This 6.5%-Yielding Dividend Stock Just Closed the Final Phase of a Once-in-a-Generation Opportunity
Last fall, Enbridge (NYSE: ENB) made a bold strike. The Canadian pipeline and utility giant agreed to buy three natural gas utilities from Dominion in a $14 billion deal. The transaction would create the largest natural gas utility franchise in North America.
At the time, Enbridge’s CEO Greg Ebel stated, “Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once-in-a-generation opportunity.” While it took a little more than a year, the company has finally closed this generational opportunity to expand its gas utility business. The deal significantly enhances the company’s ability to sustain and grow its 6.5%-yielding dividend.
Closing the final phase
Enbridge recently announced that it has closed its acquisition of Public Service Company of North Carolina (PSNC) from Dominion. The deal adds over 600,000 service customers in the state, which it serves with over 13,000 miles of gas distribution and transmission pipelines and other related gas infrastructure assets.
The utility should supply Enbridge with stable, low-risk cash flow backed by government-regulated rate structures and steady gas demand. That cash flow should grow in the coming years as Enbridge invests in expanding PSNC’s infrastructure to support rising gas demand in its service region.
Closing the PSNC acquisition was the final phase of this transformational transaction. Enbridge previously closed the purchase of The East Ohio Gas Company in March and completed its deal for Questar Gas Company in June.
The trio of gas utilities significantly expands Enbridge’s gas distribution platform. It will supply 22% of the company’s annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), up from 12% before the deal. It further diversified the company’s business while increasing its exposure to lower carbon energy.
The new gas utilities also increased the company’s cash flow from stable regulated assets and enhanced its growth profile. Enbridge expects to invest 5 billion Canadian dollars ($3.7 billion) over the next three years into low-risk, quick-return projects, which will increase its earnings from these utilities.
Enhancing an already strong foundation
Enbridge has built one of the lowest-risk businesses in the energy infrastructure sector. The company has a diversified platform focused on four core franchises: liquids pipelines (50% of its EBITDA), gas transmission and midstream (25%), gas distribution and storage (22%), and renewable power (3%).
About 98% of the EBITDA generated from those businesses comes from cost-of-service or contracted assets, which are very predictable and stable. As evidence, Enbridge has achieved its annual financial guidance for 18 straight years, despite two major recessions and two additional periods of oil market turbulence.
The company targets to pay 60% to 70% of its very stable cash flow to investors in dividends. It retains the rest to invest in its large backlog of commercially secured capital projects. The utility acquisitions pushed its backlog to CA$24 billion ($17.8 billion) of projects it should complete through 2028. Those projects give it lots of visibility into its future earnings growth.
The company expects those projects will help grow its EBITDA by about 5% annually. Meanwhile, it has additional investment capacity, thanks to its strong balance sheet, which it can use to sanction additional expansion projects and make accretive acquisitions, further enhancing its growth rate.
With a strong financial profile and visible earnings growth, Enbridge should have plenty of fuel to continue increasing its dividend. It could grow its dividend by as much as 5% per year over the medium term, further extending a streak that is currently at 29 straight years.
An elite dividend stock
Enbridge has closed its once-in-a-generation opportunity to add three high-quality gas utilities to its portfolio. They enhance the stability of its earnings base, increase its diversification, and bolster its growth profile.
Because of that, Enbridge is in an even stronger position to continue growing its dividend. That makes it an excellent dividend stock to buy for the long term.
Should you invest $1,000 in Enbridge right now?
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Matt DiLallo has positions in Enbridge. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
This 6.5%-Yielding Dividend Stock Just Closed the Final Phase of a Once-in-a-Generation Opportunity was originally published by The Motley Fool
What's Going On With Levi Strauss Stock After Earnings?
Levi Strauss & Co LEVI shares are trading lower Thursday after the company posted worse-than-expected third-quarter revenue on Wednesday.
The Details:
Levi Strauss reported quarterly revenue of $1.516 billion, below consensus estimate of $1.55 billion, due in part to the exit of its Denizen business. The company also revealed it’s considering a sale of its Dockers brand.
“We are narrowing our focus to realize the full potential of the Levi’s brand as well as accelerate Beyond Yoga. Accordingly, we are undertaking an evaluation of strategic alternatives for the global Dockers business,” CEO Michelle Gass said during a post-earnings call.
Read Next: What Happened With Accenture Stock Today?
Levi Strauss issued fiscal 2024 earnings guidance with its midpoint below estimates. The company expects earnings of between $1.17 and $1.27 per share for the year, versus the $1.25 estimate.
Stifel analyst Drew Crum maintained a Buy rating and lowered the price target from $28 to $25 following the print. Telsey Advisory Group maintained its Outperform rating and $26 price target.
Should I Sell My LEVI Stock?
Whether to sell or hold a stock largely depends on an investor’s strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Levi Strauss have gained 48.15% year to date. This compares to the average annual return of -3.24%, meaning the stock has outperformed its historical averages. Investors can compare a stock’s movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Levi Strauss stock currently has an RSI of 56.58, indicating neutral conditions.
For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.
LEVI Price Action: According to Benzinga Pro, Levi Strauss & Co shares are down 7.22% at $19.54 at the time of publication Thursday.
