 4% of their reinsured portfolio covered by GIC. In exchange, GIC gives a certain commission back to the insurance companies. 'Will it hurt GIC if the entire 4% goes in a stroke? We will have issues explaining that obviously. Rating agencies will start worrying about what the business mix is going to be and how is it going to work? But I think over a period of time we will easily get it back," he said. Read this | How the crash impacts Air India, insurers and Boeing Narayanan emphasised that GIC's obligatory business has continued to grow despite the mandated percentage being reduced over the years from 20% to now 4%, purely because the overall market is growing. Currently, the obligatory business accounts for around 30% of the reinsurer's revenue, which is expected to fall considering the business consolidation undertaken by the company during 2020-2024. 'We really cut off a lot of loss-making businesses. So at that time, the obligatory business grew but other segments de-grew," he said, adding that this share in revenue could fall to about 25% by next year. The eventual plan is for the obligatory business to account for 25% of the business, international business for another 25% and balance 50% is the domestic business. Diversification Part of the growth strategy is also expanding the international business in order to diversify geographical risk for the reinsurer, especially for 'natcat' or natural calamities-related and political risk-related losses. This is done through sophisticated models to optimise capital management, Narayanan said, adding that while markets like the US may see more such incidents, the pricing is much better there compared with India, making it much easier to recoup losses. 'That is somewhere we have to improve because India is catching up in terms of the frequency and severity of incidents. And unfortunately, while climate change is a reality, a lot of these losses in India are due to how we manage our cities and how they are growing," he said. In October 2024, global rating agency AM Best upgraded GIC Re's credit rating to 'A-' from 'B++'. Beginning of calendar year 2025, the company started growing the international business. The reinsurer currently has overseas branches in Malaysia, South Africa and a subsidiary in the Lloyds marketplace in UK. Also read | LIC to decide on health insurer stake purchase in 2-3 months The second leg of diversification is being done through expansion into new product lines with the reinsurer now looking to write more health and motor insurance business—the two fastest growing segments within general insurance. 'We were pretty underweight on health. So we spoke to a lot of companies and we saw areas that could be of interest to us," Narayanan said. Competition Narayanan said he is not worried by the entry of private players into the market as he believes that GIC Re has always been a global player and its competitors multinational reinsurers and not domestic insurance companies. This includes Irdai awarding the reinsurance licence to Valuattics Reinsurance—marking the entry of the first private reinsurer to operate from within India. Narayanan believes the regulator could be open to awarding more such licences. "The point is, reinsurance is more capital hungry. So companies with deep pockets will need to come in. If they apply, I'm sure they will get it because Irdai wants more players to come into the market," he said, adding that it should not impact GIC's business because every company has their own way of getting business. While there is no shortage of business in India, a bigger issue is that India is perceived to be a very cheap market due to low pricing. 'Our competitors have always been, and even today, are multinational companies. I'm not competing with New India Assurance or Life Insurance Corporation. I'm really working with them and competing with Munich Re and Swiss Re and Hanoi," he said. In the face of this competition, what is expected to hold GIC in good stead is its long-standing partnerships that it has built over decades, he said. Also read | Third-party vehicle insurance: Insurers in distress over three-year rate pause 'GIC's relationships are more institutional. It's not about one person, but about the kind of support that we can give as an institution," Narayanan said, adding that as such, GIC does not work like a 'typical PSU" as it doesn't have too many offices or people and is a very lean organization. GIC Re currently has around 458 employees including recent recruitment of 80-85 people. HR overhaul Acknowledging the constraints that come with being a state-owned entity, Narayanan believes that GIC Re is trying to do things 'very differently". Hiring and human resource management is a key agenda for the organisation going ahead with Narayanan saying that while the reinsurer might not always be able to match its competitors' salaries, it is trying to offer value to employees in terms of work opportunities, differentiated training and learning across various lines of business as employees grow within the organisation. The objective is also to ready a second line of managers to take over the senior's role in case of exits or transfers. A lot of these HR-related changes are part of 'Project Parivartan'–introduced in 2022 and being spearheaded by KPMG, which GIC Re has hired as an external consultant to advise on the overhaul of its HR practices. The mandate for KPMG is to review existing HR practices and suggest global practices that can work within the PSU structure and factoring in the expertise required for this niche business. 'We have tried to see how we can restructure, also in terms of reducing hierarchy and red tape and creating clarity in what employees are doing and their role," he said. And read | Budget 2025: Insurers seek support for tax incentives, health cover, higher FDI limit