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Can Robinhood Markets Keep the Earnings Surprise Streak Alive?
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Robinhood Markets, Inc., which belongs to the Zacks Financial – Investment Bank industry.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 150%.
For the last reported quarter, Robinhood Markets came out with earnings of $0.21 per share versus the Zacks Consensus Estimate of $0.15 per share, representing a surprise of 40%. For the previous quarter, the company was expected to post earnings of $0.05 per share and it actually produced earnings of $0.18 per share, delivering a surprise of 260%.
Thanks in part to this history, there has been a favorable change in earnings estimates for Robinhood Markets lately. In fact, the Zacks Earnings ESP for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
Robinhood Markets has an Earnings ESP of +31.33% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company’s next earnings report is expected to be released on October 30, 2024.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock’s earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
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Bullish Move: Michael W. Metcalf Shows Confidence, Acquires $163K In Powell Industries Stock
In a recent SEC filing, it was revealed that Michael W. Metcalf, Exec Vice President at Powell Industries POWL, made a noteworthy insider purchase on October 2,.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that Metcalf made a notable purchase of 900 shares of Powell Industries, valuing at $163,926.
During Thursday’s morning session, Powell Industries shares up by 2.69%, currently priced at $237.84.
Discovering Powell Industries: A Closer Look
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company’s principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States.
Powell Industries: Delving into Financials
Positive Revenue Trend: Examining Powell Industries’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 49.8% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Evaluating Earnings Performance:
-
Gross Margin: The company shows a low gross margin of 28.37%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): Powell Industries’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.85.
Debt Management: Powell Industries’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.0.
Valuation Overview:
-
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.64, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
-
Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.98, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 15.05, Powell Industries presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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Why Insider Transactions Are Key in Investment Decisions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
The Insider’s Guide to Important Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Powell Industries’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ready for Growth? Barrick Gold Stock Could Be the Answer
With gold prices reaching a new peak of $2,653.98 per troy ounce, marking a significant year-to-date surge of 28.71%, investors understandably turn their attention to the gold market and the companies poised to benefit from this upward trend. As a traditional safe haven investment, gold often attracts investors seeking to hedge against inflation and economic uncertainty. The current surge in demand, driven by central banks and investors seeking portfolio diversification, has further fueled interest in this sector. Barrick Gold GOLD, a leading gold mining company, is at the forefront of this industry, presenting a compelling investment opportunity for those seeking exposure to the precious metal.
Strong Financials, A Steady Foundation
Barrick Gold’s financial performance underscores its solid standing in the gold mining industry. The company recently reported a 20.11% increase in quarterly revenue compared to the same period last year, signaling strong growth and financial health. This financial performance, coupled with a significant market capitalization of around $36 billion, positions Barrick Gold favorably to capitalize on the positive trends in the gold market. Furthermore, Barrick Gold’s debt-to-equity ratio (D/E), currently at a healthy 0.15, demonstrates responsible debt management, a key factor for investors concerned about financial risk. This strong financial foundation creates a solid base for potential future growth and makes Barrick Gold a more attractive investment for those seeking exposure to the gold market.
A Look at Barrick Gold’s Share Price
Despite the recent surge in gold prices, the gold market remains inherently volatile, which presents opportunities and challenges for investors in gold mining companies like Barrick Gold. While the recent 52-week high of $21.21 reflects a favorable period for the stock, it has also dipped to a low of $13.76, showcasing the potential for significant fluctuations. Barrick Gold’s share price has shown resilience, with a one-year performance of +39.79% and a year-to-date gain of +12.44%.
For investors considering Barrick Gold, this volatility necessitates carefully assessing their risk tolerance and investment goals. While the company’s solid financials and the favorable gold market present opportunities, price fluctuations in Barrick Gold’s stock price underscore the importance of a long-term perspective and a thorough understanding of the potential risks. While Barrick Gold’s share price has demonstrated resilience, the short-term fluctuations highlight the need for a disciplined investment approach, potentially using strategies like dollar-cost averaging or focusing on longer-term holding periods.
Central Banks Fuel a Gold Rush, Boosting Barrick Gold’s Prospects
The gold market is experiencing increased demand from investors seeking portfolio diversification and a safe haven asset, and there is a significant appetite for gold among central banks. This trend, mainly driven by China, is a key factor fueling the strength of the gold market. In 2023 alone, China purchased 1,037 tonnes of gold, a substantial amount, further solidifying its position as the world’s largest gold holder. The first quarter of 2024 saw even more aggressive buying by central banks, marking the fourth-strongest quarter of purchases since 2022.
This growing demand from central banks underscores the increasing perception of gold as a safe haven asset, a trend that could continue to drive gold prices higher in the coming months and years. This surge in demand, combined with the existing strong appetite from investors, creates a favorable backdrop for gold mining companies like Barrick Gold. As a leading gold producer with a solid financial foundation and ambitious growth strategies, Barrick Gold is well-positioned to capitalize on this trend, potentially benefiting from higher gold prices and increasing investor interest.
A Growth Trajectory: Expansion and Sustainability
Barrick Gold is focused on maximizing its current performance and actively investing in its future growth through strategic expansion projects and a commitment to sustainable mining practices. This dual focus strengthens the company’s appeal to investors seeking long-term value and a responsible approach to mining.
The company is pursuing several significant projects designed to increase production capacity significantly. These include the Goldrush mine in Nevada, projected to reach an annual output of over 400,000 ounces by 2028, and the Fourmile project, which has the potential for annual production in excess of 500,000 ounces over two decades. These expansion efforts showcase Barrick Gold’s commitment to future growth, potentially leading to higher production levels and increased profitability.
Barrick Gold’s dedication to sustainable mining practices further solidifies its commitment to responsible operations. The company has developed an innovative biodiversity tool designed to assess its impact on biodiversity across its operations. This tool provides tangible metrics that inform actionable conservation strategies and helps Barrick Gold measure its performance against concrete goals. This proactive approach, combined with the company’s commitment to local communities and economic development, reinforces its image as a responsible and forward-thinking company.
A Balanced Perspective: Time to Buy?
Barrick Gold presents a compelling opportunity for those seeking exposure to the gold market. The company’s strong financial foundation and commitment to growth and sustainability position it favorably to capitalize on the strong global demand for gold. The positive trends in the gold market, fueled by factors like central bank purchases and increasing investor interest, are creating a favorable environment for gold mining companies like Barrick Gold.
Considering Barrick Gold’s current position, strategies like dollar-cost averaging or focusing on long-term holding periods could be considered. Ultimately, Barrick Gold offers a solid investment opportunity with potential for growth and long-term value for those seeking exposure to the gold market.
The article “Ready for Growth? Barrick Gold Stock Could Be the Answer” first appeared on MarketBeat.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Supermicro And Fujitsu Partner For AI-Powered Server: What's In Store?
Super Micro Computer, Inc. SMCI has entered a long-term strategic partnership with Fujitsu Limited to develop and market a platform that will feature Fujitsu’s future Arm-based “FUJITSU-MONAKA” processor.
The platform is designed for high performance and energy efficiency and is scheduled for release in 2027.
The partnership will also focus on creating liquid-cooled systems for high-performance computing (HPC), generative AI, and next-generation green data centers.
Fujitsu and Supermicro will combine their expertise to create a leading server portfolio.
Supermicro’s flexible Building Block design enables quick customization of servers for AI, HPC, and general computing, supporting both cloud and edge deployments.
The collaboration will involve Fsas Technologies Inc., a Fujitsu subsidiary, to deliver global generative AI solutions using Supermicro’s GPU servers and support services for data centers and enterprises.
“Supermicro is excited to collaborate with Fujitsu to deliver state-of-the-art servers and solutions that are high performance, power efficient, and cost-optimized,” said
Charles Liang, president and CEO of Supermicro.
“These systems will be optimized to support a broad range of workloads in AI, HPC, cloud and edge environments. The two companies will focus on green IT designs with energy-saving architectures, such as liquid cooling rack scale PnP, to minimize technology’s environmental impact.”
Investors can gain exposure to Super Micro through iShares Future AI & Tech ETF ARTY and Defiance Daily Target 2X Long SMCI ETF SMCX.
Price Action: SMCI shares are down 0.26% at $41.89 premarket at the last check Thursday.
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All-electric 'Nest House' Hits the Market for $5 Million
Architectural Abode Offers Rare Opportunity in the Berkeley Hills
BERKELEY, Calif., Oct. 2, 2024 /PRNewswire/ — The Nest House, designed by accomplished female architect-duo Artifact Collaborative, has hit the market for $5 million in the Berkeley Hills. The all-electric home is the latest architectural gem from the duo who have been nominated for awards by AIA East Bay in 2021 for their projects Plus House and Wave House. The new construction home, located at 1158 Cragmont Avenue, is a flexible, family-friendly abode that has been meticulously designed and built down to its last gorgeous detail. The home is listed with Scott Leverette of Golden Gate Sotheby’s International Realty.
Nest House, named for its floating wing connected to the house by a glass bridge, is both beautiful in form and robust in construction detailing. Conceived with sustainability in mind, the all-electric home started with a passive solar thermal design and siting to emphasize the connection to the land. Featuring five bedrooms and four and a half bathrooms, this 3,583 square foot home includes a green roof, heat pump for heating and cooling, solar PV system, 240V EV car charger location, pre-plumbed for a whole home back-up battery, and a vehicle to home battery system. Constructed with the most meticulous design tolerances, Nest House has also been built to last from the ground up. Incorporating the latest seismic design, robust piers, and slab-on-grade foundation, steel moment frames, and fire-hardened construction with a fire sprinkler system.
“Nest House is new school luxury implementing modernist design principles with a beautiful nod to the local midcentury designers that changed home styles globally,” says Leverette. The rare home offers one-of-a-kind modern and sustainable living unlike new construction seen in the area, as well as offering a convenient and inspiring location, situated just above Codornices Park and close to the Gourmet Gulch in North Berkeley. The spectacular views of San Francisco and the Bay are enjoyed while still being nestled amongst the redwood trees on a quiet street¾ plus a large flat lower yard, a rarity in the Berkeley Hills.
For more information contact Scott Leverette
Mobile: 510.919.3333
Email: s.leverette@ggsir.com
For media inquiries, please email MediaInquiries@ggsir.com
About Golden Gate Sotheby’s International Realty:
Golden Gate Sotheby’s International Realty has over 485 agents in 21 offices throughout the San Francisco Bay Area serving the counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, Sonoma and San Francisco. For more information, please visit www.GoldenGateSIR.com
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Ammonia Market to Reach $87.7 Billion, Globally, by 2033 at 5.1% CAGR: Allied Market Research
Wilmington, Delaware , Oct. 03, 2024 (GLOBE NEWSWIRE) — Allied Market Research published a report, titled, “Ammonia Market by Type (Aqueous, Anhydrous and Gas), Product Type (Green Ammonia, Blue Ammonia, Grey Ammonia and Brown Ammonia), End Use (Fertilizer, Chemical, Refrigeration, Fibers, Plastics, Pharmaceuticals, Paper and Pulp and Others): Global Opportunity Analysis and Industry Forecast, 2024-2033″. According to the report, the ammonia market was valued at $53.2 billion in 2023, and is estimated to reach $87.7 billion by 2033, growing at a CAGR of 5.1% from 2024 to 2033.
Prime determinants of ammonia market growth
The global ammonia market is experiencing growth due to agriculture industry demand, growth in chemical manufacturing, and increase in industrial applications. However, fluctuating raw material prices, environmental concerns, and regulatory challenges hinder the market growth. Moreover, the expansion in the fertilizer industry and renewable ammonia production technologies are projected to provide opportunities for the ammonia market growth.
Download Sample Pages of Research Overview: https://www.alliedmarketresearch.com/request-sample/A08983
Report coverage & details:
| Report Coverage | Details |
| Forecast Period | 2024–2033 |
| Base Year | 2023 |
| Market Size in 2023 | $53.2 billion |
| Market Size in 2033 | $87.8 billion |
| CAGR | 5.1% |
| No. of Pages in Report | 325 |
| Segments Covered | Type, Production Type, End-Use, and Region |
| Drivers | Agriculture industry demand Growth in chemical manufacturing Increase in use in industrial applications |
| Opportunity | Expansion of fertilizer industry Renewable ammonia production technologies |
| Restraint | Fluctuation in raw material prices Environmental concerns Regulatory challenges |
The anhydrous segment is expected to experience growth throughout the forecast period
Based on type, the anhydrous ammonia segment dominates the market due to its widespread use in agriculture as a nitrogen-rich fertilizer. It is highly efficient for delivering nitrogen to crops, essential for optimal growth and yield. Anhydrous ammonia is also favored for its relatively lower cost compared to other nitrogen fertilizers. In contrast, aqueous ammonia, which is ammonia dissolved in water, finds niche applications in cleaning agents and industrial processes where precise ammonia concentrations are required. However, the agricultural demand for anhydrous ammonia significantly outweighs these industrial uses, making it the predominant type in the global ammonia market.
The blue ammonia segment is expected to grow faster throughout the forecast period.
Based on production type, the blue and green ammonia segment dominates the market as industries and governments prioritize decarbonization efforts, aiming to reduce greenhouse gas emissions and achieve sustainable production practices. Blue ammonia utilizes carbon capture and storage (CCS) to reduce emissions from traditional production methods, making it an environment-friendly option. While green ammonia produced using renewable energy sources like wind or solar power, is gaining traction due to its minimal carbon footprint, aligning with global sustainability goals. Grey and brown ammonia refers to conventionally produced ammonia with varying levels of environmental impact and emissions.
Procure Complete Report (325 Pages PDF with Insights, Charts, Tables, and Figures) @ https://www.alliedmarketresearch.com/checkout-final/ammonia-market
The fertilizer segment is expected to grow faster throughout the forecast period.
Based on end-use, the fertilizer segment dominates the ammonia market due to its essential role in agricultural productivity. Ammonia is primarily used to manufacture nitrogen-based fertilizers like urea, which are crucial for enhancing crop yields worldwide. As global population and food demand rise, so does the need for efficient agricultural practices, driving continuous demand for fertilizers. Additionally, ammonia’s relatively low cost and high nitrogen content make it an economical choice for large-scale agricultural applications. While other industries like chemicals, refrigeration, and pharmaceuticals also rely on ammonia, the sheer volume of demand from the fertilizer sector establishes it as the leading end-use in the ammonia market.
The Asia-Pacific segment dominated the market in 2023
Asia-Pacific currently dominates the ammonia market due to its substantial agricultural sector and industrial growth. As of 2023, Asia-Pacific accounted for over 60% of global ammonia production capacity. This dominance is driven by high demand for fertilizers in countries like China and India, where agriculture is a major economic driver. Additionally, rapid industrialization in sectors such as chemicals, textiles, and pharmaceuticals further boosts ammonia consumption in the region. North America and Europe also play significant roles in the market, but Asia-Pacific’s sheer scale of agricultural and industrial activities cements its leadership position in ammonia production and consumption globally.
Want to Access the Statistical Data and Graphs, Key Players’ Strategies: https://www.alliedmarketresearch.com/ammonia-market/purchase-options
Leading Market Players: –
- Qatar Fertilizer Co (QAFCO)
- Parsian Oil and Gas Development Group Co.
- Indian Farmers Fertiliser Co-operative Limited (IFFCO)
The report provides a detailed analysis of these key players in the ammonia market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
About Us
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
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Nvidia stock rises as CEO Jensen Huang touts 'insane' chip demand
Nvidia (NVDA) stock jumped as much as 5% on Thursday as CEO Jensen Huang said demand for its next-generation Blackwell chips has been “insane.”
In an interview with CNBC on Wednesday after the market close, Huang confirmed the chips are in “full production” despite recent design issues that caused some delays in customer rollouts.
“Blackwell is as planned,” Huang said. “Everybody wants to have the most and everybody wants to be first.”
Blackwell delays have caused concern for investors, with many looking to the rollout as the next big catalyst for the chipmaker after a recent stock slump fueled by a mid-July sell-off from the unwinding of the yen carry trade.
Since then, markets have seen a rotation out of Big Tech while other macroeconomic factors, such as China trade fears, have also hampered Nvidia’s stock price.
But investors and analysts alike remain largely confident in the trajectory of the artificial intelligence trade. Nvidia’s stock is still up about 170% over the last 12 months and more than 2,700% over the last five years. Year to date, Nvidia has gained around 150%.
90% of Wall Street analysts recommend the stock as a Buy, with the majority predicting that shares will rise to around $147.60 over the next year, according to Bloomberg consensus estimates.
On top of its latest Blackwell update, Nvidia’s move to the upside also comes as the company backed ChatGPT developer OpenAI (MSFT) in its latest funding round, which concluded on Wednesday.
OpenAI was able to raise an additional $6.6 billion to reach a valuation of $157 billion in another bullish sign for the AI boom.
Gil Luria, senior software analyst at DA Davidson, said in an interview with Yahoo Finance that “there’s a direct flow from the funding round that was announced today to Nvidia” due to data center demand that would benefit the chipmaker. “That’s why the stock’s up today,” he said.
Yahoo Finance’s Laura Bratton contributed to this report.
Alexandra is a Senior Reporter at Yahoo Finance. Follow her on X @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
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Fenbo Holdings Limited Announces Fiscal Year 2024 First Half Financial Results
HONG KONG, Oct. 03, 2024 (GLOBE NEWSWIRE) — Fenbo Holdings Limited FEBO (the “Company”, “we”, “our”, “us” or “FEBO”), an established original equipment manufacturer (OEM) for a global home essential company, producing electrical hair styling products under the “Remington” brand which are sold to overseas markets, today announced its unaudited financial results for the six months ended June 30, 2024.
Fiscal Year 2024 First Half Financial Results Compared to Fiscal Year 2023 First Half Financial Results
| ● | Revenues were HK$66.9 million for the six months ended June 30, 2024, a 14.2% increase from HK$58.6 million for the six months ended June 30, 2023; | |
| ● | Gross profit was HK$14.9 million for the six months ended June 30, 2024, or 22.3% of revenues compared to HK$10.5 million, or 17.9% of revenues for the six months ended June 30, 2023; | |
| ● | Net loss was HK$1.9 million for the six months ended June 30, 2024, compared to net income of HK$0.2 million for the six months ended June 30, 2023; | |
| ● | Basic and diluted (loss) per share (“EPS”) was (HK$0.17) per share for the six months ended June 30, 2024 compared to income per share of HK$0.02 for the six months ended June 30, 2023; and | |
| ● | Cash and cash equivalents were HK$25.9 million as of June 30, 2024, a 44.1% decrease from HK$46.3 million as of December 31, 2023. | |
“I’m pleased to report our operating and financial performance of the Company for the six months ended June 30, 2024,” said Mr. Siu Lun Allan Li, Chairman of FEBO, “The performance during the period was satisfactory as we were able to increase the revenue and gross profit by substantial amounts which was not sufficient to cover the significant increase in the administrative expenses. However, we have taken a number of actions to reduce costs, enhance efficiency and increase the diversity of customer base as we navigate market uncertainty. Our innovative products and diversified value-added services, strong cash flow and balance sheet as well as dedicated management are enabling us to navigate the market challenges.”
“Our proven track record of operating history positions us to improve profitability and remain flexible in responding to the market. Our recently completed initial public Offering and listing on Nasdaq is a milestone for us that accelerates our efforts to expand our operation geographically and drive future growth. Looking ahead, as we anticipate challenges in the broader environment to persist during the second half fiscal 2024, we remain committed to providing cost effective packaging solutions to our customers. We are confident in our long-term strategy believe that we have the right team in place to generate sustainable long-term returns for our stakeholders,” Mr. Li concluded.
| Unaudited Financial Results for the Six Months Ended June 30, 2024 and 2023 | ||||||||||||
| For the six months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HK$’000 | HK$’000 | US$’000 | ||||||||||
| Revenues | 58,567 | 66,887 | 8,566 | |||||||||
| Cost of sales | (48,088 | ) | (51,948 | ) | (6,653 | ) | ||||||
| Gross profit | 10,479 | 14,939 | 1,913 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (949 | ) | (1,106 | ) | (142 | ) | ||||||
| General and administrative expenses | (8,660 | ) | (16,050 | ) | (2,056 | ) | ||||||
| Total operating expenses | (9,609 | ) | (17,156 | ) | (2,198 | ) | ||||||
| Income (loss) from operations | 870 | (2,217 | ) | (285 | ) | |||||||
| Other (expense) income: | ||||||||||||
| Exchange gain, net | 521 | 216 | 28 | |||||||||
| Loss on disposal of property, plant and equipment | (1 | ) | – | – | ||||||||
| Interest income | 10 | 253 | 32 | |||||||||
| Interest expense | (936 | ) | (304 | ) | (39 | ) | ||||||
| Government grant | – | 140 | 18 | |||||||||
| Other income, net | 59 | 87 | 11 | |||||||||
| Total other (expense) income | (347 | ) | 392 | 50 | ||||||||
| Income (expense) before tax expense | 523 | (1,825 | ) | (235 | ) | |||||||
| Income tax expense | (285 | ) | (76 | ) | (10 | ) | ||||||
| Net income (loss) | 238 | (1,901 | ) | (245 | ) | |||||||
| Other comprehensive income | ||||||||||||
| Foreign currency translation loss, net of taxes | (1,246 | ) | (600 | ) | (77 | ) | ||||||
| Total comprehensive loss | (1,008 | ) | (2,501 | ) | (322 | ) | ||||||
| Net income (loss) per share attributable to ordinary shareholders | ||||||||||||
| Basic and diluted (cents) | 2.38 | (17.19 | ) | (2.20 | ) | |||||||
| Weighted average number of ordinary shares used in computing net income (loss) per share | ||||||||||||
| Basic and diluted | 10,000,000 | 11,057,005 | 11,057,005 | |||||||||
Revenues
Revenue increased by HK$8.3 million, or 14.2%, to HK$66.9 million (US$8.6 million) for the six months ended June 30, 2024 compared to HK$58.6 million for the same period in 2023 primarily because of the increase in revenue for our flat irons and hair straighteners products.
During our six months ended June 30, 2024, the negative impact of the COVID-19 pandemic had greatly subsided, and industries, including consumer confidence, returned to normalcy as compared to the continued negative impact of the COVID-19 pandemic on businesses during the first half of 2023. Despite the COVID-19 pandemic has come to an end, geopolitical conflicts such as the Russia-Ukraine conflict and the Israeli-Palestinian conflict persisted. The consequent disruption of the global supply chain affected the recovery of economic activity and drove inflation up significantly. Moreover, major central banks’ aggressive interest rate hikes significantly increased the complexity and uncertainty of the economic development environment. Against the backdrop of challenging macroeconomic conditions, the consumer goods and manufacturing businesses have been affected and the recovery in consumer demand has been slow. Despite the Company is affected by the weak consumer sentiment and pressure from retails sales, it would continue to put efforts on improving the competitiveness of its high quality products together with bolstering its research and development capabilities with an aim to enhancing its market share in its existing business and achieving a long-term relationship with its customers.
Cost of sales
Cost of sales included cost of raw materials (such as costs of electrical components, packaging materials, metal materials, plastic particles, and painting materials), direct labor (including wages and social security contributions), manufacturing overhead (such as consumables, depreciation, direct rental expense and utilities) and other taxes. We currently do not hedge our raw materials position, and we monitor raw material price trends closely to manage our production needs.
For the six months ended June 30, 2024, cost of sales increased to HK$51.9 million (US$6.7 million), representing an increase by HK$3.9 million from HK$48.1 million in the same period in 2023. The fluctuation of cost of sales was in line with the increase in our revenue during the same period.
Gross profit
As a result of the foregoing, gross profit for the six months ended June 30, 2024, was HK$14.9 million (US$1.9 million), an increase of HK$4.5 million from HK$10.5 million for the same period in 2023.
Selling and marketing expenses
Major components of selling and marketing expenses are packaging expenses, transportation costs and custom declarations. For the six months ended June 30, 2024, selling and marketing expenses was HK$1.1 million (US$0.1 million), which increased by HK$0.2 million from HK$0.9 million in the same period in 2023. The increase during the six months ended June 30, 2024 from the same period in 2023 was due mainly to an increase in overall level of shipping of products.
General and administrative expenses
General and administrative expenses consist primarily of staff costs for our accounting and administrative support personnel and executives, depreciation, office and insurance expenses, motor vehicles and travelling expenses, stamp duty and other taxes, utility expenses, office rental and management fee, legal and professional fee and auditor’s remuneration and others. General and administrative expenses increased by HK$7.4 million from HK$8.7 million for the six months ended June 30, 2023 to HK$16.1 million (US$2.1 million) for the six months ended June 30, 2024. This increase was due mainly to the increase in (i) staff costs and insurance expenses to provide support for the business expansion and (ii) listing annual fee and legal and professional fees for post-listing administrative support during the six months ended June 30, 2024.
Income (loss) from operations
The income from operations decreased by HK$3.1 million from the income from operations of HK$0.9 million for the six months ended June 30, 2023 to the loss from operations of HK$2.2 million for the six months ended June 30, 2024. The deterioration in the financial performance from operations during the six months ended June 30, 2024 were primarily due to the combined effects of the increase of gross profit of HK$4.5 million and the increase of general and administrative expenses of HK$7.4 million during the six months ended June 30, 2024.
Other income (expenses), net
Major components of other income (expense) are exchange gain and loss, gain/loss on disposal of property, plant and equipment, sundry income, government grant and bank interest income. For the six months ended June 30, 2024, net income was HK$0.4 million (US$0.1 million), which increased by HK$0.7 million from net expenses of HK$0.3 million in the same period in 2023. The increase was due mainly to the decrease in interest expenses recognized during the six months ended June 30, 2024.
Net income (loss)
The net income decreased by HK$2.1 million from a net income of HK$0.2 million for the six months ended June 30, 2023 to a net loss of HK$1.9 million (US$0.2 million) for the six months ended June 30, 2024. The decrease in the net income during the six months ended June 30, 2024 was mainly attributable to the cumulative effect of the reasons set out above.
Earnings per Share – Basic and Diluted
Loss per basic and diluted share for the six months ended June 30, 2024 was HK$0.17, compared to earnings per basic and diluted share of HK$0.02 for the comparable period of 2023.
Liquidity and Capital Resources
The Company financed its daily operations and business development through cash generated from the operations of the Company’s wholly owned subsidiaries, consisting of Able Industries Limited, Fenbo Industries Limited and Fenbo Plastic Products Factory (Shenzhen) Limited. As of June 30, 2024 and 2023, its cash balance was HK$25.9 million (US$3.3 million) and HK$21.3 million, respectively.
The following table sets forth a summary of its cash flows for the periods indicated:
| For the six months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HK$’000 | HK$’000 | US$’000 | ||||||||||
| Net cash provided by (used in) operating activities | 7,232 | (23,299 | ) | (2,985 | ) | |||||||
| Net cash used in investing activities | (50 | ) | (37 | ) | (5 | ) | ||||||
| Net cash provided by financing activities | 376 | 2,769 | 355 | |||||||||
Capital Expenditures
The Company had capital expenditures of HK$37,000 and HK$50,000 for the six months ended June 30, 2024 and 2023, respectively. Our capital expenditures were mainly for office equipment. Management intends to fund future capital expenditures from working capital, bank borrowings, lease financing and other financings. The Company will continue to make capital expenditures as appropriate to support its business growth.
About Fenbo Holdings Limited
The Company’s operating history began in 1993 when Fenbo Industries Limited was founded in Hong Kong by Mr. Li Kin Shing as a toy manufacturer and distributor. As the toy market deteriorated, he founded Able Industries Limited in 2005 in Hong Kong and shifted the operations to the manufacturing and sales of personal care electric appliances. The manufacturing subsidiary, Fenbo Plastic Products Factory (Shenzhen) Ltd., located in Guangdong, PRC, was formed in the PRC in 2010 and is capable of producing over three million units per year. The Company currently act as both an original equipment manufacturer and historically have also served as an original design manufacturer. For more information, please visit the Company’s website at http://www.fenbo.com.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in U.S., Hong Kong and China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For more information, please contact:
Fenbo Holdings Limited
Li Siu Lun Allan
Chief Executive Officer and Chairman of the Board of Directors
Telephone: +(852) 2343-3328
Email: allanli@fenbo.com
| FENBO HOLDINGS LIMITED | ||||||||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||||||
| As of | ||||||||||||
| December 31 | June 30 | |||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HK$’000 | HK$’000 | US$’000 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash | 46,342 | 25,900 | 3,317 | |||||||||
| Accounts receivable, net | 31,486 | 45,301 | 5,802 | |||||||||
| Deferred initial public offering cost | – | – | – | |||||||||
| Inventories | 14,088 | 14,802 | 1,896 | |||||||||
| Prepaid expenses and other current assets | 6,017 | 10,116 | 1,296 | |||||||||
| Total current assets | 97,933 | 96,119 | 12,311 | |||||||||
| Property, plant and equipment, net | 1,244 | 1,013 | 130 | |||||||||
| Right-of-use assets | 3,801 | 1,101 | 141 | |||||||||
| Total non-current assets | 5,045 | 2,114 | 271 | |||||||||
| TOTAL ASSETS | 102,978 | 98,233 | 12,582 | |||||||||
| Liabilities | ||||||||||||
| Current liabilities | ||||||||||||
| Bank loan – current | 11,000 | 11,000 | 1,409 | |||||||||
| Accounts payable | 18,482 | 20,963 | 2,685 | |||||||||
| Other payables and accrued liabilities | 7,049 | 2,770 | 355 | |||||||||
| Lease liabilities – current | 4,060 | 1,043 | 134 | |||||||||
| Amounts due to related parties | 2,413 | 3,106 | 398 | |||||||||
| Total current liabilities | 43,004 | 38,882 | 4,981 | |||||||||
| Non-current liabilities | ||||||||||||
| Lease liabilities – non-current | 198 | – | – | |||||||||
| TOTAL LIABILITIES | 43,202 | 38,882 | 4,981 | |||||||||
| Commitments and contingencies | – | – | – | |||||||||
| Shareholders’ equity | ||||||||||||
| Preference shares US$0.0001 par value per share; 3,000,000 authorized capital; nil shares issued and outstanding | – | – | – | |||||||||
| Ordinary shares US$0.0001 par value per share; 300,000,000 authorized capital; 11,062,500 shares issued and outstanding (2023: 11,000,000 shares issued and outstanding) | 9 | 9 | 1 | |||||||||
| Additional paid-in capital | 28,494 | 30,570 | 3,915 | |||||||||
| Statutory reserve | 2,806 | 2,806 | 359 | |||||||||
| Retained earnings | 28,721 | 26,820 | 3,435 | |||||||||
| Accumulated other comprehensive income | (254 | ) | (854 | ) | (109 | ) | ||||||
| Total shareholders’ equity | 59,776 | 59,351 | 7,601 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 102,978 | 98,233 | 12,582 | |||||||||
| FENBO HOLDINGS LIMITED | ||||||||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE | ||||||||||||
| INCOME | ||||||||||||
| (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||||||
| For the six months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HK$’000 | HK$’000 | US$’000 | ||||||||||
| Revenues | 58,567 | 66,887 | 8,566 | |||||||||
| Cost of sales | (48,088 | ) | (51,948 | ) | (6,653 | ) | ||||||
| Gross profit | 10,479 | 14,939 | 1,913 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (949 | ) | (1,106 | ) | (142 | ) | ||||||
| General and administrative expenses | (8,660 | ) | (16,050 | ) | (2,056 | ) | ||||||
| Total operating expenses | (9,609 | ) | (17,156 | ) | (2,198 | ) | ||||||
| Income (loss) from operations | 870 | (2,217 | ) | (285 | ) | |||||||
| Other (expense) income: | ||||||||||||
| Exchange gain, net | 521 | 216 | 28 | |||||||||
| Loss on disposal of property, plant and equipment | (1 | ) | – | – | ||||||||
| Interest income | 10 | 253 | 32 | |||||||||
| Interest expense | (936 | ) | (304 | ) | (39 | ) | ||||||
| Government grant | – | 140 | 18 | |||||||||
| Other income, net | 59 | 87 | 11 | |||||||||
| Total other (expense) income | (347 | ) | 392 | 50 | ||||||||
| Income (expense) before tax expense | 523 | (1,825 | ) | (235 | ) | |||||||
| Income tax expense | (285 | ) | (76 | ) | (10 | ) | ||||||
| Net income (loss) | 238 | (1,901 | ) | (245 | ) | |||||||
| Other comprehensive income | ||||||||||||
| Foreign currency translation loss, net of taxes | (1,246 | ) | (600 | ) | (77 | ) | ||||||
| Total comprehensive loss | (1,008 | ) | (2,501 | ) | (322 | ) | ||||||
| Net income (loss) per share attributable to ordinary shareholders | ||||||||||||
| Basic and diluted (cents) | 2.38 | (17.19 | ) | (2.20 | ) | |||||||
| Weighted average number of ordinary shares used in computing net income (loss) per share | ||||||||||||
| Basic and diluted | 10,000,000 | 11,057,005 | 11,057,005 | |||||||||
| FENBO HOLDINGS LIMITED | ||||||||||||
| UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||||||
| For the six months ended June 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| HK$’000 | HK$’000 | US$’000 | ||||||||||
| Operating activities | ||||||||||||
| Net income (loss) | 238 | (1,901 | ) | (245 | ) | |||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation | 241 | 255 | 33 | |||||||||
| Amortization of right to use assets | 2,654 | 2,721 | 348 | |||||||||
| Interest on lease liabilities | 182 | 60 | 8 | |||||||||
| Loss on disposal of property, plant and equipment | 1 | – | – | |||||||||
| Change in operating assets and liabilities: | ||||||||||||
| Change in accounts receivable | 1,539 | (14,573 | ) | (1,866 | ) | |||||||
| Change in inventories | 2,427 | (962 | ) | (123 | ) | |||||||
| Change in prepaid expenses and other current assets | (809 | ) | (4,269 | ) | (547 | ) | ||||||
| Change in accounts payable | 4,792 | 2,832 | 363 | |||||||||
| Change in other payables and accrued liabilities | (1,043 | ) | (4,233 | ) | (542 | ) | ||||||
| Payments on lease | (2,990 | ) | (3,229 | ) | (414 | ) | ||||||
| Net cash provided by (used in) operating activities | 7,232 | (23,299 | ) | (2,985 | ) | |||||||
| Investing activities | ||||||||||||
| Purchase of property, plant and equipment | (50 | ) | (37 | ) | (5 | ) | ||||||
| Net cash used in investing activities | (50 | ) | (37 | ) | (5 | ) | ||||||
| Financing activities | ||||||||||||
| Proceeds from issuance of ordinary shares | – | 2,076 | 266 | |||||||||
| Advances from related parties | 376 | 693 | 89 | |||||||||
| Net cash provided by financing activities | 376 | 2,769 | 355 | |||||||||
| Net increase (decrease) in cash | 7,558 | (20,567 | ) | (2,635 | ) | |||||||
| Effect on exchange rate change on cash | (114 | ) | 125 | 19 | ||||||||
| Cash as of beginning of the period | 13,853 | 46,342 | 5,933 | |||||||||
| Cash as of the end of the period | 21,297 | 25,900 | 3,317 | |||||||||
| Supplementary Cash Flows Information | ||||||||||||
| Cash paid for interest | 936 | 304 | 39 | |||||||||
| Cash paid for taxes | 565 | 62 | 8 | |||||||||
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